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 - Usin Your Implements: Plow and Disc - by Curtis Von Fange. Introduction: Dad was raised during the depression years of the thirties. As a kid he worked part time on a farm in Kansas doing many of the manual chores. Some of the more successful farmers of that day had a new time saving device called a tractor. It increased the farm productivity and, in general, made life easier because more work could be done with this 'mechanical beast'. My dad dreamed that some day he would have his own tractor with every implement he could get. When he rea
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