Leave Those Refiners Alone

The refiners, particularly Valero (VLO), turned in quite a performance Wednesday. On the basis of a rumor -- Valero as the potential takeover target of the Indian firm Reliance Energy -- shares of Valero increased more than 16% on the session, dragging most of the other refining names upward with them. While this represents a fantastic explosive first act, I don't expect it to be much more than a one-act show.

We'll need to do a little reconnaissance on the industry to see it, but any ideas of refining as a fantastic new mergers-and-acquisitions opportunity are a bit far-fetched. With a little history behind us, we can see how difficult the refining business is and why its future is still very much in doubt....678 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.