Read the recent articles about Japan and China demand for coal thriving - China will peak around 2030 and Japan needs to replace nuclear, solar and coal are the obvious choices, coal by far being the cheapest. We're only here at extreme oversell due to sentiment. Fundamentals have been bad for years. The kicker was the cancelation of the debt refinance. This wasn't because WLT cannot find a lender. It's that interest rates have shut up in the past few weeks and WLT simply doesn't want to Sentiment has shifted to extreme negative which is when you should hold your nose and buy.
Thanks for your heads up. Its silly uniformed posts like this that want to get me to research what's going on at WLT and the rest of the coal stocks. Actually, this seems to be an unbelievable buying opportunity for CNX. Coal demand from Japan and China is actually rising!! China demand will not peak until 2030. With the upswing in the US economy as well as Brazil, India, Russia, China and Japan, this will boost the demand for steel, iron ore and met coal above where it's projected now. BTW Walter Energy simply retracted it's refinance of some existing debt since the terms were no longer attractive. WLT doesn't have to pay down any debt for 2 years!! It is prudently re-evaluating refi options.
I am loading up on CNX and BTU and a little in WLT thanks to your post.
Read the article posted today about the pricing of Iron Ore & therefore Steel expected to rise in the short term. This is very bullish for WLT together with the huge spike in its short interest is a lethal combo for shorts = I detect at spike in the next week or so for WLT to test $20 again...
If there was one insider trading on his ego, I would agree with you. There were over a dozen different people. Translation - there are better times ahead once we get past the next few days.
In the past month, 111,120 shares were purchased by insiders, at the average price in the $18 range. Over $2M of insider money was deployed. It mean the stock was cheap $4 ago. Let's all believe...
Given the unprecedented negativity on coal in general coupled with China down turn and nat gas dropping to 3 mo lows, I don't know where the bottom is but seems like a heck of a lot of bad news already priced in. Can't believe this thing can go much lower but I guess we could have said that 15% ago. I'm buying here - heavily - GLTA.
Good points. I agree that longer term, this is a great buy out candidate especially for foreign companies wanting to buy US assets. WLT at $50 may be cheap once things start to turn. So at this price, it's ridiculous.
However, what we're witnessing now is not about long term fundamentals. It's simply market manipulation by HFTs and hedge funds trying to turn a quick buck on the short side and will keep pushing this thing lower and squeezing a gain on the short side. However, just like pushing a beach ball under water, when it pops back, it will move up with unbelievable speed. This may not be tomorrow or even next week but it WILL happen. And when it does, with the level of shorted shares, the pop will be massive - to the tune of 25%+ and on huge volume. That would be the beginning of a short squeeze which could push this thing up 100% even. Of course, there's the alternative that the world will stop using coal and steel which means WLT's precipitous drop is warranted and will indeed keep going down to zero.
Once again the little man on the street is being crushed by the mo-mo HFT and hedge fund traders. These bozos will have to cover their shorts as soon as there's a spark of a good news. That's why stocks like this can move up fast when it does. Not sure where the bottom is here but when there's a downgrade after a huge prolonged selloff, more times than not, it's a great contrarian and a buy signal. The same is true when a stock has a huge run up and gets upgraded after the run - then it sells off.
Disagree. WLT will be scooped up by a big foreign multi-national. The upside is way too attractive. And China will need to stimulate soon - give what Japan is doing, China will need to. Also, China's need for coal is still accelerating - will peak out around 2030. There's a huge amount of demand still - WLT is a gift under $20. Finally, as we've seen so many times in the past, once WLT turns, it could shoot up $10 in days. Don't get caught with your pants down...
You're comparing AAPL with a market cap 400 times that of PANL and a matured product cycle with PANL and it's game-changing technology with years of hyper growth to come?? No wonder you got so many thumbs down. Don't lose your day job. I don't think investing will work out for you.
There is a reason why all the board members are loading up on WLT. These are insiders who're putting their money at risk. Now would they do that if things looked bleak? Or would they wait? Just askin...
Another observation is technically WLT is retesting the bottom of $16.47. If it bounces up, it sets up well for a nice move up and up quickly.
Sounds like the good old days. Amzn to go to 1000, yahoo at 400, icge at 300, Jdsu at 200, etc. anyone remember? Nflx is another lofty stock with a promise but no real fundamentals. This is THE contrarian sign to short heavily. This thing could drop 100 in one day as it did last time management got cute. Risk is definitely to the downside here.
Glad I wrote june covered calls strike of $20. I am collecting 9% for 4 weeks. Looked earlier like it might be getting away. But the Wall Street crooks did me a favor.
Tim, for once in your job as CEO be decisive. Do something pro-active. Don't ignore all the disgruntled investors. Push the buy back button, grease some of the analysts, do some PR, make some exciting announcements, Do SOMETHING ! Take a page from the Jobs play book. Or just sit back until the board removes you.