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Follow Hedgie David Tepper into Goodyear Tire?

Shares of Goodyear Tire popped 4% in extended trade after reports surfaced that hedgie David Tepper established a stake in the firm.

Specifically, in a 13G filed after the close, David Tepper's Appaloosa Management hedge fund disclosed a 6.1%, or 14,836,002 share, stake in the company.

”It’s a 13G which means it’s a passive investment,” explains Karen Finerman. “He’s not looking to do anything activist. It means he just thinks it’s great value.”

Meanwhile, Citigroup raised its rating on Goodyear to 'Buy' from 'Hold', saying that after significant underperformance over the past 12 months, the risk/reward may be favorable.

”The stock has clearly underperformed over the last 6 months and a lot of analysts are pessimistic,” explains Joe Terranova. “If they come in with a positive earnings report I think analysts will have to upgrade the stock.” That suggests the stock has upside.

Ever the contrarian, Steve Cortes doesn’t see it. “Ford has traded disastrously,” he counters. “So to buy tires when automakers are struggling. I don’t know.”

And if you are interested in following David Tepper into this stock you might want to wait a few days. “The horse is out of the barn,” adds Karen Finerman. “Tepper’s been buying and that’s already been a big source for demand. I’d wait.”

”And I’d want to see how much short interest there is in the stock,” adds Joe Terranova.

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GOLD SURGES ON INFLATION CONCERNS

Investors put money to work in gold on Thursday, with the precious metal closing at its highest level in about 2 weeks.

Gains were largely generated by comments from Ben Bernanke which suggested the Fed would continue easy money policy for quite some time. That invoked inflation fears.

What’s the trade?

I think rallies in gold are meant to be sold, says Guy Adami.

I’m short gold because I don’t think strong inflation is in the cards with employment still so weak, says Steve Cortes.

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COTTON AND SUGAR

Again the traders are watching the action in commodities with cotton pulling back on Thursday after touching all time highs. Also, the gang has sugar on the radar, which took a break after touching 30-year highs.

What must you know?

Sugar lost 7% in about 7 minutes, says Joe Terranova. That concerns me; it suggests the moves were not made on fundamentals. To me, that kind of action is pro traders getting in and out of positions. I’d be cautious.

They are small markets and that’s why they go up fast and down fast, explains Brian Kelly. However, lately a pullback in commodities has been a buying opportunity. If you want to get involved, you can play it long DBA.

I’d play commodities long Bunge , counters Joe Terranova.



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Trader disclosure: On Feb. 3, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Joe Terranova owns (VRTS), (C), (UPL), (GM), (PEP), (MS), (LTD), (CVI), (CVE), (SU), (CPX), (CNQ) and (POT). Guy Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE) and (BTU). Steve Cortes owns (SVU), (MO), (PM), (K), (SWY) and (EXC). Steve Cortes are long U.S. Treasuries. Steve Cortes is short (LVS). Steve Cortes is short Gold. Steve Cortes is short Crude. Karen Finerman owns (BAC), (AAPL), (BP), (C), (WMT), (MSFT), (JPM), (GOOG) and (HPQ).
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GE owns 49% of NBCUniversal
GE owns 49% of CNBC
KAREN FINERMAN
Finerman's firm is short (MDY)
Finerman's firm is short (SPY)
Finerman's firm is short (IWM)
Finerman's firm is short (IJR)
Finerman's firm is long S&P puts
Finerman's firm is long Russell 2000 puts
Finerman's firm owns (AAPL)
Finerman's firm owns (BAC) leaps
Finerman's firm owns (BP)
Finerman's firm owns (FCX) puts
Finerman's firm owns (HPQ)
Finerman's firm owns (IBM)
Finerman's firm owns (JPM) and (JPM) leaps
Finerman's firm owns (MSFT)
Finerman's firm owns (PLCE) and (PLCE) calls
JOE TERRANOVA
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (CCG)
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSVI)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (KRC)
Virtus Investment Partners Owns More Than 1% Of (LDR)
Virtus Investment Partners Owns More Than 1% Of (LPHI)
Virtus Investment Partners Owns More Than 1% Of (NRCI)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLF)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLK)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (SUBK)
Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of (DPUKF)

GUY ADAMI
Adami's wife works for (MRK)
BRIAN KELLY
Accounts Managed By Kanundrum Capital Own (YGE)
Accounts Managed By Kanundrum Capital Own (TLT)
Accounts Managed By Kanundrum Capital Own (IAU)
Accounts Managed By Kanundrum Capital Own (SLV)
Accounts Managed By Kanundrum Capital Own (ATW)
Accounts Managed By Kanundrum Capital Own (BAC)
Accounts Managed By Kanundrum Capital Own (UAL)
Accounts Managed By Kanundrum Capital Own (DAL)
Accounts Managed By Kanundrum Capital Own (DBA)
Accounts Managed By Kanundrum Capital Own (JJG)
Accounts Managed By Kanundrum Capital Own (DO)
Accounts Managed By Kanundrum Capital Own (APA)
Accounts Managed By Kanundrum Capital Own (MS)
Accounts Managed By Kanundrum Capital Own (JEF)
Accounts Managed By Kanundrum Capital Own (MON)
Accounts Managed By Kanundrum Capital Are Short The Yen
Accounts Managed By Kanundrum Capital Are Short The Australian Dollar
BARRY RITHOLTZ
Ritholtz has no disclosures
ANDY BUSCH
Busch has no disclosures
ANTHONY SCARAMUCCI
Scaramucci and SkyBridge Capital own (V)
CHRISTOPHER VERRONE
Verrone has no disclosures
BRIAN STUTLAND
Stutland owns (CSCO), is short (CSCO) calls
GORDON JOHNSON
Johnson has no disclosures
FAST FIRE 12/21/2010
Guy Adami had no disclosure in (JEF) on 12/21/2010



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