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.