Splits of RPC, a small oil and gas company based in Atlanta, jumped following positive comments from billionaire investor Mario Gabelli.
“I’ve been accepting it for 50 years,” Gabelli told CNBC’s “Halftime Report ” of the stock, which closed Monday at $5.54 a pay out. “If you look at the wiggles, it’s been $25 three or four times. They are in total control. There is no debt. They are a pressure-pumping, infrastructure supplier.”
RPC divisions traded more than 11% higher to around $6.16 after Gabelli’s comments. However, the stock is down round 50% over the past four years and has lost more than 37% in 2019.
“Short term, things are vile,” he said. But “somewhere in the next three years, if oil stays at $60 in West Texas, you are going to have a stock that’s $15-$20. You justified sit there and buy it while everybody else is puking it out.”
Gabelli is a value investor, meaning he tries to find stocks the shop has undervalued and are poised to return to their appropriate valuation.
Gabelli also said Tuesday he likes Eldorado Visits and Caesars Entertainment.
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