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.

"I've followed Gladstone Capital (NASDAQ: GLAD) for many years," says Mark Skousen in Forecasts & Strategies. Here, he chooses the business development company as a top idea for 2009.

"Gladstone is a business development company (BDC) run by the 'father of BDCs,' David Gladstone. Gladstone is a conservative investor who is careful in his lending.

"His investment company, Gladstone Capital, specializes in debt investments in small- and medium-sized companies that seek additional funding, recapitalization, debt reduction, and short-term bridge financing.

"Unlike other BDCs, Gladstone always has been prudent in its lending. It has no exposure to subprime mortgages and no exposure to home building -- but it is being hurt by U.S. recession fears.

"Though the shares are volatile, I think the stock is dirt cheap, having suffered a sharp sell-off due to the deep recession and financial crisis.

"It is off 70% so far this year, which is far too much, in my judgment. With any kind of economic recovery under an Obama administration, I expect Gladstone to be back in good form.

Continue reading Top Stock Picks '09: Gladstone Capital (GLAD)

Top Stock Picks '09: Gladstone Capital (GLAD) originally appeared on BloggingStocks on Wed, 14 Jan 2009 10:00:00 EST. Please see our terms for use of feeds.