I have now completed reviewing half of the stocks in the Dow Jones Industrial Average in search of value. To my surprise five of the first fifteen seem to be value propositions, five appear to be fairly valued but upside potential does remain and the last five -- who knows? Serious Money: Whittling away at the Dow -- MMM, AA, MO, AXP, & AIG: Part 1 was published this morning. Parts 2 through 7 will follow daily.

After months of rising stock prices and new Dow record highs being reached on a regular basis, I was not expecting to find that there was any value left. I have been relatively optimistic since last year posting DOW 14,000 here we come! but the rate of increase has accelerated beyond what I envisioned.

James Cramer of the TheStreet.com early in the year wildly projected that the Dow would reach 14,000 this year. A year ahead of my own more tempered view, and I definitely thought he was going out on a limb at the time. Now it would seem easily in reach and perhaps what I thought was sticking my neck out was too conservative.

Perhaps it was the years of stagnating stock prices for Microsoft (NASDAQ: MSFT), J.P. Morgan Chase (NYSE: JPM), Citigroup (NYSE: C), General Electric (NYSE: GE), 3M Corp (NYSE: MMM) , International Business Machines (NYSE: IBM) and others that finally built up a head of steam and came alive in the last six to eight months. That and global expansion that all the large cap stocks are able to capitalize on. Well, investors and the sun are shining on the Dow so enjoy the ride and be ever watchful.

Those of you who are new to BloggingStocks can check out my other stories and read Chasing Value or Serious Money to find more potential opportunities and verify my track record as well.

More than a few optimistic reports have been written as the Dow Jones Industrial Average (DJIA) continues to climb to new highs. Given my value perspective and having run a few stock screens, some of the 30 stocks in the Dow have actually floated to the top. I will be reviewing the entire Dow in search of deep value and summarizing on my top three (10%) from a value perspective. The following is my view of the first five Dow stocks.

3M Company (NYSE: MMM) appears to be fairly valued from my perspective. I like the low debt ratio of 0.3 and higher than average yield of 2.19%. Given the price-to-book of 5.94 though, I think 3M will have to continue to expand its earnings overseas to interest me further. This is a quality stock, with good margins and good returns on equity, assets, and investment that are all higher than its lower than average P/E of 15. I view this stock as a good investment but not a great investment, and one that provides some downside protection.

Alcoa Aluminum (NYSE: AA) is on everyone's watch list, and for good reason. It reminds me of a line from the long-running TV show Married with Children, where Al Bundy shouts out to his wife Peg after a long day at the shoe store, "Either feed me, or feed me to something, I just want to be part of the food chain." There have been rumors galore that Alcoa might fall prey to a buyout from BHP Billiton Ltd ADR (NYSE: BHP) or another large player wanting to expand its North American presence. In the meantime, Alcoa has announced that it has an interest in acquiring Alcan Aluminum (NYSE: AL).

At 2.28, the price-to-book ratio of Alcoa is less than half that of 3M, and the price-to-sales is half too at 1.14. The debt levels are low and the price-to-cash-flow is low. Alcoa pays a lower than average (for the DJIA) yield of 1.75, but still respectable. For whatever reason, investors may be looking for soft pricing in aluminum related to concerns about a slowing world economy. While this may be a concern in the U.S., international growth does not seem to be slowing down. Alcoa is up about 35% from last year's lows, but only a couple of dollars from its highs of two years ago, so its path has been erratic. The low metrics, expanding international markets, and the high probability of consolidation in the market should create future pricing power. This does seem like a value play to me.

Chuck Prince at Citigroup Inc. (NYSE: C) has been under increasing pressure to 'do something' to increase shareholder value after years of no price appreciation in the value of the company despite many attempts including the buying and selling of many companies, reorganizations, expansions, contractions and numerous meetings with major shareholders to express his ideas and get theirs - and still nothing. Some have suggested breaking up the company which is currently the largest financial institution / bank in the United States, but that does not seem to be in the cards. Now to be fair other ultra-large cap stocks (Citi is $254 billion) have made little progress in growing share value over the last few years and some have gone down; General Electric (NYSE: GE), Johnson & Johnson (NYSE: JNJ), Wal-Mart Stores (NYSE: WMT) and 3M Co. (NYSE: MMM) to name a few.

• Melly Alazraki reported on Wednesday that Investors awaited Citigroup Inc.'s restructuring announcement today. The originally expected 15,000 jobs, was yesterday reported to have increased to 26,000. Well, the Citi released its plan and it contains 17,000 job cuts, or 5% of its workforce as the company seeks to lower annual expenses by $4.6 billion in the next three years. However, the 26,000 jobs reported yesterday said "fired or reassigned," and indeed Citi announced that "more than 9,500 jobs will be moved to lower-cost locations."

Every big company has some "dead weight." However, where did they discover these people they say they no longer need, hiding under desks? Sleeping in the closets? Not the executive washroom prey tell?! How did all these "dead beats" hide for so long? What will the costs to the company be in the short run? Most importantly, firing lots of people is not necessarily any more of a strategy than proposing a troop surge in Iraq. They both can have an impact but I'm not sure it equates with being a strategy. The strategy should be to sell or spinoff any enterprise that is under performing immediately and expand those that are performing well, even if it means you do not remain the largest bank. No magic there -- it's the Jack Welch formula, it works, try it!

Furthermore, here is the leadership question; has Citigroup been operating inefficiently for years with too many unnecessary people and just now come to that realization? - not good, or have they decided that they will struggle along with less people and offer less in services internally and to their customers? - also not good! So I think I have to pay homage to my dad again, who often reminds me that "the fish stinks from the head" -- It's time to go Chuck!

Sheldon Liber is the CEO of a small private investment company and the vice president for design and research at an architecture & planning firm. Check out my other posts for BloggingStocks here.