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.
Fool contributor Travis Hoium has no position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDraw.
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