First let's dust off home plate. Please remember in this litigious, politically- correct era readers should be aware that all of our Favorites of the Famous guest stock pickers may have conflicts of interest involving their stock choices.          

With interest rates abroad being cut even below zero our Fed promises U.S. interest rates will go up more slowly than after more vigorous recoveries.   With the exception of India the rest of the world is a mess. The Middle East is in flames. That's why Editor Bob Flaherty thinks 2015 will go down as another good year for U.S. equities. Where else can investors go? Bonds are hardly yielding enough to offset the inflationary loss of the purchasing power of your dollars.

LarryAuriana, co-founder of three Federated Kaufmann Funds, chose as his favorite pick in 2014 Ambit Biosciences Corp. (Nasdaq: AMBI- 9.47, recently 15.60), up 65% to lead our team. This biopharmaceutical company was acquired by Daiichi Sankyo for $15 in cash plus one non-transferable contingent value right per share, entitling the holder to a maximum payment of $4.50 a share upon the achievement of commercial milestones related to Ambit's lead drug candidate, quizartinib.

For 2015, Larry is going back once again to choose an old favorite Dynavax Technologies Corp. (Nasdaq: DVAX - 22.70) for the fifth time. Usually we always prefer new ideas. But this choice delighted Bob Flaherty because his Oct. 23, 2009 Flaherty Special Situation #13 Buy on Dynavax at $1.36 is  up over 1,500% so far and is still open.  

When Larry first picked Dynavax back in March 2010, shares soared 96% and another 74% the next year. But when he picked it again for his next two times DVAX went into free fall declining 56% and 21%.

Why the stumble? Instead of passing muster with flying colors the FDA raised the need for more study about safety questions. More time meant more money and down went   the stock.

Slowly as  questions are being answered the stock has bounced back and soared. Its flagship product is Heplisav-B (liver saver), an investigational adult hepatitis B vaccine, which  promises faster, more effective life -saving protection with fewer doses and injections.

If the current Phase III trial succeeds, the drug will be a blockbuster. Hepatitis B can cause deadly cirrhosis of the liver and cancer. In China alone 120 million people, about one out of ten of the entire population, are infected. There is a desperate need for an improved vaccination.

A key factor   attracting investors is that DVAX's hepatitis B vaccine is one step closer to approval after another successful Data and Safety Monitoring Board (DSMB) review. The panel, which is charged with periodically reviewing safety data from the ongoing Phase III clinical trial of Helpisav-B, has completed its second pre-specified review and has recommended that the study continue unchanged. The second review included safety data for all enrolled subjects collected through the data cut-off in February. As of the cut-off, all continuing subjects had received the second immunization and all had reached at least five months follow-up after the first immunization. The DSMB reviewed un-blinded tables and listings presenting key safety data. Based on its findings, the panel recommended continuing with no change to the study. By October, all DSMB study visits should be completed-if all goes well.

Larry's picks are never boring.

What happens when you pick an energy stock in Russia with a P/E of three? Douglas Makepeace of New York City-based Sperry Fund Management, a close friend who was a key country sector advisor to our mutual friend the late Sir John Templeton, borrowed a page from Baron Rothschild to "Buy when there is blood in the streets."

In 2014, Doug returned to this old favorite - which he chose both in 2011 and 2012 - Russian oil transporter AK Transneft Pfd (TRNFP.ME - 77,189 rubles, recently 124,060), up a 61%. The ruble fell from $0.03 to $0.02, down 1/3rd. A U.S. investor would therefore have made so far about 40% in dollars instead of 60% in rubles. Still, either gain was good enough for second place

AK Transneft is very important in all of Russia's energy sectors and owns an astonishing amount of assets. Threats from the West to hurt Russia's energy sector to prevent further territory incursions have made the stock a screaming bargain. "The stock appears to be at perhaps three times earnings and the net valuation is still a big multiple of the market cap," says Doug. Together with its subsidiaries, Transneft (which means oil transporter in Russian) engages in the transportation of oil and oil products through the system of trunk pipelines in Russia and internationally. It operates approximately 70,000 kilometers of pipelines and 500 pumping stations that transport crude oil in Russia, the Republic of Belarus, the Kazakhstan Republic and Ukraine. Putin and the CEO are pals.

For about 10 months Doug's pick was in first place. Truce violations, continued fighting in Ukraine, threats against Poland and Denmark,  the shooting of a political rival near the Kremlin and the disappearance of Putin sent the ruble even lower. The average Russia P/E is five. Blood again is literally in the streets and the devil has the people by the throat.

"Having said that, the arguments for Transneft are still intact and the stock is cheaper than anything else I can think of. Since I am more a global macro thinker and not a stock picker, I am retiring. All My Very Best wishes, Douglas."

Malaysian -based Arun Pudur, founder and CEO of Celframe Technology Group of Companies springs from an Orthodox Hindu Brahmin family which has linage to Jews of Indian descent. At 13 Arun began fixing bikes, breeding champion dogs before he started his own tech business. He made his first million at 21, his first billion at 26 and at 36 now ranks 10th among the world's richest individuals under 40 with a personal fortune of $4 billion.

In 2104, Arun's pick of online home buyer helper Trulia, Inc. (NYSE: TRLA- 35.32, recently 48.36) was acquired by rival Zillow Group (Nasdaq:Z) for a gain of 37%.

"My new pick for 2015 is Fujifilm Holdings Corp. (ADR) (OTC: FUJIY-35.35). This oldie, but goodie had annual revenues of $20.7 billion and their 2015 earnings growth will be around 10%. Kodak may have cratered but Japan's Fujifilm stock has doubled in the past two years. It is still bargain priced with a top rating for timeliness and having a solid balance sheet. While still making camera and photographic supplies, Fuji has built a big business in copiers and flat panel displays and sells special products to the pharmaceutical and optical industries. It is growing at a surprising rate."

At only 24 Princeton basketball star John W. Rogers Jr. started up  Chicago-based Ariel Investments in l983. With fine steady undervalued value picks of growth stocks growing Ariel's six no load funds and private accounts John has made the first African-American founded mutual fund group an outstanding success.

In 2014 John's pick was International Game Technology (NYSE: IGT- 13.45, recently 17.73), up 32%. IGT is the largest and most globally diverse gaming equipment and systems manufacturer in the world.

At its current price John ranks IGT as a sell. On July 16, 2014 Italian lottery company GTECH S.P.A. announced its intention to acquire IGT for $4.7 billion in cash and stock, or $18.25 per share. This price represented a 50% premium to its low prior to speculation of a forthcoming merger. Lock up your gains. Take the money and run.

This year, John's new pick is Lazard Ltd. (NYSE: LAZ - 52.86), the world's leading independent financial advisory and asset management firm. With $197 billion in assets under management the stock currently traded at only 14 times future 12 months earnings per share. Headquartered in Hamilton, Bermuda, Lazard operates in 43 cities across 27 countries in Europe, North America, Asia, Australia, the Middle East and Central and South America. Among Lazard's list of clients are corporations, public funds, sovereign entities, endowments and foundations, labor union funds, financial intermediaries and private clients. Lazard's investment solutions include traditional and alternative strategies for equity and fixed income securities, in global, multi-regional, local, and emerging market portfolios.

"Lazard is experiencing strong momentum and should remain a beneficiary from global mergers and acquisitions activity," says John. "In asset management, Lazard will continue to benefit from strong long-term performance and new product introduction. The company's business model generates high returns on invested capital and equity."

Fellow Harvard man Tom Putnam is descended from the Patriot at Bunker Hill who ordered, "Don't fire until you see the whites of their eyes!" For each of the 34 years we have called upon him Tom has always given us a solid steady new pick.

His Fennimore Asset Management has three no loads FAM Value Fund, FAM Equity-Income Fund and FAM Small Cap Fund. (www.famfunds.com ) For his fund portfolios Tom seeks not only survivors in a correction, but winners in an economic rally. His team finds quality companies that have good market share positions not only in their industries, but have strong characteristics of generating free cash flow accompanied by low debt balance sheets.

Last year, Tom's pick was a kind of three-headed monster. Because of that reason Wall Street analysts didn't pay attention to it. They like a pure play in one area. But Tom figured management would find a way to spin off parts and all of them would be better valued by Wall Street.

He was right. The parts of his pick Patriot Transportation Holding, Inc. (Nasdaq:PATR $37.30, recently 43.22) were up 16%. The gain happened after old Patriot was merged on a share for share basis into FRP Holdings, Inc. (Nasdaq:FRPH) and then and 1/3rd of a share of the new Patriot Transportation (Nasdaq:PATI) was spun off.

Tom's favorite pick in his sights is Fort Worth, TX-based Hallmark Financial Services, Inc. (Nasdaq:HALL-10.45). This insurance holding company through its subsidiaries engages in the sale of property and casualty insurance products to businesses and individuals as well as providing other insurance related services.

"The stock is very cheap trading below book value per share of a little over $13," says Tom. "A new CEO came in last fall. We think underwriting results are going to improve."

Why? With over 25 years of experience in property/casualty insurance, CEO Naveen Anand brings a great deal of knowledge in a wide range of segments, lines of business and distribution channels. His vast underwriting experience is a natural fit with Hallmark's underwriting-driven culture. Previously Anand served Torus Insurance Holdings as U.S. chief executive and global chief operating officer. In these roles he oversaw the development of Torus's global operating platform and functional capabilities, as well as the formation and development of its U.S. underwriting platforms. He was responsible for all Torus business lines and operations in North and South America. Under his leadership, Torus U.S. developed from a start-up stage in late 2009 to over $250 million in gross written premiums across six key specialty business lines.

Play it again, Naveen!

Forbes reporter Bob Flaherty wrote a positive story when Mario Gabelli was managing just $3 million. He was ridiculed for  finding bargains in micro caps because these orphans were   even more out of favor than they are today. But Forbes readers went crazy for all his picks of very low P/E stocks with good managements, strong financial fundamentals and great growth prospects. When Wall Street's gloom disappeared as it always does,  Mario's picks all doubled or tripled. He became a celebrity.

The son of Italian immigrants, Mario Gabelli was born in the Bronx and went to Fordham Preparatory School there. Next he won a scholarship and graduated from Fordham University summa cum laude. Adding an MBA from Columbia and seasoned at a Wall Street research boutique, Mario started up his own tiny firm in l977. Today it's GAMCO Investors (NYSE: GBL) with over $50 billion under management and numerous Gabelli Funds (www.gabelli.com).

Having attended his 50th reunion at Fordham, Mario decided it was time to give something back. His wife Regina Pitaro, a Fordham graduate and also a trustee, agreed. In 2010 the couple gave a transformative $25 million gift to Fordham, the largest in the University's history.

Mario didn't want his name on a building - he wanted to make a difference. He offered money for scholarships and endowed chairs for some faculty, but only on a matching grant basis. "That got them jump-started with a whole bunch of dynamics," Mario says. Combined donations have gone over $50 million.

Mario also funded initiating a Ph.D. program which will establish a doctoral-level business program. In gratitude Fordham University renamed the undergraduate business college the Gabelli School of Business. In 2015 Fordham unified the undergraduate and graduate schools under the Gabelli name.

"My heart and soul are based on education and giving back to help the system," says Mario. "And what makes a good university is faculty." His money will endow six faculty chairs, create a visiting-professor program and support a new center for global value investing-a highly unusual program for an undergraduate business school.

Mario's pick last year was Chemtura Corp. (NYSE: CHMT- 25.78, recently 26.74), up a 4%. Coming out of bankruptcy protection in 2010, this maker of specialty chemicals is in the later stages of a turnaround led by its CEO Craig Rogerson. He was formerly CEO of Hercules, which was sold to Ashland (ASH) in 2008. Mario made a lot of money betting on Rogerson at Hercules and is giving this  turnaround more time.

Mario's new pick is a cloud play. Atlanta, GA-based Internap Network Services Corp. (Nasdaq:INAP- 10.03) provides colocation, managed hosting and "cloud" services utilizing 16 owned data centers. The IT infrastructure industry in which Internap participates is very attractive. Secular demand for data center capacity is strong. Internap's addressable market is growing in the low -teens, driven by the growing need for computing power and information storage and transmission. Data centers possess a recurring revenue model with high returns on capital and "sticky" customers.

CEO since March 2009, Eric Cooney transformed Internap from a re-seller of connectivity and third-party data center capacity to a leading public and private cloud provider. It is beginning to reap the benefits of its investments in new capacity though increased capacity utilization and margin expansion.

The high quality of Internap's assets, breadth of its services and digestible size make it an attractive acquisition candidate. The data center industry continues to consolidate with many recent transactions. At 12 times 2015 projected EBITDA Internaps's Private Market Value exceeds $13 per share versus a recent share price of about $10.  

Lauren Templeton, grandniece of Sir John Templeton, and Scott Phillips of Templeton & Phillips Capital Management, LLC preserve value investing and global bargain hunting the Templeton way. Also they are our first husband and wife team of contributors.

Scott's 2014 pick of BM&F Bovespa (BVMF: BVMF3-11.28 recently 11.13 Brazilian Real) was down slightly. The operator of Brazil's equities exchange, Bovespa offers equities, securities, financial assets, indices, interest rates, agricultural commodities, foreign exchange futures and spot contracts. It represents a bargain as one of the lowest priced stock exchange operators across the global markets. But nationwide protests of angry Brazilians call for the ouster of President Dilma Rousseff. The economy is contracting and corruption is being blamed. Those are downers.

Given its dominant position in its industry with very little direct competition Bovespa remains an attractive way to capitalize on an eventual recovery of sentiment in broader Brazilian shares.

Lauren's 2014 pick of Kia Motors Corp. (Korea Stock Exchange: 000270 -60,800 South Korean Won, recently 45,400) fell 25%. Kia ran into a series of unexpected problems. But Kia has an important franchise, offers value and should pay off in the future.

Scott's new contrarian pick is SandRidge Energy, Inc. (NYSE:SD), our only Favorites of the Famous pick in energy. During the sudden 50% collapse in the price of oil in the last half of 2014 investors have been fleeing the sector. That means bargains and value are also being created. Says Scott, "SandRidge shares trade at 0.49 times book value and 2.5 times cash flow. This oil and gas explorer and producer is 92% hedged at $92.44 per barrel in 2015. It possesses an opportunity for production in the years to come as oil prices eventually recover and it successfully exploits its 1.5 million acres in assets in the Mississippian formation."

Lauren's new pick is also contrarian: "WH Group (Hong Kong Stock Exchange: 0288.HK: $4.39 HK dollars) is the recently completed combination of Shaunghui Development of China and Smithfield Foods in the U.S. Despite being the global leader in pork proteins, the business is generally neglected by the markets given its recent flotation and languishing valuation when compared to peers. Trading at 9.1 times earnings and 6.2 times Enterprise Value/EBITDA the firm trades at a noticeable discount to Tyson at an 11 times P/E and 7.2 times EV/EBITDA. The firm is utilizing clever synergies, including an arbitrage play between U.S. and Chinese hog prices to gain market share in the rapidly growing Chinese demand for proteins and consumer goods."

Last year, Greenwich Village gadfly Ray Dirks' favorite pick was Fusion Telecommunications International, Inc. (OTC BB: FSNN - 5.00, recently 4.47), down 11%. Fusion is a provider of integrated cloud solutions to small, medium and large businesses. FSNN's advanced, proprietary service platform enables the integration of leading edge solutions in the cloud, including cloud voice, cloud connectivity, cloud storage and security.

"Fusion is still a very strong buy," says Ray. "It should go up 10 times over the next year. Revenues are over $90 million. It should be selling at several times what it is right now in the next few months."

For 2015, Ray's favorite new pick is Neuralstem, Inc. (NYSE: CUR - 2.01). The Rockville, MD-based biopharmaceutical company is engaged in the development and commercialization of treatments based on human neuronal stem cells and small molecule compounds. Neuralstem's stem cell technology enables the isolation and expansion of human neural stem cells from various areas of the developing human brain and spinal cord enabling the generation of physiologically relevant human neurons of various types. Its clinical program products include NSI-566, which is in Phase II clinical trials for the treatment of amyotrophic lateral sclerosis, or Lou Gehrig's disease, and Phase I clinical trials for chronic spinal cord injury. The company has also commenced combined Phase I/II clinical trials of NSI- 566 for the treatment of motor deficits due to ischemic stroke in China. Plus, CUR's NSI-189 technology is in Phase Ib for the treatment of major depressive disorders.

"It's working on spinal injuries and it's doing very, very well," says Ray. "It's down right now, but not too long ago, it was up to $4."

"Hope springs eternal!" begins    Russell Cleveland, chairman and founder of RENN Global Entrepreneurs Fund, Inc. (NYSE RCG). Russ is staying  with his venture-backed Bovie Medical, Inc. (NYSE: BVX - 3.90, recently 2.20), which posted a decline of 44%. For a 2015 pick, Russ is stubbornly    sticking with Bovie for the fifth time. When he chose Bovie for the first time in 2011 it rose 3.9% but in 2012 it went down again 11.2%. In 2013 Russell's pick climbed 38.8% but fell 44% since 2014.

Given the company's promising technology, he argues that BVX shares are currently trading at a bargain. "Our friend Bovie is making excellent progress with their new revolutionary surgical tool, J-Plasma. They did an offering under the market which has created a new bargain price of $2.50, a good opportunity."

Bovie has two major sources of value that are poised for explosive growth: its existing business and a robust pipeline containing breakthrough medical device technologies that address huge markets. Most of these new medical device technologies, such as J-Plasma, are either ready for market entry right now or are very close to being ready, such as BVX's Seal-N-Cut vessel sealing technology. 

Digging in our old issues Bovie CEO Robert Gershon has superstar management credentials. He should have the know-how to take Bovie to next level and beyond. A year ago Russ believed this stock could be his biggest winner ever, cheap at $30.

Truly, I get by with the help of my friends. We've shared  so many memories with 77-year-old Larry Rader. Dubbed "The Go Go Kid!" in the Soaring Sixties, Larry went on a rollercoaster ride from hero to goat, Possessing great courage and unusual staying power, he did the hard work to become one of the steadiest growth stock performers ever. His success as a student of identifying outstanding small-cap, non-technology growth stocks brought him to head small-cap research at Merrill Lynch in the days before long-term investing was replaced by today's momentum gambling. Larry is the only person Editor Bob Flaherty featured in three different magazine cover stories. We thank him and his wonderful wife Harriet for all their profitable growth stock ideas which helped our readers. No new pick. With a tear in our eye we wish our old friend well.   

What is this issue missing? In this flight to safety our list of new picks so far does not have a single OTC start up. Flaherty Financial News President and Publisher Brian Flaherty can fix that. Along with his dad, Brian co-authored our sponsored Nov. 20, 2014 Flaherty Special Situation Newsletter #37 on BioSig Technologies, Inc. (OTCBB: BSGM-1.75). Our opus is archived on our website. BioSig's is in the middle of a shift from mapping to signaling vital information to cardiac doctors treating irregular heartbeats. Millions of lives will be saved when new technology gives surgeons a better picture of what to do. That means shortening heart operations by hours with many less do overs, not to mention fewer deaths. After BioSig progresses enough to up list from the OTC to a more liquid Nasdaq listing, shares should attract more attention.  It has the potential to improve cardiac surgery, cut costs and then be acquired at a handsome premium by one of the large companies which dominates the cardiac space.

"Never volunteer!" scarred old soldiers warn new recruits just before battle, but we have one anyway. He is Marc Liu of Capitol Isle Partners. "Just for the record, the one stock I love is TNXP. In an unprecedented move for me, 65% of my funds are in this one stock. I think their formulas will revolutionize heath care -specifically pain care."

Currently shares are down almost 60% from the 12 month high of $15.21 and are   close to the low of $5.33. New York, N.Y. -based Tonix Pharmaceuticals Holding Corp. (Nasdaq:TNXP-6.12) is dedicated to the development of next generation medicines for common yet challenging disorders of the central nervous system. These are characterized by chronic disability, inadequate treatment options, high utilization of heath care services and significant economic burden.

Tonix is in development as a first-line treatment for fibromyalgia, a syndrome marked by chronic, widespread plain the muscles and soft tissues with symptoms such as tenderness and often others as fatigue, sleep disturbance, anxiety and bowel dysfunction. Besides a Phase II study in post-traumatic stress disorder underway, a Phase II trial for episodic tension-type headache will begin in the second quarter of 2015.  

Now that our guest panelists have had their shots Editor Bob Flaherty finally gets to the plate. His last year's pick of Medient Studios (OTCBB: MDNT-$0) is down 100%. What's left is now FONU2 Inc. (OTC PINK SHEETS: FONU) doing business as Moon River Studios after a 400 for one reverse stock split. The plan was to turn the Hollywood film production model upside down by building the world's largest mega Studioplex in Effingham, GA. They dreamed of making the same action pictures in three simultaneous around the clock production cycles with three different casts speaking three different languages-one in English, one in Hindu and one in Chinese. That would sure cut costs. What could go wrong? Everything. The pick was a disaster, the worst Bob ever made. No excuses. Bob swings for homeruns and when he misses he can fall flat on his face in the mud.

But as we Boston- born Red Sox fans know you have to have heart. Now Bob has the opportunity to go from last to first. With just one swing of the bat I can go from being a bum to a hero again.

Batter up! Our latest sponsored Feb. 24   Flaherty Special Situation # 38 BUY Report on  CEL-SCI Corporation (NYSE:CVM- 1.02) describes how arguably the most undervalued Phase III biotech is turning around "the mother of all credibility gaps."

"You are an amazing writer," telephoned CEL-SCI CEO Geert Kersten "Our piece was fantastic!" Versus a staring stock price in our issue of $0.90 the stock rose over $1 and showed a gain of 25%. Daily volume increased over 100,000 shares. "You wrote a wonderful story which made our company come alive. And it is actually coming true. Great success. "

Maybe? Our opus is archived on our website at www.flahertyfinancialnews.com . But just like every other reader Bob will have to wait until next year to learn if he popped another one over the fence or ended up in the mud again.

On a personal note I swim almost every day and do 200 pull ups from the water. I am looking forward to marching with my 60th Reunion Class of l955 at Harvard College. At 81 I feel great and hope all you readers do too. With trust in God and in ourselves we will face whatever challenges arise in our lifetimes. -RJF