Buy Walter Energy (WLT)...

[njfan47]

Before the boards were reset, for some unknown reason, we discussed buying Walter Energy, a producer of metallurgical coal, which is used for manufacture of steel, at around $4.50 and selling it when it got into the mid-$6.50 area. It has since dropped down to a price of $2.90 as of $12:58 today. It's again a speculative buy here, especially at an option-like price, without the expiration that occurs with an option.

A turnaround has to come sometime. It might take until after obama gets out of office, which is surely a widely anticipated and very positive event, even for the quiet liberals who have been silenced by obama, not through the usual force that liberals use to silence people, but by the dolt's complete incompetence ("we don't have a plan yet!").

Back to Walter Energy, it's an excellent speculation right here.

 

[JBinPA]

NJ, keep posting your ideas; they are invaluable.

I may be the only one who responds but I know others follow the dialogue. Keep up the good work!

 

[njfan47]

Thanks, JB. But you are looking better than me on Synaptics, as it is down $2.79 today to $79.18. Still not $73 but maybe headed in that direction. I wish I had traded out of the shares when they reached $85+.

 

[roxychknpoxy]

NJ -

This is really coincidental. I haven't been on this board for a few days. Decided to hope on now since I'm on line as I just bought WLT at $2.18. It's been on my radar and I shoot for these type stocks in my own little trading account that have modest dividends and on the low side of the beat down.

What do you think of GNSZ ?

 

[njfan47]

Roxy, I think you made a great speculative buy. At $2.13, it's priced like an option that never expires. As obama becomes more and more impotent, coal could come back in a good way. If you hold this one for a long time (3-5 years), you could have a two-, three-, or even five-bagger.

I've never heard of Genspera. I see that it is priced at $0.79. I tend to stay away from the penny stocks. Is the story good on this one?

 

[roxychknpoxy]

NJ -

They had a pipe line of therapies that have not panned out. I made the play some time ago as they were prey to the big guys who were hard up to fill their pipe lines further with developing therapies and drugs. Just I guess I need a little 'hope & change' on this one

 

[njfan47]

Roxy, thanks for the update. Best of luck.

Walter Energy looking good at $2.37 today.

 

[njfan47]

Roxy, nice timing on Walter Energy. As of Friday's close of $3.19, you've got a 46% gain in about seven weeks. And all it took was to vote some of the socialists out of office. But we still need to be careful in holding this stock because President Incapable could still make it difficult for anything non-green.

Now the 370 House bills are going to get passed in the senate, as they won't be able to sit on Dingy Harry's desk without coming to a vote. President Incapable is going to look pretty silly if he ignores some of the job-growth-related bills.

Maybe the talking heads won't mimic the "Washington is broken" BS line and will look at who is really stopping things. Some people are aware of this, but it's still amazing to watch financially smart guys mimic this line, of course without any follow-up from the interviewer as to what information they use to form this opinion.
This post was edited on 11/9 3:34 PM by njfan47

 

[njfan47]

Roxy, I see that WLT closed at $1.09 today. I am keeping my eye on it for a possible re-buy. When obama's term is near its end, the stock should be able to see the light of day, but hopefully it will be sooner than that. Even if hillary wins (God forbid), the stock could rise.

 

[JBinPA]

NJ, WLT @ .85; what's the deal here; starting to look like a classic p & d.



This post was edited on 1/26 12:46 PM by JBinPA

 

[njfan47]

Originally posted by JBinPA:
NJ, WLT @ .85; what's the deal here; starting to look like a classic p & d.




This post was edited on 1/26 12:46 PM by JBinPA

JB, explain "p & d". Are you saying pump and dump?

Coal industry is down and out for two main reasons: 1) low price of natural gas and 2) obama's war against it.

This stock could have a massive rise if the GOP takes the White House in 2016, something which I view as not very likely right now, due to a dumbed down populace. Maybe even if hillary the unaccomplished wins in 2016, coal could come back some. But can Walter hold on for that long? Some of its coal is metallurgical coal, used in steel manufacturing, so it probably should not be this low. Still might be a good speculation at $0.85/share.

 

[JBinPA]

Not the price that gets your attention it's the trading patterns. They are classic pump & dump patters.

Doesn't. Mean one can't profit but timing must be careful

.82 at risk of delisting also which cuts off most fund involvement




This post was edited on 1/27 11:02 AM by JBinPA

 

[njfan47]

JB, it is a good point that when a stock gets under $1, it loses institutional sponsorship. However, one of my biggest mistakes was not buying Avis in 2009 when it dropped under 40 cents per share. At the time, I didn't have the guts to invest even a small amount of money because I was convinced that once a stock went under $1 a share and especially under 50 cents, that it was bound to go out of business. Avis has since gone up to $69.76 at the high on August 18 and closed at $59 today!

Not that Walter Energy will have the same outcome, because coal is under siege from both Clumsy (obama) and from natural gas, but it could be a good speculation if it goes down much more. If it goes to 40 cents, $20,000 would buy 50,000 shares. So, if it ever could get back to $10, that $20,000 turns into $500,000. Holding the stock for that long could be another challenge!