Lately, I have been fishing and for long-lost treasure. Instead of searching for the planks on pirate ships on the ocean floor, I am searching for beaten up stocks that are out of favor and undervalued by the investment community.

Let me explain why.

For starters, I am naturally a contrarian. For those of you who have never heard that term before, just think of the crotchety old man who disagrees with everybody..about everything. I’m a much younger version of that guy.

The new, flashy companies like Facebook (FB), Alibaba (BABA) or FitBit (FIT) are growth companies. They have plenty of momentum behind them because they are fresh and new. Last year was a great year for growth stocks in general. However, the economy is slowing down globally this year and as the economy slows – fresh and new, become old and stale.

Now is the time of the bologna sandwich.

It’s dull.
It’s boring.
It’s uninteresting.
It’s predictable

These sleepy jewels are often overlooked.

Right now, JP Morgan Chase (JPM) is one of those dull, boring and uninteresting companies.

This is literally a sleeping giant.

JP Morgan Chase is the biggest bank on the planet!

It’s worth $212 Billion.

It has over $2 Trillion in Assets – YES, THAT SAID TRILLION, with “T”.

And…
It generates revenue of over $94 Billion in 2014.  

You could make the argument that it’s too big to fail, but that will never be my call.

When I scan for stocks, I was surprised to see it in the results.

But there it was:  

As I am writing this the stock price is down over 11% YTD. This company has been through hell since the 2007-08 financial crisis. Over the last 3 years this company has spent $19 Billion on legal fees due to massive lawsuits and will need to spend  more money on the upcoming legal issues in the upcoming years.

These lawsuits range from