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Dan Dicker’s Stock Picks On Commodity Rally


Commodity prices traded higher Tuesday, creating an opportunity in a few company stocks, according to renowned trader Dan Dicker and other “Fast Money” pros.

“All the industrial metals, the base metals are really ripping, and those are some you don’t even see — aluminum, tin, zinc, platinum, palladium — all up 2½ to 3 percent,” Dicker said. “Copper is ripping today.”

Monster Moves in Commodities

Crude oil futures climbed $2.29 at $100.99.

The reason for the rally?

China. A better-than-expected growth rate of 8.9 percent in the fourth quarter helped push commodity prices higher.

“Now you have a place where you can go,” Dicker said. “You can buy some miners, at least selectively.”

Dicker liked Vale and Chesapeake.

“Like every trader, you never feel like there’s a back stock, but you feel like there’s a bad stock price,” he said.

Chesapeake, along with other natural gas plays and the commodity itself, has faced downward price pressure, but Dicker said there was opportunity in a strong company at current pricing.

“There comes a point where the price just gets really a bit too much to take and you sort of have to stick your toe in on a couple of these,” he said.


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Other natural gas stocks to own, Dicker said, were Devon and Cimarex.

“I think futures are going much lower,” trader Joe Terranova said.

Companies to watch, he added, included Concho Resources and Pioneer Natural Resources.

OptionMonster.com cofounder Jon Najarian said he liked fertilizer stocks as a play with cheap natural gas.

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Trader disclosure: On Jan. 17, 2012 , the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Terranova is long V; Terranova is long CSCO; Terranova is long TRLG; Terranova is long JNPR; Terranova is long DECK; Terranova is long NFLX; Terranova is long XOM; Terranova is long SBUX; Terranova is long AXP; Terranova is long EMC; Terranova is long MUB; Terranova is long IBM; Terranova is long UNG April $5 puts; Scaramucci is long GOOG; Scaramucci is long JPM; Scaramucci is long GS; Scaramucci is long IBM; Edwards is long PM; Dicker is long Vale; Dicker is long CHK

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