If GE can meet its reduced profit guidance for '08 and stay on track in '09, its shares could rebound to 40, for a total return of almost 30%.

Rather than betting on Applied Materials' untested solar-panel business, investors should await evidence that those panels can perform like First Solar's.

Summer driving season is fast approaching, and with it a snapback in demand. Says Deutsche Bank's Sankey: "They only need to make $1.50 in Q2 and $1.50 in Q3 to get to $5 a share." Then the stock trades at 10 times recession earnings. And that's a risk-reward ratio that could appeal to even the most cautious investor.

Sonoco (SON) is a century-old, $3 billion market-value company that has managed to extract good returns from wrappers and tubes. They make containers for Oreos, Febreeze and countless industrial products. Almost 40% of revenue is from abroad. The stock trades at 12-times projected 2008 earnings. Management is focused on cash-flow metrics and sensible acquisitions. The dividend yield is 3.5%. The stock was punished hard beginning last summer from its highs in the mid-40s, as profit guidance was cut, and is now near 29. As the guidance cuts showed, this is not a business immune to cyclical headwinds. But for the stock to work, it merely has to be less cyclical than the market now fears.

At 25, Spirit trades at less than 11 times 2008 earnings, compared with 13.2 times for Boeing and 14.7 times for the aerospace and defense group. That already-depressed price renders further disappointment far less likely. How many air travel-related businesses can you say that of these days?

But Lululemon shares (ticker: LULU) face some worries, not least that much of the company's growth appears to come from the Canadian dollar's strength -- perhaps transient -- against the greenback; a company filing last week said currency gains of $17.6 million accounted for 14% of its revenue gain last year, equivalent to about 35% of its operating profit. The faltering U.S. retail environment can't be good news for sellers of high-priced yoga gear. And last year, the New York Times tested a shirt from Lululemon's VitaSea line, supposedly made from seaweed to release minerals and vitamins into the skin. The test found no significant difference in mineral levels between VitaSea and a (presumably cheaper) cotton T-shirt, and "no evidence of seaweed." Lululemon founder and head designer Chip Wilson conceded to the Times he couldn't dispute the findings. Lululemon insists that earnings are driven by sales gains to a "growing community" of health-conscious Americans unfazed by a slowing economy, and that retailing's woes are helping the company find better locations. As for VitaSea, Lululemon says it stands behind the labeling of all its products. But it's hardly comforting that CEO Robert Meers plans to retire in June, to be replaced by Christine Day, a Starbucks alumna who joined management only in January. In February, the chief operating officer resigned. And management last week disclosed its intention to register the sale after July 26 of up to 21 million shares held by insiders. There are now 75 million shares outstanding.