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EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stock Under $10 that he thinks could potentially double or triple in the next 6 to 12-months. See what he's trading today with a 14-day FREE pass.

Bargain-Basement Picks From a Hedge Fund

Occidental Petroleum (OXY), which made our list of the most popular energy stocks among hedge funds, was a 590,000-share Chilton holding as of Dec. 31. With trailing and forward P/Es of 15x and 11x, respectively, Occidental is actually valued at a premium to some oil majors. Earnings were down sharply last quarter from the prior year, and while analysts expect the company to recover, we think investors should at least compare the stock with its peers.

Finally, Chilton and his team owned about 440,000 shares of Agrium (AGU) at the end of the year --though the firm has cut their stake by 51%. Activist fund Jana Partners has been urging Agrium to split its wholesale and retailer businesses -- the company sells agricultural products, including fertilizers and crop-protection products, through both channels -- against resistance from Agrium. The stock currently carries a trailing P/E of 11x. Earnings rose sharply in the company's most recent quarter, but that growth rate is not sustainable, given its much weaker improvements in sales.

-- Written by Matt Doiron

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

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