From Barron's 6-25-07: "The first name is Countrywide Financial (CFC). Countrywide is the largest and arguably the most efficient mortgage originator and servicer in the country. They've got an integrated operation and can respond quickly to changing industry conditions...The key to this stock is that the current mortgage-industry turmoil should lead to less competition and more rational pricing...The market expects them to earn $3.80 this year, which we think is the trough year of earnings. The stock is 10 times trough earnings, and trough earnings have a 15% return on equity. Over time, ROE has averaged in the high teens to low 20s, so earnings power clearly is higher."

From Barron's 6-25-07: "The other pick is Luminent Mortgage Capital (LUM), a small-cap mortgage REIT. Luminent is different than Countrywide in that they don't originate mortgages. They are just a disciplined buyer of mortgage product and can sit on the sidelines when spreads are tight...Luminent is selling below book value, and it is a fairly hard book...and it's yielding more than 12%.

From Barron's 6-25-07: "Consol Energy (CNX). And Consol Energy owns 80% of a public company called CNX Gas (CXG), which represents about $20 a share of Consol Energy's stock price. CNX Gas is a terrific low-cost player with long-life reserves. It is a nice property in its own right...If you consider the earnings that Consol could generate if gas trades on a BTU-equivalent priced with coal, they could earn over $6. If it were to occur, it would be a ways away. There are really only two cost-effective power options: nuclear and coal, and the United States has 250 years of reserves of coal, while new nuclear plants won't be available until at least 2016."