Single letter stock values: Part 1 -- A. C. F, K & M

"One group of stocks that has always intrigued us are those whose symbols have one letter," notes George Putnam. who offers a fascinating review of 9 such single letter stocks. 

In his The Turnaround Letter he says, "These stocks have been beaten down pretty badly and now look particularly appealing." Here's a look at 5; the rest are featured in our following post.

"Agilent Technologies (NYSE: A), which makes electronic and bio-analytic measuring devices, was spun out of Hewlett-Packard in 1999. Revenues surged in 2000 as did the stock price, reaching a lofty 162. 

"But the company subsequently suffered along with its customers in the communications and technology sectors.  However, the financials are sound,  including strong cash flow that is supporting a $2 billion share buyback, and management has been restructuring and realigning operations for long-term growth. 

"Citigroup (NYSE: C) traces its roots date back to 1812 when it was formed as City Bank of New York. The wheeling and dealing of former CEO Sandy Weill created a financial services giant with some 200 million customers spanning more than 100 countries.

"However, giants are not particularly nimble, and Citicorp has struggled in the new credit environment that began a year ago. The new management team will probably divest many businesses, but they have a good core on which to rebuild.

"Ford (NYSE: F) looked like it was beginning to rebound when spiraling gas prices battered sales of the company's trucks and SUVs.

"Management has been quick to react, laying off workers and shutting down plants. We think the brand is strong enough to survive, and so does legendary investor Kirk Kerkorian, who has been buying Ford shares as they drop.

"Kellogg (NYSE: K) has compiled decent results in recent years, including steadily rising revenues, earnings and cash flow. 

"But the headwinds of rising costs for corn and wheat have spooked investors, leading to a sharp selloff in the shares earlier this year. As a result, the stock trades near levels reached in 1997. This may be an opportunity to get an iconic brand at a bargain price.

"Macy's (NYSE: M), operating under the Macy's and Bloomingdales names, has grown to become the nation's fourth largest department store. The $17 billion acquisition of Mays in 2005 expanded the Macy's brand nationwide, but the merger hasn't yet met expectations.

"And now, fearful of rising inflation and constrained consumer spending, investors have sold the stock off to a nearly 5-year low. Macy's has the financial strength to ultimately prevail, and at current valuations (0.4x sales and below book value), it could be cheap."