Tremendously undervalued. As it stands now under 90 it is still undervalued. The aerospace cycle is far from over, and even if it were Boeing has 5 years worth of orders to fill. As a speculative note, I am completely enamored with solar technology and I think BA could have a huge impact in that field. There is probably a good silicon play in that field as well but we'll deal with that later. War in Iraq will only play a small role in Boeing's world. The more important factors are the weak US dollar and growth in every area that they service. In the past decade Boeing has successfully spun off or defered the risk of commodity prices to suppliers which gives them much more stability and transparency for shareholders. The 787 program looks solid with the weight issue being reined in. If I were to speculate I would say the wi-fi network was cut for weight issues, not logistics. None the less I expect to see the 787 deliver and launch on time to great fanfare. 2007 target: 110

Beaten down irrationally by Wal-Mart's $4 generic drug plan. WMT's plan is terribly flawed but assuming the worst, generic drugs only account for 5% of WAG's revenue. Stock fell roughly 20%. Those numbers just don't add up. WAG has continually increased same-store sales. RAD is great, I've gone so far as to recommend it to my mother, but they'll never overtake WAG. 2007 target: 52

Definitely not your average value play. However, GOOG will continue to be a leading innovator (and purchasor when it fails to innovate) in the internet marketplace. Phenominal balance sheet allows for great flexibility. GOOG's purchases of real estate around the world has sparked theories of them becoming the be-all and end-all of the internet, from the server & backbone side all the way to your desktop with their office software and GMail. 2007 target: 618

Halliburton has been beaten down for far too long. I like HAL to make a strong push for the duration of the year. I'm bullish on oil and HAL's ability to capitalize on our crude cravings. The KBR spin-off adds a nice little bonus to this security. 2007 target: 43

If it were possible to love a stock, this would our mate for life. Simply put LAN has a phenominal grasp on the airline industry and how to manage their risk while maximizing profits. They put a great deal of focus on their cargo division which makes them more immune to security threats that would otherwise kill revenue streams for the average carrier. At the same time they pack more passengers onto their planes than their US & European counterparts which is free money as long as your customer base doesn't suddenly seek luxury. LAN is retiring their older aircraft as quickly as possible and this is producing huge bottom line returns as their fuel costs come down exponentially. This is a great play on the current South American growth we are experiencing. LAN also has codeshares with a number of international airlines which allows them to capitalize on cheap exports. Stock has yet to have a serious pull back in 6 months; the Hugo Chavez nationalization scare was barely a blip for LAN. If I had to bet my life on a single stock, this would be it. 2007 target: 84