Valero Energy Corporation (NYSE: VLO)
Valero Energy wasn't off to the best of starts in today's trading session. In fact, when the opening bell rang, the stock was trading down in a big way. From there, it only fell further in the first half hour of the day. However, minutes ago, we started to see a spike that could lead the stock to the top. Below, we'll talk about what we're seeing from the stock, why, and what we'll be watching for with regard to VLO ahead.
What We're Seeing From VLO
As mentioned above, Valero Energy didn't seem like it was going to have a very strong day in the market early on. Unfortunately, on the sound of the opening bell the stock found itself well into the red. Shortly after the bell we saw further declines leading the stock further and further into the abyss. However, minutes ago we started to see a spike. While the stock hasn't gotten to the green yet, it is surely making up for the declines. Currently (10:04), VLO is trading at $69.25 per share after a loss of $1.17 per share (1.66%) thus far today.
Why The Stock Is Climbing
As usual, our partners at Trade Ideas were the first to inform us of the run on VLO. As soon as they did, the CNA Finance team started digging to see exactly what was causing the movement. In this particular case, we were unable to find any fundamental news that would suggest such gains were valid. However, in the social space, we found something interesting.
At the moment, there's a rumor surfacing on social media that Valero Energy may be taken over soon. In this rumor, it is suggested that India's Reliance Industries is the buyer and the price per share on the acquisition will be around $80. However, it's important to keep in mind that, at the moment, this is nothing more than an unconfirmed rumor.
What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping an incredibly close eye on VLO. In particular, we're interested in seeing if there is any validity to this rumor. Of course, if there is and an acquisition does happen, incredible value will likely be returned to investors. Nonetheless, we'll watch the news closely and bring it to you as it breaks!
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