Zach Karabell's Rising Star Stock - Monday March 7th
In this feature the traders reveal their favorite rising star stock. Find out why Zach Karabell thinks a molybdenum miner could provide steel support for your portfolio.
This weeks rising star stock is Thompson Creek Metals .
According to the company's website, Thompson Creek Metals Company Inc. is one of the largest publicly traded, pure molybdenum producers in the world. Molybdenum is a key component of steel production used as a strengthening and anti-corrosion agent in both steel and stainless steel.
Here are some more particulars:
Thompson Creek Metals (TC)
-Based in Toronto, Canada
-Sector: Basic Materials
-Market Cap of $359 Mln
-52-Week High $27.09
-52-Week Low $5.00
-Down 84% Over Last 52 Weeks
Why is this firm a rising star stock?
"Because molybdenum is necessary to make high-end steel," explains Zach Karabell. It’s an irreplaceable input.
"And we need high end steel to make aircrafts and buildings and other sophisticated things for the global economy." In other words, Karabell is trading on the thesis that the developing world will continue developing.
“If you think there will be a need for steel going forward there should be a need for molybdenum,” he concludes. And as a result, a need fo Thompson Creek Metals.
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Trader disclosure: On Feb. 23rd, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders Najarian Owns (GE) Puts; Najarian Owns (GDX) & (GDX) Short Calls; Najarian Owns (HPQ) Calls; Najarian Owns (MSFT) & (MSFT) Short Calls; Najarian Owns (MS) & (MS) Short Calls; Najarian Owns (X) Put Spread; Najarian Owns (WFC) & (WFC) Calls; Seymour Owns (AA), (BAC), (EEM), (FXI); Seymour Is Short (NUE); Seymour's Firm Owns (PCU); Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Finerman's Firm Owns (WFC) Preferred; Finerman's Firm Owns (MSFT), (RIG); Finerman's Firm Is Short (IYR), (IJR), (MDX), (SPY), (BBT), (VNO)