Market Vectors Coal (KOL) Trade Done
Jul
26
Written by:
7/26/2008 11:02 AM
Market Vectors Coal (KOL)
Trade Done
The short Market Vectors Coal (KOL) trade is not working and
could easily run against us this coming week with additional coal companies
reporting earnings.
Arch Coal Earnings
Arch Coal
(ACI) reported a very strong quarter on the back of rising coal prices over the
course of the quarter and gave a forward looking estimate that was beyond what
analysts have been expecting. The stock moved higher 9.32% on Friday causing
the ETF KOL to also move strongly to the upside. Arch Coal makes up 5% of the
KOL ETF.
Additional Coal
Earnings Coming
This coming
week will see additional coal companies reporting earnings which could very
well cause the KOL ETF to continue to move to the upside. Patriot Coal (PCX)
will announce their earnings on Tuesday along with Alpha Natural Resources
(ANR) and Walter Industries (WLT). And on Thursday CONSOL Energy (CNX) will
announce their earnings along with Massey Energy (MEE). CONSOL Energy makes up
8% of the KOL ETF while Massey Energy is 5.6% of the fund’s holdings.