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WLT: No Clarity Here

July 30, 2008 11:41 PM

womanthinking.jpgWLT had made a huge move after earnings. Earnings were strong, I will concede the point. However, as I have been “pounding the table” lately, you cannot be long this range, IMO. It made a high today of $106.78. it has to clear $111.99 to even consider being long here and even then it could reverse again. Like I have long mentioned, why be the Lone Ranger? Let someone else do it. My views will never change - ever. ONLY be long or short where there is complete clarity. We do not have that here, obviously. I am not saying it will fall. I am not saying it won’t. I am saying I do not know.

The problem with this stock is there is one and only one clear point to be long, IMO, and that is probably $90.04. The gap higher after earnings was not that large, so I am not even sure of the significance of that low, long term. My views on this stock were not to short after earnings, but to avoid chasing much above $100 as the risk appears high. Not to mention that I am possibly the only person alive that is not a fan of being long coal long term. I still believe coal is exposed to many pressures from wind and nuclear energy. I simply see no reason, on any level, that coal can march higher long term considering wind power can (and will) generate power far cheaper than coal at these levels.

Point being, where is the upside in coal? I do not see it.

Written by Tom@StockBlade.com · Filed Under WLT 

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