Coping with last year's painful recession was tough. To compensate for the lack of cash coming in, virtually every company went into cost-cutting mode. Unfortunately, the axe fell hard on advertising budgets. These deep cutbacks have helped many firms remain above water, but they are only a temporary solution. We've reached a point where businesses in every industry will soon be forced to aggressively reach out to new customers, or risk falling behind the competition. But advertisers will be smart and demand the most bang for the buck, which plays right into National CineMedia's hands. Because theatre advertising is far more effective than other mediums, National CineMedia commands premium rates and is attracting new clients. If you've been to the movies lately, chances are you were one of the 700,000 people to see the firm's exclusive 'First Look' content while waiting for the show to start. National CineMedia dominates the cinema advertising market, having locked up 30-year agreements with leading exhibitors like Cinemark and Regal Entertainment. TV and magazine ads are little more than a distraction, but the theatre is a whole different ballgame. Studies have shown that 73% of theatre visitors can recall the commercials they...

Michael Cintolo explains, While alternative energy hasn't been a terrific sector for much of 2009, we're beginning to see some great strength in the group as investors discount accelerating growth in the quarters to come. And my favorite stock is sure to benefit from this trend, as it's the #1 wind power story in the market today. We're talking about American Superconductor which designs many different wind turbines and then licenses them to customers that want to get into the wind business; customers are obligated by contract to then buy AMSC's wind electrical systems-basically the brains of the wind system. Its biggest customer (by far) is Sinovel of China, which wasn't even in the wind industry a few years ago, but is set to become a top five turbine maker next year. And many other customers, including Hyundai Heavy Industries (which is going to have a big presence here in the U.S.) are set to ramp up production in 2010. Because of all that, revenues have leaped more than 80% in each the past two quarters, earning are ramping up quickly and management has stated it expects fiscal 2011 (ending next March) revenues to grow more...

Virtual Radiologic offers on-call diagnostic imaging services, a unique niche that eases the workload of health-care facilities during peak hours, weekends, and holidays. It also addresses the shortage of radiologists amid increasing demand for digital imaging services. Virtual Radiologic's staff of certified radiologists read X-rays, CT scans, and MRIs for hospitals, clinics, and imaging centers. Sales have advanced 16% this year. Volumes at existing facilities rose 4% in the September quarter, while total images read jumped 23%. Virtual Radiologic has maintained high retention rates, though competition has resulted in price declines. For the December quarter, the two-analyst consensus projects 7% higher per-share earnings on 4% sales growth. With solid operating momentum and bright growth prospects, Virtual Radiologic seems reasonably valued at 16 times expected 2010 earnings. The stock is a Best Buy. Editor note: On Thursday (January 14), Horizon Publishing editors Richard Moroney and Chuck Carlson will be conducting a free online virtual conference to discuss their favorite stocks and strategies for the coming year.The conference is free with no obligation. Register at http://www.horizoninvestment.com/seminar.asp (http://horizonpub.psemails.com/pub/4zymb82Tt73e9lTir4Tqsgh2gjTpr8Tg2e9n/1/13792), or call Horizon Investment Services at 1-800-711-7969 or email (mailto:pcavanaugh@horizoninvestment.com).

Because of the deflationary influences of higher productivity, moribund economic growth and cheap labor in developing nations, we won’t see the kind of price inflation that characterized the 1970s. But we will see galloping monetary inflation — or much more currency in circulation — and the result will be higher prices for assets such as commodities and equities. So if gold is going to lead the pack, what’s the best gold investment? In my opinion, smaller gold exploration and development companies will offer valuable leverage to gold, and one of the best is Keegan Resources. Keegan controls the Esaase gold project, a major mine-in-the-making located in the investor-friendly nation of Ghana, in west Africa. The company has made quick work of the project, going from field exploration to drilling to resource definition and pre-feasibility studies in a span of just three years. Now, Keegan finds itself sitting on top of a near-surface, open-pittable deposit that contains 3.47 million ounces of gold according to the most recent resource estimate. As impressive as that total is, it has the potential to grow significantly larger. The outlined resource remains open both along trend and at depth, and it lies...

China has been an investing hotspot for several years. Even the great recession of 2008 and 2009 did little to slow down investor interest as the Chinese government injected massive stimulus into its economy which has propelled growth. In 2009, the Shanghai Composite Index surged over 70%, far outperforming the stock markets of the United States and most of Europe. Questions abound about whether China is too hot to handle and is a bubble waiting to burst. But I believe investors should look at each company individually, whether it is in China or not. While macroeconomic and political issues shouldn't be ignored, some companies will be better suited to ride out any rough patches. One of those companies is Jinpan International, one of only two UL certified cast resin transformer manufacturers in the world. While it has its headquarters and manufacturing facilities in China and generates a majority of its business in China, Jinpan is actually an American company held by a British Virgin Islands holding company. It is also not a newbie on the Chinese stage. Jinpan has been in business since 1993. The company manufactures medium voltage transformers (10-25 kV.) That doesn't sound...

'Biofuel' has, for decades, been code for 'corn-based ethanol.' But this law also contains provisions for a new, advanced biofuel derived from cellulose, an organic compound found in all plant matter. Instead of using corn -- which uses valuable farmland and can drive up the price of a staple food -- cellulose can be derived from any plant, wheat or rice straw, corn stalks, scrap wood or even grass. The law calls for hundreds of millions of gallons of cellulose ethanol. There’s just one problem: Very little of cellulosic ethanol is being produced. By 2022, however, the nation will need, by virtue of federal law, 16 billion gallons. All problems, of course, are really opportunities in disguise. Especially for one company: Verenium. This is a biotech company that has mastered the enzymes required to unlock the energy in cellulose. It has built two demonstration-scale plants, one in Jennings, La., and another in Japan, and has announced it will build the nation’s first commercial-scale ethanol plant. It has two partners in this endeavor: Petroleum giant BP and the U.S. federal government, which has begun its due diligence on a federal loan guarantee for the...

Why make a bet that can go bust when you can sit back and own a very simple company that year after year keeps sending nice fat checks your way every quarter. Otelco's headquarters are just like they should be - simple and austere. No fancy facades and no fancy executive suites and board rooms. In fact, there isn't even a garage for the executive limos - as there aren't any limos - just company trucks. The company operates the core of utilities that include telephone lines, wireless services, broadband internet, cable and other television services to homes and businesses in very select rural markets in Alabama, Maine, Massachusetts, Missouri and West Virginia. The core of the company has been in its original markets since the early part of the last century and has a very reliable, steady - if not completely sticky customer base that keeps its services, expands its services and most importantly keeps paying for its services year after year. While its peers focus more on dealmaking, Otelco keeps its focus on generating more cash from its base businesses resulting in average annual revenue growth running at an average 20%+ rate. And from keeping management and...

The Los Angeles-based company focuses on a broad range of services that includes planning, design, environmental impact studies, project management, logistics and other jobs in the facilities, transportation, environmental, and energy and power segments. Transportation is the company's largest end market, representing 28% of the business, followed by environmental at 25%, facilities work at 24%, and Management Support Services (MSS), which delivered 17% of its revenues in fiscal 2009. Energy and power is the company's smallest segment, representing about 6% of its total revenues, but the company does view it as a growth opportunity. It is particularly strong in hydroelectric projects. The MSS business is 100% dedicated to working directly for the U.S. government, but government spending of all types -- either from federal state and local governments and foreign governments -- accounts for 70% of the company's revenue. The remainder comes from the private sector. AECOM has been under some pressure toward the end of the year, despite initially rallying following a strong fiscal Q4 earnings report in November. The culprit was some weak reports from fellow E C firms and the Dubai debt debacle. However, AECOM isn't subject to the same type...

CADC produces and supplies specialized ready mixed concrete for use in all kinds of infrastructure projects including railways, roads, airports, bridges, tunnels, and dams. CADC has already benefitted from over 9 new railway contracts from Beijing this year alone, totaling over $19.7 million. That may not sound like much, but realize that CADC is a small cap stock ($49.28 million market cap) so $19.7 million of new railway orders represents 39.9% of the company’s total market cap. That means we could see CADC’s earnings explode in 2010. In fact, if Beijing continues to pile money into railways, CADC could truly undergo some transformational events that lead to a double or more in 2010 – and more in the next few years. Meanwhile, China’s massive $586 stimulus package has rocketed the Chinese economy back on track – and the result can be seen across the board from government sponsored infrastructure projects to consumer spending. By the end of 2009, the China is expected to have used 1.54 billion tons of cement on transportation infrastructure and logistics and warehousing projects, according to the country's top economic planning agency. In the transportation, logistics, and warehousing sectors alone, China is expected...

Teck Resources has had a great run but it's nearing the time to cash out. According to our monthly buy and sell routine -- which is a laddered portfolio approach -- the TCK position in our 2 for 1 portfolio will be sold in April. However, no one who bought at the beginning of 2009 could be faulted for taking their profits at any time. TCK now has a P/E of 32 and its balance sheet is way out of whack. A resumption of dividend payments seems unlikely in the next few years. TCK is selling at its 52 week high and, as hard as it is to face up to the facts, it's time to let it go. Even if its has a little upside momentum remaining, as my Grandfather used to say, 'You always need to leave a little on the table for the next guy, otherwise who would want to buy?' Meanwhile, my new top pick is Universal, a small insurance company based in Fort Lauderdale, Florida, specializing in homeowner's insurance. The company has a strong balance sheet with over $7.00 in cash per share on the books with earnings at close to...

In reality, PepsiCo owns some of the most sought after brands in the world, including Gatorade, Tropicana, Frito-Lay, and Doritos. It does business in more than 200 countries worldwide, including key emerging market economies like China and India. Perhaps most important of all, it’s a growth company with analysts expecting long-term future earnings growth of 10-12% per year. In recent months, PepsiCo has taken another major step forward with the pending acquisition of its two primary bottlers – Pepsi Bottling Group and PepsiAmericas. The acquisition provides the potential to eliminate an estimated $500 million to $1 billion in redundant costs. If those cost savings are transferred directly to the bottom line, shareholders could see a significant increase in net income of 10% to 20%. Of perhaps even greater benefit, the purchase brings 80% of North American beverage distribution 'in-house.' This move will bring management one step closer to its final customers – injecting a level of flexibility into operations not often seen with a company of PepsiCo’s size. The acquisition further ties together the Pepsi story – a well run company with market leading growth positions and an attractive valuation....