Paula Johnson

Coal and Steel Stocks Take A Hit

Agree Sell off is profit taking, supply and speculation.
Buy low sell high works for me.
For those worried about China here is a nice story:
China On Brink Of Electricity Shortfall - FT
Last update: 7/16/2008 6:46:37 PM
TOKYO (Dow Jones)--China faces its worst power shortage in at least four years as soaring coal prices and government-set electricity tariffs force dozens of small power plants to shut down rather than face mounting losses, the Financial Times reported Thursday. Nearly half of China's provinces have started to ration electricity as the country enters the peak summer season, facing what analysts describe as its worst coal shortage, the paper said. Analysts warn this year's electricity shortfall could be more severe than in 2004, when the country was affected by its worst power shortage ion decades because of soaring demand for power as the economy boomed. Coal prices in China have double since the start of the year. Beijing last month imposed price controls on thermal coal bought directly from mines but spot market prices continued to rise. About 38% of China's coal supply last year came from small-scale operations. Many of these have since been closed by the government in an attempt to improve safety conditions in the sector, the FT said.
Remember to purge your portfolio of any stocks that will be shut down due to Chinese pollution laws prior to the Olympics or be ready to pick up a few companies that will not benefit from this law and will see their shares falling.