“Fast Money” pro Jon “Dr. J” Najarian made 2012 predictions for the energy trade and one surprise — regarding Research In Motion.
1. Favorite Oil Plays
“I’m all over Marathon Oil, Hess and Sunoco, and I bet Dan Dicker likes a lot of those, too,” he said. “My thinking here is that unfortunately because of cutoffs with the gulf and things that we’ve done to inhibit growth of our own energy as far as crude oil, I think those stocks will continue to do well.” Delay of the XL oil pipeline, Najarian said, while bad for the United States, will be good for these companies.
2. No Lumps of Coal
“If fossil fuel is becoming more near and dear, and there are really three ways to heat your home, it’s either going to be natural gas, nuclear or coal,” he said. “The green energy plays are not ready for prime time.” Dr. J. likes: Consol Energy, James River Coal, Massey Energy, Arch Coal and Patriot Coal.
3. The Bakken Shale Play
“Berkshire Hathaway virtually owns the distribution network out of there to the Western United States,” Najarian said. For more direct plays, he likes Canadian Pacific and Canadian National.
4. Home, Sweet Homes
Najarian was bullish on Alexandria Real Estate Equities, Beazer Homes, KB Home and Ryland.
5. New Owners for RIM?
“I think it gets bought out, despite the fact that the insiders own so much, and that’s always been the impediment,” he said. The time frame? First half of 2012, maybe even in the first quarter. “If you take out RIMM at $24 a share, it’s $12 billion valuation.”
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Trader disclosure: On Dec. 29, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Jon Najarian is long (AAPL); Jon Najarian is long (AKS); Jon Najarian is long (RIMM); Jon Najarian is long (ANR); Jon Najarian is long (CNX); Jon Najarian is long (JRCC); Jon Najarian is long (ACI); Jon Najarian is long (PCX); Jon Najarian is long (MOS); Jon Najarian is long (ADBE; Jon Najarian is long (WFT); Jon Najarian is long (PNC); Steve Weiss is long (EUO); Steve Weiss is long (FO); Steve Weiss is long (VZ); Steve Weiss is long (WLP); Steve Weiss is short (FXA; Dan Dicker is long oil futures; Dan Dickeris long (IBM) Stock; Josh Brown is Long (VAL); Josh Brown is Long (HD); Mike Khouw is Long (PHM); Mike Khouw is Short (PHM) Calls
Long: We own an “Asian” short term government bond fund, corn, the C$, the A$, and gold.
Short: We are short S&P 500, FTSE 100, and Euro Stoxx 50 futures to hedge the positions mentioned above. We are also short the Euro, Pound Sterling, and Yen.
The CIBC Gartman Global Allocation Notes portfolio for December is as follows:
Long: 10% Canadian Dollars; 10% Australian Dollars; 20% Gold; 10% Corn
Short: 20% Euro; 10% British Pound Sterling; 5% Japanese Yen; 5% S&P 500 Index; 5% Dow Jones EURO STOXX 50 Index; 5% FTSE 100 Index.
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