Updated from 7:03 a.m .EDT

By Stockpickr Guest Columnist Doug Hall

In the "olden days," families used to all take a bath using the same tub of water. The last one was the baby of the family. By then, the water could be so dirty that you had to be careful or you might "throw out the baby with the bath water." That phrase has come to mean throwing out the good stuff with the bad stuff.

The stock market has been taking a bath lately, and right now the water is full of babies being thrown out with the trash. If you've got any money left, it may be time to start picking up some good companies selling for ridiculously cheap prices.

Look for strong companies with solid fundamentals. My analysis method relies on historically reported data (revenue and earnings) tempered by some qualitative analysis. The Dow Jones Industrial Average is composed of companies intended to represent a cross section of American business, though that could be debated. So look at companies in the DJIA. All are well-known, and many are very stable with predictable revenue streams.

I'll take a look here at Dow companies Caterpillar ( CAT) and United Technologies ( UTX).

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