Watch stocks you care about
The single, easiest way to keep track of all the stocks that matter...
Your own personalized stock watchlist!
It's a 100% FREE Motley Fool service...
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 Walter Energy (NASDAQOTH: WLT ) , a producer and exporter of metallurgical coal used in steelmaking, tumbled as much as 11% after a regulatory filing today showed the company is attempting to refinance some of its outstanding debt.
So what: Walter Energy is seeking permission from its lender to repay a $407 million loan, and to refinance that loan with looser restrictions. Bloomberg reported that Walter Energy needs this concession since, under the current terms with its lender, it must also make repayments on a $978 million term loan B. If Walter Energy's lender complies with its requests, it would ease some of the coal company's' near-term obligations and give it more time to cut costs and wait for coal prices to stabilize and demand to improve.
Now what: Between rapid industrialization in China and India and a stabilizing U.S. economy, met coal should be nearing its trough. While a much smaller part of Walter Energy's business, I'm part of the dissenting group that believes thermal coal could still be a viable investment. On both counts, Walter Energy could be approaching its bottom. However, to survive and thrive once things turn around in the steep sector-wide downturn, Walter Energy needs to dig deep to reduce costs.
Walter Energy may have struggled recently, but these three energy stocks could be on the precipice of exploding higher
Record oil and natural gas production is revolutionizing the United States' energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry will pad your investment nest egg. For this reason, the Motley Fool is offering a comprehensive look at three energy companies set to soar during this transformation in the energy industry. To find out which three companies are spreading their wings, check out the special free report, "3 Stocks for the American Energy Bonanza." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free.