Patriot (PCX), Walter (WLT), BTU (BTU) and Massey (MEE) are all coal plays worth a look, suggests Pete Najarian.

I do it with Walter Energy (WLT), says Guy Adami. I’m a buyer on pull backs.

Rode this one up to 100% and sold before the energy meltdown. Bought again near the bottom.

earnings, low pe

$50 mln, adds to prior plan

diversified

The Company also said that it has completed its previously authorized $25 million share repurchase program and the Board of Directors has approved a new $50 million program. Repurchases will be made based on liquidity, market conditions and alternative opportunities to invest in and grow the Company's core businesses.
Company Chairman Michael T. Tokarz said of the expanded program, "Despite continuing, dramatic volatility in today's markets, we remain confident in our business prospects. Our core natural resources and energy business fundamentals remain very strong, as high quality metallurgical coal supply is limited worldwide and demand remains robust. This new $50 million share repurchase program will allow us to continue to make balanced investments in our stock as well as our existing growth initiatives."
The stock trades for 9.3x cash flow.

Market Outperform - Price 64.30 on Sept. 10
by Avondale Partners

With shares down [by more than] 40% since early July amid broad retrenchment in commodities, WLT [looks] attractive, even as we lower our valuation. At a 4 times 2009 EV multiple (down from 5 times) for natural resources, we believe the shares are worth 107, 66% above current level; at only 64, and assuming the same multiple, the share price discounts a 2009 met[allurgical]-coal contract...[mergers and acquisitions] remain vibrant as steel makers look to backward-integrate and resource companies look to diversify. While we've cut our target to 107, shares currently offer attractive returns. Market cap: $3.6 billion.

He also likes Walter Industries (WLT), a coal miner. Henwood, who isn't buying the dips in financial stocks, "hopes" that the housing market stabilizes by mid-2009. - Raymond James

Among the top holdings: Walter Industries (WLT), which showed up in one of the screens about two years ago as a homebuilder with a valuation cheaper than its peers, even though its main source of revenue was metallurgical, or coking, coal, a high-quality, low ash-content variety needed by steel producers. The shares have more than quadrupled in the past year, along with the price for metallurgical coal. While the stock trades in the mid-90s, Gottipalli expects it to rise further, with full-year '09 earnings projected to be $15 a share, aided in part by an increase in capacity and advance orders. Meantime, he hedges the risk by investing in thermal-coal producers, and balances his long positions with shorts.

Walter Industries. Pirate Capital reduced part of its stake by selling about 10% of their holdings this past week at prices between $43.47 to $49.54. This might not have anything to do with the company but Pirate's need to meet redemptions.