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.

Ian Wyatt, editor of The Growth Report, chose LJ International Inc. (NASDAQ: JADE) as his favorite stock for 2007. Its 173% gain as of 6/1/07 has made it the number one performer among all stocks in our Top Picks for 2007 report. Here is Ian's original recommendation for JADE and his current favorite stock for the rest of 2007.

Updating his recommendation, the advisor now says, "LJ International continues to capitalize on China's extraordinary growth and accompanying demand for luxury goods -- specifically high-end jewelry -- by expanding its network of ENZO branded jewelry stores.

"Since 2004, when LJI began opening retail jewelry stores in China, it has opened more than 45 stores, established a presence in all of China's major cities, including Hong Kong and Macau, and established itself as China's #1 foreign branded jewelry retailer (Hong Kong and U.S. based), ahead of Tiffany & Co.

"The company has plans to more than double its network to 100 stores by year-end 2007, ahead of the Beijing Olympics. These stores generate robust sales, and, more impressive, nearly half of the existing stores are already profitable. Continued growth of its retail operations will enhance LJI's profitability since ENZO gross margins are twice those of the wholesale business.

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.