Walter Energy, Inc. (OTCMKTS:WLTG) Can’t Find Rock Bottom
Walter Energy, Inc. (OTCMKTS:WLTG”>WLTG) dropped 20% on an impressive dollar volume yesterday, as its momentum from last week carried it further down to the bottom of the charts.
Quite a few investors expected that the ticker would halt as it raced past the dime mark, but that did not turn out to be the case – WLTG”>WLTG sped right past it, and by the time the closing bell arrested its descent, the ticker had already fallen as low as $0.075.
There is a good reason for that fall, too. True, the fact remains that WLTG”>WLTG was, until just days ago, traded on the NYSE, and as such the company operates on an entirely different scale from most OTC Markets pinksheets companies. It is a huge established enterprise that operates on three separate markets that bring hundreds of millions of dollars worth of revenue.
However, it is also a fact that WLTG”>WLTG ended up on the OTC Markets pink tier because it was not doing well on the NYSE.
Over the course of the last four years or so, WLTG”>WLTG‘s share price has ridden a horrifying roller-coaster dropped from $130 all the way to less than a dime. Its recent “abnormally low share prices” are the reason why it is no longer traded on the NYSE, and the reason behind said dismally low prices becomes clear after a glance at its latest financial report:
- Cash and cash equivalents – $434 million
- Total current assets – $888 million
- Total current liabilities – $3.4 BILLION
- Sales – $285 million
- Net loss – $80 million
Long story short – WLTG”>WLTG is drowning in debt, and is failing in its struggle to make ends meet – and this has been the case for years now. Under the circumstances, it is really no wonder that it can’t find rock bottom, and if something doesn’t change dramatically it wouldn’t be surprising to see the ticker plunge all the way to double zero land, in spite of the fact that the company has nearly half a billion dollars in cash.
