Sometimes one investing idea can lead to a better one. Eric Bolling came upon this “dirty trade” after noticing a 46% rise in dairy prices over the last 6 months. Click here to read what Eric calls a true gem.
Eric’s idea started with Stew Leonard’s in Connecticut; one of the largest dairy farms in North America where millions of gallons of milk are packaged each day. He was researching the skyrocketing cost of dairy products, when he stumbled on some packaging companies that are hitting on all cylinders.
First, Eric likes Dean Foods (DF) because dairy prices are expected to jump again.
However, companies that are putting milk in cartons such as Owens-Illinois (OI) and Crown Holdings (CCK) are making a ton of money. He says investors should keep an eye on the packagers.
Dylan asks Pete Najairan if he had to pick one for his book tomorrow, which would it be?
Pete says Owens-Illinois because they’re doing everything right. Guy Adami agrees.