A few observations: Markets often over-compensate, creating opportunities. Industry wide predictions that are all doom and gloom can signal some long term buying opportunities for companies that are sound and well managed.
The coal industry is now in a short term slump due to low natural gas (NG) prices. Coal has traditionally been priced a little cheaper than NG. The investment for coal fired plant is also slightly higher than for a gas fired plant. Long term, the coal prices will continue to move in lock-step with NG prices. EPA regulations, mining safety standards, competition from gas and nuclear plants, labor costs, decreasing energy use during an economic recession, transportation costs, etc. were predicted to shut down the coal industry by the end of the 1970's.
Today, steel production in the US will probably continue to decrease. Changes in the cost of generate electricity are regularly and automatically passed on to consumers. What percentage of US electricity is currently generated by coal? That is not likely to change rapidly.
Take a good look at each individual company, how they have handled industry slumps in the past. There should be some long term buying opportunities within the coal industry, if you can buy on the lows.
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Today's Featured Article - A Lifetime of David Brown Tractors - by Samuel Kennedy. I was born in 1950 and reared on my family�s 100 acre farm. It was a fairly typical Northern Ireland farm where the main enterprise was dairying but some pigs, poultry and sheep were also kept. Potatoes were grown for sale and oats were grown to be used for cattle and horse feeding. Up to about 1958 the dairy cows were fed hay with some turnips and after that grass silage was the main winter feed. That same year was the last in which flax was grown on the farm. Flax provided the fibre which w
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