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.

"Harmonic (NASDAQ: HLIT) is the largest pure play in the critical video head-end infrastructure market," says tech guru Marcie Martin.

In Next Inning advisory service, she looks at his top pick for 2009, with "a solid balance sheet, excellent prospects for continued profitability and an attractive valuation."

The advisor explains, "Harmonic leads the world in HD encoding technology as well as a number of software-centric head-end technologies.

"It is also leading the world in the emerging Universal EDGE QAM markets with a new product that provides not only traditional EDGE QAM functions, but also adds Modular CMTS (M-CMTS) for DOCSIS 3.0 and SDV (Switched Digital Video).

"Following its leadership change in late 2005, HLIT has produced a record nine straight profitable quarters and boosted its gross profit margin from 35% in Q4 2005 to over 50% in its last reported quarter.

MOST NOTEWORTHY: Durect, Red Robin Gourmet and ViroPharma were today's noteworthy initiations:

• RBC Capital thinks Durect's (NASDAQ: DRRX) overall portfolio is very attractive and started shares with an Outperform rating and $7 target.
  
• Red Robin Gourmet (NASDAQ: RRGB) was initiated at Jefferies with a Buy rating and $40 target. The firm believes the company has one of the few stable earnings stories in the sector, which should warrant a valuation premium in the current environment.
  
• JMP Securities believes ViroPharma's (NASDAQ: VPHM) valuation reflects several negative scenarios and notes that earnings will likely remain positive and that the company has a strong balance sheet; shares were initiated with an Outperform rating and $12 target.

OTHER INITIATIONS:

• Harmonic (NASDAQ: HLIT) was assumed with an Overweight rating and $14 target at Stephens.
  
• ThinkEquity initiated Intuitive Surgical (NASDAQ: ISRG) with a Buy rating and $360 target.
  
• Broadpoint started Salesforce.com (NYSE: CRM) with a Buy rating.

For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.

"My top speculative pick for 2008 is Harmonic (NASDAQ: HLIT), a beneficiary of the 'video changes everything' theme," says Rusty Szurek with Next Inning.

"Harmonic is the only broad-line pure-play video infrastructure company of meaningful size left standing in the market today. Its three primary markets are cable, satellite and the budding world of telecom video or, as it's often called, IPTV.

"There is a war raging between these three competing methods for delivering TV programming. Fortunately for Harmonic, the bullets of differentiation these three industries are using in this war are derived from products Harmonic sells.

"Satellite operators are focused on leveraging HD programming through their inherent bandwidth advantage, but need to overcome weaknesses in downloaded video-on-demand. Cable companies are leveraging their inherent advantages to deliver rich video-on-demand experiences, but must quickly overcome bandwidth limitations to keep pace with satellite's rapid deployment of HD programming.

MOST NOTEWORTHY: Centene, Brinker International, Harmonic, Idex and Royal Dutch Shell were today's noteworthy upgrades:

• Jefferies upgraded shares of Centene Corporation (NYSE: CNC) to Buy from Hold as they expect the company is benefiting from above 20% revenue growth next year and SG&A leverage opportunity over the next 12–18 months.
  
• Bear Stearns upgraded shares of Brinker International (NYSE: EAT) to Outperform from Peer Perform as they believe Brinker's turnaround efforts can enhance shareholder value.
  
• Friedman Billings raised shares of Harmonic (NASDAQ: HLIT) to Outperform from Market Perform based on the favorable outlook for cable and satellite spending on HD video and other projects.
  
• The firm also upgraded Idex Corporation (NYSE: IEX) to Outperform from Market Perform, citing the company's positive 2008 outlook and solid end markets.
  
• Goldman upgraded Royal Dutch Shell (NYSE: RDS.A) to Neutral from Sell on valuation.

OTHER UPGRADES:

• CIBC upgraded J. Crew Group (NYSE: JCG) to Sector Outperformer from Sector Performer and Parker Hannifin (NYSE: PH) to Sector Performer from Sector Underperformer.
  
• Sprint Nextel Corporation (NYSE: S) was upgraded to Outperform from Neutral at Credit Suisse.
  
• RBC Capital Markets upgraded LaSalle Hotel Properties (NYSE: LHO) to Top Pick from Outperform.

MOST NOTEWORTHY: Comcast (CMCSA), Time Warner Cable (TWC), CNet Networks (CNET), Coviden (COV) and I.D. Systems (IDSY) were today's noteworthy initiations:

• Banc of America resumed coverage of Comcast (NADAQ: CMCSA) and Time Warner Cable (NYSE: TWC) with Buy ratings and $32 and $43 targets, respectively.

• Stanford started CNet (NASDAQ: CNET) with a Buy rating and $10 target, as the company is well positioned to benefit from its developing web properties.

• Bear Stearns expects shares of Covidien (NYSE: COV) to move up, starting shares with an Outperform rating, as the management transforms the company from a cash flow focused conglomerate division into a faster-growing, nimble competitor.

• Merriman said I.D. Systems (NASDAQ: IDSY) is uniquely positioned in the wireless asset tracking market given its focus on industrial machinery and material handling equipment, starting shares with a Buy rating...

OTHER INITIATIONS:

• Comverse (OTC: CMVT) was initiated with a Neutral rating at Merriman.

• Lehman started Getty Images (NYSE: GYI) with a Equal Weight rating and ShoreTel (NASDAQ: SHOR) with an Overweight rating.

• Jefferies initiated Harmonic (NYSE: HLIT) with a Buy rating.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).