Alex Vallecillo is co-manager of the Allegiant Mid Cap Value Fund and on "Morning Call" he gave his picks for our "Hidden Gems" segment (he's a five-star fund manager). Vallecillo listed these stocks as his picks and the reasons why he likes them (two of them are exclusives for cnbc.com readers).
Spirit Aerosystems Holdings Inc . This company is positioned to grow materially from increased Boeing jet deliveries over the coming years. And it's trading at 16 times '07 EPS estimates of $1.84. It has a $4 billion market cap.
Perot Systems Corp. This is a well-managed IT services company with great defensive characteristics and has a strong balance sheet. It focuses on healthcare and government industries--benefiting from smaller size and the ability to grow from smaller and less competitive contracts. Perot Systems has a $1.9 billion market cap and trading at 17 times '07 estimated EPS of $0.93.