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The great thing about down markets is that they offer great opportunities to buy even well managed and highly profitable companies. This is why I always encourage investors to have a solid amount of cash on hand in case you find a bargain. The following seven companies have seen their share prices drop as the market tumbled. They are large companies and are cash cows.

Caterpillar Inc. (CAT) manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide.

Caterpillar is a company that runs the construction industry. Its brand is an iconic symbol for the industry. The stock has fallen on fears of a slowdown in construction activity. While these fears are reasonable they are not likely. The company even gave a positive outlook on activity in China. The stock has a forward P/E of 8.7 and pays a 2.5% dividend.

E. I. du Pont de Nemours and Company (DD) operates as a science and technology company worldwide. It operates in seven segments: Agriculture & Nutrition, Electronics & Communications, Performance Chemicals, Performance Coatings, Performance Materials, Safety & Protection, and Pharmaceuticals.

DuPont has been gaining market share in the agriculture chemical sector. Their new line of products, which were recently approved, will also help to serve farmers by protecting their crops from insect infestations. The stock has a forward P/E of 9.3 and pays a 4.1% dividend.

Deere & Company (DE) provides products and services primarily for agriculture and forestry worldwide. The company operates in three segments: Agriculture and Turf, Construction and Forestry, and Credit.

Deere has worried investors because of its exposure to Europe. However, the interesting thing is that the company still sees more than 10% growth in a region experiencing major financial difficulties. This is because Deere is a very efficient company with an essential service. The stock has a forward P/E of 9.62 and pays a 2.4% dividend.

Siemens Aktiengesellschaft (SI), an electronics and electrical engineering company, operates in the industry, energy, and healthcare sectors worldwide.

This German company has alot of exposure to Europe and has caused a decline in the stock. However, the company has been investing heavily in R&D and looks for future growth. Management has already cited they are looking for acquisitions. Siemens has also been lowerings its exposure from Europe, there are reports that the company withdrew funds from Societe General(a French bank). The stock has a forward P/E of 8.8 and pays a 3.1% dividend.

Schlumberger Limited (SLB), together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide.

Schlumberger has taken a hit on concerns that a recession would cause oil prices to drop significantly. However, the company provides equipment and services for drilling companies that are looking to find new reserves efficiently. Oil companies will continue to use Schlumberger's services regardless of where oil prices go. The stock has a forward P/E of 11.6 and pays a 1.6% dividend.

American International Group, Inc. (AIG) is an international insurance organization. The company operates property and casualty insurance networks worldwide and conducts activities in the U.S. life insurance and retirement services industry.

AIG is making strong attempts to clean up its balance sheet of toxic assets. Financials have been taking the hardest hit as the Greek crisis unfolds. AIG is still positioned well as the company has been deleveraging itself from riskier investments. The stock has a forward P/E of 7.7

Rio Tinto plc (RIO)
engages in finding, mining, and processing mineral resources.

Rio Tinto has experienced difficulties as the price of commodities are falling. The company even gave a week outlook and warned of a slowdown in demand. However, the company has seen amazing growth in the last five years with an average rate of over 20%. The stock has a forward P/E of 4.9 and pays a 2.3% dividend.

This should be looked at as a starting point for doing research. These companies are extremely profitable and if you are willing to hold long-term they could generate some fairly nice returns.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 7 Bargains Worth Buying