Rough Day............for coal.......It's turning into another rough day for Canadian coal stocks.
Fording Canadian Coal Trust, Grande Cache Coal Corp., and Western Canadian Coal Corp., three of Canada's best known coal miners, were down 5%, 6% and 8%, respectively in late morning trading.
Meanwhile,Hillsborough Resources Ltd, down 16% and Cline Mining Corp. down 19%,were also getting battered in a market that of late has exhibiteddoubts about the future strength in the red hot commodity.
Whileconsensus expectations across the buy side and sell side, that priceswon't go down this year, one analyst said that coal stocks arecurrently caught up in a market downdraft based on worries about aglobal recession and the impact that would have on all sorts ofcommodities, including coal.
While most coal stocks are down significantly this month, they still remain huge gainers since the start of the year.
Units in Fording opened the year worth $37.82 and rose to a high of$97.50 at the end of June. Approaching noon ET. Tuesday, shareswere trading at $74.87. Grande Cache shares, which are current worth around$6.41, ran up from $1.15 at the start of January to $8.57at close on June 30. Western Canadian Coal, meanwhile jumped from $1.55to 8.96 from January 2 to June 30, and now hovers at $6.60.
Better days ahead .......hope ?