Fording Canadian Coal Trust (FDG) continued to slide on worries that the credit crunch will put a crimp in Teck Cominco’s takeover offer set to close in October. Fording ended the day down C$0.67 at C$81.16, while Teck closed at C$35.38, down C$1.26.

Speaking of takeover flops, Midway Gold’s (MDW) proposed merger with Golden Predator Mines has been shelved. No reason was given. Midway ended the session down C$0.18 at C$0.82, while Golden Predator lost C$0.15 at C$0.80.

Happy Creek Minerals (HPY) managed to lose C$0.01 to close at C$0.28 despite reporting a 135 metre drill intercept running 0.43% copper at its Rateria property in British Columbia.

Inca Pacific Resources (IPR) fell C$0.10 to close at C$0.55 with more then 3 million shares traded. The company is moving forward with its Magistral copper molybdenum project in Peru.

Meanwhile, shares in Dynamite Resources saw action on no news. The company has been drilling the Mike Lake copper-gold project in the Yukon with two rigs all summer and recently added a third but has yet to release results. Dynamite ended the day down C$0.02 at C$0.0115.

VMS Ventures (VMS) managed to tack on C$0.055 to close at C$0.42 after tabling a 53.19 metre drill intercept running 3.08% copper at its Reed Lake Discovery zone in Manitoba.

Liquidation is the name of the game with even cash rich companies getting the punt from investors’ portfolios. We will see what Wednesday trading has in store.

Source: Resource Stock Roundup Wednesday, September 17th, 2008

But coal stocks, on the other hand, continue to appreciate in value. That’s why I feel that every Taipan reader (like you) needs to own some upside exposure to the coal sector. Today’s Chart of the Day offers you a look at one stock pick.

According to the U.S. Department of Energy, China and India will account for 70% of the world’s coal consumption increases over the next two decades, and this demand is not about to stop anytime soon. Roughly 66% of the world’s coal is used to fuel electrical plants, and the remainder goes into steel and concrete production.

That makes coal a global play on energy and infrastructure.

That’s why I like Fording Canadian Coal Trust (FDG:NYSE). It’s enjoyed current coal contract rates running as high as $275 per ton — compared to the $93 per ton it charged in 2007. This incredible year-over-year coal price increase makes it easy to predict that shares of FDG will hit $100 by Q4 of 2008.

Bryan Bottarelli, Bottarelli Research

Source: Weak Markets? Not for Coal Stocks