Monday, 21 July 2014

ANR, BTU - just another stinky day

Whilst the broader market saw moderate weak chop, there was particular weakness in the coal sector. Alpha Natural Resources (ANR) and Peabody Energy (BTU) settled lower by a significant -2.9% and -2.4% respectively. Outlook remains bearish.

ANR, daily

BTU, daily


Suffice to say, the broader down trend continues, whilst the main market is still broadly headed higher.

With the US Govt' still on a 'we hate coal' policy framework, the miners are facing huge resistance.

I remain concerned that ANR will not survive in the longer term, although the lower the price goes... a hostile takeover becomes an increasing possibility.

*I have no positions in any of the miners, and would only consider getting involved after the main market has seen a multi-month down wave - which itself does not seem likely until next year.