When the going gets tough, smart investors find stocks that can still flourish.  You must seek out companies with products or services that are still needed in an economic downturn. FTI Consulting (NYSE: FCN) is a small Maryland-based company that has posted record earnings throughout the death of the dot.coms, the flurry of accounting scandals and the big-name bankruptcies just last year. How are they doing it? 

By providing bankruptcy, financial restructuring and litigation-related consulting services, FTI ensures that they'll always be needed, no matter what direction the economy swings.  More and more companies are turning to outside experts when they face bankruptcy or large lawsuits.  Obviously, FTI has been kept busy by all the bankrupt companies and small ventures that struggled to survive the downturn.  But even in the best of times, companies get sued quite often and are quite willing to pay for expert consultants.  FTI works with corporations and their lawyers, lenders and investors to get through the financial or legal crisis quicker and easier. 

I really like FTI right now, as it recently posted its 14^th consecutive quarter of record-breaking earnings. That's right, 14 straight quarters of blowout earnings during one of the most difficult stock market environments in history.  Revenues from continuing operations increased 91% to $55.9 million.  Earnings-per-share grew an astounding 200% to 36 cents a share.  Analysts had been expecting FTI to earn only 29 cents a share. Quarter after quarter, FTI just keeps outdoing itself.

FTI recently completed its acquisition of the Business Recovery Services Division (BRS) of PriceWaterhouseCoopers.  Only one month of results from this successful acquisition was included in last quarter's announcement, so I'm looking forward to seeing an even greater impact in FTI's financial results this quarter. 

Jack Dunn, FTI's CEO, had this to say about the acquisition: "While still early, the integration and performance of our recent acquisition appears to be progressing as well as or even better than expected.  The strong results from BRS added to the excellent performances of our original businesses and have produced a new level of expectation for the company going forward."

Currently, FTI Consulting does not pay a dividend, even though its cash-per-share is around 15 cents.  If President Bush succeeds with eliminating the double-taxation of dividends, FTI may begin to pay a dividend and build up their cash-per-share.  This will make the stock much more attractive to investors seeking income.

I first recommended FTI Consulting in MPT Review in January of 2002.  Since then, the stock has gained 87%.  No matter how many experts lament the overall stock market's poor 2002 performance, we clearly own an exceptional stock.  With analysts predicting another fantastic earnings announcement from FTI in the upcoming weeks, it's not too late for you to own it too.  FTI is expected to earn 47 cents a share this quarter.  Load up on FTI Consulting as it continues its long history of earnings surprises and record-breaking results. 

Right now, there's plenty of evidence showing that the economy is finally on the road to recovery. So this is an incredible opportunity for savvy investors to take advantage of more explosive small-cap stocks, like FTI Consulting. That's why I'd like to offer you the chance to try MPT Review RISK-FREE for 60 days.

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