A long position in ADM looked like a hot trade but so far all it’s done is burn trader Brian Kelly, founder of Shelter Harbor Capital.
Fast Money trader B-K made the fateful call on May 30th as defensive play in a market that looked like it was breaking down.
“I think Archer Daniels is the way to go,” he said at the time. “They pay a dividend yield and as far as I know, people haven’t stopped eating in the last 24 hours.”
People might have kept eating but that didn’t keep shares from sliding. Since his bullish call, ADM has dropped more than 15%.
Now what?
“I’m out of it,” says Kelly. “With commodity prices surging, the spreads that they earned have completely collapsed – now this stock is a no touch.”
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Trader disclosure: On July 10, 2012 , the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Brian Kelly is long TLT; Brian Kelly is long QQQ; Brian Kelly is long EURUSD; Brian Kelly is long USDJPY; Brian Kelly is long USDMXN; Anthony Scaramucci is long AAPL; Anthony Scaramucci is long C; Anthony Scaramucci is long GS; Anthony Scaramucci is long JPM; Anthony Scaramucci is long SBUX; Anthony Scaramucci is long AMZN; Josh Brown is long AAPL; Josh Brown is long JPM; Josh Brown is long WFC; Josh Brown is long GDX; Josh Brown is long GLD; Josh Brown is long XLU; Josh Brown is long WMT
For Kathy Lien
Nothing To Disclose
For Mark Mahaney
Citigroup Global Markets Inc. or its affiliates beneficially owns 1% or more of any class of common equity securities of AMZN
Citigroup Global Markets Inc. or its affiliates beneficially owns 1% or more of any class of common equity securities of NFLX
Citigroup Global Markets Inc. or its affiliates beneficially owns 1% or more of any class of common equity securities of YHOO
Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as investment banking client(s) GRPN
Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as investment banking client(s) FB
Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as investment banking client(s) YHOO
Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as investment banking client(s) GOOG
For Andy Hargreaves
Pacific Crest does make a market in the shares of NFLX
For Mike Murphy
Mike Murphy is long FB
