Maybe this week's theme should be industry consolidation. At least that's where the rumors, and signs, seem to be pointing.

CLEVELAND-CLIFFS INC (NYSE: CLF)

Think iron pellets. If you do, you won't be alone. Lots of options folk think they've caught a takeover candidate, and have been picking up bullish options all over. Is it steel industry consolidation fever? Most probably. Rio Tinto plc ADS (NYSE: RTP) and Brazil's CVRD have been named as predators. Speculation about the company's future actually began late last summer for a company with a market cap of just $3B, which happens to be the largest producer of iron ore pellets in all of North America, and a key part of producing steel. The stock has been heading up for about seven months now. Makes sense.

NORFOLK SOUTHERN CORPORATION (NYSE: NSC)

Higher and higher goes the stock for a few reasons: Railroad stocks look to be buyout candidates, and some analysts are focused on the Southern, the fourth largest railroad in the U.S. The other reason? Mr. Warren Buffett also owns 6.4M shares worth over $300M. Good enough?

EQUITY INNS INC (NYSE: ENN)

There's speculation that the Inns are in buyout mode. The stock recently hit a 52-week high, and has been going up for about six weeks. Some who follow the company think it's definitely worth more than the $20 a share range.

And two that won't go away: Monster Worldwide Inc (NASDAQ: MNST) and Sherman-Williams Company (NYSE: SHW) are absolutely considered to be prime takeover targets.