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 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 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 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 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.