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Who doesn’t like a 50% return on investments? Even the veterans would lend an ear if an expert were to pick a few stocks that he thought could offer such a lucrative return in the upcoming years. CEO Mario Gabelli of Gamco Investor did just that in his interview with Bloomberg Surveillance on Monday.

Gabelli looks for companies that could benefit from infrastructure

Gabelli is long on the London-based farm machinery and equipment company, Case New Holland Industrial N.V. – that he thinks has the potential to deliver massive returns because the construction business is expected to boom, partly because of the “tailwind of Capex from corporations.”

The CEO also highlighted on Bloomberg Surveillance that farmers want precision farming that uses less water and less labour. Gabelli said:

“With an ability to do SG, and a new CEO Scott Wine who joined from Polaris, Case New Holland at fifteen and a half dollars, a buck and a quarter in earnings in two years, and a spin-off of their Ivaco business, which is financial engineering, offers sufficient reasons to buy.”

Why does Gabelli like Hyster-Yale Materials Handling Inc?

The Gamco Investor chairman named Grupo Televisa as another one of his fifty percenters. He also highlighted Hyster-Yale Materials Handling Inc as one of his top picks, but the stock didn’t make it to his list of ‘nifty fifties’. Gabelli acknowledged that Hyster wasn’t a company that many are familiar with, but said:

“The stock is at $73. They’ve put too much money without demonstrating the success in creating a hydrogen fuel for their forklift trucks and then taking that skillset and moving it elsewhere. It’s a good bet on the recovery of their business which benefits from the change in logistics. We thought they’d earn five dollars in two years; we’re still sticking with that.”

Hyster-Yale jumped from $60 per share to $100 per share and then back to around $65 per share. Lastly, Gabelli said in his interview with Bloomberg Surveillance that companies which were working towards a major breakthrough in batteries also look appealing for the next three to four years.

The post Mario Gabelli says these stocks could rise by 50% appeared first on Invezz.



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