"We're still adding to our Chinese portfolio, and expect to be doing so for some time; this is where significant opportunities exist," says Richard Schimit.

In The Stellar Stock Alert, he reviews E-House (NYSE: EJ), noting, "While American real estate is still struggling to regain its footing, Chinese real estate hasn't experienced the same breaking bubble.

"In fact, it hasn't experienced a bubble yet. But Chinese real estate is definitely gaining in value. And the companies that know the market can really profit.

Analyst upgrades:

• Baird upgraded Tenet Healthcare (NYSE: THC) to Outperform from Neutral and raised its target to $6 from $5 based on cost trends, valuation, and expectations the company can beat expectations over the next six months.
• Oppenheimer upgraded E-House (NYSE: EJ) to Outperform from Perform following the company's better-than-expected Q2 results. The firm has a price target of $27 on shares.
• JPMorgan upgraded Avery Dennison (NYSE: AVY) to Overweight from Neutral and has a $33 target on the stock. The firm cites valuation for the upgrade following the recent underperformance and expects the company's margins to expand as demand rebounds.
• Citigroup (NYSE: C) was upgraded to Buy from Underperform at BofA/Merrill.
• Taubman Centers (NYSE: TCO) was upgraded to Conviction Buy from Buy at Goldman.
• First Niagara (NASDAQ: FNFG) was upgraded to Buy from Neutral at Janney Montgomery.

"The Chinese Dragon strikes again," says small cap expert Jim Oberweis, Jr., adding, "So far in 2009, the MSCI China Index is up 30% and our Oberweis China Opportunities Fund (OBCHX) has gained 62%."

In his The Oberweis Report, he says, "China will be a great place to invest over the medium-to-long term, even if unpredictable in the short term."

Here, the advisor and money manager reveals four stocks that he considers "some of the most interesting Chinese ADRs to buy now: E-House (NYSE: EJ), Asia Info Holdings (NASDAQ: ASIA), New Oriental Education (NYSE: EDU), and Longtop Financial (NYSE: LFT).

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.

China expert Paul Goodwin selects E-House Holdings (NYSE: EJ) -- the leading real-estate firm in China -- as his favorite idea for the coming year.

The editor of The Cabot China & Emerging Markets Report explains, "In 2008, housing values in China plunged, and E-House's stock price plunged right along with them." Here, he explains why this year should see improving prospects.

"E-House is the leading real-estate firm in China, and that's becoming a bigger deal these days. The massive migration from China's farms and villages to the cities put huge pressure on housing stocks and E-House's role in providing agency and brokerage services to market new housing developments gave the company a huge boost in 2007.

"On the other hand, 2008 was a different story. A slowing Chinese economy and overvaluation caused by rampant speculation had the same effect in China as it did in the U.S. Housing values plunged, and EJ's price plunged right along with them.

MOST NOTEWORTHY: Quicksilver Gas Services, Hireright, DaimlerChrysler and Masimo were today's noteworthy initiations:

• AG Edwards initiated Quicksilver Gas Services (NYSE: KGS) with a Buy rating and $26 target as the firm believes the company's distribution growth has high visibility, based on its current asset base and the possibility of third-party acquisitions. UBS initiated shares with a Buy rating and $34 target.
  
• Hireright (NASDAQ: HIRE) was initiated with a Market Perform rating and $13 target at Piper Jaffray, as the firm believes the company's distribution growth has high visibility, based on its current asset base and the possibility of third-party acquisitions. CIBC is positive on Hireright's extensive solution set and strategic alliances and initiated shares with a Sector Outperformer rating.
  
• DaimlerChrysler (NYSE: DAI) was started at Bear Stearns with an Outperform rating. Following the Chrysler transaction, Bear expects Daimler to raise its margin guidance now that the company can focus on its truck platform.
  
• Masimo Corporation (NASDAQ: MASI) was initiated with an Outperform rating at Piper Jaffray, as the firm believes the company's "best in class" technology will drive continued pulse oximetry share gains. Cowen initiated shares with a Neutral rating on valuation and Deutsche Bank started shares with a Buy rating and $30 target..

OTHER INITIATIONS:

• TD Newcrest started shares of Vitran Corporation (NASDAQ: VTNC) with a Hold rating.
  
• Lazard started shares of E-House China Holdings (NYSE: EJ) with a Buy rating; CIBC initiated shares with a Sector Outperformer rating and $25 target.
  
• Rodman & Renshaw initiated shares of Iomai Corporation (NASDAQ: IOMI) with a Market Outperform rating and $4.25 target.

Wall Street jumped onto shares of E-House Holdings (NYSE: EJ) in the Shanghai company's trading debut, a reflection of China's hot real estate sector.

E-House priced 14.6 million American depositary shares at $13.80 a share, above expectations of a $11.50-$13.50 range, for its New York Stock Exchange IPO. Shares shot nearly 41% higher, rising $5.63 to close at $19.43. E-House raised nearly $202 million.