'Mad Money' Spotlight: Cramer Shames Valero

What are the magic ingredients required to land one on Jim Cramer's Wall of Shame? Take an idiot-proof quarter where profit is almost assured and turn it into a steaming crater filled with wailing investors. Add in a dash of value destruction -- and mix.

That, at least, was the message from last night's "Mad Money" broadcast, as Cramer declared Valero Energy(VLO Quote) CEO William Kleese to be the latest member of the board of the damned.

Here's how he got there: First, on Tuesday, Valero stunned the Street by announcing that it expects to lose about 50 cents a share in the second quarter. Before the announcement, analysts had expected a 73 cent profit.

Let that thought sink in for a moment.

While many expected a healthy profit because, as Cramer said, the oil refinery business should be going gangbusters, the company instead said it will lose money -- a lot of it. The company blamed the catastrophe on a long downturn at their Delaware City and McKee refineries, along with lower margins on diesel and less money coming in from the processing of sour crude.

Last quarter, Valero had beaten the Street in reporting a profit of $309 million, or EPS of 59 cents, against $261 million, or 48 cents per share, in that quarter's year-ago period. But the company had also reported lower revenues, and had begun to talk about the diesel margins and sour crude declines that dotted Tuesday's forecast.