I am always pondering stock valuations in search of bargains and have been thinking that there are many bargains to be had. Having come to this conclusion though is not based on the relative market strength or weakness, or whether the over all market is cheap or not. I am not interested in bear markets or bull markets. The average investor should view all markets and promoters of said markets as full of bull. The best way to invest in stocks is the same way you invest in friends - one by one, respectfully, fairly and refraining from judging the proverbial book by it's cover. You should look deeper and think long term.

Some companies have reported terrific earnings Intuitive Surgical (NASDAQ: ISRG), Apple Inc. (NASDAQ: AAPL) and some have been lackluster Johnson & Johnson (NYSE: JNJ). Some have been dismal like housing stocks Pulte Homes (NYSE: PHM) and Toll Brothers (NYSE: TOL). While one could make the argument that stock valuations are at a low point there is more to the story.

Since valuations -- think price-to-earnings (P/E) ratios -- are at a cumulative low, and the market prices stocks based on future earnings and growth of equity potential, then one has to assume the brokerage houses, investment banks, hedge funds, institutions and the like have priced in a continuation of the same low interest, high liquidity conditions that lead to this economic situation. I do not have such clarity in regards to this future.

Maybe the headline should not read "Stocks are the cheapest they have been in 16 years", maybe it should read "Large investors are more tenative than they have been in 16 years". After all look how fast they were jumping ship last Thursday and Friday. In any event, I will continue to write about specific opportunities and resist characterising the over all markets.

• Comcast Corp. (NASDAQ: CMCSA) -- The no. 1 cable operator has made the foolish decision in the eyes of Wall Street of investing in its business. Its capital spending will be about $5.7 billion this year, which isn't surprising really since it's adding about 6,000 new workers and building a new swanky corporate headquarters in Philadelphia. Earlier this week, Comcast reported earnings that didn't blow away Wall Street expectations but they weren't to sneeze at either. The company's digital voice business is booming even though the basic video business is not.
• Exxon Mobil (NYSE: XOM) -- Yeah, the world's largest oil company's earnings didn't meet expectations. But consider that the culprit was lower-than-expected natural gas price. Even the biggest tree hugger in the world should realize that is something that even Exxon Mobil can't control. I know people often accuse the oil companies of being in cahoots with one another. Have you ever met an oil executive? These guys can't agree on lunch let alone price fixing.

Nonetheless, WWE is something that truly adventurous investors should consider. The shares are trading at a multiple of 25, which is dirt cheap compared with its peers such as Playboy Enterprises Inc. (NYSE:PLA)'s 130 and Lions Gate Entertainment Corp. (NYSE: LGF)'s 53. Though profit and sales are expected to fall this year, analysts expect WWE to rebound next year.

When WWE holds its earnings conference call on August 2, there no doubt will be plenty of questions about Benoit, steroids, declining ratings and potential share buybacks. WWE management should also be scolded for its stupid decision to air a tribute to Benoit.

But some long term perspective also is in order. Big media companies including Viacom Inc. (NYSE: VIA) and News Corp (NYSE: NWS) would love to buy WWE to gain access to its huge library of content and rabid fan base.

Like it or not wrestling has been part of the pop culture landscape for a long time. Eventually, some other personality will come along that will make people forget the Benoit murders.

At that point, investors who hung in there will have their patience rewarded.

When in doubt, there's always utilities. People need air-conditioning and heat regardless of how the market is doing. Plus, many pay dividends. Exelon Corp. (NYSE:EXC), which owns utilities in Chicago and Philadelphia, rose $1.02 to $69.97 in after-hours trading, rebounding from a drop-off in regular trading. Duke Energy Corp. (NYSE:DUK), Public Service Enterprise Group Inc. (NYSE:PEG) and Consolidated Edison Inc. (NYSE:ED) also were up.

But remember that even the most nervous consumer spends their money at some places, but is far more selective. They want to get the most bang for their buck. Investors today sent shares of some of those companies down today. Below are a few examples.

McDonald's Corp. (NYSE:MCD) -- Even in an uncertain economy, parents are still going to take their kids to the home of the Golden Arches. People are even eating the company's healthier fare. Go figure. Shares fell 2.6% today to $43.88. The stock is trading at a forward price-to-earnings ratio of 16.5, lower than both Wendy's International Inc. (NYSE:WEN) and Burger King Holdings Inc. (NYSE:BKC).

Take Home Depot Inc. (NYSE:HD). The No. 1 home improvement chain is struggling and is in the dog house with Wall Street because of the actions of its former Chief Executive Robert Nardelli. The company said today that its earnings this year would go down and sales would be flat as it invests $2.2 billion in fixing up its stores.

When companies announce plans to invest in their businesses, traders dump the stock. But remember, Home Depot shares are already beaten up. They are down 4 percent this year, while better-liked retailers such as Target Corp. (NYSE:TGT) and Costco Wholesale Corp. (NASDAQ:COST) are each up 9 percent.

The stock is cheap. Home Depot is trading at a forward price-to-earnings ratio of about 14, compared with 16 for Target and 21 for Costco. Of course, Home Depot is being hurt by concerns about the housing market, but everyone knows that already. The new Chief Executive Frank Blake also seems to be mending fences with Wall Street.

To make money in the stock market, you have to buy low and sell high. I know that's original observation, but keep in mind that successful investors don't buy stocks that everybody likes because the good news is already factored into the price.

Anyone who buys Home Depot -- and I don't care if you do or not -- or any other low-priced stock today shouldn't expect it to become the next Google Inc. (NASDAQ:GOOG) tomorrow. Investing requires lots and lots of patience and more than a little luck.

Happy hunting everyone.