This post is part of a special report, Top Picks for 2010, the 27th annual survey in which TheStockAdvisors.com asks the nation's leading advisors for their single favorite stock for the new year. See all 80 stocks listed here.

"Our bias has again shifted temporarily to the bearish side, which makes me cautious about picking stocks in early 2010," says Gene Inger.

With that caveat in mind, the editor of The Inger Letter looks to Level 3 Communications (LVLT), a speculative, low-priced issue.

Broadwing Corp. (NASDAQ: BWNG) is being acquired by Level 3 Communications, Inc. (NASDAQ: LVLT) in what is roughly a $1.4 Billion merger in cash and stock. The acquisition is expected to be adjusted OIBDA positive in 2007 and cash flow positive in 2008.

Around noon, shares of Broadwing were up nearly 15% at $15.24, and shares of Level 3 were up nearly 4% at $5.53.

Level 3 currently expects to pay approximately $744 million of cash and issue approximately 122 million shares. The ratio is being set at $8.18 per share in cash and 1.3411 shares of LVLT stock for every share of BWNG stock.

As of June 30, 2006, Level 3 had approximately $1.4 billion of cash and marketable securities on hand and this merger is expected to close in the first quarter of 2007. In the merger, Level 3 will get to add a 19,000 mile fiber network to its existing backbone. Over half of Broadwing revenues come from wholesale markets and business customers filling the rest.

This will give the combined operations a better wholesale pricing and backbone structure that should be good for business customers across much of the nation.

In recent months both companies have been rumored to be potential targets and both have been rumored to be acquirers.

Jon Ogg is a partner in 24/7 Wall St., LLC; he does not own securities in the companies he covers.