Dan Dicker’s Picks As Nat Gas Hits 10-Year Low
As crude oil prices remain high and natural gas hit a 10-year low Tuesday, commodities trader Dan Dicker said the best bet is clear.
“Nat gas now is at a 45-to-1 differential when the historical to crude is more like 6-to-10,” he said. “I’m telling you, this is an inevitable, inevitable move to nat gas in this country, cannot help to happen whether you have Washington on board or you don’t have Washington on board.”
Natural gas hit a low of $2.20 per million BTUs earlier in the day before recovering slightly. Its midday high was $2.29.
Dicker said “dedicated natural gas stocks” that were hammered recently were certain to triple over the next three years, mentioning such companies as Devon, Ultra Petroleum and Cabot.
“The nat gas move is absolutely inevitable. This is ridiculous, $2.23 an MMBTU,” he said on “Fast Money.”
Trader Stephen Weiss liked Chesapeake Energy as a play in the space.
“I think there’s tremendous value there,” he said.
Jon Najarian of OptionMonster.com sounded positive on Clean Energy Fuels, a company that converts gasoline-powered vehicles to run on natural gas.
“This will be one of the winners going forward,” he said.
Trader Josh Brown urged caution on Clean Energy, especially at current levels, and instead favored an ETF.
“I’m sticking with the FCG idea,” he said. “It’s got all high-quality producers in there, some of the lower quality. There’s definitely some beta in those names.”
Simon Baker of Baker Street Management was “overweight” on the energy sector, but not on natural gas.
His pick: Chicago Bridge & Iron.
“I like the suppliers of the energy companies,” he said.
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Trader disclosure: On March 13, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Weiss is short JCP; Weiss is long VZ; Weiss is long QCOM; Weiss is long JPM; Weiss is long EUO; Weiss is long TBF; Weiss is long HAIN; Weiss is long SNDK; Weiss is long BRCM; Weiss is long NFLX (PUTS); Weiss is long CSC; Weiss is long BKU; Weiss is short MT; Weiss is short ANR; Weiss is short FCX; Weiss is short FXA; Najarian is long AAPL call spreads; Najarian is long GS call spreads; Najarian is long JOYG call spreads; Najarian is long RIG call spreads; Najarian is long LULU call spreads; Najarian is long RL call spreads; Najarian is long MSFT call spreads; Najarian is long UBS call spreads; Najarian is long WDC call spreads; Brown is long AAPL; Brown is long QQQ; Brown is long JPM; Brown is long LULU;
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