With recent developments in Saudi Arabia, investors should place their bets on oil service companies, said Jerry Castellini, president and CIO of CastleArk Management.
“What happened over the weekend in Saudi Arabia was a watershed event—The fact that [Saudi] Aramco called in the three biggest oil service providers in the world and said ‘you need to help us by increasing rig count’…that’s going to be huge for companies like Halliburton.”
Castellini said Halliburton stock is likely to break out after a sideways year and it could potentially double in the next 6 to 9 months. (Scroll down to see Castellini’s full list of picks.)
However, Castellini warned investors to stay away from certain Dow giants such as Pfizer and Bank of America.
In the meantime, Carlo Panaccione, founder of Navigation Group, said he likes the infrastructure sector and funds that allow investors to play the coming market volatility.
Castellini’s Picks & Pans:
Likes Verifone Systems
Avoids Bank of America
Columbia Rec/Infra Z
JPM Lg Cap Core Plus Sel
Scorecard—What They Said:
- Castellini's Previous Appearance on CNBC (Mar. 9, 2011)
- Panaccione's Previous Appearance on CNBC (Dec. 27, 2010)
More Market Intelligence:
- Will Financials Be the S&P’s Achilles Heel?
- Where to Invest Amid Choppy Markets: Strategist
- What Does Third Year of Bull Market Mean for Economy?
CNBC Data Pages:
Panaccione’s clients and firm own positions of CRIZX and JLPSX.
Castellini owns shares of HAL, PAY and DE.