Two tech firms recently added to his portfolio are: ATMI (ATMI), a supplier of specialty chemicals and copper items used by semiconductor makers; and Keithley Instruments (KEI), which manufactures test and measurement equipment such as spectrum analyzers for laboratories, telecom-service providers and semiconductor producers. Keithley is starting to make radio frequency analyzers, which should become more popular since new communications standards are about to go into effect. At a recent price of $2.07 (down from a 52-week high of $12), a market cap of $33 million and $27 million in net cash, Keithley shares are a bargain, he says. The company, which lost 16 cents a share in 2008, has the potential to earn 60 cents within two years, Galluccio says. At a price-to-earnings multiple of 12, the stock should fetch $7, he adds.

ATMI stock, which has sunk to 11.56 from a 52-week high of 33, now has a market cap of $370 million and net cash of $100 million. Its earnings per share could jump from $1.16 in 2007 to as much as $1.80 over the next 24 months, he says, as copper usage grows at big electronics producers.

Galluccio likes FormFactor (FORM), which enjoys a 50% share of the global market for wafer-probe cards used for testing semiconductor wafers, and Zoran (ZRAN), which makes integrated circuits for consumer electronics. The money manager believes that FormFactor, expected to lose $1.36 a share in 2008, should pop back as design activity in the semiconductor memory industry revives. The stock, which recently traded at 12.83, is way down from a 52-week high of 40. The company has $11.50 in net cash per share, and the potential to earn $2 a share in the next recovery cycle.

The same goes for Zoran, which changes hands at $7.07, has net cash of $6 a share and no debt. It's fallen from a 12-month high of 18, and is well worth any remaining risk as a play on an economic recovery, Galluccio says.

An example of a company with unrecognized asset value is Webster Financial (WBS), the second-largest independent bank in Connecticut. The recent addition to Teton's holdings is well capitalized, and received $400 million via the government's Troubled Asset Relief Program. The stock has gone from a 12-month high of 35 down to 13.86. The bank has a great footprint in four Northeastern states, says Galluccio, and is capable of earning $2.50 a share in the next two years, versus the trailing 12-month $2.22 profit.

While the U. S. economy is now officially in recession, making consumer-dependent companies "a big, scary area," Galluccio believes some specialty retailers and consumer-goods outfits with solid niche businesses or high-quality products are priced to buy and hold. That's why the portfolio manager has put hammered names like J. Crew Group (JCG), department store Saks (SKS), jeweler Tiffany (TIF) and Cheesecake Factory (CAKE) in his portfolio.

J. Crew, the women's and men's specialty retailer, is run by Millard Drexler, who built the GAP from a blue-jeans maker into a global brand. At 11.54, the stock is selling for about a fifth of its 52-week high. "The balance sheet is clean, there is no debt, and net cash of about $50 million," he adds.

While the U. S. economy is now officially in recession, making consumer-dependent companies "a big, scary area," Galluccio believes some specialty retailers and consumer-goods outfits with solid niche businesses or high-quality products are priced to buy and hold. That's why the portfolio manager has put hammered names like J. Crew Group (JCG), department store Saks (SKS), jeweler Tiffany (TIF) and Cheesecake Factory (CAKE) in his portfolio.