Market Vectors Coal Called ‘Play of the Day’

StreetInsider.com recommends traders pay attention to the Market Vectors Coal ETF (KOL) in light of Alpha Natural Resources (ANR) sparking what Reuters calls a “wave of consolidation in the fragmented coal-mining industry.”

Alpha offered to buy Foundation Coal Holdings (FCL) for $1.5 billion, a 41% premium to Monday’s close. in an attempt to create the third-largest U.S. coal producer. The companies said the strategy was to benefit from an expected rebound in demand from steelmakers and power plants for coal.

StreetInsider says the ETF could be extremely volatile because it’s a stock for stock deal.

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