If investors put a multiple of nine on 2011 Ebitda, as Peltz suggests is reasonable, the company would be valued at $5 billion. After subtracting $1 billion of net debt and dividing by 470 million shares outstanding, the stock theoretically would be worth $8.50. That is a big if. But even a multiple of seven would translate into a $6 stock. While Peltz's multiple assumption might be aggressive, his operational expectations aren't. They don't include any benefit from putting the company's substantial cash to work or from new products, better marketing or the reintroduction of breakfast slated for late next year. Peltz and May, both Wendy's/Arby's directors, doubled down on their bet late last year, spending $205 million for 49.4 million shares at $4.15. This didn't escape the attention of some value investors, including Robert Gebhart, a partner at New York City-based money manager Grisanti Brown & Partners, which owns shares. He contends that, if the stars align, shares could reach $9 in three years.

Shares of dental-products distributors Henry Schein and Patterson look overextended, since spending on nonessential dental work could remain soft for another year or two if the economy stays weak.

While the long-term outlook is good for both Patterson and Schein, their stocks look pricey. Investors are likely to get a chance to buy them for less before the economy revives.

Theorizing that Asian growth projections have bottomed, liquidity is abundant, and valuations are reasonable, Ajay Kapur of Mirae Asset Securities remains "maximum bullish." Among his picks: Yanzhou Coal Mining (1171.HongKong), Straits Asia Resources (SAR.Singapore), China Construction Bank (939.HongKong) and Hutchison Telecommunications (HTX).

In early June, Leuthold Group boosted its emerging-markets allocation to an all-time high of 21% of its portfolios -- much bigger than the previous high-water mark of 13%, as part of "a deliberate attempt to participate in an extended cycle of superior growth that will occur in the emerging Asian markets," according to Leuthold's Eric Bjorgen. "Expectations that China and other emerging economies in the Pacific Basin will eventually resume former growth do not need to play out by the end of next year." China and other emerging economies will resume growth without inflation, and China's stimulus package in particular fosters home-grown demand, making recovery that much more sustainable, he adds. Bjorgen owns iShares emerging markets and China ETFs, and Matthews India Fund (MINDX).

But a few signs of stability are emerging: New bookings, typically a leading indicator, totaled $6.57 billion -- down just 3% from a year ago -- and might have been higher without currency fluctuations. While consulting revenues were 9% lower than last year's, outsourcing managed to grow 3% as businesses across the globe looked to cut costs and boost productivity. A sharp 10% slide in the Americas, and an even sharper 23% fall in Europe, was offset by expansion in China and Latin America. Shares popped Friday after the profit report surprised the Street, but continue to lag behind the market and are up just 24% since March 9. The company has no debt, generates a free cash flow yield of 8.4% and boasts a recognizable brand and leading market share. At 33.72, shares fetch just 12.2 times projected 2010 earnings -- well below 15.9 times for the IT consulting and services sector, and near the bottom of its own range over the past decade. "Because Accenture continues to trade toward a trough multiple, we believe now is the time to buy shares," notes Susquehanna analyst James Friedman. An added bonus: He thinks the company might sweeten its 50-cent annual dividend later this summer.

Buying up foreign companies won't be easy, as China found out with the state-owned Cnooc's failed bid for Unocal and Rio Tinto's rejection of an investment from Chinalco. With foreign governments fiercely protective of their resources, China's best bets for now are limited to minority stakes or smaller companies in the U.K. or Canada. But even without direct Chinese bids, the pace of mergers is accelerating. Historically low real rates maximize the reserve value of natural resources and encourage miners and oil companies to keep reserves in the ground. Meanwhile, demand for commodities has begun to stabilize but companies' market cap, after the stock market correction, remains "unusually cheap relative to the value of their reserves," says Louis Capital's Robbert van Batenburg. "This may convince companies to buy each other in an effort to acquire reserves on the cheap." Van Batenburg screened for potential targets whose reserves look cheap relative to the companies' market value and came up with Barrick Gold (ABX) and Freeport McMoran (FCX) among metal miners, and ConocoPhillips (COP) and Canadian Natural Resources (CNQ) among oil companies.

Buying up foreign companies won't be easy, as China found out with the state-owned Cnooc's failed bid for Unocal and Rio Tinto's rejection of an investment from Chinalco. With foreign governments fiercely protective of their resources, China's best bets for now are limited to minority stakes or smaller companies in the U.K. or Canada. But even without direct Chinese bids, the pace of mergers is accelerating. Historically low real rates maximize the reserve value of natural resources and encourage miners and oil companies to keep reserves in the ground. Meanwhile, demand for commodities has begun to stabilize but companies' market cap, after the stock market correction, remains "unusually cheap relative to the value of their reserves," says Louis Capital's Robbert van Batenburg. "This may convince companies to buy each other in an effort to acquire reserves on the cheap." Van Batenburg screened for potential targets whose reserves look cheap relative to the companies' market value and came up with Barrick Gold (ABX) and Freeport McMoran (FCX) among metal miners, and ConocoPhillips (COP) and Canadian Natural Resources (CNQ) among oil companies.