Walter Energy, Inc. (WLT): Notable Insiders Buys in This Coal Stock

Despite being in a difficult industry environment, Alpha Natural Resources, Inc. (NYSE:ANR) has been focusing on controlling its operating cost. In the first quarter of 2013, the company reported a significant loss of $11 million, or $0.50 per share, much lower than the net loss of $29 million, or $0.13 per share in the same period last year. However, the loss in the first quarter of 2013 was less than the analyst estimate of $0.58 per share. Interestingly, the recent first quarter was the third consecutive quarter of reducing costs, partly due to a lower thermal coal production volume. It is quite a sensible move, as no one can control the pricing, so the company concentrates on cost management.

My Foolish take

Investors might consider Walter Energy, Inc. (NYSE:WLT) as a speculative play on the large insiders buys. With a high EV multiple and high financial leverage level, I personally do not consider Walter Energy as a good stock for the long run. Among the three, I like Alpha Natural Resources due to its cheap valuation and its ongoing cost cutting efforts.

The article Notable Insiders Buys in This Coal Stock originally appeared on Fool.com and is written by Anh HOANG.

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