I was heavily invested in Whole Foods during the recession in 2008 when they couldn't even get financing to open new stores that they had signed leases on. In my town they had a vacant location for 2 years that they couldn't get financing to open it up for business. No banker would lend them money. I remember the message board was filled with predictions of bankruptcy. They finally had to go to a private lender who took an equity stake. The message board was laughing at him, the stock was around 10, everyone thought WFM was history...who buys expensive foods when you can't even pay your mortgage. Anyway, the stock is now over 100 (recent split adjusted). At some point, China and other countries go into another boom cycle and this stock participates.
Having said that, I got into this stock recently, averaged down yesterday, and if I see 14 to 15, I'm lighening up because this stock is just being mercilously bullied down by hedge funds who have been getting creamed on short positions in general, so they now have all their eggs short WLT. The trading and chart pattern tells me some really big players with endless money are just hammering this thing.
That was in a recession and Whole Foods was still profitable; and Whole Foods was not in HUGE DEBT. Whole Foods has unique products that the regular retail food store doesn't sell.
Walter Energy is in a commodity business that is PLUMMETING and you have BHP that can supply the same thing at lower cost structure. WLT is in HUGE debt paying 8.5% that is usually reserved for the worse borrowers. Their revenue was down almost 30% year over year and continues to fall. They wildly paid for the Canadian company at the height of the market and now paying for it.
The US is in great debt, FNFG bank overbought and paid too much for HSBC 3 years ago, Best Buy was almost under, so was Groupon, Winn Dixie, Bank of America, AIG, and list goes on. Like food, coal is needed. Don't buy your argument. All of those stocks were punished and are now recovering.