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Tickers in this Article: AA, MTL, MRO, CHK
The Federal Reserve's decision to buy more than $100 billion worth of Treasuries over the next month has helped push several classes of commodities to multi-year highs. However, the run-up in commodity prices has not translated into major gains for all commodity producers and several are trading at bargain prices. Here are four commodity stocks that are still cheap.

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Sorting Through the Scrap Heap
One unglamorous commodity stock that may appeal to both value investors and traders alike is Alcoa (NYSE:AA). Common shares of this aluminum producer are trading at a price-to-book ratio of just 1.07. And from a technical standpoint, the stock's 50-day moving average broke above its 200-day moving average on November 2 and has since widened the gap.

Expectations have not been set very high for Alcoa right now either. Recently, the stock received a downgrade from a BMO analyst after the company held its Investor Day in New York. However, I think the company is heading in the right direction, and its recent efforts to pay down debt will be rewarded over the long term. The company has been hampered with stagnant metal prices and the impact of foreign currency shifts. But once these headwinds subside, the stock has a lot of room to run with its healthy production volumes and a strong outlook for metal consumption from emerging markets.

Another basic materials stock that is reasonably valued is the steel company ArcelorMittal (NYSE:MT). The stock trades at a price-to-book ratio of just 0.86 right now. Shares of MT are down 22.1% on the year but have recently begun to turn the corner. They have bounced back 15.8% during the past three months and the 50-day moving average is closing in on the 200-day moving average for this stock. ArcelorMittal is battling a seasonal slowdown right now, but is well-positioned to benefit from rising steel prices over the long run.

Running on Fumes
Moving into the oil and gas space, Marathon Oil (NYSE:MRO) has become a value play as its stock price has lost 4.4% over the course of the last month. Shares of MRO now trade at a price-to-book value of 1.06.

Marathon is coming off of a Q3 in which it reported a 63.9% jump in adjusted earnings on a year-over-year basis. The company benefited from healthy margin improvements from its refining segment as well as better sales volumes domestically. Higher natural gas price realizations have also been a helper. MRO carries a dividend yield of 2.9% for added safety.

One other commodity play that has been trading at bargain levels is Chesapeake Energy (NYSE:CHK). The natural gas producing company is looking at a stock price that trades at a price-to-book value of 0.96. Shares of CHK are down 12.2% on the year, but have been showing promise more recently. The stock has moved up 8% during the past three months.

The Bottom Line
Inflationary fears compounded by quantitative easing have managed to drive some commodity prices to extraordinary levels in recent days. This does not mean that investors should completely avoid commodities. In fact, there are a number of attractive opportunities for value investors out there. Each of these stocks should be considered on their own merits rather than the frightening gains that have been made by commodities. (For related reading, take a look at How To Invest In Commodities.)

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