At 56, AIG trades for 1.4 times book value and about eight times estimated 2008 profits of $6.69 a share. Rarely in the past decade has it traded so cheaply relative to book value and earnings. If AIG can earn anything close to that $6.69 a share this year, the stock could hit $75 by year end.

If the worst is over at Bear Stearns, the stock could easily top $100 in the next year, and it might become a takeover candidate.

Comcast, which now pays no dividend, could become a high-profile target for activist investors if the stock continues to languish.

Midwest stalwart Comerica, now trading around 41, yields 6.2%. It trades for less than 10 times earnings and for 1.3 times tangible book value, one of the lowest price/tangible-book ratios among regional banks.

SunTrust, now quoted near 60, yields 4.9%. It trades for 11 times projected 2008 earnings and for two times tangible book. A year ago, Atlanta-based SunTrust touched 90 on takeover hopes. The takeover premium is gone, but the allure of its Southeastern franchise remains. SunTrust's CEO in the past year, James Wells, hasn't wowed Wall Street, making SunTrust one of the industry's prime takeover targets.

An underappreciated asset is its TV business, which could be worth $4 billion, or $17 a share. Strip that away, and investors are paying only five times pretax cash flow for Gannett's newspapers. If the stock continues to struggle, pressure could mount for a higher dividend.

The consumer and economic backdrop is tough, but Kohl's arguably is the country's best-run chain of department stores. After tripling its store base since 2001, Kohl's still is growing. If the consumer economy doesn't fall apart this year, the stock, now trading for little more than 10 times estimated 2008 profits, could be much higher by year end.

Legg Mason has a forward P/E of just 10 based on so-called cash earnings, which adds back goodwill amortization and a tax benefit. With a $9 billion market value, Legg is valued at just 1% of its $1 trillion of assets under management, versus 2% to 5% for most if its peers. One 2008 catalyst could be the naming of a successor for longtime CEO Chip Mason, 71.