Walter Industries Inc. (WLT)

All Comments on WLT

  • commenter
    cjct
    Oct 02 04:53 PM
    Why Don't Earnings Matter Anymore? [view article]
    First of all stocks don't trade on history/past earnings they move on profit expectations. As of right now, earnings expectations are way to high for the entire commodities sector and will have to be adjusted downwards to reflect the fast-slowing global economy. Reply
  • commenter
    cjct
    Oct 02 04:51 PM
    Why I'm Buying Massey Energy Ahead of Earnings [view article]
    Wow what an amazing call lets by cyclicals/companies extremely sensitive to the health of the global economy. You got what you deserved for joining the commodities group that was all to eager to say "this time is different." Reply
  • commenter
    Tinman
    Sep 29 11:09 AM
    My Website
    Reducing Coal Position As Hedge Funds Punish the Sector [view article]
    WLT has a leverage ratio over 6, D/E >3. Wouldn't touch it in this climate. Reply
  • commenter
    Tinman
    Sep 29 11:07 AM
    My Website
    Reducing Coal Position As Hedge Funds Punish the Sector [view article]
    MEE ripped for 15% so far today (-6 @ $33.70) -- imagine if the bailout talks had stalled! Do hedge funds have any more short positions to be squeezed? Reply
  • commenter
    einstein p
    fleet
    Sep 26 08:11 PM
    My Website
    Reducing Coal Position As Hedge Funds Punish the Sector [view article]
    WLT at 50 a share has been punished enough ---- I'm buying the stock. Undervalued and due for a BIG pop. Reply
  • commenter
    beegdawg007
    Sep 25 01:10 PM
    Reducing Coal Position As Hedge Funds Punish the Sector [view article]
    >>>Another option is of course simply buying the coal ETF (KOL) [New Coal ETF (KOL) Introduced from Van Eck Global]<<<

    Careful. Right now KOL is trading at a significant premium NAV to the underlying. This has all happened only since the beginning of Sept.. The logical trade going forward is for the hedge funds to soon flip and short KOL and go long the underlying components. This trade will make money even if both sides decline as long as the KOL goes down more than does the component parts.
    Reply
  • commenter
    John Egan
    Sep 23 03:29 PM
    Reducing Coal Position As Hedge Funds Punish the Sector [view article]
    Dr. Duru.. Seems like investors are trying to get back in coal (as I am) , but didn't have time to pick individual names. Could also have just been short covering on the ETF... It being Freaky Friday and all...

    jegan ;- )     Reply
  • commenter
    Dr. Duru
    Sep 23 08:59 AM
    My Website
    Reducing Coal Position As Hedge Funds Punish the Sector [view article]
    Did you notice how KOL soared on Friday well ahead of its individual components? What happened there? Reply
  • commenter
    gamma65
    Sep 18 08:23 PM
    My Website
    Steel, Coal and Agriculture Plays Turning Over [view article]
    On the issue of rotation we need to take a longer view. The equity and bond markets have benefited from a long period of low inflation, but ongoing and massive central bank liquidity injections point to a far less benign environment of elevated inflation ahead. Research by Agcapita Farmland Investment Partnership (Calgary based agriculture private equity firm) shows investors must be prepared to rotate into asset classes with different characteristics.

    During the last commodity bull market & high inflation period in the 1970’s, equities materially underperformed farmland. Western Canadian farmland went from around $100/acre to $550/acre (550% total return and 176% in inflation adjusted terms), cash held in a money market account barely kept ahead of inflation (6% inflation adjusted return) and the S&P 500 index returned less than 2% per year (a loss of almost 50% in inflation in adjusted terms)

    I believe the world is still in the early stages of this current commodity bull market. When agriculture commodities prices are compared against their previous inflation adjusted highs they are significantly discounted implying scope for further increases:
     Corn is US$ 5/bushel currently compared to US$16/bushel in 1974,
     Wheat is US$ 7/bushel currently compared to US$27/bushel in 1974
     Canadian farmland is C$ 660/acre currently compared to C$1,100/acre in 1981

    Reply
  • commenter
    tessant
    Sep 16 07:42 PM
    My Website
    Why Don't Earnings Matter Anymore? [view article]
    i dont know if anything matters in this market... Reply
  • commenter
    Peppio
    Sep 14 04:54 PM
    My Website
    Why Don't Earnings Matter Anymore? [view article]
    The "investors class" is shrinking nowadays. The "blind-folded class" is rising rapidly. So, watch out. Reply
  • commenter
    alphameister
    Sep 12 01:16 PM
    Why Don't Earnings Matter Anymore? [view article]
    Agree fully with the thesis of the original article and with most of the comments. Eventually, value will prevail. Between de-leveraging of hedge funds who had loaded up on these stocks when they were momentum favorites, and speculators trading into oversold rallies by sectors that face long-term secular problems, GARP investors have suffered unwarranted damage lately. But strong and highly visible earnings growth combined with p/e expansion will make these stocks huge winners 12 months out. Reply
  • commenter
    TraderMark
    Sep 11 08:33 PM
    My Website
    Why Don't Earnings Matter Anymore? [view article]
    Jason, I did not project the 1 year growth rate to "infinity"

    I wrote

    I like to compare earnings versus growth rates. I use my estimate for the next 3 year growth rate, but what I used below is a 1 year growth rate. So while we hide under the bed about the death of the global economy (ex the USA) we see companies that should be slowing from 30,50,100% type of growth down to 20-30% over the coming years. Those are valued at forward PE ratios of 5.     Reply
  • commenter
    einstein p
    fleet
    Sep 11 06:51 PM
    My Website
    Why Don't Earnings Matter Anymore? [view article]
    The move by Joy Global to buy back 2B dollars of stock is a game changer. Notice that POT followed suit.

    These stocks are cheap, have earnings visibility, and tons of cash. They do not have to go, hat in hand, to the government for a bail out courtesy of the US taxpayer. They will take matters into their own hands.

    The hedge funds should pay attention. It's just the beginning. There are plenty of other companies that are awash in cash and they know their space well. If the hedge funds reverse their positions and cover, the upside in many of these stocks will be realized and realized quickly.     Reply
  • commenter
    JasonC
    Sep 11 04:54 PM
    Why Don't Earnings Matter Anymore? [view article]
    1 year growth rates aren't growth rates. They are a single data point, and projecting them heroically into an infinite future is mere trend following, and has nothing to do with fundamental anything. Does anyone here have the slightest thought beyond chasing headlines or chasing momentum? Reply
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