Mario Gabelli, chief executive officer of Gamco Investors Inc., is adding to his firm’s stake in water technology company Xylem Inc. as shares have fallen.
The stock has been hurt by negative headlines surrounding Franklin Electric Co., Gabelli, 73, said in a taped interview for the television program “Wall Street Week” that will air on Aug. 23. Franklin, a maker of water and fuel pump systems, cut earnings guidance for its last quarter in July after seeing “significantly lower sales.”
The billionaire manager’s funds have long invested in companies that can benefit from growing global demand for water among consumers, agricultural companies and other industrial users. Gabelli also said in the interview that he likes Badger Meter Inc., Mueller Water Products Inc. and Gorman-Rupp Co.
Gamco has owned shares of Rye Brook, New York-based Xylem since the fourth quarter of 2011, when the company was spun off from ITT Corp. Xylem, whose equipment cleared New York tunnels after Hurricane Sandy, gained 35 percent since it started trading. It’s down 14 percent this year.
“Wall Street Week” is produced by SkyBridge Media, an affiliate of SkyBridge Capital, the fund-of-funds business founded by Anthony Scaramucci. SkyBridge, which sometimes has other business relationships with the show’s participants, advertisers and sponsors, pays Fox stations in key markets to broadcast the show and also streams it online every Sunday at 11 a.m. in New York.