Top three 2009 stocks under $10.

Back in December, Frank Curzio, manager of the Stocks Under $10 portfolio, recommended three beaten-down well capitalized names that could pop in 2009.

Click on this video to see if Frank still likes these stocks.

First is IMAX ( IMAX). The stock got beaten up in 2008, but the company was expected to finally turn a profit in 2009. Lots of action directors and movie theaters are switching to the IMAX format because it generates three times the revenue. Curzio liked the stock under $3.

Winner or Loser?

IMAX recently posted weaker-than-expected results, a fourth-quarter loss of $9 million. Reportedly revenue was negatively impacted by the release date of "Harry Potter and the Half-Blood Prince" getting pushed back to July 2009. Management reiterated that the company should become profitable in 2009 with a strong pipeline of 11 titles starting with "The Watchmen."

IMAX installed 32 new theaters in the quarter and reported a strong balance sheet: $27 million in cash, $10.5 million under its credit facility and solid operating cash flows.

Next is Del Monte Foods ( DLM). Thirty percent of sales come from one company, which is usually a negative. However, this one company is Wal-Mart ( WMT), one of the only retailers posting positive sales numbers. Also, a core business for Del Monte is pet food, a big growth market even in a recession. At the end of 2008, the company had several neutral ratings, but Curzio saw lots of upside potential. He liked the stock under $7.

Winner or Loser?

Company reported better-than-expected third-quarter earnings with net income rising 14%. Pet food sales rose 15% and the company raised its 2009 earnings guidance. Profits were helped by cost-cutting measures, new products and strategic price plans. The stock got an upgrade at Keefe Bruyette & Woods to market perform from underperform.

And last up is DynCorp ( DCP). Back in December, this stock was trading in the $14 range, but Curzio still liked it. This infrastructure company had a multitude of government contracts which gave it earnings predictability. It had a market cap of $700 million and $6 billion in backlog. He liked the stock under $14.

Winner or Loser?

In its recent third quarter, DynCorp reported strong earnings with revenue soaring. Backlog increased to $6.6 billion, and the company also raised 2009 earnings guidance. Guidance for 2010 was a bit negative but DynCorp continues to grow. The company announced a $77 million contract from the U.S. Army for support services in Kuwait and a $45 million contract to provide aviation support to the U.S. Air Force.

DynCorp also has a big presence in Afghanistan, where President Obama increased troop presence, which will help offset future withdrawals in Iraq.

Alix joined TheStreet.com TV in February 2007. Previously, she held positions in film and theater production, management, and legal administration. Alix has a degree in communications and theater from Northwestern University.

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