BG2008 Posted September 14, 2014 Share Posted September 14, 2014 This is a thread for industries or companies facing structural headwinds. I'm trying to identify themes/names where the challenge is structural and secular rather than cyclical. However, I prefer names where the market has a misconception about the steepness of the decline rate. For example, everyone knows cigarette volume is going down, but nicotine is addictive and the shareholders can continue to milk that cashflow. On the other hand, coal mining is a sector that is doomed because of the relative cheapness of natural gas. 1) Iron Ore producers - Heavily tied to China's RE and Infrastructure build out. Steel consumption will revert from infrastructure (rail, skyscraper, et) towards more consumption (auto, appliances etc), the shift is dramatic when it happens. 2) Coal - Nat Gas is simply cheaper 3) Radioshack - Hard to compete when Amazon is so much cheaper and more convenient Link to comment Share on other sites More sharing options...
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!Register a new account
Already have an account? Sign in here.Sign In Now