"China is becoming a land of big milk drinkers; this year, China will consume 25 million tons of milk, putting it ahead of both France and Germany -- that's a 76% increase from 2000," observes Tony Sagami.

In The Asia Stock Alert, he explains, "The best way to profit from this Chinese milk boom, in my opinion, is to invest in China-based American Dairy (NYSE: ADY)." Here's the advisor's review.

"The Chinese currently consumes 24 pounds of dairy products per person each year versus a world average of almost 220 pounds annually.

Having just completed the Top Picks report for 2007 – the 24th consecutive year I have surveyed the newsletter advisors for their favorite stocks -- I thought I would share some observations to help readers best use the information in this feature.

And over the next few days, I will post articles to share observations on the stocks and sectors chosen, discuss the participating advisors, and highlight some of last year's top performers to help guide you in assessing this year's report.

I'll begin today by noting some caveats that should be kept in mind by those who are considering buying stocks from among the list of Top Picks. The advisors who have participated in this year's project were asked to submit a favorite speculative and/or conservative stock for the year ahead.

Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.

American Dairy, Inc. (NYSE: ADY) is the top conservative idea for 2007 from Ian Wyatt, editor of The Growth Report. He notes, "American Dairy is a pure play in the Chinese dairy industry. It is a small-cap Chinese stock that provides investors with impressive growth in an expanding market at an attractive valuation.

"Helping to drive growth is the company's focus on quality and brand recognition. Consumer concerns relating to quality issues along with rising income levels in China are allowing consumers to spend more on premium products.

"China's market for the consumption of dairy products is at an early stage and poised to grow. The country's current dairy consumption stands only at about a fifth of the world average, according to the Ministry of Agriculture in China.

"In China, there is also a governmental push to promote the drinking of milk as part of a healthier diet. And given that there are over 200 million primary school children in China, the growth potential is sizeable.