Goldman Sachs continues to view Sell-rated Walter Energy (WLT -2.3%) as overvalued even after Q4...


Goldman Sachs continues to view Sell-rated Walter Energy (WLT -2.3%) as overvalued even after Q4 results sent shares tumbling 11%; WLT has missed consensus EBITDA estimates in six of the past eight quarters. The firm needs to see better execution in Canada, sharply higher met coal prices, and improved financial flexibility via restructuring or finding a partner to fund its growth projects.

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Comments (3)
  • lumpofcoal
    , contributor
    Comments (53) | Send Message
     
    They have cash & credit for at least a year, as per their published data.
    The demand is increasing; the met price is bottoming; the CapEx. is tightened up; the cost per ton to get it into the market is down; Europe and Brazil (main markets) show promise.
    Looks like a BUY and a BUYOUT at this point.
    What is fair value on a buyout of the whole company? $75.?
    25 Feb 2013, 02:34 PM Reply Like
  • Blue Horshoe love Anacot Steel
    , contributor
    Comments (286) | Send Message
     
    this means that goldman sachs is shorting it. didn't they put a sell rating on a stock right before it got bought out in the past week? someone help me here....
    25 Feb 2013, 05:07 PM Reply Like
  • nvanderelst
    , contributor
    Comments (3) | Send Message
     
    The following observation is the result of 30 years working in the industry: Analysts are typically extraordinarily good at rating stocks a sell at or near the bottom, and typically upgrade to a buy when the upside is behind. Their recommendation is probably an excellent buy signal.
    26 Feb 2013, 07:07 AM Reply Like
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