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Wheels Of Fortune

Since the days of Barney Rubble, the wheel has been one of the basic indicators of global progress, and that's still true today. From 18-wheelers to hybrid vehicles, demand for tires (wheels) is surging because of a healthy global economy. For some investors, the tire industry has been the proverbial road to riches. Should you be following along or is it time to wave the checkered flag on this trade?

Today, Dylan Ratigan is welcoming Cooper Tires (CTB) CEO Roy Armes to Fast Money. Mr. Armes says in general the fourth quarter was strong for his company. He feels that there’s a pick-up in demand for tires. Even with higher gas prices people are buying new tires. The industry says growth will go up 2 – 3 percent in the next nine months according to Armes, but he is more optimistic than that. Usually after being down in the prior year, the tire industry sees an uptick the next year, he said.

Tim Strazzini says the mix of cars and trucks on the road today is interesting to him. People who have had SUVs are starting to replace their tires. Strazzini says he’d buy the stock. SUV tires have higher margins.

Jeff Macke says the biggest concern for him is Cooper’s competitor Goodyear (GT). Other than that, Cooper looks great.

Guy Adami and Eric Bolling took the contrarian view. Guy says the stock is up, but he's going to bet against these guys. Eric says that since Cooper is not in the agricultural space (earthmovers, tractors, etc) – investors should stay away.

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CTB
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GT
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Trader disclosure:
On MAR 7, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders.Strazzini Owns (HAL), (YHOO), Is Short (WCG). Bolling Owns (BP), (XOM), Gold, Silver, Soybeans, Is Short S&P Futures, Is Short Nasdaq Futures, Is Short Corn

Questions? Comments? fastmoney@cnbc.com

Symbol
Price
 
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GT
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CTB
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