Walter Industries, Inc.

  • Low Debt High Yield Coal Play

    By Reuben Brewer - August 16, 2013 | Tickers: BTU, RNO, WLT

    Rhino Resource Partners (NYSE: RNO) stands out from the coal pack because of its around 14% yield. That's a level at which most investors should assume that a big dividend cut is being priced in. However, Rhino is actually less levered than most of its competitors, giving it an edge in an industry with high fixed costs.

    Owning and operating coal mines requires a lot of up front capital more »

  • 3 Stocks That Could Offer Tesla-Like Returns

    By Sam Mattera - August 14, 2013 | Tickers: USNA, VRA, WLT

    The recent rally in shares of Tesla has been nothing short of extraordinary. In the last six months, shares of the electric car company are up nearly 300%.

    A number of positive events have contributed to the rally (two better than expected earnings reports, a new leasing program, and plans for a fast-charging network, among other things) but the primary factor has been the high short interest. Last spring, half more »

  • Is it Time to Invest in Coal?

    By Brian Nichols - August 13, 2013 | Tickers: ANR, ACI, BTU, WLT

    Aside from solar, no industry in the market has been more beaten down over the last few years than coal. With that said, solar stocks saw a rebound earlier this year, and now with decent data and shifting outlooks, many believe it is now time to buy coal stocks – but is it?

    What Happened?

    Since January 2011, coal stocks have been the worst performers in the stock market. Take a more »

  • When Will Walter Energy be a Buy?

    By Jason Bond - August 8, 2013 | Tickers: ANR, BTU, WLT

    Walter Energy (NYSE:WLT) has fallen 75% year to date. Should investors buy now or wait until the smoke clears?

    Macro Headwinds

    China, which accounted for 45% of the world's steel demand in 2012, is slowing. According to Caterpillar, demand for construction equipment in China has halved. Because of the headwinds, the benchmark coking coal price has subsequently fallen quarter over quarter from $172 to $145 and most metallurgical more »

  • Never-Ending Pain for This Coal Miner

    By Vladimir Zernov - August 6, 2013 | Tickers: ANR, ACI, WLT

    Coal miners are some of the most beaten down stocks this year. And one of the most unfortunate companies among coal miners is Walter Energy (NYSE: WLT). The stock is down 71% already. Investors hoped that the second quarter earnings report would show some improvements. This was not the case.

    No positive changes so far

    Walter Energy has beaten earnings estimates, losing $34.5 million, or $0.55 per share more »

  • This Iron Ore Company Is A Buy

    By Vladimir Zernov - July 29, 2013 | Tickers: CLF, RIO, WLT

    The recent earnings reports from steel companies have shown that there is significant overcapacity in the industry. This overcapacity continues to put pressure on steel prices. In turn, lower steel prices put pressure on iron ore and met coal prices. There is a company that produces both iron ore and met coal – Cliffs Natural Resources (NYSE: CLF). The combination of the above-mentioned commodities has led to a 48% decline this more »

  • This Coal Play Shows Signs of Revival

    By Vladimir Zernov - July 26, 2013 | Tickers: ACI, BTU, WLT

    Coal stocks have been one of the worst performers this year. The sector was pressured by low coal prices and massive debt levels of the companies. The first significant coal stock to report this season was Peabody Energy (NYSE: BTU). The company has beaten analysts’ estimates, reporting a profit instead of the expected loss. Is this the start of the revival?

    Key takeaways from the report

    The company has continued more »

  • Coal Stocks Improved on Cost Cuts Though Stocks Slump

    By Mark Holder - July 26, 2013 | Tickers: ANR, BTU, WLT

    Though the stocks haven’t traded well the last couple of days, costs cuts have improved the potential for rebounds in both Peabody Energy (NYSE: BTU) and Walter Energy (NYSE: WLT). Peabody easily smashed estimates while Walter provided hope that a liquidity crisis wouldn’t smash the stock.

    Coal stocks trade at multi-year lows as falling commodity prices have hit revenues, but now the companies have been able to drastically more »

  • Walter Energy Is Worth How Much?

    By Mark Holder - July 22, 2013 | Tickers: ANR, CLF, WLT

    A typical headline such as the above usually signals a stock that has an absurdly high valuation and that is due for a correction. In the case of Walter Energy (NYSE: WLT), the amazing part is how low the market cap has dropped. This stock was a poster child of the commodity boom and has collapsed around 90% in just over two years.

    The company is seen as the “pure more »

  • Is CONSOL Energy a Good Stock to Buy?

    By Meena Krishnamsetty - July 14, 2013 | Tickers: ACI, CNX, BTU, WLT

    Even if CONSOL Energy (NYSE: CNX) has not been hit quite as hard as some of its peers by the weakened demand for coal, the business has still been struggling recently. In the first quarter of 2013, total revenue decreased 10% versus a year earlier and the company actually recorded a small pre-tax loss compared to pretax income of about $120 million in the prior year period.

    The thermal coal more »

  • 2 Coal Stocks to Avoid

    By Faizan Chudhry - July 10, 2013 | Tickers: ANR, KOL, WLT

    The U.S. coal industry has suffered greatly due to weak coal demand. The Market Vectors Coal (NYSEMKT: KOL), which replicates the performance of coal industry, has an expense ratio of 0.59%. CONSOL Energy and Peabody Energy, with 7.56% and 6.13%, respectively, are among the largest components of Market Vectors Coal. Market Vectors Coal has underperformed the broad market in recent times. Year to date, Market Vectors more »

  • Coal: Pressures and uncertainty to prevail

    By Syed Shah - July 8, 2013 | Tickers: ACI, KOL, WLT

    The U.S. coal companies have been going through hard times since April 2011. Both the met and thermal coal producers have lost significant amount of their market capitalization. The reasons behind downturn in the coal industry have been the economic crisis in Europe and lower natural gas prices in the U.S. (shale gas boom). It is now more than two years since the coal companies started losing their more »

  • Walter Energy: Classic Turnaround Play or Value Trap?

    By Sean O'Reilly - July 8, 2013 | Tickers: ANR, SXC, WLT

    Shares of Walter Energy (NYSE: WLT) have been pummeled as of late. The metallurgical coal producer, one of the only pure plays in the industry, has not only been experiencing losses since 2012, but is now spooking investors of its long-term viability. In fact, one of the reasons for the stock’s 68% drop in share price so far this year was the announcement on June 14 that Walter Energy more »

  • Coking Coal Players Feel the Pain, When the Gain?

    By Peter Epstein - July 2, 2013 | Tickers: ANR, ACI, CNX, BTU, WLT

    Benchmark coking coal prices are down 56% from a quarterly price of $330 per metric tonne in mid 2011 to $145 per tonne for the July-Sept,  2013 period. This depressed level is widely believed to be below the marginal cost of production of roughly $175-$185 per tonne. However, spot prices have been below that level for quite some time, suggesting that the true marginal cost might be closer to more »

  • Will The Bloodbath Ever End For Walter Energy?

    By Vladimir Zernov - June 26, 2013 | Tickers: ANR, ACI, BTU, WLT

    Walter Energy (NYSE: WLT) is a source of never-ending pain for its investors. The stock has lost 68% this year. When it seemed like all the bad news was issued, more bad news came.

    Can Walter Energy survive this tornado? Let’s take a look.

    Source of the problems

    Walter Energy is a metallurgical (met) coal producer. Met coal prices have been under tremendous pressure. At current price levels, company more »

  • Buy This Coal Producer Yielding 6.7% With 47% Upside

    By Peter Epstein - June 26, 2013 | Tickers: ARLP, CLF, TCK, WLT

    Master Limited Partnership Alliance Resource Partners LP (NASDAQ: ARLP) is down 12% from its recent high unit price of $78.5. At today's price of about $68, the units are yielding 6.6%, which is superb for a coal producer. Superb that is, if the distribution is not at risk of being cut. Not only is Alliance's distribution safe, it has risen at a compound annual growth rate more »

  • Market Cap Vs. Enterprise Value of Coal Stocks

    By Peter Epstein - June 17, 2013 | Tickers: ARLP, ACI, BTU, WLT

    Investors looking to play a beaten down sector like coal need to understand the difference between Market Cap, "MC" and Enterprise Value, "EV." Most investors recognize MC, the number of shares outstanding multiplied by the share price. This simple metric serves investors well if there's not much debt on the balance sheet. 

    In short, market cap ignores debt on the balance sheet 

    However, if a company employs debt, then more »

  • Is it Finally Time to Buy Coal Stocks?

    By Peter Epstein - June 11, 2013 | Tickers: ANR, ACI, CNX, BTU, WLT

    Talk about a fall from grace. Peabody Energy (NYSE: BTU) used to be the bellwether coal name in the U.S. and arguably the world. That was two years ago when the CEO, the de facto spokesperson for the industry, liked to talk about the "Coal Supercycle." At $18 and change, Peabody is very close to an all-time low. The last time the stock price was this low was at more »

  • Will This Coal Miner Stop Falling?

    By Vladimir Zernov - June 11, 2013 | Tickers: ANR, ACI, BTU, WLT

    Sometimes luck turns away from certain industries. This has been the case for coal miners this year. Prices for coal remain low. Despite all the efforts to reduce costs, coal stocks continue to suffer. The worst performer in the group is Walter Energy (NYSE: WLT). This stock is down more than 57% this year. Will fortunes change for this troubled miner?

    Why Walter Energy is down so much

    Walter Energy more »

  • Notable Insiders Buys in This Coal Stock

    By Anh HOANG - May 24, 2013 | Tickers: ANR, CNX, WLT

    In the past twelve months, Walter Energy (NYSE: WLT) has experienced a significant drop of nearly 50% to around $18 per share. Taking advantage of the low share price, the company’s insiders, including its CEO, CFO, general counsel, and senior VP of project development, have spent more than $2 million to buy shares since the beginning of May. Should we follow the company’s insiders into this stock? Let more »

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