Ronald W. Burkle, the grocery magnate with a net worth estimated at more than $3 billion, has acquired an 8.3% stake in Barnes & Noble (NYSE: BKS) through his Yucaipa American Funds, LLC investment vehicle.

The 13-D contained nothing especially interesting -- just the usual boilerplate: The shares were acquired for investment purposes, but also reserved the right to talk to other investors or management about ways to maximize value. The 13-D added that the shares were acquired because the investors believed they "were undervalued by the market at the time they were acquired."

The Wall Street Journal notes (subscription required) that while the company has seen its performance battered by economic woes, it has a strong balance sheet and competent management. If Borders Group (NYSE: BGP) collapses, Barnes & Noble could be the most direct beneficiary. The deathwatch is one, with shares of Borders trading around 50 cents per pop.

Given the high regard that the company's management is held in, this investment seems unlikely to turn into a true activist situation: So while Burkle's investment is a strong vote of confidence from a highly respected mogul, it's not likely to be much of a catalyst for anything.

This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

"If emerging markets at 6-8 times earnings are not cheap I don't know what is," says Carl Delfeld of Chartwell Advisors, who eyes WisdomTree Emerging Market Small Cap (NYSE: DGS) as a top pick for 2009.

"Using the best historic measures, normalized earnings, book value, and free cash flow, stocks around the world are very cheap (although not as cheap in absolute terms or versus interest rates as they were in the 1930s or at the 1974 bottom).

"Nevertheless, the 4% dividend return on the S&P 500 exceeds the yield on the ten and thirty year Treasury bonds for the first time in fifty years. If emerging market equities, where the growth is, at six to eight times earnings are not cheap I don't know what is.

"Our reasons for this selection:

1) Relative to emerging-markets large caps, this fund has far less exposure to commodities producers or telecoms while concentrating instead in local consumer and business services, which should hold up relatively well as growth in emerging economies slows.

So you're sitting on the sidelines waiting for a sign that the markets are safe for reasonable speculation. What are you looking for? Do you want to see a bull market return before committing capital? Are you waiting for signs that the economy is turning the corner? How about corporate earnings improvement?

In the near term I expect to see more and more of the proverbial corporate buybacks. As such, I suggest investors use that event as a signal on individual equity securities. The power of these validations of value can be stunning.

After the market closed on Wednesday, basic materials company, Walter Industries (NYSE: WLT), announced that it would be expanding its stock buyback program by $50 million. On the surface, such amount is a small fraction of the more than $1 billion of market value outstanding, but the move is more than symbolic.

Essentially, management is taking advantage of ridiculously low levels in its stock price. For those looking to establish a position, such a move is a great endorsement of the company and its future.

Oct. 14: Dow 9,310 (down 76 points); trading range, 874 points

The markets finished the day marginally lower, but the volatility that had plagued the markets for the past few weeks continued to reign. (Two days later the CBOE Volatility Index (VIX) would set an all-time record of 81.)

However, the big headline of the day came from an announcement that the federal government would take preferred equity stakes worth up to $250 billion in several U.S. banks to keep money flowing through the financial system.

The move linked the banking sector and the government, and made taxpayers de facto shareholders in the American finance system.

Congratulations, you now own several banks.

To participate in the program, financial institutions like Bank of America (NYSE: BAC), Citigroup (NYSE: C), JPMorgan Chase (NYSE: JPM), Morgan Stanley (NYSE: MS) and Wells Fargo (NYSE: WFC) had to agree to executive compensation limits, including the elimination of golden parachutes.

The program was "voluntary," but when Treasury and the Fed came knocking, it was making an offer the banks couldn't refuse.

Greg Tucker is the executive editor of OptionsZone.com.

It was a quiet week, but here are highlights from this past week's earnings coverage from BloggingStocks:

• Amgen Inc. (NASDAQ: AMGN) earnings growth prospects for 2009 make the stock worth a look.
• Big Lots Inc. (NYSE: BIG) offered no 2009 guidance but may benefit from bankruptcies of other retailers.
• Cal-Maine Foods Inc. (NASDAQ: CALM) Q2 earnings fell more than expected but revenue rose.
• Chevron Corp. (NYSE: CVX) said it will soon post preliminary Q4 results in the face of falling oil prices.
• Piedmont Natural Gas Co. Inc. (NYSE: PNY) reported a widened Q4 loss while revenue improved.
• Take-Two Interactive Software Inc. (NASDAQ: TTWO) earnings prospects may make the stock a bargain.

Also, a survey indicated that U.S. corporate profits in the fourth quarter probably fell for the sixth straight quarter. Interest cuts haven't helped bank earnings, will the Fed buying mortgage-backed securities do better? And, are food stocks still a defensive play?

Upcoming earnings releases include Bed Bath & Beyond (NASDAQ: BBBY), Constellation Brands (NYSE: STZ), Family Dollar (NYSE: FDO), and Monsanto (NYSE: MON).

Visit AOL Money & Finance for more earnings coverage.

This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

"If you're looking for a low-risk stock that's held up well in this dizzying market spiral, here it is: Fortis Inc. (TSE: FTS), my top pick for 2009," says Gordon Pape in The Canada Report.

"Fortis is trading at about the same level now in Canadian dollar terms as it was in early September. How many companies can say that?

"Don't confuse this with the troubled European financial giant of the same name. This Fortis is the largest investor-owned gas and electric distribution utility in Canada. Its regulated holdings include a natural gas utility in British Columbia and electric utilities in five Canadian provinces and three Caribbean countries.

"Third-quarter financial results were very strong and beat analysts' forecasts. Fortis reported net income of $49 million ($0.31 per share) compared to $31 million ($0.20 per share) in the same period of 2007 (figures in Canadian dollars). Year-to-date earnings were $169 million ($1.08 per share) compared to $114 million ($0.86 a share) for the first nine months of 2007.

Jan. 22: Dow 11,971 (down 128 points); trading range, 658 points

The specter of continuing the ugliness seen overnight in the global equity markets and a 95% decline in fourth-quarter (2007) net income at Bank of America (NYSE: BAC) combined to shake up those in charge of U.S. monetary policy.

So, facing the possibility of a 500-point drop in the Dow following the long holiday weekend, the Fed sprang into action early to shore up the markets.

The move was a 75-basis-point pre-market intermeeting cut just eight days before the Fed's regularly scheduled meeting to drop the fed funds rate to 3.5% and the discount rate to 4%. The Fed made this move "in view of a weakening of the economic outlook and increasing downside risks to growth," adding, "appreciable downside risks to growth remain."

The Dow battled all day to recover from an early session drop of 459 points to close down only 128 by the closing bell.

Greg Tucker is the executive editor of OptionsZone.com.

Where do I turn next? The experts don't seem to have a clue about our economy and where it is headed. Well then, let's look at the stars.

If you've never heard of such a thing, it sounds pretty crazy. But there is actually a community of investors out there that believes that reading the stars is the key to profiting in the stock market.

I'm not one of them, but it's fun to tap into their insights every now and then. Here is the latest:

The planet Pluto moved into Capricorn this past fall just in time for Freddie, Fannie and AIG to collapse. Capricorn is a sign of discipline. It is a disruptive force that is wreaking havoc from central banks to stock markets all over the world. Capricorn has the effect of looking at things objectively, without emotion and looking at reality the way it is -- not the way we want it to be.

For the past 15 years Pluto was moving through Sagittarius, a sign of expansion, growth, over extension, and over optimism. This could help to explain the way world economies grew helter skelter with the whole world getting over-extended and over-burdened with excessive debt. It was a "devil-may-care" attitude on the part of Wall Street and individuals as well. Now with the bursting of the bubble, the chickens have come home to roost.

Pluto will be going through the U.S. chart 8th house of mystery, death and rebirth. The last time this happened was in 1776!

Do you foresee big changes coming? Do you think the stars can help us decide how to invest?

March 18: Dow 12,392 (up 420 points); trading range, 435 points

Just one day after the collapse of Bear Stearns, the market rallied on a 75-basis-point Fed rate cut and better-than-expected earnings reports from Goldman Sachs (NYSE: GS) and Lehman Brothers (OTC: LEHMQ).

Looks like someone wasn't paying attention.

The clear focus was on the much-anticipated Fed cut that dropped the fed funds and discount rate to 2.25% and 2.5%, respectively.

There was a slight pause during the session, as some hoped for a 100-basis-point cut, but traders pushed onward to finish strong and add another 100 points to the Dow before the close.

All sectors rallied into positive territory for the session and the S&P 500 posted its biggest one-day percentage move since October 2002.

Greg Tucker is the executive editor of OptionsZone.com.

This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

"China Sky One Medical (NASDAQ: CSKI) -- which manufactures pharmaceutical, medicinal and diagnostic products -- is our top pick for 2009," says Benson George in The Growth Report.

"China Sky One has delivered solid results -- for the nine months ended September 30, 2008, revenues increased to $65.9 million, up 80% from $36.6 million in the year-ago period.

"Net income over this period was $21.9 million or $1.39 per diluted share, up from $11.2 million, or $0.90 per diluted share in the nine months ended September 30, 2007.

"Despite the economic downturn, China Sky continues to see strong demand and growth both organically and by way of acquisition.

"On Nov. 9, the company increased its 2008 revenue guidance by almost 10% to the $88 to $90 million range, representing more than an 80% increase from 2007.

"The company is highly profitable, and cash flow from operations added almost $27 million to its coffers for the first nine months of 2008.

Ted Allrich is the founder of The Online Investor and author of the book: Comfort Zone Investing: Build Wealth and Sleep Well at Night. In this weekly column, he'll offer advice to investors who are just getting started.

Several responses to my columns on 2009 expectations and how to invest for the year have been totally negative. They claim I'm too optimistic. The only way to survive is to buy gold. America is finished. The new administration is socialism. The American capitalist system is done. These readers are not students of history.

America is built on hopes and dreams, fueled by Darwinian survivors of other countries with enough energy and nerve to come to a land of freedom where their dreams can become real. We have been peopled by brave and strong immigrants who gave up everything to have the chance for a better life for themselves and their children.

July 14 -- Dow 11,055 (down 45 points); trading range, 327 points

The third-largest bank failure in U.S. history made headlines after IndyMac Bancorp collapsed following a run on the bank.

An FDIC takeover of IndyMac attempted to keep operations as normal as possible, but doubts began to arise about other troubled regionals like Washington Mutual (later sold to JPMorgan Chase) and National City (now a part of PNC Financial after an October "take-under," where the company was purchased at a discount to its stock value).

But wait, there's more. After years of financial shenanigans and controversy, Freddie Mac (NYSE: FRE) and Fannie Mae (NYSE: FNM) were placed into conservatorship in a federal takeover of the government sponsored enterprises. This contributed to another slaughter in the financials, with 96% of the sector posting a loss for the session.

Oh, and if you wanted to drown your sorrows over an American-owned brew, scratch Budweiser off your list. Anheuser-Busch agreed to merge with Belgium's InBev for $70 a share, or $52 billion.

Greg Tucker is the executive editor of OptionsZone.com.

Yesterday, word came out that Madoff took in a new investor for $10 million just six days before he revealed his fund had failed.

The SEC may have had limited resources to monitor the thousands of hedge funds operating in the U.S. It may not have had the manpower to look at every trade on every set of books to see if it was legal. But, it could have set up a system so that the funds had to show a government examiner the total value of a firm's portfolio.

With portfolio size data, there could have been simple rule. A fund would have to keep 10% or 20% of its capital in liquid financial instruments or cash in the event of large redemptions. If the market moved in a way that cut the fund's total value, it would at least have some "dry powder" to cover customer demands.

It is easy to say this would not have worked. Redemptions at some funds topped 20% of total assets. Funds like Madoff's could have committed fraud by showing the SEC fake books. But most managers would not have risked violating federal law.

Would a simple set of rules on redemptions have stopped the failure of some funds and the inability of other funds to return money? It may not have worked for all funds, but even if it made a few keep a buffer large enough to save some investor fortunes, it would have been worth the effort.

Douglas A. McIntyre is an editor at 247wallst.com.

This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

"Potash Corp. of Saskatchewan (NYSE: POT), the world's largest integrated fertilizer company, is my top pick for 2009," says long-term growth stock specialist Dennis Slothower.

In his Stealth Stocks, he explains, "If you are an aggressive investor looking for a stock that has tremendous potential under an Obama massive stimulation program, Potash has significant potential."

The advisor continues, "POT is the largest producer of potash worldwide by capacity. In 2007, it estimates its potash operations represented 17% of global production and 22% of global potash capacity.

"The company is the second largest nitrogen producer worldwide by ammonia capacity. In 2007, POT estimates its nitrogen operations produced 2% of the world's ammonia production. It is also the third largest producer of phosphates worldwide by capacity.

Reuters writes that "Credit card companies have little to celebrate as many analysts brace for 2009 to be one of the worst years on record for consumer credit." The exposure could be $70 billion.

It is fascinating the the credit card business has not learned much from the rest of Wall Street, or even from the airline industry. Perhaps it is because it made the mistake of thinking that the economic expansion go on forever. Hedging is a part of many businesses. Why was the credit card business any different from airlines who hedge fuel costs?

Creating a financial instrument that would allow traders to short consumer defaults should hot have been very difficult. Banks love to create these kinds of derivatives, which became painfully apparent with the mortgage-backed securities industry. Since some of the issuers like Citigroup (NYSE:C) also ran investment banks and trading desks, they had all the tools to set up a system to give their credit card divisions some protection against rising consumer defaults.

But, that has been the financial industry over the last three years. Bet on things that will fall and avoid those that are valuable.

Douglas A. McIntyre is an editor at 247wallst.com.