Deep Value Stocks To Buy After Black Monday : PEO, CVX, XOM, SLB, VISI

Warren Buffett once famously said, “Be fearful when others are greedy and greedy when others are fearful.” It’s hard to argue that a 1,000-point selloff in the Dow Jones Industrial Average on Monday morning is an indication of anything other than fear in the market.
Twenty seven-year financial services veteran Tim Melvin couldn’t resist being a little bit greedy on Monday morning when the entire market seemed fearful. Melvin shared with Benzinga a couple of places that he believes the recent pullback has created value among his favorite stocks.

Adams Natural Resources Fund PEO 5.21%

One name that Melvin was buying on the dip was Adams Natural Resources, an investment fund that buys shares of big-name energy stocks such as Chevron Corp CVX 4.8%, ExxonMobil Corp XOM 4.73% and Schlumberger Ltd SLB 4.68%.
He sees value in all of these big energy names, which are already down significantly due to the weak oil price environment, and Adams currently trades at a 15 percent discount to net asset value (NAV).
“The fund has a distribution rate of over 9 percent at this price so you will enjoy solid cash flow while you wait for energy prices to recover,” Melvin adds.

Volt Information Sciences Inc VISI 3.22%

Another name that Melvin couldn’t resist buying was Volt Information Sciences. He sees huge upside to the stock once management completes its efforts to dispose of non-core assets and re-focus the business.
“I have a hard time coming up with a long term scenario that does not end up with this stock higher by two or three times the current quote over the next few years,” Melvin told Benzinga.

A Word Of Caution

Although he did buy a bit on the Monday morning dip, Melvin warned that investors might want to hold off on going all-in on stocks just yet.
“I didn’t do a lot of buying as we are still closer to all-time highs than 52 week lows so there are not a lot of bargains just yet,” he explained