On CNBC, Mario Gabelli discussed three stocks that are on his radar.
Diebold (DBD) trades at around $38, and Gabelli sees a potential 50% rise in the stock if the company executes its turnaround well. The company beat earnings estimates by 7 cents, but missed on revenue estimates, although these increased by 3.7% year over year. Diebold has undergone a management shuffle and is streamlining costs. Sales have been dropping in North America, but there was improvement in gross margins on the service side of the business. Orders in Latin America jumped 5%. Those who are bullish on the stock emphasize the strength of the company’s turnaround prospects and its dividend increases.
Chemtura (CHMT) is another turnaround story Gabelli likes, and he thinks it could offer 100% return in the next 5 years. Chemtura missed earnings estimates on July 29th by 3 cents and its revenue came in $14.6 million short of estimates, although this was a 3.2% rise from last year. Chemtura bulls note it is spinning off assets to become a company more focused on specialty chemicals. It recently announced it would sell off its AgroSolutions business to generate cash and improve its balance sheet.
Weatherford (WFT) is another company Gabelli praises for reorganizing. It is increasing its buyback, paying off debt, and Halliburton (HAL) will become a 50% owner of the company. WFT beat earnings estimates by 3 cents, but its revenues declined 4.7%. It is selling off its Russian and Venezuelan rigs to Rosneft in a $500 million deal.