Investing

Small energy stock rips higher after investor Mario Gabelli says he is following it

Mario Gabelli

Scott Mlyn | CNBC

Shares of RPC, Inc., a small oil and gas company based in Atlanta, jumped following positive comments from billionaire investor Mario Gabelli.

“I’ve been following it for 50 years,” Gabelli told CNBC’s “Halftime Report ” of the stock, which closed Monday at $5.54 a share. “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 shares traded more than 11% higher to around $6.16 after Gabelli’s comments. However, the stock is down around 50% over the past four years and has lost more than 37% in 2019.

“Short-term, things are terrible,” 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 just sit there and buy it while everybody else is puking it out.”

Gabelli is a value investor, meaning he tries to find stocks the market has undervalued and are poised to return to their appropriate valuation.

Gabelli also said Tuesday he likes Eldorado Resorts and Caesars Entertainment.

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