Shares of Walter Energy (NYSE:
) traded down over 17 percent Friday and reached at levels not
seen since March 2004. Making matters worse for the beleaguered
coal maker are the facts that Walter's decline has been accrued
on more than triple the average daily volume and that the stock
is currently halted for news pending.
Although Walter accounts for just 1.93 percent of the Market
Vectors Coal ETF's (NYSE:
) weight, the fund is showing it is not immune to Walter's woes.
KOL is down 2.7 percent Friday on nearly double its average daily
turnover after earlier touching a new 52-week low. Scratch that.
This is a new 50-month low for KOL. That is right. If KOL closes
below $19 today, which looks poised to do, it will be the first
time since April 2009 the ETF has done that.
Interestingly, investors have stock by KOL even as it has made
a series of new lows and severely lagged the broader market. At
the start of trading Friday, KOL was down 24.6 percent
year-to-date compared to a 12.4 percent gain for the SPDR S&P
). However, KOL has actually seen inflows on a year-to-date basis
and outflows of $5.3 million since May 1,
according to Index Universe data
, considering that with today's loss, KOL is down over 12 percent
The ETF had almost $180 million in assets under management as
of Thursday. What it also had was a 30-day SEC yield of 3.92
according to Market Vectors data
As has been noted, some ETF yields are accidentally high
and investors should consider exploiting those
. KOL probably does not fit that bill.
At least not when the ETF's three largest U.S. based holdings
- Consol Energy (NYSE:
), Joy Global (NYSE:
) and Peabody Energy (NYSE:
) - are down an average of more than seven percent in the past
month. Those three stocks combine for 23.6 percent of the ETF's
Calling a bottom in KOL has previously proven to be fool's
gold, but an educated estimate shows a move below $18 probably
means the ETF is headed back to $15, a price not seen since early
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