"National CineMedia (NCMI) is an intriguing recent IPO, a leader in selling on-screen digital advertising that runs before movies begin... Perhaps a less chancy way to play NCM is through Regal Entertainment (RGC), the biggest theater operator, which owns 22.6% of NCM. That stake is valued at $590 million, or 18% of Regal's $3.24 billion market value. Controlled by Phillip Anschutz, Regal has been active in distributing capital back to shareholders as special dividends. Regal will soon get company in the public markets with the planned IPOs of theater chains Cinemark and AMC, which could direct attention to stable film-audience trends."

Market reacted cautiously to announcement of merger with XMSR. "The market skepticism could provide a buying opportunity, because both Sirius and XM are apt to rally if federal regulators okay the deal."

"The market skepticism could provide a buying opportunity...XM probably has more upside because it trades at a nearly $2-a-share discount to the current value of the Sirius offer of 4.6 shares of its stock for each XM share."

"Nortel had more bounce than we optimists suspected. Two weeks ago, the Canadian telecom delivered a pleasing surprise: It preannounced solid fourth-quarter revenue gains, lower costs and improved gross margins that should produce better-than-expected earnings when it reports this week. The stock has shot up 45% since then. Merriman Curhan Ford telecom analyst Tim Savageaux is further encouraged by Nortel's recent contract wins to sell hardware to Verizon Wireless and British Telecom. Ed Snyder from Charter Equity Telecom points out that, "There's probably more upside here, but it will take a break first," he posits.

Universal Electronics is a wireless-technology developer that makes remote controls for consumer-electronics giants like Sony, Motorola and Philips, as well as for cable and satellite-TV outfits such as Comcast and DirecTV. "It's a great way to play the digital living room," says Steven B. Frankel, who follows the company for broker Canaccord Adams in Boston." "Universal has demonstrated consistent growth, year after year, with earnings per share expanding, on average, by 24% on a 20% average gain in sales...If you take away the $4.50 a share in cash from the [roughly] $25 stock, you are looking at a stock that's trading at a very low multiple of 16 and that can grow at a rate nearly twice that.."

Siemens is coming off some serious negative publicity involving a bribery scandal but the company is cooperating fully with investigators and the stock has shot up 25% since Ocotber. CEO Klaus Kleinfeld has made Siemens more efficient, while focusing on three key growth areas: energy and environmental care, public and industrial infrastructure and automation, and health care. With profits and revenue up, Siemens' stock should climb at least 10% this year. But all bets are off if the scandal reaches Kleinfeld, the architect of the company's revival.

"Unlike their cousins in the material world, energy stocks were slow out of the gates this year, and Valero Energy (VLO) has managed to lag even this under-achieving group since 2006. But the refiner's stock got a 5% lift last week amid speculation that it might -- or must -- buy back more shares."

Fifth Third has gone from a revered darling of Wall Street to a bank that "just two of the score of analysts following it rate the regional bank's shares a Buy..." This could be a contrarian's dream. Management changes should help to reinvigorate operations....According to Citigroup analyst Keith Horowitz, a rare brokerage-firm fan, Fifth Third was "under-earning" in recent years relative to its potential. Now, with "the underlying revenue-growth drivers still very strong," analysts' earnings estimates are likely to rise. Horowitz calls Fifth Third "one of the better values in regional banks."