Thursday, March 13, 2008

It's Electric, It's Dirty, It's Coal: Goldman Downgrades Sector Again (ACI; BTU; CNX; FCL; MEE)

The first half of the headline is from Julie at WallStrip.
Here's the story via the Houston Chronicle:

Sector Glance: Coal Producers Slide
Shares of coal producers pulled back Wednesday, after a Goldman Sachs analyst suggested that ramped-up production will drag down spot prices and stock values sooner than many on Wall Street currently believe.

Analyst Michael Molnar said that historically high spot prices will lead companies to increase production, which will offset current bullish demand.

"The incentive of huge profits possible at current spot pricing will likely trump many of the barriers in getting production to market," he said in a client note.

Spot prices have been driven by demand from emerging markets, especially China and India....MORE

Here's WallStrip.