Is The Sell-Off In Walter Energy Overdone?
By Peter Epstein:As of Friday's close, three U.S. coal companies happen to have Enterprise Values of close to $5.5 billion, Arch Coal, (ACI) Alpha Natural Resources, (ANR) and Walter Energy, (WLT). By comparison, Peabody Energy's (BTU) Enterprise Value is almost double that. What does one get from an investment in one or more of these companies? One gets quite a lot in Walter Energy, my top pick in the U.S. coal sector.In a previous article I commented that Walter's then newly promoted CEO Walt Scheller was the only person willing to take the job. The Company had been plagued by production shortfalls due to difficult mining conditions. The acquisition of Western Coal was in the early stages of integration. Costs in Canada were very high and there was still a lot of heavy lifting to be done to ramp up production.A year later, Walt has proven to be a goodComplete Story »