well guys...remember our last discussion as to who is buying this stock as all the big boys and istitutions are getting out? How can a stock steadily go down from $145 to $17 and have buyers all the way down? Where do these people come from? How and why would they let the big boys out of this trade by buying?
Well, its guys like our friend the golfer here. There are always buyers out there in this market, which is what makes it such a great market. There are just not as many as sellers, hence the slow steady stock price collapse.
Why would anyone thing this stock is cheap or have any chance of going up? Regardless, they are out there. Forget trying to figure out why, just come to the realization that these people do exist. So making some money on a stock that we know without any doubt, will end up in bankruptcy.....again....is not out of the question.
This was so oversold. The company has positive cash flow and can service its debt. No significant debt is coming due anytime soon. I think the short side is played out and with the met price outlook firming (or forming a base). I do not think this is an acquisition run up, but rather a return to fair value and look for the $24-$25 range over the next 2-4 weeks.
Wells Fargo maintained an Outperform rating on Walter Energy (NYSE: WLT) with a modified price target of $20-$24 (from $31-$37). Analyst Sam Dubinsky thinks met coal prices will bounce and sees a bottom in shares.
"While we acknowledge owning WLT shares is difficult in the midst of a commodity downcycle, metallurgical coal prices have been near current levels only three other times within the past five years (January 2008, February-August 2009, August-September 2012). We believe pricing is due for a bounce, especially since more supply is likely to come offline at today's depressed ASPs. While timing a recovery is difficult, we expect WLT shares to bottom barring the absence of a macro shock," said Dubinsky