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Stock #2: Valspar (VAL)

The quickest way to improve the prospects of selling or valuing an existing home is a fresh coat of paint. Tight consumer budgets may have put such projects on hold, but sooner or later, you have to buy the paint. One of the reasons LOW and HD will do well in the near term will be due to an increase in paint buying for maintenance that was delayed due to this recession.

Valspar (VAL), who has been selling paint since 1806, has seen its share of ups and downs during that long history. This current recession has been but a small blip compared to other companies with products directly tied to housing.

You won't get rich owning VAL, but you won't lose much, either. I guess owning the stock would be like watching paint dry. And in this environment, that's not so bad.

NEXT: Stock #3: Plum Creek Timber (PCL)