Natural gas companies are a good investment for 2010, says Gamco’s Mario Gabelli.
The United States needs to have greater independence on its oil supply, he said.
Gabelli, the founder, chairman and chief investment officer at Gamco Investors, told CNBC that America is “tired of depending on the Middle East” for oil and gas.
One of his stock recommendations is National Fuel & Gas.
“And one of the areas that we’re intrigued about is natural gas. It’s allocated to heating homes and (this firm) has 727,000 customers that take natural gas from them.”
Gabelli said the auto industry will also rebound during the next three to four years as it boosts production.
“The U.S. auto industry will enjoy 3 to 4 years of rising production. Over the next 2 to 3 years, demand will rise, production will rise faster and companies that sell parts are going to get stronger, because they’re gaining market share; because a lot of their rival companies are going out of business,” he said.
Other top performers will be companies such as Strattec Security, Superior Industries International and Tenneco, Gabelli said.
“Jobs creation is priority number one (for President Barack Obama), and the auto industry benefits from that because you have some stability in that business and it’s also a global market place. A company that sells parts globally will do well.”
Natural gas futures declined recently with warmer weather and high domestic supplies, Dow Jones reported.
"Traders are absolutely falling back on the supply picture in terms of the ample supply that we have as we're making our way through the winter," said Larry Young, a trader with Infinity Futures in Chicago.
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