Last December, over 100 stocks were featured in our Top Picks for 2007 report. Now, at mid-year, we turn to the 20 advisors whose picks showed the strongest gains to get an update on their previous picks, as well as a new favorite stock for the second half of the year.

Yola Edwards, editor of The Income Investor, chose Canadian grocer Sobey's as her top pick for 2007. The stock rose 42% due to a just completed going-private transaction at $58 a share.

The Coca-Cola Co. (NYSE: KO) is her new top pick; she says, "'Coke is it,' or so the company's jingle suggested -- but the share price of Coca-Cola has been in a major downtrend since July 1998. However there are technical signs that indicate the downtrend has ended and an upside breakout is just ahead.

"Investors usually turn to a defensive stock like Coca-Cola in a slowing economic environment, and with first-quarter U.S GDP growth of 0.6%, now might be the time to try some Coke.

"With nearly 400 brands in over 200 countries, Coca-Cola is the world's largest beverage company, but Coke has apparently recognized that it hasn't been 'it' for awhile and has taken steps to join the new generation by spending $4.1 billion to acquire Energy Brands Inc., known as Glaceau, a maker of vitamin-enhanced water.

"Analysts' reactions to the purchase are mixed, calling it overpriced, while others think it's a smart strategic move despite the stiff price tag. With the transaction closing in the summer, it is expected to be accretive to the company's bottom line in 2008.

"In April, Coca-Cola reported first quarter net income of $1.26 billion, or 54 cents per share, up from $1.11 billion or 47cents per share in the prior year. Technical analysis suggests that although a pullback to the 10-month moving average at $49 would offer support and an opportunity, the stock is poised to rally to about $69 over the next year."

Top 20 advisors: Yola Edwards thinks Coke is it originally appeared on BloggingStocks on Wed, 20 Jun 2007 14:00:00 EST. Please see our terms for use of feeds.