logo  
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

5 Industrial Metals & Minerals Stocks Heading for Trouble?

By  +Follow October 2, 2013 5:25AM
Share:
Tickers Mentioned:

Prices for hard commodities are always subject to unexpected fluctuations that typically result from disruptions to the delicate supply-demand balance.

So far in 2013, iron ore has been one example of how the relationship between supply and demand can affect an industry and the companies operating within it. For instance, the so-called miracle of Chinese economic growth that has been one of the most enduring features of the global economy in the new millennium saw the world’s most populous nation consuming ever-larger amounts of iron ore to feed enormous investments in housing and infrastructure projects.

Major mining companies in the industry, such as BHP Billiton (BHP) , shifted their operations accordingly, even selling off assets in other less lucrative metals in order to make more iron ore. But then Chinese growth started to slow, relatively speaking, in late summer, sparking fears that the ride was coming to an end. Financial institutions from Deutsche Bank AG (DB) to Goldman Sachs (GS) all of a sudden were predicting that iron ore prices would drop dramatically as a result of oversupply.

The coal industry, by comparison, is in even worse shape, especially in the US and Canada, where the view of the commodity as a major, and unnecessary, environmental menace has become a very mainstream one. Coal-related stocks, of course, have suffered as a result of this scenario, and there does not seem to be a very promising outlook for the immediate future.

The following companies, mostly coal miners, have been selected from the Industrial Metals and Minerals industry, based on a number of criteria:
-a relatively low price-to-cash ratio of less than 3, indicating that the company may not have enough cash on hand to make the changes necessary to adapt to an industry downturn.
-a negative Return-on-Equity rate, indicating that investor cash is not being spent to the best effect.
-a relatively high debt-to-equity ratio, over 0.5, indicating that the bills for these companies could constitute a significant source of pressure in the event of a further misfortunes for coal

Alpha Natural Resources Inc. (ANR)            

Price: $5.82
Market-Cap: $1.3 billion
P/C Ratio: 2.51
ROE: -9.60 percent
Debt/Equity Ratio: 0.72

The Bristol, Virginia-based company operates over 100 mines and 25 production facilities throughout the US, in Virginia, West Virginia, Pennsylvania, Wyoming, and Kentucky. While the stock has rebounded, adding about 10 percent in the current quarter, shares have lost almost half their price in 2013, down over 40 percent.

Arch Coal Inc. (ACI)

Price: $4.02
Market-Cap: $852.6 million
P/C Ratio: 0.96
ROE: -13.60
Debt/Equity Ratio: 1.88

The St. Louis, Missouri-based miner operates over 30 mines in the US that the company boasts represent over 5 billion tons of proven reserves of coal, and is often cited as one of the better coal stocks to own. That said, the company has seen its share price drop nearly 45 percent year-to-date, despite a 10 percent rally over the course of the present quarter.

Thompson Creek Metals Company Inc. ($TC)

Price: $3.54
Market-Cap: $605.7 million
P/C Ratio: 1.5
ROE: -36.70 percent
Debt/Equity Ratio: 0.78

The Denver, Colorado-based company mines gold, copper and molybdenum throughout the US and Canada, and provides an instructive contrast to the coal companies on this list. While Thompson has seen shares amost 20 percent lower in 2013, the stock has rallied by about as much during the present quarter.

MFC Industrial Ltd. (MIL)

Price: $8.37
Market-Cap: $523.56 million
P/C Ratio: 1.58
ROE: 27.80 percent
Debt/Equity Ratio: 0.52

The Vancouver, Canada-based company makes its business primarily from the storage and transporation of commodities and materials, including but not limited to coal. MFC is the exception on this list, with a positive return-on-equity. THe stock has not moved significantly throughout the year, but is up over 3 percent during the current quarter.

James River Coal Co. (JRCC)

Price: $2.04
Market-Cap: $71.34 million
P/C Ratio: 0.75
ROE: -32 percent
Debt/Equity Ratio: 1.66

The Richmond, Virginia-based companies mines coal in Kentucky, Indiana, and West Virginia, and claims over 300 million tons of coal reserves to its credit. Shares have had a rough year like all the other coal miners on this list, down 36 percent in 2013, despite a 12 percent jump on the quarter.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


Signup for our daily newsletter and get our best articles emailed right to you!

Results for BHP
luckypete
27 Jan 15 17:07:52
RT @SAlphaTrending: BHP Billiton And The Giant Demerger http://t.co/zgclSQPpmK $FCX $RIO $BHP
CommSec
27 Jan 15 16:25:30
#ASX 200 -0.1% with mining & energy stocks firmer while most other sectors losing ground. $BHP & $RIO +0.6%. Banks are mixed #ausbiz ^SD
rob
27 Jan 15 16:18:22
$BHP back in for a long haul long now after not getting the 40 break out in 2014
Stockaholics
27 Jan 15 15:36:23
Our Penny Stock Picks Gained 968% In 5 Weeks! Get Our Next Pick Early: http://t.co/RO0WvtHwHz $BHP $CADX $BSX
Donald J Olive
27 Jan 15 15:15:36
RT @SAlphaTrending: BHP Billiton And The Giant Demerger http://t.co/zgclSQPpmK $FCX $RIO $BHP
Alysia Sarkisian
27 Jan 15 15:08:20
RT @SAlphaTrending: BHP Billiton And The Giant Demerger http://t.co/zgclSQPpmK $FCX $RIO $BHP
Trending Articles SA
27 Jan 15 15:00:05
BHP Billiton And The Giant Demerger http://t.co/zgclSQPpmK $FCX $RIO $BHP
StockNewsWires
27 Jan 15 14:51:03
$BHP: BHP Billiton And The Giant Demerger: http://t.co/7TYcsftrUD
Quantpost Basic Mats
27 Jan 15 14:42:04
$FCX News: "BHP Billiton And The Giant Demerger $FCX $RIO $BHP …" http://t.co/jMIztph6uw Board view: https://t.co/Q4DOQpMm75
Seeking Alpha
27 Jan 15 14:42:02
BHP Billiton And The Giant Demerger http://t.co/DsrZdPiSkn $FCX $RIO $BHP
ProTradersNews
27 Jan 15 13:01:03
$BHP: Haywood's Short-list for the Junior Sector: Phosphate Makes the List: http://t.co/bkhHgmz1mC
Market Int Center
27 Jan 15 12:00:12
Potential BHP Billiton $BHP Trade Has 5.15% Downside Protection ( http://t.co/S4DARvMWJo )
Stock Rocket
27 Jan 15 11:56:54
Our Penny Stock Picks Gained 968% In 5 Weeks! Get Our Next Pick Early: http://t.co/wMEn6i1tkM $BHP $CADX $BSX
MICHAEL FILLOON
27 Jan 15 10:34:01
Reuters: U.S. crude exports boosted as Enterprise contracts http://t.co/6aQPdXef9M $EPD, $RDS.A, $RDS.B, $COP, $BHP http://t.co/wQxRXdY2Mr
Kirill Klip
27 Jan 15 09:39:30
RT @TNR_Gold: TNR Gold Los Azules #Copper: Chinese M&A - Watch Out For Las Bambas Effect. https://t.co/2yxt8Jmnit $TRRXF $MUX $GDX $CU $BHP…
IH NASDAQ OMX
27 Jan 15 09:00:35
$FVAB Volume Click Here: http://t.co/zBozUZhGKL Also See: $IDE $BHP $NEEJ $RACK ~
ProVesting
27 Jan 15 08:56:01
$BHP: RBC Capital Reaffirms Underperform Rating for BHP Billiton Limited ...: http://t.co/QbeZQIndlo
InterCooler
27 Jan 15 08:50:09
RBC Capital Reaffirms Underperform Rating for BHP Billiton Limited $BHP http://t.co/eD3FcjWvMb
IH News Desk
27 Jan 15 08:11:08
Stocks Trending Now: http://t.co/Ly6bZi0t2i $MCHHF $KMNCF $TBNC $SPXXF $SCNTQ $GBRRF $ELCO $BHP $BWSOF $ESCA $IDE $CETG ~
Investors Hangout
27 Jan 15 06:50:37
Stocks Trending Now: http://t.co/oFJbweffVo $VCII $CORI $LSANF $NWTR $SRCH $ESALY $PBIB $VKPPF $BHP $AINV $ROICW $GDBGF ~
Sufiy
27 Jan 15 06:15:07
RT @TNR_Gold: TNR Gold Los Azules #Copper: Chinese M&A - Watch Out For Las Bambas Effect. https://t.co/2yxt8Jmnit $TRRXF $MUX $GDX $CU $BHP…
Sarfaraz A. Khan
27 Jan 15 05:21:04
Top Stocks To Watch As The U.S. Opens Up To Condensate Exports $BHP, $COP, $DVN, $EPD, $MRO, $PXD, $VLO http://t.co/PWmqB8wWsI #energy #oil
ProVesting
27 Jan 15 04:16:04
$BHP: Basic Materials Movers to Watch - BHP Billiton (BHP), Turquoise Hill ...: http://t.co/PpadR6wvS7
Ben Reynolds
27 Jan 15 04:14:07
Why the Chowder Rule is so much more than soup: http://t.co/XkQDEpegYc $HP $BHP $PM $ENB $UNH $AWR #ChowderRule
TNR Gold Corp
27 Jan 15 04:07:36
TNR Gold Los Azules #Copper: Chinese M&A - Watch Out For Las Bambas Effect. https://t.co/2yxt8Jmnit $TRRXF $MUX $GDX $CU $BHP $FCX
ProTradersNews
27 Jan 15 02:36:04
$BHP: BHP Billiton Limited (ADR) Witness Large Outflow of Money: http://t.co/tyW4vPdUXa
Stock Rocket
26 Jan 15 23:48:43
Our Penny Stock Picks Gained 968% In 5 Weeks! Get Our Next Pick Early: http://t.co/wMEn6i1tkM $BHP $CADX $BSX
BBY Limited
26 Jan 15 21:47:57
Miners & energy stocks suffered on commodity price falls & were the biggest drag on the market $BHP -1.5%, $FMG -2.4% http://t.co/TYOGFdbVcl
chartguy89
26 Jan 15 20:52:15
BHP +1.12% Stock Charts $BHP BHP Billiton Ltd. ADS (NYSE) Last Updated: 01/26/2015 22:52:22 BHP Stock Chart - http://t.co/gsf40VfxUe
Leslie Shaffer
26 Jan 15 20:08:09
Why #ironore won’t rebound any time soon http://t.co/vqTdrxf8vS $AUDUSD $USDCNY $BHP $RIO
ブラッド
26 Jan 15 19:20:56
@perthnow $BHP paying $10 million for park naming rights? WTF..?
Anthony J Hargreaves
26 Jan 15 18:49:09
RT @BBYltd: The AUS market is about 0.5% higher as gains among big banks offset resources slide; $BHP-1.6%, $RIO -0.4%, $FMG -5.6% #ausbiz
BBY Limited
26 Jan 15 18:47:59
The AUS market is about 0.5% higher as gains among big banks offset resources slide; $BHP-1.6%, $RIO -0.4%, $FMG -5.6% #ausbiz
Stock Rocket
26 Jan 15 16:14:25
Our Penny Stock Picks Gained 968% In 5 Weeks! Get Our Next Pick Early: http://t.co/wMEn6i1tkM $BHP $CADX $BSX
Chikara@MBA
26 Jan 15 15:57:58
RT @FinancialReview: $BHP Billiton executive David Rainey denied #oil spill US court appeal. #ausbiz #resources http://t.co/sGpFE3uDSb
Investing Insight
26 Jan 15 15:52:47
KitchenNews: Australia bank, retail stocks gain as miners retreat -- details here: http://t.co/T3zYx8JnLo $XJO $BHP $RIO $QAN
Holmes Unlimited
26 Jan 15 15:48:09
MarketWatch: RT KitchenNews: Australia bank, retail stocks gain as miners retreat -- details here: http://t.co/5Mu4gp6aWW $XJO $BHP $RI...
Abraham VanVarenberg
26 Jan 15 15:44:55
RT @KitchenNews: Australia bank, retail stocks gain as miners retreat -- details here: http://t.co/XNtF8XSZZE $XJO $BHP $RIO $QAN
CommSec
26 Jan 15 15:44:22
Despite mining industry's 1.8% slide today - the sector surged 6.2% last wk. $BHP -2.3%, $RIO -2.6% & $FMG -8.2% this morn #ausbiz ^SD
FOREX Insight
26 Jan 15 15:42:54
RT @FinancialReview: $BHP Billiton executive David Rainey denied #oil spill US court appeal. #ausbiz #resources http://t.co/sGpFE3uDSb
Doug North
26 Jan 15 15:40:20
RT @KitchenNews: Australia bank, retail stocks gain as miners retreat -- details here: http://t.co/XNtF8XSZZE $XJO $BHP $RIO $QAN
stockmarketnow
26 Jan 15 15:40:03
RT KitchenNews: Australia bank, retail stocks gain as miners retreat -- details here: http://t.co/hO66WLSkT9  $XJO $BHP $RIO $QAN
Alpha Maven
26 Jan 15 15:39:45
RT @KitchenNews: Australia bank, retail stocks gain as miners retreat -- details here: http://t.co/XNtF8XSZZE $XJO $BHP $RIO $QAN
solomon anzagra
26 Jan 15 15:38:30
RT @KitchenNews: Australia bank, retail stocks gain as miners retreat -- details here: http://t.co/XNtF8XSZZE $XJO $BHP $RIO $QAN
James
26 Jan 15 15:37:31
RT @KitchenNews: Australia bank, retail stocks gain as miners retreat -- details here: http://t.co/XNtF8XSZZE $XJO $BHP $RIO $QAN
Financial Review
26 Jan 15 15:36:20
$BHP Billiton executive David Rainey denied #oil spill US court appeal. #ausbiz #resources http://t.co/sGpFE3uDSb
FinanzLinksASIA
26 Jan 15 15:35:39
RT @KitchenNews: Australia bank, retail stocks gain as miners retreat -- details here: http://t.co/XNtF8XSZZE $XJO $BHP $RIO $QAN
DayTrading Ninja
26 Jan 15 15:34:59
RT @KitchenNews: Australia bank, retail stocks gain as miners retreat -- details here: http://t.co/XNtF8XSZZE $XJO $BHP $RIO $QAN
MKTWAsia
26 Jan 15 15:34:13
RT @KitchenNews: Australia bank, retail stocks gain as miners retreat -- details here: http://t.co/XNtF8XSZZE $XJO $BHP $RIO $QAN
MarketWatch
26 Jan 15 15:34:13
RT @KitchenNews: Australia bank, retail stocks gain as miners retreat -- details here: http://t.co/XNtF8XSZZE $XJO $BHP $RIO $QAN
				
				
By  +Follow October 2, 2013 5:25AM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.