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Bonds Are a 'Safe' Investment: A Big Lie Gets Even BiggerMy editor, Amey Stone, twisted my arm this morning to comment on the David Peltier story on TheStreet.com about Valero Energy (NYSE: VLO). Peltier makes a good case for another 20% upside in the stock this year. He asks readers to let him know if he should track the stock. No need Mr. Peltier, you are late to the party ... but, maybe not too late.
BloggingStocks and numerous others are already doing that. Perhaps you might want to buy some Valero though, if you have any conviction. Peltier makes some fine points about the low P/E ratio, the stock price being 21% below its 52-week high, the company's 50% increase in dividend to a modest 0.9% yield, 5000 gas stations and HUGE cash flow, stock buy-backs and more! All said here six weeks ago: Valero Energy: Unbelievable value for 2007.
Since VLO appreciated almost 10% in January, it is no surprise the stock is getting increased attention. Although late to the party, the party is far from over so come on in, pick up a cool one, rest your soul and make a few bucks too while you're at it. Tracking it is fine, owning it might be better.
If you want to refer to the original article from December 28, 2006 see:You don't have to be 007 to find the best picks for 2007!.
Check out my other posts for BloggingStocks here.
Sheldon Liber is the CEO of a small private investment company and the vice president for design and research at an architecture & planning firm.
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Reader Comments (Page 1 of 1)
2-07-2007 @ 3:48PM
john said...
Valero is the sales arm of venezuelas communist power grabbing dictator. I will walk before purchasing gas from this "DIRTY COMPANY". Selling drugs has a more profitable "upside", however I would not do that either. I do not find profit more important than my convictions.
2-07-2007 @ 3:27PM
Sam Lasley said...
Because Valero has the capacity to refine heavy sulfur crude such as Venezuela produces some may think that Valero is aiding Chavez. That is in no way true as many other countries also export a heavy crude and it is more profitable for Valero to process this. Buy more Valero now.
2-07-2007 @ 4:02PM
Sheldon L said...
John,
Can you elaborate on this connection between VLO and Venezuela, if you think it is unique or harmful to US interests?
2-08-2007 @ 9:11PM
Mark said...
Sheldon,
Thanks for the Valero pep-rally. I bought this stock in 2002 and then sold it the same year. I had been kicking myself a little bit, but continued to watch the company. When it dipped below 50 earlier this year I was floored. I immediately bought it up and have no plans to let go early this time around. The company is a great value, has alot of cash, runs efficiently and continues to grow.
To address the concerns about Venezuela, the last time I checked on PDSV, the state-owned VZ company, they owned CITGO. Citgo, in addition to retail stations, owns a few handfuls of refineries that process the sour crude that VZ produces. Latest word is that Chavez might be looking to sell some of Citgo's refineries. Premcor and our friend, Valero, are mentioned buyers. Just one more reason to buy Valero.
3-01-2007 @ 4:47PM
Bobby G.Horn said...
This is about the last day or too GREANSPAN should keep his mouth shut It's not his job now.As for those of you that sold out of FEAR it serves you RIGHT