We reiterate our Underperform rating for Valero Energy (VLO) shares as a combination of weak demand, excess production capacity and narrowing crude quality spreads are expected to weigh on near-term margins.

In addition to the near-term margin issues, commissioning of new refineries and extension projects indicate future struggle as global demand for almost all fuel products (except gasoline) is trending down.

The medium- to long-term outlook also remains cloudy, with unfavorable regulatory changes (growing biofuel mandates) weighing on demand growth and limiting margin gains. Being the largest independent refiner, Valero remains particularly exposed to this unfavorable macro backdrop.Zacks Investment Research

We reiterate our Underperform rating for Valero (VLO) shares as a combination of weak demand, excess production capacity and narrowing crude quality spreads are expected to weigh on near-term margins.

In addition to the near-term margin issues, commissioning of new refineries and extension projects indicate future struggle as global demand for almost all fuel products (except gasoline) is trending down.

The medium to long-term outlook also remains cloudy, with unfavorable regulatory changes (growing biofuel mandates) weighing on demand growth and limiting margin gains. Being the largest independent refiner, Valero remains particularly exposed to this unfavorable macro backdrop. Zacks Investment Research

For Immediate Release

Chicago, IL – September 14, 2009 – Zacks Equity Research highlights Tyco International (TYC) as the Bull of the Day and Valero (VLO) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Textron (TXT), Outboard Marine (OM) and Walmart (WMT).

Full analysis of all these stocks is available at http://at.zacks.com/?id=2676

Here is a synopsis of all five stocks:

Bull of the Day:

We are initiating coverage on Tyco International (TYC) shares with an Outperform rating and $36 target price.

The company's third-quarter results benefited from the improvement in key metrics like account growth, average revenue per user and the disconnect rate, which helped sustain recurring revenues.

Tyco is increasing capital expenditure on Research & Development at its two new centers in Shanghai and Bangalore, which are focused on developing products tailored to respective local

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We reiterate our Underperform rating for Valero (VLO) shares as a combination of weak demand, excess production capacity and narrowing crude quality spreads are expected to weigh on near-term margins.

In addition to the near-term margin issues, commissioning of new refineries and extension projects indicate future struggle as global demand for almost all fuel products (except gasoline) is trending down.

The medium to long-term outlook also remains cloudy, with unfavorable regulatory changes (growing biofuel mandates) weighing on demand growth and limiting margin gains. Being the largest independent refiner, Valero remains particularly exposed to this unfavorable macro backdrop.Zacks Investment Research

Yesterday, Valero Marketing and Supply Co., a subsidiary of oil refiner and marketer Valero Energy Corp. (VLO), won an aviation fuel supply contract worth up to $230.5 million from the U.S. Defense Logistics Agency. The Pentagon said that Valero will provide the fuel to the Defense Energy Support Center, which manages bulk fuel purchases on behalf of the U.S. Department of Defense. The contract, which ends on Oct 30, 2010, will require Valero to ship the fuel from its 170,000 barrel-per-day refinery in Benicia, California.     We view this contract as a positive for Valero as this will bring much needed cash flows for the company in an otherwise gloomy economic environment. However, a combination of weak demand, excess production capacity, and narrowing crude quality spreads continue to weigh on Valero’s near-term margins, thereby squeezing its profits. Weighed down by these factors, the Texas-based marketer of petroleum ...

Russia and the Netherlands have 'serious plans' to increase their energy projects; Royal Dutch Shell is seeking involvement in the Yamal region.  The oil giant has made a discovery of natural gas in the Norwegian Sea that could be the biggest in 12 years.  Apparently oil firm Rosneft will not merge with Surgut.  The company may enter into a joint project with Eni in Africa.  Lukoil is set to buy a 45% stake in a Dutch refinery from Total, outfoxing US refiner Valero.  Rosneft has significantly extended the powers of its board of directors and the government has voted Vladimir Bogdanov, head of rival oil company Surgutneftegaz, onto Rosneft's board, indicating intentions of a possible merger?  Apparently the EU is worried about the stability of Russian gas and may give Kiev a loan.  Arctic ...

For Immediate Release

Chicago, IL - June 16, 2009 - Zacks Equity Research highlights Maxim Integrated Products (MXIM) as the Bull of the Day and Sonic Innovations (SNCI) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Valero (VLO), Tesoro (TSO) and ConocoPhillips (COP).

Full analysis of all these stocks is available at http://at.zacks.com/?id=2676.

Here is a synopsis of all five stocks:

Bull of the Day:

Maxim Integrated Products (MXIM) is an OEM of semiconductor analog and mixed signal ICs. March quarter results were short of consensus estimates, although they were in-line with management's own expectations.

Forward guidance is for a revenue increase of 3-12% in the June quarter. Order rates started picking up in three of the four end markets, and the fourth market is expected to

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The House Energy and Commerce committee passed the American Clean Energy Security Act (H.R.2454), also known as the Waxman-Markey bill, on May 21. The bill is expected to be considered by other House committees in the coming days and is reportedly on a fast track for a vote in the full House before the July 4 recess.

While there are many important changes that this 946-page tome is aiming to bring about, we are focusing here on one central part of the proposed legislation -- the Cap & Trade regime. The bill creates winners and losers among different energy producing and consuming sectors through its initial free awards of emission permits.

Approximately 85% of the permits are doled out for free, with the rest auctioned off. According to a preliminary estimate by the EPA, a permit to emit one ton of carbon dioxide or equivalent will be worth $11-$15 in 2012,

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* Valero (NYSE:VLO) was downgraded to "underperform" from "market perform" following news of its suspension of expansion plans for its Port Arthur refinery. Valero's 40 million shares offering was repriced lower at $18, sharply off original estimates, although only a slight discount to Wednesday's close

* Goldman Sachs' (NYSE:GS) removed Gap Stores (NYSE:GPS) from its conviction buy list, and downgraded the stock to "neutral."

* Dupont (NYSE:DD) was downgraded by Merrill's analysts as being fully priced

* Rio Tinto (NYSE:RTP) initiated a deeply-discounted $15.2 billion rights issue as well as a joint venture with BHP Billiton (NYSE:BHP), walking away from its $19.5 billion Chinalco (NYSE:ACH) deal

Zacks Investment Research

Last year, oil prices went crazy. In a matter of weeks, oil shot up as high as $147 and came right back down. Today, oil is sneaking back up. The obvious temptation is to try and time it again. The smart money, however, is looking elsewhere to take advantage. We found the perfect penny play to do just that…

Spreading Your Bet Without Losing Any Profits

Instead of outright betting on oil’s price, let’s use the spread between oil and gas. After all, some of the largest companies in the world do this. All the large oil companies (ExxonMobil -NYSE:XOM-, BP, Shell -NYSE:RDS.A-, etc.) do it by owning refineries.

Now, to be fair, most of their profits don’t come from the refinery process. But big money is still out there for the taking. Just take a look at industry leader Valero (NYSE:VLO). Last year, while it may not have

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