Run of outs continues for coal shares

摘要

Things just kept getting worse for coal industry investors over the latest month, as share prices continued their long run of outs. Losses were heavy and exceptions were few. Some of the biggest losses came in the long list of expanding Canadian and Australian coal miners who have moved quickly in recent years to take advantage of rising commodity prices. Share market darlings for most of 2004, these companies are now receiving a dose of share market reality, as investors continue to lock in profits seemingly regardless of a continued strong earnings outlook for most stocks. Canada's Pine Valley Mining is a good example. Investors pushed the value of the company's shares up strongly last year as it brought the Willow Creek coking coal mine into production. But after a further 5 percent drubbing in the latest month, Pine Valley shares have now lost almost 45 percent of their value since the start of this year. Despite that, they are sitting on a gain of more than 200 percent over the past 12 months.