Walter Energy leads bounce in coal names

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

Walter Energy (WLT +6.2%) bounces from yesterday's plunge, with Morgan Stanley's Evan Kurtz saying Wednesday's debt offering gives the company sufficient liquidity to make it into 2017 even if the price of met coal doesn't recover.

The met coal weakness - with spot prices below cash costs of 89% of global seaborne producers - is unsustainable in the view of his team, but nevertheless, it's altered its bear case to a world where prices never again rise above  $160 per ton. In this instance, the PT on WLT would be $2.

Others bouncing today: Arch Coal (ACI +2.6%), Alpha Natural Resources (ANR +2.4%), Peabody Energy (BTU +1.1%), Consol Energy (CNX +0.9%).

KOL +2.5%