Month: March 2014

WLT, Walter Industries Inc. update

Hamilton

The usual then – July 6, 2012 – and now charts;

wlt jul 2012wlt mar 1 2014

At the time we commented that – quote In fact C is already equal to A and could be considered complete were it not that it normally stops below the start of A, normally reaches at least the 4th wave of previous degree level and often reaches the lowest boundary line at about $15. It has done none of this. – unquote. It has now done all three things that it had not done then. The actual low was at $9.88 and it is presently trading within one single dollar of that level. The triangle shown then as a B with is incorrect as this whole thing is a C-wave and therefore must subdivide in 5 separate waves so the triangle must be a 4th wave in that sequence. For the moment it is not clear that the low established in July of last year is THE low. A very minor wave 5 of 5 of C may still be required but this should not take the stock much lower. It has achieved all that it should and has fallen about 93%. Shorts presently are about 38% of the total float which is unheard of. If we were to get the slightest bit of good news this thing will rocket up. A “speculative” buy in our opinion for this coal company. (see previous blog,perhaps with BTU). The stock also trades in Toronto under the same ticker.

WPT, Westport Innovations update

Hamilton

The usual the – Sept. 26 , 2013 – and now charts;

wpt sept 26 2013wpt march 1 2014

At a time when natural gas was going at fire sale prices and when companies like Cat and Cummings were doing quite well, it was not at all clear why this stock should not participate to the upside as well. This is exactly where EW can be a great contributor to your investment success. It simple does not ask these questions and moves directly to what the market is telling you, albeit in rather cryptic terms. Our target was roughly $15 and we did remark that  it is sometimes impossible to foretell how short d and e waves can be. In this case the e is rather puny (in fact we would keep an open mind to discarding the triangle all together and opting for a slightly more compressed count, see below and previous posts).

wpt mar 1 2014 b

The point now is that we are approaching the point in time where the apex is directly above us ( late March?) and we will have some form of equality between the two down legs at around $15 or a little above that. Presently less than 1% of trucks and other heavy vehicles run on (compressed) natural gas. Savings for a standard heavy truck can run into the tens of thousands of dollars. In Europe you can buy these dual-fuel beasts right off the shelve, the biggest manufactures being DAF in Eindhoven , Holland. What are we waiting for??