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Good Firms + Bad Breaks = Best Buys

Computers, gasoline and beer: Essential elements of everyday life, and, according to John Linehan of T. Rowe Price, judicious stock selections.

He might know: Linehan's 4-star T. Rowe Price Value Fund is up an average of 13.1 percent per year over the last five years.

Recommendations:

His top pick is Dell.

"Our strategy is to buy companies that are good companies, but really down and out, and Dell clearly is a company that's down and out," he told CNBC.

"If we look at the valuation, right now the company's trading at decade lows, price-to-earnings, price-to-sales, and we think that's very compelling, and we think there's a few catalysts on the horizon."

He also likes refiner Sunoco.

"Right now, it's facing the double-whammy of decrease in demand for refined products, and at the same time, an increase in crude-oil prices," he said. "Over time, that really can't last."

Linehan also sees a lot of upside in Sunoco's logistics, coke and chemical business.

"Basically, you're getting the refinery business for very attractive valuations," he said.

His third pick is Anheuser-Busch, which he sees as the cheapest of all the large-cap consumer product companies, with little downside threat.

Disclosure:

Linehan owns Dell, Sunoco, and Anheuser-Busch through his fund.

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