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There Are Still Deals in Value Stocks: Gabelli

Friday, 30 Apr 2010 | 5:59 PM ET

Although it is harder to find a bargain on value stocks than it was a year ago, investors can still find a deal in some infrastructure companies. So Mario Gabelli of Gamco Investors told CNBC at Berkshire Hathaway's annual shareholder meeting Friday.

Gabelli shared his picks in the rail and airline industries.

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CNBC's Becky Quick discusses this weekend's Berkshire Hathaway investor meeting with Mario Gabelli, Gamco Investors, and insight on what Charles Munger, Berkshire-Hathaway vice chairman thinks about former Lehman Brothers CEO, Dick Fuld.

Gabelli said the infrastructure companies are benefiting from a turn in the economy.

"When we were here last year we said fiscal and monetary policy are going to work, well, they are working. And the reports and earnings that you are getting in now underscore that companies have their break on cost, volume is picking up, gross margins are improving, SG & A* is down, and profits are exploding," said Gabelli.

Recommendations:

In the rail industry Gabelli recommends GATX , a small-cap company that manufactures rail cars.

In the airplane industry Gabelli recommends vendors to Boeing , such as Crane and Precision Castparts .

*Selling, general & administrative expenses

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Disclosures:

Disclosure information was not available for Gabelli or his company.

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