Buy Fiat, Bank of America But Steer Clear of Caesar’s

Shares of Fiat are down after a German newspaper reported the automaker could be banned from selling cars, but one market watcher says the company will rebound.
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Shares of Fiat (FCAU) - Get Report have fallen 25 percent so far in 2016, including a 5% drop Monday after a German newspaper reported the automaker could be banned from selling cars in the country for potentially disregarding emissions standards. George Schultze, CEO of Schultze Asset Management, said Fiat has a history of overcoming its problems and will do so in Germany. 'It's a cheap stock and a great company,' said Schultze. 'They have successfully been spinning off non-core assets like they did with Ferrari and Maserati might be next.' Fiat's U.S. sales rose 5.6 percent in April, primarily due to the popularity of Jeep SUVs and Ram pickups, beating Wall Street analysts' estimates of 4.3 percent growth and extending its streak of monthly gains to more than six years. Fiat's sales reached 199,631 cars and light trucks for the month. Jeep sales surged 17 percent from a year earlier, as Compass and Renegade more than doubled. The Ram truck brand gained 12 percent to 45,810. Schultze is also positive on Bank of America's (BAC) - Get Report stock despite it being down 13 percent thus far in 2016 as low interest rates and a lack of IPOs have weighed on its performance. TheStreet's Gregg Greenberg has details from Wall Street.