Despite reporting a 49% drop in fourth quarter earnings, Valero Energy Corporation (NYSE: VLO) beat Wall Street expectations by 38 cents, and you know what that usually means -- the stock jumped.

Valero was able to take advantage of price spreads on crude in the fourth quarter that were obviously not a part of analysts' estimates which they are no doubt changing as we speak.

According to the AP: "In 2008, Valero officials said they expect gasoline markets to return to more seasonal patterns, with margins improving during the summer driving season. Diesel margins were expected to be strong because inventories are lower than last year and demand remains strong, said Chairman and CEO Bill Klesse."

Valero closed yesterday at $54.90 but as I type it is trading up almost 10% to $60.44. Among my Chasing Value: Final list -- 8 stocks for 2008, Valero was the worst performer so far after being one of my best last year.

I followed up with Chasing Value: Valero Energy -- From best to worst? but did not lose faith and still think it is a value here as the largest independent refiner in North America.

Valero operates 17 refineries and 5,800 retail outlets in the United States, Canada and the Caribbean. The Trailing P/E ratio is 6.93 and it has a P/S of .35 and pays a dividend as well. Check it out for yourself, you may agree with me that there is still plenty of value at its current price.

• Disclosure: I own shares of VLO

To find potential opportunities and verify my track record read Chasing Value or Serious Money.

Sheldon Liber is the CEO of a small private investment company and the design and research principal for an architecture & planning firm.