Catch a Correcting Commodityhttp://www.fool.com/investing/value/2008/08/05/catch-a-correcting-commodity.aspx Toby Shute
August 5, 2008
Monday delivered yet another gut check for believers in the commodities super-cycle. Even though I've been expecting prices to crack, I still found myself staring slack-jawed at the broad-based and brutal share price declines. The Energy Select Sector SPDR fell more than4.5%, while the SPDR S&P Metals & Mining ETF was slugged for over a 7% loss. Individual names naturally felt even more pain.
That brings me to today's list -- a selection of stocks that, in the course of Monday's turbulent trading, got seriously slammed. It's possible that some of these names were overheated, but I think we may be able to sniff out some value here as well.
Scary in the coalmine
Then there's Arch Coal, which may not sport the best margins among coal miners, but may yet merit Foolish attention. Thanks to hiccups in South Africa and Australia, Arch's CEO has predicted a mounting supply deficit through the end of 2009. Metallurgical coal suppliers in particular are becoming takeover bait. Arch, meanwhile, is the second-largest coal producer in the country, and may be worth a second look.
Speaking of takeovers
Whether or not