Goldman yesterday downgraded WLT and ANR to sell. Probably were responsible for the severity of the move with the article and trade desk actions. They sparked another selloff when Walter was near 30 by reiterating a sell order. Reading through the materials they sent made it look like the industry will be expanding MET production at the fastest rate in last 10 years while demand falls. Everything I look at has producers cutting capital additions budgets as well as employees but this is Goldman, they would not publish something if it was not true. Right? A little research indicates that Goldman has been an active “analyst” for WLT. They last gave a buy rating on 3/28/2011 when WLT was priced at $128/share.
Goldman and the rest of this bunch are working these stocks to perfection. Only they got way to short WLT (41% as of July 15 and rising after yesterday. Production will decrease and shortages will emerge as demand grows. This will be a mother of all short squeezes but longs must wait for the fundamentals to reverse which may be a few weeks or 6 months. Very hard to call. In the US, thermal coal inventories are falling fast into negative territory and will put pressure on prices sooner rather than later. Let Goldman and the rest of shorts have their fun, but at the end of the day they will need to cover at the same time as everyone else wants to get long which will be a disaster for them.
#$%$ Goldman and we wait our day.
A disaster for them? Really? Have you not been watching the news as of late? Insider info. and trading has been going on for decades. Holder even said they have a hands off policy of the big fish so as not to take down the whole market. Goldman has been short and is making a fortune. They will cover their shorts well, well below where they shorted and will make millions. They know the situation wlt is in with their debt. They knew and know about their failed refinancing efforts. Have you looked into their debt covenants? Goldman has...with their PhD's who specialize in mathmatics and chaos theory and who used to work for the government at Los Alamos. Never make the assumption you know more than these guys and learn to read between the lines. For example, if there is a bankruptcy declaration coming...they will know about it before you and I. If there is a buyout coming, they will cover before its announced.
That's a big 10-4 grgvll. The big/smart money always knows more and knows it well before the sheep. That's why I find it so ridiculous that the sheep try to micro analyze the fundamentals when they are at such an information disadvantage. I have found, as I'm sure you have, that the best approach for small traders/investors is to follow the tracks (price & volume) left by the big money on the chart. They can say one thing and do another or say nothing at all, but they can't hide their actions in the market.
Let make sure i understand. Goldman Sachs considered the premier broker by many, said buy at $128 and sell at $12. Even dealing in volume that's a hard way to make money. In the future i'll not put faith in them.
I don't believe CROX investors will be putting too much faith in them either.
Check this out, fly-on-the-wall
July 18th "Crocs rallies after Goldman recommends buying into Q2 earnings report"
The stock was trading at $17.00 at the time.
July 25th before the bell and with the stock poised to open at $12.97 "Crocs downgraded to Neutral from Buy at Goldman."
The question is, did they pump it to short it or are they just that plain stupid?