A holding is Westlake Chemical ( WLK), which produces commodity chemicals. The stock slipped from around 65 in May to 41 now. Morris says that the decline has been excessive. The company has been pushing through price increases and the stock should climb when the economic outlook improves. "The shares can be cut in half during a downturn, and then they double or triple during a rebound," says Morris. Morris also likes Applied Industrial Technologies ( AIT), a Cleveland-based distributor of bearings, lubricants and other products used by manufacturers. Morris says that the company's earnings rise and fall along with the Midwestern industrial sector. Homestead has owned the stock on and off for the past decade. Morris likes to buy the shares when they sell for less than book value. "This is a solid company with very little debt," he says.