The RealMoney contributors are in the business of trading and investing all day on the basis of ongoing news flow. Below, we offer the top five ideas that RealMoney contributors posted today and how they played those ideas.
TheStreet.com brings you the news all day, and with RealMoney's "Columnist Conversation," you can see how the pros are playing it on a real-time basis. Here are the top five ideas played today. To see all that RealMoney offers, click here for a free trial.
1. Valero Makes a Permanent Shutdown
By Sham Gad
8:25 a.m. EST
Refiner Valero (VLO) has decided to permanently shut down a refinery in Delaware, eliminating 550 jobs. So far, refiners like Valero and Tesoro (TSO) have been idling plants and capacity until the market improves. As a sign of how bad the times are for refiners, Valero was unable to find a buyer for the 210,000 bpd plant. Lack of a buyer, even at a rock-bottom price, is interesting considering one bull argument that supports refiners: no U.S. refinery has been built since the 1970s due to the capital involved and regulations needed. The fact that no one was interested at any price may indicate more of these shutdowns to come. This refinery represented 7% of Valero's capacity.One can argue two points of view going forward: 1) Continued capacity curtailment and permanent refinery shutdowns will lead to a severe supply disruption somewhere down the road when the economy turns and demand for gas turns up, in which case a bullish stance on Valero and Tesoro (that trade below book value) is warranted; or 2) the demand for gasoline may be on a permanent decline curve as the growth of electric automobiles propels over the next decade. No positions.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV