Guys, this stock is certainly still a buy. Fast Money commentator has a short term "short" on the stock, but WLT remains a long term buy and hold stock. Considering it has a high beta and large spread each day, ranging from 5-8 dollars a day in price change. Please read this:
Last week Warren Buffett commented that pricing power is more important than management when it comes to finding good buys. This is called market power in economics. Firms that can raise their prices without losing customers are said to have market power. The extreme case of market power is called monopoly.
Anthony Scaramucci, Managing Partner of the SkyBridge commented on Buffett's latest words on CNBC‘s Fast Money. He named four companies that have the greatest pricing powers: Apple (AAPL), Philip Morris (MO), Walter Energy (WLT) and Loral Space & Communications (LORL).
Now read this, taken out of context on Alpha's sight, and also coming out from Jim Cramer:
Walter Energy (WLT) gained 5.26% as it announced its new CEO. Walter Energy said that it would name Western Coal’s CEO Keith Calder as CEO of the combined Walter/ Western company when the two merge. The Walter/ Western deal is expected to be completed on April 1st. Prior to his time at Western coal, Mr. Calder was Managing Director of Rio Tinto’s (RIO) Copper Projects. Although widely expected, this clarity regarding the CEO is still a positive as Walter has been without a permanent CEO for quite some time. Looking forward, the stock appears a good buy in near term. Benchmark met coal settlements are expected to take place in next two weeks. Met coal prices have moved up significantly since the massive floods hit Australia and I don’t think stock is pricing in that properly. The upcoming settlement could act as a catalyst.
Come April, this stock should shoot up to 150 as soon as a merger appears with Western Company.
I'm buying and holding for 1-2 year at this price, even if it goes down to 100 dollars.
Seymour's picks are wrong more often than they are right - quite a wide margin actually. There is a website that tracks that, but I've forgotten what it is. The same can be said for Cramer. There actually was a small portfolio traded for most of 2007 that did exactly the opposite of what Cramer recommended and it was up something like 40%.
You can make $$$ off of the recs these guys make - you just have to trade it and usually go in the opposite direction. In fairness to both of them, part of the reason a contra strategy works is because of all of the sheep that blindly follow their advice. Good trading to all.
Wow! Lot's of Cramer bashing here. For starters, calling BS on...
"The same can be said for Cramer. There actually was a small portfolio traded for most of 2007 that did exactly the opposite of what Cramer recommended and it was up something like 40%."
It's impossible to accurately track every recommendation Cramer makes and you can't assume his exact buy and sell positions.
I LOVE Cramer and owe most of my profits to him over the past three years. Yes, many people blindly follow him (and other talking heads on TV for that matter). Just look at the Shorts taking the Fast Money recommendation without any mention of a fundamental reason to do so. All I can say is that when Cramer mentions a stock that interests me, I do as much DD as I can, then decide whether to buy or not. Gained 26.2% in 2010. How? Not by blindly following him, but by following his lessons in fundamental analysis and applying it.
My portfolio is 80% Cramer-endorsed. Recently got into options because of him with amazing results.
It can't be random luck that I crush the market three years running based mostly on Cramer's guidance.
Sadly, bashers of Cramer just don't get it.
That is why Walter trades up and down so much. Traders are playing with Walter. Go LONG and HOLD. Walter did not go up with the oils, so do not bet it will fall with them when oil drops.
are you kidding? i thought it was bad people listen to cramer but now they are listening to trust fund babies like tim seymour who have blown out multiple times and been bailed out by family money? LMFAO