Bill Maurer's  Instablog

Bill Maurer
  • on Technology
  • on Long Ideas
  • on Short Ideas
Send Message
Bill Maurer, in addition to writing for Seeking Alpha, is currently a part-time trader. Bill holds a Bachelor of Science Degree from Lehigh University, where he double majored in Finance and Accounting, with a focus on Investments and Financial Analysis. While at Lehigh, he was a Head Portfolio... More
  • Walter Energy's big day 1 comment
    Sep 7, 2011 12:54 PM | about stocks: WLT

    Shares of Walter Energy (NYSE:WLT) are up 25% today on a takeover rumor. This is great news for investors who held these shares as they dropped from $130 to just $70 during the past 2 months. Anyone lucky to get into this stock in the low to mid $70s must be jumping for joy today. 

    The stock's nearly 50% drop seemed a bit harsh to me but I didn't get in. Walter's business just doesn't click for me in this economy. According to Yahoo! Finance's estimates (see link below), the company is projected to see 88% and 21% growth in revenues for 2011 and 2012, but just a 40% and 19% growth in EPS over those two years. A couple of the company's financial ratios seem to be weakening as well.

    Today's jump will help some investors recoup losses, but this isn't a time to jump right in. The stock traded above $97 earlier in the day, and we've already lost nearly $5 from the highs. I wouldn't be surprised to see this stock close near $90 today, and we could easily see $85 in the coming days.

    While I won't rule out a takeover, I'm not interested in WLT at these levels. Let's see how the global economy is in a few months, and maybe I'll take another look then. I'd rather lose the upside on any takeover than see the losses if this stock drops back towards its 52-week lows.

    Disclaimer: I have no position in WLT currently, and do not intend to initiate a position in the next 72 hours.

    Link for earnings estimates:

    Stocks: WLT
Back To Bill Maurer's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (1)
Track new comments
  • Peter Epstein
    , contributor
    Comments (1657) | Send Message
    The latest article on WLT just got posted to SA, please take a look.

    2 Oct 2011, 08:59 AM Reply Like
Full index of posts »
Latest Followers


  • Of course Trip is out to spin the Mobileye news for $TSLA, saying that the Mobileye stuff is obsolete.
    1 day ago
  • I'll be working on some very good articles over the next few days. Look for them to be published Monday.
    6 days ago
  • $TSLA master plan 2 out, only about an hour late, after being 3 days late originally. A lot of Elon Musk sunshine and rainbows. How much $$?
    7 days ago
More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.