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Beaten Down Stocks?  Snap Them Up!

Brent Wilsey has a shopping list for the new year.

The president of San Diego-based Wilsey Asset Management is urging investors to take a serious look at undervalued stocks -- and he offered CNBC viewers plenty of choices.

The president of San Diego-based Wilsey Asset Management starts with an energy company, Patterson-UTI.

"I just can't pass up this company," he told CNBC. "It trades in natural gas; natural gas is very cheap right now, compared to oil; it's a pretty good buy."

Recruiting firm Robert Half International is another Wilsey pick.

"They specialize in accountants, which is very important with Sarbanes-Oxley," he pointed out.

The prices of both of his top two picks are more than 30 percent off their 52-week highs.

Wilsey even has a favorite bank stock: Wachovia.

"I think if you wait too long, you're going to miss this," he warned, looking all the way past 2008 to January 2009.

He's also steering investors toward trucking giant YRC Worldwide.

"They're down 64 percent from their 52-week high," he observed. "I think that's way overdone in beating this company up."

Wilsey believes investors should get their motors running toward Harley-Davidson.

"Earnings are still up, 3.5 percent year-over-year," he said. "You've got a well-known brand, and I don't think people will stop buying their bikes."

Office Depot also gets thumbs-up from Wilsey.

"Down 66 per cent from their 52-week high," he explained. I think this company is beaten up just a tad too much for what's going to happen here."

Biotech giant Amgen is still another of his picks.

"Earnings per share are up 12.4 percent," he pointed out. "That's the same as the industry, but yet it trades at much better valuations."

Finally, Wilsey thinks investors would be in good hands with Allstate.

"They do have some exposure to subprime issues, but not that much."

He sees volatility ahead in 2008, and fears that it will scare investors out of some good companies.

"Ride out the rockiness we'll have in 2008, and I think that by January 2009, you'll be happy if you hold the good, strong companies," he said.

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