Walter Energy moves higher as China tackles steel oversupply

|About: Walter Energy, Inc. (WLT)|By:, SA News Editor

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%.