Coal 02 (Jul 12 - Dec 25)

[winston]

Coal-sector fund KOL sinks 26% over the past year.

[winston]

not vested

UBS expects coal oversupply until 2017; coal prices not yet bottomed

UBS said in a report that it lowered China coal demand growth forecast to a 3.6% year-on-year decline from a 1.5% year-on-year growth for 2015, and to a 1.2% year-on-year cut from a 1.1% year-on-year cut for 2016.

Coal demand industries such as power, steel and cement posted a production drop in 1Q 15. Therefore, the broker expected oversupply for the mainland's coal sector will last until 2017.

UBS lowered its 2015-17E net PROFIT after tax (NPAT) by
20%/22%/19% for CHINA SHENHUA (01088.HK) -0.200 (-0.983%) Short selling $43.32M; Ratio 7.735% ,
128%/105%/82% for CHINA COAL (01898.HK) -0.060 (-1.207%) Short selling $34.24M; Ratio 24.676% and
72%/77%/54% for YANZHOU COAL (01171.HK) -0.040 (-0.500%) Short selling $30.10M; Ratio 11.117% .

CHINA SHENHUA remained the broker's top pick in the sector due to its diversified BUSINESS model and cheap valuation.

CHINA COAL was the least preferred as its operating cost was high and the company was expected to report a substantial loss in the year.

Source: AAStocks Financial News

[winston]

Coal stocks sink… shares of Peabody Energy and Arch Coal are down 70%-plus in the past year.

[winston]

not vested

<Research Report>G Sachs adjusts CHINA SHENHUA, CHINA COAL's TPs on weak 1Q results

Goldman Sachs stated that CHINA SHENHUA (01088.HK) 1Q results tumbled 42% from a year earlier due to 11.3% decline in coal price and competition derived from imported coal and power supply from western regions.

CHINA COAL (01898.HK) recorded a third consecutive quarterly loss, mainly attributable to 13.5% decline in coal price with 90% year-on-year rise of interest expenses.

The research house trimmed CHINA SHENHUA's 2015-17 net profit forecast by 3%-11% and the target price was cut by 2% to $22.8, with a rating of Buy.

CHINA COAL (01898.HK)'s FY15-17 net profit forecast was slashed by 40%-147%, with a 2% cut in target price to $4.11 and a Neutral rating.


Source: AAStocks Financial News

[winston]

A bad sign for coal… producer fund Peabody Energy drops to an all-time low.

[winston]

THIS SECTOR IS STILL SEARCHING FOR A BOTTOM

Today's chart looks at the ongoing rout in the coal sector...

As we've reminded readers over the past few years, coal remains the world's leading energy source.

And despite environmental concerns, its consumption continues to grow by about 2% annually. But that hasn't saved the coal industry from one of the worst bear markets in recent memory...

You can see how bad things have gotten by looking at the price action in shares of Peabody Energy (BTU). Peabody is the largest private-sector coal company in the world.

It markets coal to electricity-generating and industrial customers in more than 25 nations on six continents. And the company's North Antelope Rochelle Mine in Wyoming is the largest coal-producing mine in the world. That makes Peabody a good gauge of what's going on in the coal sector.

As you can see below, the coal business is struggling. Shares of Peabody are down nearly 50% so far in 2015... and have lost 94% of their value since March 2011.

Coal stocks are still searching for a bottom.

Source: Daily Wealth

[winston]

THE GREAT BEAR MARKET IN COAL

Today's chart looks at the epic collapse in the coal sector...

Over the past five years, being long coal producers has been a painful bet. Tighter regulations and cheap natural gas prices have crushed coal demand.

China, which accounts for half of global consumption, is also cutting back on coal imports. China's coal imports from the first quarter this year were 42% lower compared with the same quarter last year.

The result has been a huge bear market in the coal sector. According to the U.S. Energy Information Administration, U.S. coal production will drop to a 30-year low in 2015.

You can see how bad it has gotten in the chart below. It shows the last year's share-price action in the Market Vectors Coal Fund (KOL)... a fund that holds a basket of coal producers and related stocks.

Since last September, KOL is down more than 30%... and just broke down to its lowest point in more than six years. As you can see, it's a steady bear market in coal...

Source: Daily Wealth

[behappyalways]

World's largest sovereign wealth fund pulls out of coal
http://www.telegraph.co.uk/finance/news ... -coal.html

[winston]

It's a bear market in coal… sector fund KOL hits a new 52-week low.

[winston]

Last Update as at 09 Jun 14:42 (HKT)

CHINA SHENHUA, CHINA COAL A Shares Hit Limit-Up

National Energy Administration (NEA) recently said it will deepen the reform and enhance the degree of concentration of the coal industry, National Business Daily reported.

It is said that the NEA will set up an integration fund for the coal sector and will provide support with financial tools.

According to market source, the merge between ChinaCoal and Shenhua Group has been launched.

A shares of CHINA SHENHUA (01088.HK) and CHINA COAL (01898.HK) hit limit-up at RMB26.29 and RMB11.24 after midday.

H shares of the two advanced 5% and 7.5% to $20.2 and $5.18.

YANZHOU COAL (01171.HK) peaked at $7.47 and last traded at $7.34, up 3.4%. Its A shares reached a new high at RMB19 and last stood at RMB18.43, up 4%.


Source: AAStocks Financial News