Walter Energy, Inc. (NYSE:WLT) (OTCMKTS:WLTG) Accelerates Its Slide
Walter Energy, Inc. (NYSE:WLT) had a terrible crash when it finally got de-listed from the NYSE – and it seems like the OTC Markets has not taken kindly to it either.
Yesterday saw the ticker crash a horrifying 27%, on a 584 thousand dollar volume that might have been next to nonexistent for the NYSE, but is quite significant by the standards of the OTC Markets.
The 8-K that announced WLTG’s fall from grace named the “abnormally low trading price of the Company’s common stock” as the reason for it being de-listed from the NYSE. One look at WLTG’s latest 10-Q reveals the reason why its shares are so cheap now:
- Cash and cash equivalents – $434 million
- Total current assets – $888 million
- Total current liabilities – $3.4 BILLION
- Sales – $285 million
- Net loss – $80 million
WLTG has been doing poorly both commercially years now, racking more and more net loss and liabilities with each passing quarter. The fact that its share prices reached over $130 about four years ago is really indicative of how the company has fallen since then. Its slide was unstoppable, which meant that it was just a matter of time before it reached hit penny land and ended up on the OTC Markets.
As it is now, WLTG operates on a scale larger than most of the other companies on the exchange – but at the same time it shows the same disturbing symptoms that usually bring them down, such as failure to make a profit, indebtedness and so on.
Which is why, under the circumstances, it wouldn’t be surprising to see the ticker continue its downward course to the bottom of the charts – just like unsuccessful Pinksheets tickers tend to do.
