Still Digging the Miners

Well, maybe Monday would have been the better day to start investing in coal miner stocks. Walter Industries (WLT), according to Forbes, is pulling a $1.55 billion loan refinancing package due to poor market conditions. Clearly, the market is seeing this as bad news for debt-laden WLT, which was also weaker today due to a report about falling coal prices. The stock had already been hit hard over the last few weeks -- it has continually appeared on the 52-week new low list.

Don't overlook the fact that Audley Capital Advisors has been pushing for changes at the company. I think we'll see a lot more in the near future from this activist shareholder as the price for WLT has moved even below the teens. WLT is now trading back to its lows of 2008-09. It has had an unbelievable roundtrip from $12 to $140 and back to $12. I have had a few folks asking for some hedging strategies on this and other coal numbers, but for now, I believe we'll have to see how the day shakes out. Volatility is surging, so put buying is going to come at a premium today.
 
It seems as if, unless you are pulling oil from the ground, then the market wants absolutely nothing to do with you. If you look at the miners -- whether coal or precious metals or even natural gas producers -- there is just little reason for investors to climb on. I scratch my head a bit watching these gold miners the last few days. Even when gold has held its ground, there would be an early morning pop followed by an all-day fade. I wouldn't be surprised if there is a long gold-short miners play being forced down the throat of the market by big money. Either that or funds holding gold miners have been hit by liquidation requests and continue to scale out of positions....90 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.