From Barron's 3-19-07 Coal producer Peabody Energy (BTU), another holding, has taken a pounding of late. Two warm winters and the ready availability of nuclear and hydro power have depressed coal prices, while inventories have built. Peabody is the largest, most diversified producer of coal, the cheapest and most abundant source of baseload power. Mullick's take: "Peabody remains undervalued at a 10-year-low P/E," says Mullick, who bought the stock at 18 and thinks it could trade up to 55, from 38 now.

From Barron's 3-19-07 A weak coal market also has made Joy Global (JOYG) a bargain, according to Mullick, who believes the leader in surface- and underground-mining equipment, particularly for coal, is well positioned to benefit from operating leverage. Double-digit revenue growth will be driven by a solid backlog, he says, and cash flow is likely to exceed earnings per share, which should continue to grow by 20% or more. Joy is returning cash to shareholders, he notes, with a $1 billion stock repurchase program. The stock has dropped more than 10 points since Feb. 23, to around 42.

From Barron's 3-19-07 Another pick, Noble (NE) also has been on a roller-coaster ride, falling from 73.58 on Feb. 26 to 67.74, before bouncing back to about 74; Mullick bought the shares at 71. The offshore driller's valuation is at a 10-year low. "Clearly, the expectation is for energy services to have negative earnings revisions, but in the case of Noble, the market seems to have overdone it," he says. "We think stock has a fair value of $100-plus."