Today, Western Canadian Coal makes a little bit of an announcement
telling us just how bad this is affecting the coal business,
but if it is affecting coal, you can assume it’s happening in every
other business that makes products in Canada and tries to sell in
the U.S. From their report, Western Canadian Coal writes, “Since
our fiscal year end, we have seen a 25% increase in the Canadian
dollar relative to the U.S. dollar. On an annualized basis, this
would impact our sales by over $50 million. Charts on many of the
coal producers, show that this is hitting many of them at the same
time.
How bad can it get? Widely-followed commentator, Don Coxe
who predicted a Canadian dollar breaking par years ago and more
recently predicted the Canadian dollar hitting $1.10 suggests,
“you ain’t seen nothing yet.”
Well if that’s the case, there is going to be an awful lot of Canadian
mining, oil and gas and manufacturing facilities that are either
going to have to get leaner and meaner or they are in trouble |
