overseas big boys buy up coalworks smh

http://www.smh.com.au/business/stocks-to-watch-stack-up-well-but-risky-times-ahead-20101219-191vu.html




Stocks to watch stack up well but risky times ahead Barry FitzGerald
December 20, 2010

ANYONE with a pin would have done well out of the junior resources sector in the second half of the year. And so it was with Garimpeiro's stocks-to-watch suggestions back in June.

The nine stocks to watch have done very nicely in the December half, with the mythical portfolio increasing in value by a handy 82 per cent (before costs). So, $1000 invested in each, for $9000 all up, became $16,410. Too easy really.

But investment in the sector remains high-risk and unless you believe commodity prices can go higher still, the next six months promises to be more challenging.

After wide consultation with a bunch of mining types at a trackside Christmas bash last week, Garimpeiro now updates and resets the mythical portfolio of stocks-to-watch across a range of commodities.

COAL:
The coal sector has gone from strength to strength despite the best efforts of the green movement to convince the public that the black stuff does not have a future. Steaming coal is well north of $US100 a tonne and coking coal is at $US225 a tonne. The June stock was Cockatoo (COK) which has risen from 42? to 55.5?.

Again to freshen things up, out it goes. In comes Coalworks (CWK) which last traded at 69? a share.

It has a bunch of NSW coal and coal-to-liquids projects on the go, attracting the attention of some of the overseas big boys.


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