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.

Philadelphia Consolidated Hldg (NASDAQ: PHLY) is the top speculative idea from Rich Moroney, editor of the small-cap oriented service, Upside.

The advisor says, "PHLY markets and underwrites property-and-casualty insurance, focusing on underserved markets. Product launches and service enhancements should help sustain premium growth and decent pricing.

"The company boasts a long history of selective and highly disciplined underwriting. The company consistently has one of the lowest loss ratios in the industry -- along with exceptionally high renewal rates. At 26%, the company's return on equity is well above the 15% of the average property and casualty insurer.

"September-quarter earnings per share surged 172% to $1.28, exceeding the consensus estimate by $0.55. Sales increased 19%. Total net earned premiums climbed 21%. Results benefited from the release of reserves due to favorable prior years' claims experience.