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.