ANR, BTU - deeper and deeper for the miners

Even though the broader market was mixed, the coal miners had another lousy day, and are continuing their horrific never-ending collapse. Clearly, they're not going to zero, but at the current rate of decline, 'zero' will be hit by summer 2013.


ANR - Alpha Natural Resources

BTU - Peabody Energy

Summary

Both ANR and BTU sum up the sector, and both significantly declined by around 7% and 3% respectively.

Considering that the US economy is not even in an official recession yet, it is remarkable to see the low valuations on what are unquestionably 'reasonable' companies, companies that actually provide a real resource that is useful for the global economy.

At some point they will floor in price, but it sure doesn't seem like it'll be this side of Christmas.

The sector as a whole is certainly one to continue monitoring, not least if there is a major Sept/November market correction - even if its just 7-10%.

How low can they go?  BTU still looks set to hit the 2008 low of $15, with ANR likely to end up somewhere in the 4s.

At those prices, it sure will be tempting.