May 04, 2009
– Comments (7) |
RELATED TICKERS: PCXCQ.DL
its following the Coal trend up but its still well off its past highs in the $80's
I just ended my PCX pick in CAPS today for my 'silverminer' portfolio.
Article forthcoming. :)
I remain bulish long-term on coa, and celebrate PCX's improved liquidity picture, but this rally feels like too much too soon for a sector with mounting near-term challenges.
ACI might be a better choice. Investment in coal companies are very tricky, if coal prices go up it doesn't translate automatically to higher stock prices of coal companies. It should, but it doesn't. Why? because the CEOs are poor, greedy bastards who are money hungry and don't look at long term. They care about now, as soon as stock prices go a little they sell crazy amount of stocks to benefit from the gain and they want the money NOW.
It pisses me off that the CEO and the board of directors are not independent from each other...PCX, ACI, EXXON, Chevron...any coal and ebergy company that you can think of do the same games.
I suggest to invest in futures or future options of coal to eliminate these managment games.
I agree with TMFSinchiruna that the coal market is ahead of it's self as is the whole market in general. That being said I do believe that the coal sector will continue to cliam over the long term.
As a long term investor I feel that the coal industry will recover nicely over the course of 3 to 5 years. They do have many challenges that face them with the Obama administration's Cap-and-Trade strategy. But this will not hurt the coal industry to badly.
Those that will hurt the most is the average consumer. The cost of energy is going up and unfortunatley that is going to hurt those that can afford it the least. Obama claims to be for the underdog consumer. He can't be serious.
You decide for yourself but I'm goingl long on coal. You can't just turn the faucet off on coal. When new alternative energy sources emerge to take the place of coal at a lower cost, then and only then will I turn negetive on coal. Please keep me posted when that happens.
Here's my perspective on earnings from Cliffs Natural Resources and its corroboration of the much-delayed, previously presumed by some to be debunked... decoupling debate.
Please see my coal commentary here, with a comprehensive look at the sector though the eyes of my roving canary.
And for more on decoupling... When blazing furnaces go stone-cold.
PCX earnings discussion to be posted when published.
TCK, although its no longer under 10 bucks. I have 5% of my portfolio parked in that from much lower prices... and thats a big position for me, really big. I'm hyper-diversified.
Here are the remainder of my thoughts on the PCX earnings:
Since you mentioned Teck ...