Three Stocks Mario Gabelli Would Buy
Speaking on CNBC, Mario Gabelli said that the current market prices are supported by fundamentals, but the Fed has also played a major role. He said at some point in time the stimulus is going to be reduced, which could lead to a take off stage in the U.S. economy.
Diebold (NYSE: DBD) is one of the stocks Gabelli likes. It is trading at approximately $38 and he sees a potential upside of 50 percent if the company manages to take its capability and service and put it in software.
Gabelli also likes Chemtura (NYSE: CHMT). He thinks that the stock is a great turnaround story led by management. The company will close the deal and sell an asset in the next 60 days. He believes that this stock could offer a 100 percent return in the next five years and the downside is limited.
The management of Weatherford (NYSE: WFT) is separating good assets from bad assets and it is trying to grow the good assets. The company also has a buyback plan and it is reducing debt. This is a slow process but in the end Halliburton (NYSE: HAL) is going to take over the company at a 50 percent premium from its current price of Weatherford's current price of $22.93, Gabelli said.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.