Posts for Ticker ‘VSUNQ’

Refiners’ Second Take: Valero’s Risk of Irreparable Harm (VLO, MRO, HES, TSO, SUN, TOT, VSUNQ)

Refinery ImageValero Energy Corp. (NYSE: VLO) may have caused some irreparable harm to itself and to shareholders this week.  Losing money is just not something that the investing public was ready to stomach.  Dumping news of a large secondary offering right on top of projecting a loss was no different than pouring salt and peroxide on your kid’s cut hand when he wasn’t looking.  This has added pressure on other refiners such as Marathon Oil Corporation (NYSE: MRO), Hess Corporation (NYSE: HES), Tesoro Corporation (NYSE: TSO), and Sunoco Inc. (NYSE: SUN).  Valero has always had what always looked like a dirt cheap price to earnings ratio, and now you know why.  This may have put some serious future questions on the sector, even if much of this news is company-specific.
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Posted on: June 4, 2009 – 12:06 pm in Oil & Gas, Secondary Offering, Trading Alert, Value Investing, , , , , , ,

Valero Takes the VeraSun Prize (VLO, ADM, VSUNQ)

Valero Energy Corp. (NYSE:VLO) has won the auction for seven ethanol plants formerly owned by VeraSun Energy Corporation (VSUNQ), which is now in Chapter 11 bankruptcy. Valero will pay $477 million for the plants.

According to the AP, Archer Daniels Midland Inc. (NYSE:ADM) “participated” in the auction, but did not buy anything. ADM must be too busy looking at Brazilian sugar-cane ethanol producers.

Three other lender groups submitted bids totaling $576 million for other VeraSun refineries and properties. Valero will operate its new ethanol refineries through its Valero Renewable Fuels subsidiary.

Valero’s 52-week range is $13.94-$55/share. Shares closed at $18.50 yesterday. Buying ethanol refineries is likely to keep the price down closer to the bottom than to the top of that range.

Paul Ausick
March 18, 200

Posted on: March 18, 2009 – 7:54 am in Alternative Energy, Mergers and Buy Outs, Oil & Gas, , ,

VeraSun: Who is that White Knight? (VSUNQ, CHSCP)

Ethanol maker VeraSun (VSUNQ) is currently in Chapter 11, and is spreading the suffering to growers because it has stopped buying feedstock (corn) that it can’t pay for.  But never fear, help is on the way. Maybe.

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Posted on: November 25, 2008 – 7:59 am in Alternative Energy, Mergers and Buy Outs, Turnarounds, ,