Coal and Steel Stocks Take A Hit
Coal and mining companies have been some of the top performing stocks this year, but since the start of July (1 and a half trading days), many of these names have gotten hit with declines of 10% or more. As shown below, Massey Energy (MEE), which was the top performing S&P 500 stock at the end of the second quarter, is down 14.05% in July. James River Coal (JRCC), which was the top performing Russell 3,000 stock at the end of June, is down 13.43% in the last two days. This big selloff in the top performing names indicates that money managers and other institutional investors were most likely holding onto these names for window dressing purposes through the end of the quarter, only to take profits in them at the first chance they had. Investors that have been waiting to get into these names on a pullback might want to take a look at them now.
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What goes up, must come down. The pullback I've been waiting for....
Posted by: Kevin H | July 07, 2008 at 09:38 PM