These Oil Firms Are 'Unfairly Pushed Lower' by BP Spill
Some stocks have been unfairly pushed lower on the back of the Gulf oil spill disaster and could be undervalued, said Robert Pavlik, chief market strategist at Banyan Partners. He shared his insights.
“It seems like [the oil spill] has been priced into the shares of BP and some of the drilling companies, and I think some companies have been unfairly pushed lower,” Pavlik told CNBC.
Specifically, Pavlik said services firms Schlumberger , Transocean and some oil firms are undervalued.
“With regards to shares of BP ...if someone wants to speculate on the long-term future of the company, that would be an interesting way to play it,” he suggested.
“You’ll see an initial bounce once they finally cap the spill, but after that initial bounce, it will be dead money for an extended period of time.”
Scorecard—What He Said:
- Pavlik's Previous Appearance on CNBC (Jun. 11, 2010)
Other Experts on the BP Crisis:
- Cramer: $20 Billion for BP Spill? Try $48 Billion
- BP Collapse? Big Trader Bets 'Yes'
- 'Fast Money' Traders: 4 Stocks Could Benefit From BP’s Woes
CNBC Data Pages:
No immediate information was available for Pavlik or his firm.