GO
Loading...

No More Unlimited Breadsticks

If you're playing CNBC's Million Dollar Portfolio Challenge, the following trades could be something to think about, suggests Dylan Ratigan.

***********************

As food prices surge companies that can aggressively hedge their costs should benefit. What’s worth watching?

Investors are betting that Darden Restaurants stock will remain a tasty treat despite high food costs. On Tuesday Merrill Lynch upgraded DRI to “Buy” largely due to their ability to hedge costs. Subsequently the stock surged nearly 4%.

What other companies could be similarly well positioned? Jon Najarian came up with the following….

Kellogg’s

The cereal maker hedges 70% of their exposure to grains.

Starbucks

The java gianthedges directly with farmers and has $320 million or its entire 2008 coffee hedged. They also hedge currency but were not specific, reveals Najarian.

How would you trade it?

I think the better trade is to short the poorly hedged restaurants, Najarian says. It seems to me that both Bob Evans and Buffalo Wild Wings fall into that category.

**************

If you're playing CNBC's Million Dollar Portfolio Challenge, the following trades could be something to think about, suggests Dylan Ratigan.



















______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send your e-mail to fastmoney@cnbc.com.

Trader disclosure: On May 29, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Adami Owns (BTU), (C), (AGU), (NUE), (GS), (INTC), (MSFT); Finerman Owns (GS); Finerman's Firm Owns (MSFT), (SUN), (TSO), (VLO), (AAPL); Finerman's Firm Owns SPX Index Puts; Finerman's Firm Is Short (BIG); Finerman's Firm And Finerman Own (C) And (C) Leaps; Finerman's Firm And Finerman Own (GLNG); Finerman's Firm Is Short (IYR), (IJR), (MDY), (IWM), (SPY Pete Najarian Owns (AAPL), (ANR), (BHI), (TSO), (XTO), (XLF), (HPQ), (BKC) (MAS), (ENER), (SYMX) (SVNT); Pete Najarian Owns (BAC) Puts

Jon Najarian Owns (DRI), (SBUX)

Symbol
Price
 
Change
%Change
BOBE
---
BWLD
---
DRI
---
K
---
SBUX
---

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET

Halftime Report