KHD Humboldt Wedag International Limited (NYSE: KHD) may have one of the strangest names on Wall Street, but it also represents one of the best values around. The industrial plant engineering and equipment supply company has been beaten down by the economic slowdown and now trades with a PE-to-Growth ratio of just 0.33. This indicates that KHD is substantially undervalued given its current share price, earnings per share, and earnings growth rates.

Many investors see KHD as an infrastructure play given its strong presence internationally. Over half of the company's $1.3 billion backlog comes from Russia, Eastern Europe, and Asia as their economies continue to grow. The company is also financially sound having reported an 88% increase in year-over-year profits and a doubling of its order intake. Combined, these factors make this company a definite growth play in addition to a value play.

KHD Humboldt Wedag International Ltd. is engaged in industrial plant engineering and equipment supply business and has a royalty interest in the Wabush iron ore mine. The Company's industrial plant engineering and equipment supply business focuses on services for the cement, coal and mineral processing industries. KHD Humboldt Wedag International supplies plant systems, as well as machinery and equipment worldwide for the manufacture of cement and the processing of coal and minerals, whether for new plants, redevelopments of existing plants or capacity increases for existing plants. The Company designs and provides equipment that produce clinker, cement, clean coal, and minerals such as copper and precious metals. The scope of services also includes feasibility studies, raw material testing, financing concepts, erection and commissioning, personnel training, and pre and post sales services.

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Goldman Sachs (NYSE: GS) shares have plunged the most ever after a government rescue plan for American International Group failed to ease credit concerns. Many attribute the movements to rumors and fears, but these same factors have arguably led to problems in the first place. The big fear in this case relates to the $62 trillion credit default swaps market where Goldman Sachs has become a large player. The concern is that insurers that wrote the swaps won't be able to make good on their contracts.

Credit default swaps are essentially insurance policies again a credit default - that is, the possibility that a company won't make good on its debts. The seller of the swap - or policy - gets a regular stream of premium income. In return, the seller of the swap agrees to pay the buyer if the company goes broke or stops paying its debts for some other reason. Interestingly, the market for swaps is estimated at $62 trillion compared to just $6 trillion in underlying bonds.

Companies like AIG provided these insurance policies on bonds and their troubles are causing concern that the policies won't be honored. Investment banks like Lehman Brothers and Goldman Sachs rely on these policies to balance the risk of the bond portfolio. The government's bailout of AIG has also caused rumors that some policies won't be honored or that there may be other delays in the issuance of these insurance policies that are now needed more than ever before.

As a result, shares of Goldman Sachs are trading lower despite an extremely positive earnings report in which it announced a sharp reduction in leveraged loans.

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Longs Drug Stores (NYSE: LDG) is finding itself under substantial pressure from shareholders to conduct a more comprehensive sale process after agreeing to be boughtout by CVS. Shareholders demanded that the company hire an independent advisor, solicit offers from all interested parties, and recommend the bets offer to the board and shareholders. These shareholders believe that the current $71.50 per share offer substantially undervalues the company given Walgreen's $75 per share bid.

Some shareholders, including Pershing Square, believe that the real estate value alone exceeds the price offered by CVS. The conservative valuation used by this hedge fund pegs the value at $2.9 billion or more and suggests that the company could sell for as much as $90 a share. Risk Metrics Group also recommended shareholders vote against the merger, citing concerns over Long's failure to disclose more information concerning its real estate portfolio.

Longs responded saying it would evaluate the offer by Walgreens but still recommended that shareholders accept the tender offer by CVS. The company had previously held talks with Walgreens, but they failed over price, according to SEC filings. The company also noted that Walgreens offer may be stuck with antitrust concerns. However, shareholders contend that the very fact this offer came in after CVS' tender means the process was badly flawed.

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