Oil Stocks are Under-Priced; CNBC (BP, SLB, RIG)

According to Robert Pavlik, chief market strategist with Banyan Partners, some stocks have been unfairly pulled down due to The Gulf of Mexico accident. In an interview with CNBC, he said, “It seems like the oil spill has been priced into the shares of BP (ADR) BP and some of the drilling companies, and I think some companies have been unfairly pushed lower.” He specifically counted Schlumberger SLB and Transocean RIG among such companies. He also added some oil stocks are currently undervalued. For BP he said, “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. 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.”