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.

"Silicom Ltd. (NASDAQ: SILC) is my favorite speculative pick for 2008," says Benson George, in Rising Star Stocks.

"The company's focus is on high-performance Ethernet server adapters. Its products facilitate interaction between servers and enable them to communicate with each other through a number of ports. Silicom's solutions are designed to increase server availability, security and throughput for server gateways.

"The company markets its products directly to OEMs that in turn sell Silicom's products under their own private labels or integrate Silicom's products into their own products.

"The company is exclusively focused on being the leader in server adapter card technology and markets. Revenues for the first nine months of 2007 increased by 74% to a record $19.3 million compared with $11.1 million for the first nine months of 2006. Net income for the period increased by 191% to $4.5 million.

"Silicom is on track for what will be a record-breaking year; the only question is by how much? The company is on pace with double what it earned per share in all of 2006 (49 cents). If demand continues unabated, revenues should reach $26 to $27 million for all of 2007, almost 70% ahead of 2006's $16 million revenues.

"Silicom is well positioned to succeed. It offers superior products in a market experiencing superlative growth. We are initiating coverage with a 'buy' rating and price target of $22, which represents a multiple of 20 times the forward year consensus analyst estimate of $1.08 in EPS."