Billionaire Mario Gabelli urges investors to 'put a bet on MGM Resorts'

In an interview with CNBC "Halftime Report" broadcast on Wednesday, Mario Gabelli appeared strongly optimistic about MGM Resorts' stock.

The longtime investor, who is the founder, chairman, and CEO of Gabelli Asset Management Company Investors, said MGM Resorts International stock is "very attractive" and investors should "put a bet on it."

He believes the company's growing online gambling business is going to outweigh the modest growth in Macau, one of the world's largest gaming market. Shares of MGM erased earlier loss on Wednesday after his comments, trading at $27.85.

"They are positioning themselves for gambling online and they cut a deal with GBC, which is the English betting company, so they've got the backbones of that. You have the question mark over Macau, but that's become less important," Gabelli said.

Macau has been experiencing slower growth, and the trade tension between the U.S. and China have only added to the uncertainty. MGM stock lost a whopping 27 percent in 2018 on its slowing business, but its recent partnerships with NBA, WNBA and NHL after the legalization of sports betting are poised to boost the company's outlook.

The lesser-known home and building products company Griffon is also Gabelli's top pick. He sees a 50 percent gain for the stock over the next 12 months.

"They have become a surrogate housing and gardening market play. We own 15 percent of the company. We'd like to own it all," Gabelli said on CNBC.

Shares of Griffon jumped more than 2 percent on Wednesday following Gabelli's comments.