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Top Traders: 2 Likely Mining Takeover Targets

Monday, 2 May 2011 | 1:39 PM ET

In the latest wave of coal mining acquisitions, Arch Coal said Monday it will buy International Coal Group for $3.4 billion. The deal will boost Arch Coal's steelmaking production, as prices soar on recent global demand.

Given the recent flurry of M&A in the coal mining space, the "Fast Money" traders discussed the next likely takeover targets. To Stuart Frankel's Steve Grasso, Patriot Coal is a strong candidate. Although not as likely, he said James River Coal's price action suggests it's another possible takeover target.

If another coal mining name is to be taken out, Kanundrum Capital founder Brian Kelly also thinks it could be Patriot Coal.

"It seems to be the best fit in terms of valuation and in terms of what they have of assets," Kelly said of Patriot Coal. "If there's going to be another [takeover], that's the first one to look towards."

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INSIDE DISH ON TIVO

Inside Dish on TiVo
Discussing TiVo's recent $500 million settlement against DISH Network and Echo Star, and the company's future growth prospects, with Tom Rogers, TiVo CEO.

TiVo recently reached a $500 million settlement against DISH Network and Echo Star.

To talk about the settlements, as well as the company's future growth prospects, TiVo CEO Tom Rogers appeared on Monday's "Fast Money Halftime Report."

Watch the video to see the full interview.

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CALL THE CLOSE

As the "Fast Money Halftime Report" came to a close, the traders commented on where they think the market is going and how they plan to trade it.

Grasso said he's watching the 1,361 level on the S&P. Should the index fall below that "key level," he think the market could go lower.

"I like this market," Kelly said. "Buy 'em."

Judging by both the industrials and pharmaceuticals, options trader Pete Najarian thinks the market could push higher.

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Trader disclosure: On May 2, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Pete Najarian Owns (YHOO); Grasso owns (AMD); Grasso owns (ASTM); Grasso owns (BA); Grasso owns (BAC); Grasso owns (C); Grasso owns (D); Grasso owns (JPM); Grasso owns (LIT); Grasso owns (LPX); Grasso owns (MHY); Grasso owns (NDAQ); Grasso owns (PFE); Grasso owns (PRST); Karabell owns (AAPL); Karabell owns (GOOG); Karabell owns (RIMM); Karabell owns (AGQ); Pete Najarian owns (PFE); Pete Najarian owns (TCK); Pete Najarian owns (AAPL); Pete Najarian owns (AKAM); Pete Najarian owns (C); Pete Najarian owns (HPQ); Pete Najarian owns (TEVA);Pete Najarian owns (MS); Pete Najarian owns (RSX); Pete Najarian owns (GE); Pete Najarian is long (RIMM) calls

For Steve Grasso:
Stuart Frankel & Co and its partners own (AMD)
Stuart Frankel & Co and its partners own (AOL)
Stuart Frankel & Co and its partners own (CSCO)
Stuart Frankel & Co and its partners own (CUBA)
Stuart Frankel & Co and its partners own (GERN)
Stuart Frankel & Co and its partners own (HPQ)
Stuart Frankel & Co and its partners own (HSPO)
Stuart Frankel & Co and its partners own (MSFT)
Stuart Frankel & Co and its partners own (MU)
Stuart Frankel & Co and its partners own (NYX)
Stuart Frankel & Co and its partners own (PFE)
Stuart Frankel & Co and its partners own (PRST)
Stuart Frankel & Co and its partners own (SDS)
Stuart Frankel & Co and its partners own (UAL)
Stuart Frankel & Co and its partners own (XRX)
Stuart Frankel & Co and its partners are short (QQQQ)
Stuart Frankel & Co and its partners are short (AAPL)
Stuart Frankel & Co and its partners are short (INTC)

For Brian Kelly
Accounts Managed by Brian Kelly Capital own (AMG)
Accounts Managed by Brian Kelly Capital own (ANBTU)
Accounts Managed by Brian Kelly Capital own (DIA)
Accounts Managed by Brian Kelly Capital own (EBAY)
Accounts Managed by Brian Kelly Capital own (GLD)
Accounts Managed by Brian Kelly Capital own (GDXJ)
Accounts Managed by Brian Kelly Capital own (SLV)
Accounts Managed by Brian Kelly Capital own (JJG)
Accounts Managed by Brian Kelly Capital own (LMT)
Accounts Managed by Brian Kelly Capital own (MS)
Accounts Managed by Brian Kelly Capital own (RVBD)
Accounts Managed by Brian Kelly Capital own (TSN)
Accounts Managed by Brian Kelly Capital own (SU)
Accounts Managed by Brian Kelly Capital are long gold
Accounts Managed by Brian Kelly Capital are long wheat
Accounts Managed by Brian Kelly Capital are long soy futures

Zachary Karabell
River Twice Captial is short S&P 500
River Twice Capital is short Nasdaq 100

Dennis Gartman
Funds Managed By Dennis Gartman are long gold
Funds Managed By Dennis Gartman are long silver
Funds Managed By Dennis Gartman are long Brend and WTI crude
Funds Managed By Dennis Gartman are long Canadian Dollar


CNBC.com with wires. Reuters contributed to this report.

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ACI
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