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Re: Timothy Smith post# 932

Saturday, 08/25/2012 6:11:14 PM

Saturday, August 25, 2012 6:11:14 PM

Post# of 1965
Worthy, reasonable opinion, sir.

But....if youse really want to do thorough, deep due diligence on Valero Energy, youse must look at the BIG Picture.

Personally, I believe that VLO is grossly undervalued in the marketplace, Without extensive elaboration, let me just tease youse with two (2) areas pregnant with consequences:

1. Divesting the Retail segment; that should be worth ten (10) bux per share appreciation.
2. Full accounting and auditing of the replacement costs of the refining assets of the corporation.

The research ain't easy. The facts have to be mined. The formulas for calculating replacement costs are fixed, rigid, and unyielding. Petroleum economics is a very specialized analytical realm and few are fully capable of grasping it. The market ain't got a clue. All IMHO.

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