Goldman Sachs Shovels Coal (ACI, CNX, KOL)
Goldman Sachs is panning the coal sector again this morning. It sees downside to coal stocks after a run since the start of 2008 as coal production will come online faster than many bulls believe. The firm also thinks that…
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Goldman Sachs is panning the coal sector again this morning. It sees downside to coal stocks after a run since the start of 2008 as coal production will come online faster than many bulls believe. The firm also thinks that the incentive of profits at current spot coal prices will win over the barriers to entry. It particularly wants to sell Arch Coal (NYSE: ACI)and it noted Consolidated Energy (NYSE: CNX) as well.
Back on February 15, Goldman Sachs downgraded the sector based on valuations, and you can see the individual calls on ACI, FCL, ICO, BTU, MEE, and CNX.
As a reminder, there is also the Market Vectors Coal ETF (NYSE: KOL) that just launched in mid-January.
Jon C. Ogg
March 12, 2008
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