Acting on panic never helps investors, but it's still a good idea to question why you're really buying individual investments.

Consider coal producer Walter Energy (NYSE: WLT), which supplies the steel industry. Though the steel industry is showing momentum, you'll find that a few of the 1,406 Motley Fool CAPS members weighing in on the company offer reasons to be bearish.

Here at The Motley Fool, we like to consider both the good and the bad sides of an investment, so I'm highlighting three of the main bearish arguments on Walter Energy today. Be sure to read the bullish side as well -- then weigh in with your own comments below, or rate Walter Energy in CAPS.                                           

1. Double-dip fears
Although Walter Energy and peer Alpha Natural Resources (NYSE: ANR) both showed improvement in the first quarter, not everyone is convinced of a full recovery. Shares of U.S. Steel (NYSE: X) tanked in the second quarter as investors grew  concerned about a slowdown in orders. In addition, Nucor's (NYSE: NUE) CEO recently warned of a steel slowdown in the second half of 2010. Rio Tinto (NYSE: RTP) also recently reported lower quarterly global iron ore production, even pointing to fears of a double-dip recession in developed markets.                                  

2. China slowing
China has been a big driver of global demand for steel and metallurgical coal. But despite a strong earnings report from South Korean steelmaker POSCO (NYSE: PKX), some investors have become worried about economic indicators signaling that China's growth is cooling off more quickly than expected, and that more subdued expansion there would reverberate across global coal markets.

3. European woes
With much of Walter Energy's hard coking coal shipments going to Europe, the continent's recent debt troubles stoke some investors' fears of a slow recovery. Many investors have already shed ownership in numerous coal and steel companies. Steelmaker ArcelorMittal (NYSE: MT) says that if demand continues to slow down, it may cut output to balance production and pricing with demand. Given Walter Energy's high exposure to the region, a prolonged slowdown could hurt its earnings.                           

To see details of what CAPS members are saying now about Walter Energy, just click on over to Motley Fool CAPS and have a look -- or add your own thoughts directly to this story in the comments box below.