Seeking Alpha

Walter Energy moves higher as China tackles steel oversupply

  • Walter Energy (WLT +2.6%) has outpaced other coal stocks so far this week, perhaps given a boost by news that China is tackling the problem of steel oversupply in the country.
  • WLT sells both thermal coal and met coal, but it's focus is more on met coal, a key ingredient in making steel; Briefing.com says this is why the China news would be positive for WLT, which is known as the pure met coal play.
  • WLT's move also may be aided by some short covering, given that 40.5% of the float is short; other coal stocks with a high short interest include JRCC at 22.5% of float, ANR 20.1%, ACI 18.6%.
Comments (2)
  • Yorick
    , contributor
    Comments (575) | Send Message
     
    The only thing to guess at with coal is whether their cash situation will extend past the shale gas "revolution" timeframe...from here to there, they either survive or go the way of Patriot...
    7 Aug 2013, 10:21 AM Reply Like
  • Blue Horshoe love Anacot Steel
    , contributor
    Comments (286) | Send Message
     
    walter has very little revenue from thermal coal and produces primarily met coal so the "shale gas revolution" will not affect them.
    7 Aug 2013, 05:00 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs