In a program on Fox Business, Hobart Financial Group CEO, Chris Hobart, Fort Pitt Capital Group CIO, Charlie Smith, and Bull Reef Brokerage CEO, Scott ShelladyI, discussed the best options for the investors. Hobart was positive for the Oil and gas producer, Whiting Petroleum Corp (NYSE:WLL-A) and said that if investors are looking for good options, Whiting Petroleum Corp (NYSE:WLL-A) is what they should go for. He said that Whiting Petroleum Corp (NYSE:WLL-A) is undervalued by 45% as compared to its competitors.
“I think they are dramatically undervalued. What’s happened was they’ve made some significant changes really within the past several months. They have increased their technology which means they are being profitable and able to get more oil and gas out of the ground, what they’ve also done is they’ve changed some of their planning when it comes to their employee compensation,” said Hobart.
According to Hobart, the interest rates are going to get high in the second quarter and the companies need to show their growth in order to get inline in the market. Hobart also picked New York based real estate investment trust, New York REIT, Inc (NYSE:NYRT). He said that though the stock of is bubbling, New York REIT, Inc (NYSE:NYRT) has got the potential because Manhattan is the best real estate market. He argued that cap rates of New York REIT, Inc (NYSE:NYRT) are much higher than what they are borrowing.
Charlie Smith picked Kinder Morgan Inc (NYSE:KMI), American Energy Company. Smith said that Kinder Morgan Inc (NYSE:KMI) is in the best geographical position to cease the opportunities that are coming soon as a result of huge LNG exports. He said that any company which can return 18% to 20% in terms of ROE must be considered as a good option these days and Kinder Morgan Inc (NYSE:KMI) is one of them.
Smith said that the investors must avoid Auto sector because there is no growth in this domain. According to Smith, all the improvement in Auto sector came as a result of bounce back from the last quarter.