Murked

Merck & Co (MRK) is a major player in pharmaceuticals.  They pay a dividend that gets anyone that owns their stock high, and they are trading at a major discount right now because of all their Vioxx lawsuits, which have been a mixed bag in terms of victory and settlements. Vioxx was taken off the market in 2004.  As long as owning a company in litigation doesn't give you stomach pangs (which Vioxx was supposed to treat better than other NSAIDS), I'd pick up some Merck from your local stock trader today.

Deep in the heart

of Texas... Texas Instruments (NYSE: TXN) is undervalued for its asset class.  While everyone knows this household name for the fancy graphing calculators that dominate the market of 7th to 12th graders, T.I. also makes a bunch of its money fabricating semiconductors.  And for those of you that don't know semiconductors, they are in just about anything you use that needs power, from an LED to a high speed computer.  Semiconductors work with electrons flowing from one 'band' to another (and that's your science lesson for the day). To summarize: Everything is bigger in Texas, including earnings.  So cash in on the colossal versatility and demand for the semiconductor; buy T.I. today.

Go Dutch

Financial stocks used to be all the rage.  Then the market tanked.  But the reality is, it still takes money to make money, and no one does it better than the financial industry.  Deutsche Bank (NSYE: DB) is one of the best bang for your buck right now in the finance sector.  They are trading at a 4.8x multiple, significantly lower than any other publicly traded investment bank.  They also have a net profit margin of 17%. 17%!  Right now they are trading at their 52-week low, which is no surprise given the disgust everyone has for the industry.  So pick them up, who doesn't love going Dutch?

Buy the bully

If you can't beat them, join them. Microsoft (NYSE: MSFT) has been on the block for a long time, and isn't going away anytime soon.  When Microsoft had an IPO in 1986, they traded at $21 dollars a share.  Today they are back down to $24 a share.  At 11.x times current  earnings, they are a undervalued relative to competition.  Additionally, they have just increased their dividend payouts by 23%.  While they might not take over the entire world, they certainly have an impressive empire.

Ride the rails, ey

According to the Economist, America has one of the best freight rail infrastructures.  This is largely due to the lack of high speed people movers getting in the way.  While most in the U S of A don't take a train daily, most goods are transported for some distance on trains. As long as goods are being shipped, the rail companies make money.  Canadian National Railway (NSYE: CNI) connects the Atlantic, Pacific, and Gulf of Mexico with over 21,000 miles of routes.  So why buy them instead of any other rail company you've heard of (like CSX or Norfolk Southern)? 1) They are bigger. 2) They trade at a lower multiple. 3) They generate more earnings per share.  Plus, if you own them you are allowed to say 'ey' at the end of every sentence, just like a true Canadian.

The biggest in the world

Everybody has heard of Whirlpool (NYSE: WHR).  And after they adopted the Maytag man in 2006, Whirlpool became the largest appliance maker in the world.  With $20 billion in annual revenues, whirlpool is trading at just a 10.x multiple, and is an extreme value.  The stock is down 24% over the past two months amid lackluster sales.  The reality is, appliances break.  Efficiencies increase.  Styles change.  People upgrade.  You can't replace a refrigerator with an online version, you have to buy a new refrigerator;  which is why Whirlpool isn't going away anytime soon.  So collect your quarterly dividend (a 2.3x % current yield), and bide your time until Whirlpool rallies (again).

Because everyone is doing it (almost)

Alcohol.  Just about everyone drinks it.  While we have different tastes and preferences, one thing counts at the end of the day, we all spend money on it.  Which is why you can't go wrong buying Diageo (NYSE: DEO).  Diageo is a company that produces and distributes various brands including Smirnoff, Johnny Walker, Tanqueray, and Guinnesss.  Right now the stock is fairly priced, and has been a 'steady eddie' for years.  The reason Diageo is so successful?  The price of alcohol rises steadily over time,  but the amount you drink doesn't move inversely to price.  So while you are supporting Diageo in the aisles, you might as well share in the profits you are providing to them.

The Sand King

Glass has been around since the beginning of civilization.  And no one knows the business better than Corning (NSYE: GLW).  At their current price they are an extreme value relative to their earnings.  Corning controls the market for high strength glasses, which demand for will only grow as people purchase evolving technologies like smart phones and televisions.  Past generations would buy one television, a cumbersome box with a little screen.  New televisions have one thing in common, the screen gets bigger and bigger, which means more glass.  With the average American household having 3 televisions and people replacing their 'tubes' more often for the hottest new technology, Corning only stands to gain ground. Buy them and watch as the worlds beaches become your new iPad screen.

Start in the garage

First stock to buy: Hewlett-Packard (NYSE: HPQ)  HP is way trading at the bottom of its 52 week high, has a much lower multiple (10.7) compared to its competitors, and is in a lawsuit.  What kind of fool would buy a stock in a lawsuit? No fool at all.  A fool buys a stock after its up 120% for the year.  Then it crashes and they are still a fool.  Most people get out whenever there is bad news, but the reality of this lawsuit is, it will not affect company performance in the long term, and helps suppress the stocks value long enough for a real opportunity to exist.  HP has been around the block, starting in a house garage, moving up to a giant multinational.  Their former CEO (Mark Hurd) did not make and will not break this organization.  Technologies evolve so fast, whatever secrets Hurd has (which he is being sued by HP for) will be old news in a few weeks.  Get in now before everyone else gets their sense back.

Hello

So it seems like everyone else in the world has started a blog and I figured I'd give it a try.  Since I don't make too much money, or have money to play with anymore, it seems like a good idea to give other people some unsolicited advice in investing.  Why should you listen to me you ask? To be completely honest, you shouldn't. Anytime you make an investment it's a good idea to do your own homework instead of taking somebody's word for it.  Just hear me out, check my facts, and then make a bet.  If you think I'm wrong, bet against my bet.  If you think I'm right, bet with me.  Either way, if you are smart, you should end up making some good money.  I'll track my recommended trades for you, and the proof will be in the pudding.