Jim Iuorio, director at TJM Institutional Services, and David Lutz, managing director at Stifel Nicolaus Capital Markets, weighed in on the best places to invest now.
Progressive —“As we go into the summer driving season, we think you should be buying some of the auto insurers. Rising gas prices is going to translate into less driving, less driving translates into fewer accidents which is better profit for the car insurers.”
Delta Air Lines —“Bank of America is having a transportation conference today and tomorrow and all the airlines are going to be talking."
Delta "is going to use this conference to upgrade guidance and we upgraded the stock last week, because they have the best liquidity position in the industry. They have more oil price hedges that are in the money than any other majors for 2009.”
Molybdenum—“It’s a metal alloy that’s used in the production of steel—it makes steel stronger. It’s a product that’s been on high demand for a long time.”
Thompson Creek Metals
Market Vectors Steel
Stifel Nicolaus has or may seek an investment banking relationship with Progressive. No immediate information was available for Iuorio or his firm.