Market Overview

Michael Binger Of Gradient Investments Likes Ford And Energy XXI


Speaking on CNBC, Michael Binger of Gradient Investments said that Ford Motor Company (NYSE: F) had a good quarter and the stock looks cheap.

Binger thinks that F-150 is going to be a killer product for the company. Mr. Binger also likes the fact that the international profitability, which didn't exist for years, is finally back. Ford pays a decent dividend and the vehicle fleet in the U.S. is old, added Michael Binger. That makes him confident that Ford will grow.

Energy XXI (NASDAQ: EXXI) is another stock that Mr. Binger would buy. The company operates in the offshore drilling space and it is the largest driller operating in the Gulf of Mexico.

Energy XXI had some drilling problems which have reflected negatively on the stock price. Michael Binger thinks that the market overreacted and that stock is cheap now because it trades on a very steep discount to its net assets value. The company has a very strong long term production growth in his opinion.

Binger believes that the crude oil price has bottomed and that should have a positive impact on Energy XXI.


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Posted-In: CNBC Gradient Investments Michael BingerMedia