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5 Industrial Metals & Minerals Stocks Heading for Trouble?

By  +Follow October 2, 2013 5:25AM
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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.

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Results for BHP
lookn4wins
29 Aug 15 11:32:34
BHP BHP Billiton Ltd. Financials http://t.co/01nEmXWRLj $BHP $_TSO $MYEC $EUM #BHP #share #share
Analyst Actions
29 Aug 15 09:28:02
$BHP: Bullish analyst action by RBC Capital on BHP Billiton: http://t.co/OcAY15gYCX http://t.co/l6yG2BJALg
Stock Rocket
29 Aug 15 08:29:03
Our Penny Stock Alerts Gained 550% In Less Than 6 Weeks! We Have A HUGE New Pick In The Works: http://t.co/wNx8NkJOZ4 $BHP $CADX $BSX
Lucky Jimmy
29 Aug 15 05:33:03
BHP BHP Billiton Ltd. Stock Message Board http://t.co/NkDqZxKPz2 $BHP $T $BHP $VXX #BHP #tradeideas #nasdaq
Emylers
29 Aug 15 05:30:33
AA Alcoa, Inc. Current Price http://t.co/lzSTKbv000 $AA $APA $BHP $FVL #AA #invest #pennystocks
Investors Hangout
29 Aug 15 03:45:11
TD.TO Toronto-Dominion Bank Stock Message Board http://t.co/BSACrfnZQx $TD.TO $ARIA $BHP $GNRC #TD.TO #nasdaq #investing
IH NASDAQ OMX
29 Aug 15 03:38:21
GG Goldcorp, Inc. E.P.S. http://t.co/fYwaRWoaPf $GG $BHP $PSX $EFOI #GG #investing #pennystocks
clayton
29 Aug 15 03:38:15
GDX Market Vectors Gold Miners Ask Size http://t.co/LkKUrOqw8G $GDX $BHP $EFOI $XLV #GDX #invest #share
jim50
29 Aug 15 03:35:19
DHI DR Horton Inc. 52Wk Low http://t.co/8DgAUzfRUy $DHI $BHP $HL $URTY #DHI #stockmarket #invest
Lucky Jimmy
29 Aug 15 03:33:50
BHP BHP Billiton Ltd. Financials http://t.co/T81MyhpSiU $BHP $ZIV $TNA $TQQQ #BHP #invest #invest
Emylers
29 Aug 15 03:33:41
BHP BHP Billiton Ltd. Short Sales http://t.co/pWB149goOD $BHP $ALJ $GM $TBEV #BHP #invest #nasdaq
Joel Omondi
28 Aug 15 21:33:58
Exxon, BHP to spend A$400M to replace Australian pipeline $XOM $BHP http://t.co/t3qYFGD2Ct
Analyst Actions
28 Aug 15 14:48:02
$BHP: Bullish analyst action by RBC Capital on BHP Billiton: http://t.co/OcAY15gYCX http://t.co/bkwnpGaFBe
Stock_Tracker
28 Aug 15 14:39:33
KORS Michael Kors Holdings Ltd. Market Cap http://t.co/Nb5yFNfec1 $KORS $DHI $BHP $CRGP #KORS #stocks #stocks
leahanne
28 Aug 15 14:39:11
JNJ Johnson & Johnson P/E Ratio http://t.co/1BxASIFn36 $JNJ $XLI $BHP $TIP #JNJ #tradeideas #nasdaq
nasdaqfan
28 Aug 15 14:33:07
BHP BHP Billiton Ltd. Investor Opinions http://t.co/3BxBSFBf42 $BHP $GG $NEM $SSO #BHP #stocks #stockmarket
Consumer News
28 Aug 15 14:20:31
BHP Billiton Limited Receives “Underweight” Rating from Barclays $BHP http://t.co/gT53qTAUXl #acn
US Consumer News
28 Aug 15 14:02:57
BHP Billiton Limited's underweight rating reiterated at Barclays. http://t.co/ZcyqxOVm7W $BHP #BHP
FirstToMarkets
28 Aug 15 14:00:10
BHP Billiton Limited Reiterated Rating by Barclays Capital (Ranked 19th) to Underweight $BHP #BHP http://t.co/xur1J3Jp11
US Banking News
28 Aug 15 13:59:53
BHP Billiton Limited Receives Underweight Rating from Barclays $BHP http://t.co/22RdERuHME
iStock Market
28 Aug 15 13:58:06
RT @TickerReport: BHP Billiton Limited Receives Underweight Rating from Barclays $BHP http://t.co/eg57s2vTB6
Ticker Report
28 Aug 15 13:56:57
BHP Billiton Limited Receives Underweight Rating from Barclays $BHP http://t.co/eg57s2vTB6
Dakota Financial
28 Aug 15 13:52:20
BHP Billiton Limited Receives Underweight Rating from Barclays $BHP http://t.co/z9O5xisnSA
MarketBeatCom
28 Aug 15 13:46:00
BHP Billiton Limited's underweight rating reiterated at Barclays. http://t.co/5LOgXMj6M6 $BHP #BHP
Analyst Actions
28 Aug 15 11:48:02
$BHP: Bullish analyst action by Exane BNP Paribas on BHP Billiton: http://t.co/RCGFm08oor http://t.co/YQREWI5SVg
Breaking News Now
28 Aug 15 11:32:02
$BHP: BHP Billiton Faces Pricing & Currency Woes; Scopes Scant: http://t.co/bb1Dl39akU
FlashRatings
28 Aug 15 11:09:49
5 Worst Analyst Rated Stocks This Week: $TFM $DE $HIBB $FAST $BHP View all ratings here: https://t.co/c9pZ4QR5fM
WKRB News
28 Aug 15 10:27:29
BHP Billiton Limited Stock Rating Upgraded by RBC Capital $BHP http://t.co/hFufWV3GWA
Ruerd Heeg
28 Aug 15 10:02:44
Commented on: "Large Caps With Low EV/EBIT Ratios And Strong Balance Sheets" http://t.co/WI28yEwYle $BEN $BHP $BRDCY $CEO
Sleek Money
28 Aug 15 08:51:24
BHP Billiton Limited Upgraded to Neutral by BNP Paribas $BHP http://t.co/sZnLL7ErtP
Breaking News
28 Aug 15 08:05:02
$BHP: Will BHP Billiton Limited (NYSE:BHP) Keep up with Analyst …: http://t.co/TpLRWUcBDG
DailyStockPicks
28 Aug 15 08:00:16
$ANFI huge bounce play like $ACI up 10%. 100%-200% upside potential $BRCM $MCK $HUM $DRC $HLT $BHP investors read http://t.co/L1jwUVoc1O
CHItraders
28 Aug 15 06:08:49
$XOM and $BHP plan to invest $287 M to replace Australia pipeline. http://t.co/8Za9CoQ7qR
Seeking Alpha
28 Aug 15 05:22:41
Exxon, BHP to spend A$400M to replace Australian pipeline http://t.co/iG79Liylp6 #premarket $XOM $BHP
Energy Stocks SA
28 Aug 15 05:22:40
Exxon, BHP to spend A$400M to replace Australian pipeline http://t.co/ZiistPYcbD #premarket $XOM $BHP
Breaking News
28 Aug 15 05:22:40
Exxon, BHP to spend A$400M to replace Australian pipeline http://t.co/tQOhU3sXEG #premarket $XOM $BHP
Breaking News Now
28 Aug 15 04:52:06
$BHP: Recent Brokerage Upgrades: http://t.co/z0a9NpBKsv Inc (NASDAQ:AMZN …: http://t.co/UdoNI4FlyC
StockNewsWires
28 Aug 15 04:20:02
$BHP: New SEC Filing for BHP: Form 6-K (No. 0001193125-15-305596): http://t.co/8x6k30d1Ko
SEC Filings Reporter
28 Aug 15 04:19:09
NEW SEC Filing for $BHP filed a moment ago: http://t.co/lxKJN8Ax0k http://t.co/6E8EVjrmO5
Sleek Money
28 Aug 15 04:04:12
BHP Billiton Limited Upgraded by RBC Capital to Sector Perform $BHP http://t.co/WCxvm4QEV7
Analyst Actions
28 Aug 15 03:22:01
$BHP: Bullish analyst action by Exane BNP Paribas on BHP Billiton: http://t.co/RCGFm08oor http://t.co/pktfhUrQT5
PennyStock Zone
28 Aug 15 01:51:14
http://t.co/79iahxrKc8 <-- This is just an excellent trading DVD it covers everything you need to know! $ITB $RIO $BHP $RYL
InvestWithConf
28 Aug 15 01:49:02
$BHP is rated BUY, 17.0% upside by Wall Street analysts based on average ratings/targets http://t.co/s8LSTJ7yJE http://t.co/XUq4JqfB3C
Alexander Clarkson
28 Aug 15 00:31:24
RT @MobyPaul: #China fallout $BHP Billiton records 52% drop in earnings, impact of low commodity prices may affect rating http://t.co/LZor…
PAVEL
28 Aug 15 00:17:26
#China fallout $BHP Billiton records 52% drop in earnings, impact of low commodity prices may affect rating http://t.co/LZorrI3SfY
luckypete
27 Aug 15 23:47:08
@petergo99037185 AUS $BHP was giving a projection for $DAX tonite of +470 points, not likely, I expect up a few points and index DIVING down
luckypete
27 Aug 15 23:45:03
@petergo99037185 $DAX futures 10,322,.. index closed 10,315, not much change.. Pre-Market much higher 10,354. $BHP 'bothered by YEN and yuan
DailyStockPicks
27 Aug 15 23:23:02
$ANFI huge bounce play as short attack put in doubt. 100%-200% upside potential $DRC $HLT $BHP investors read http://t.co/L1jwUVoc1O
ABC Business
27 Aug 15 23:20:26
ASX ends a volatile week up 0.9% (+ 0.4% today) Materials +3.6% $BHP 5.9% Financials -0.6% http://t.co/cJeCDRnWra http://t.co/KBXZKhTa2a
NeNe高台院豊臣吉子
27 Aug 15 21:54:09
RT @petergo99037185: Having Problems Forecasting $DAX, The Bank of China intervention on yuan, the BOJ manipulating the YEN, affecting the …
				
				
By  +Follow October 2, 2013 5:25AM
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