ONCE AGAIN WE HAVE BEEN AHEAD OF THE CROWD ON COAL STOCKS $KOL, $CNX, $BTU , $$
We have been negative on coal stocks for a while. Now there appears to be a wider recognition of the fundamental reasons as evidenced by the following excerpts from an article in WSJ today:
The Wall Street Journal reports U.S. coal stockpiles are climbing as supplies outpace demand from utilities and factories. The glut means miners will have to slash output, compounding the industry downdraft and pointing toward depressed prices and possibly layoffs as miners continue to grapple with uncertainty over climate legislation. Overseas markets can offer a buffer for some miners, however. Meanwhile, less-expensive coal helps hold down inflationary pressure for customers, which include utilities and steelmakers, and gives the economy the benefit of cheaper power.… Please click here or the title below to read more.