Over the next few weeks, I’m going to be taking a look at the holdings of some of my favorite investors. The stock that caught my eye this week was Walter Industries, ticker symbol WLT, which has been punishing Seth Klarman’s portfolio.

Walter Industries does a variety of things, including manufacturing water infrastructure and transmission products, production of coal and natural gas, and home building and financing. Obviously, two of those sectors have been hammered in the past few months, which is why WLT currently sits near its 52-week low. It’s current value is about 60% of its 52-week high, which shows how volatile this thing can be over the long run.

If WLT was a good value pick when it was much higher than its current price of 44.32, it must be a good value pick now, even with the changes in the industries it deals with. Company revenues should not change significantly enough to cause such a dramatic downturn in the stock, which is why I think its current position is at the bottom of a deep valley. I would not be surprised to see a relatively steady but staggered rise back towards the top (near its 52-week high around 70) in the next 6 months.

Full disclosure: I do not own any interest in WLT. You should carefully research any potential investments or consult a qualified expert before buying stocks.

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