Coal stocks are not holds in my opinion,. They are cyclical and are driven by many factors as discussed on this forum.
Unfortunately over the last week the momentum has been down. Momentum, momentum, don't under estimate it.
Fundamentals or not, its easy to get caught up in the value trap. Many a stock will trade at low multiples for years.
In hindsight, NHC has been a great short sell trade over the past week or so.
There is too much volatility in external factors to consider any coal stock as an investment, yield or no yield.
Below simple chart from Commsec. Investors/traders have had it good for 4 months this year. When ALL ORDS was down, coal stocks would be up. Now it's time to wait for the next jump. It will happen, but nobody knows when. A day, a week, month, 6 months. Nobody knows.
I think it's safe to say that whenever media and analysts start saying that something will happen like coal price going up, it eventually is the opposite.
Hopefully some external factors will re-start the thermal coal engine soon.
In my opinion, Stock exchange is a scam, really a pyramid scheme if you think about it.
The downward pressure is unrelenting today but I am expecting a rise up at some stage. Let's see.
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