Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of coal producer Walter Energy
So what: The U.K.'s Independent reports that Anglo American and BHP Billiton
Now what: Coal used in steel production has hit record highs, making Walter an attractive company right now. But betting on a buyout is risky business, so look at the fundamentals before jumping on this one.
Right now, shares trade with a trailing P/E ratio of 10 and a forward P/E ratio of 7.5, so there's decent value if you're looking to buy shares now. I might wait until the euphoria of today wears off, however, because the pop from rumors like this rarely last if a buyout isn't going to happen.
Interested in more info on Walter Energy? Add it to your watchlist.
