I bought WLT in Dec '06 but not for their home division or even their coal division then, but because they were spinning off what I thought would be their most profitable division - Mueller Water. (MWA)
When they split, MWA didn't move, but I noticed WLT started ticking up ever so slowly.
Then within a year WLT was up about 80%, so I decided to keep it and ride the wave. :) I ditched Mueller, which was the reason I got into WLT in the first place. Ironic, huh?
Sometime last fall WLT announced they were splitting off their homebuilding division (Jim Walter Homes) to focus on their coal/nat gas division. This was the start of some large, quick gains for WLT as investors saw that the company was serious about focusing on the most profitable part of their business, primarily coal.
We shareholders have been rewarded ever since. Today analysts dropped another bombshell and stated that coal prices will continue to rise through the next 2 years. We enjoyed almost a 12% spike from that bit of news today.
When will the party end? I don't know, but I've ridden the wave for a year and a half now and I've got my stop loss ratcheted down just in case it's maxed out.
Scott
