"Sanofi-Aventis (SNY), a pharmaceutical products company, is a buy based on our 'Benjamin Graham value' model," says John Reese who assesses stocks based on the investment criteria of numerous "legendary" investors.

The editor of Validea, explains, "Indeed, the stock earns a 100% score, meeting all of the investment criteria we review in for this value-oriented screen.

"Ensco PLC (ESV), a London-based firm which provides offshore drilling services, operates eight ultra-deepwater semi-submersible rigs, as well as 40 premium jackup rigs," notes John Reese.

The editor of Validea explains, "The stock, which has a $7.7 billion market cap, gets strong interest from the models I base on the writings of value investor Benjamin Graham. Indeed, the stock earns a 100% rating under my Ben Graham model.

"Many of the best opportunities lie outside the major indices, where a myriad of good stocks can fly under the radar. In fact, isn't a member of the S&P 500 or the Dow," says John Reese.

The editor of Validea explains, "Atwood Oceanics (ATW), a Houston-based offshore oil drilling firm, gets strong interest from both my Benjamin Graham- and Peter Lynch-inspired strategie.

"With a $2.4 billion market cap. Atwood has been a big winner for one of my most stringent -- and most successful -- strategies, the model I base on the writings of the late Benjamin Graham.

"Telefonica SA (TEF) is a member of our model portfolio; it meets 100% of the criteria we use in our James P. O'Shanghnessy growth and value model," notes John Reese.

The editor of Validea explains, "The company operates in three business areas: Telefonica Spain, Telefonica Latin America and Telefonica Europe."

He continues, "The O'Shanghnessy approach -- called the Cornerstone Value Strategy -- looks for large, well known companies whose market cap is greater than $1 billion.

"Our model portfolios are based on selecting stocks that meet the investing criteria of "legendary" investors," explains John Reese.

The editor of Validea continues, "Sanofi-Aventis (SNY), which is involved in pharmaceuticals and human vaccines, earns a Guru Score of 100% based on the value investing strategy of Benjamin Graham.

"In its pharmaceutical activity, the company specializes in six therapeutic areas: diabetes, oncology, thrombosis and cardiovascular, central nervous system (CNS), and internal medicine.

"Our recommendation for Dollar Tree (DLTR) is based on the investment strategy of growth and value investor James P. O'Shaughnessy," says John Reese.

The editor of Validea explains, "In fact, the stock scores a 100% rating on our screening model used to select stocks for our O'Shaughnessy-based model portfolio.

Reese continues, "Dollar Tree is an operator of discount variety stores offering merchandise at the fixed price of one dollar.

GameStop (GME), which has jumped in price after announcing a stock buyback, is a new recommendation from John Reese, whose portfolio holds are based on screens developed to reflect the investment strategies of some of the stock's markets most successful investors.

The editor of Validea explains, "This recommendation is based on the P/E/ Growth Investor strategy of Peter Lynch.

"GameStop is a retailer of video game products and personal computer (PC) entertainment software. The company sells new and used video game hardware, video game software and accessories, as well as PC entertainment software, and related accessories and other merchandise.

"Two newcomers to our recommended list come from a sector still dogged by fears -- the financial sector; and interestingly, both specialize in a bit of an unusual type of finance: pawn loans," says John Reese.

Here, the editor of Validea -- which focuses on stocks that meet the investment criteria of some of the market's most successful professional investors -- offers a bullish review of EZCorp (EZPW) and Cash America International (CSH).

"Cash America gets approval from my James O'Shaughnessy-based strategy -- as well as from my Benjamin Graham value investing model.

"In our newsletter, we maintain numerous model portfolios based on the strategies of leading investors, such as Warren Buffett, Ben Graham and Peter Lynch," explains John Reese.

The editor of Validea asserts, "Our Kenneth Fisher-based Portfolio has shown a 7-year annualized return of 11.9%; this approach focuses on a metric Fisher pioneered: the price/sales ratio.

"While investors for decades relied heavily on the P/E ratio, Fisher found that earnings -- even the earnings of good companies -- can fluctuate greatly from year to year.

"While others will focus on the fear, we will continue to focus on the facts and figures; and right now, they show that there are plenty of good values out there," says John Reese.

The editor of Validea explains, "The market often turns when things look bleakest, and fear is running rampant. That's what so many of the gurus I follow knew. David Dreman has written extensively about buying unloved stocks, or being bullish in times of outright crisis.

"Warren Buffett has said that the time to be greedy is when others are fearful. And Peter Lynch has said having the stomach to stay disciplined during emotional times is critical to making money in stocks.

"Sanofi-Aventis (SNY) is a pharmaceutical group engaged in the research, development, manufacture and marketing of health care products; the stock gets a 100% score in meeting the criteria for our investment screen based on d value investing criteria used by the legendary Benjamin Graham," says John Reese.

The editor of Validea newsletter explains, "The company's business includes two main activities: pharmaceuticals and human vaccines. The company is also present in animal health products.

"In its pharmaceutical activity, the Company specializes in six therapeutic areas: diabetes, oncology, thrombosis and cardiovascular, central nervous system), and internal medicine.

"Most investors wouldn't give a fund described as 'relatively prosaic, dull, conservative' a second glance; that, however, is exactly how John Neff described the Windsor Fund that he headed for more than three decades," notes John Reese, an advisor who models specific portfolios designed around the stated investing strategies of many of the stock market's most legendary investors.

In his Validea newsletter, Reese explains, "And, while his style may not have been flashy or eye-catching, the returns he generated for clients were dazzling -- so dazzling that Neff's track record may be the greatest ever for a mutual fund manager.

"Over his 31-year tenure (1964-1995), Windsor averaged a 13.7 percent annual return, beating the market by an average of 3.1 percent per year.

"The stocks on our Validea Hot List are chosen because they meet the investment criteria of numerous "legendary" investors, such as Ben Graham, Warrenn Buffett and Peter Lynch," explains John Reese.

The editor of Validea says, "Sanofi-Aventis (SNY) has been added to our buy list based on our Growth/Value Investor screen which assesses stock based on the strategy used by James P. O'Shaughnessy. The stock passes this screen with a 100% score."

ITT Educational Services Inc. (ESI), a provider of post-secondary degree programs in the United States, scores "100% on our Warren Buffett sceen," says John Reese.

The editor of Validea -- a newsletter that screen stocks based on the stated investment criteria of "legendary" investors -- explains, "This screen assesses stocks based on the stated investment criteria of the legendary investor. Below, we ask 'Is this a Buffett type company?', 'Should I buy at this price?' and also look at some of the specific criteria in which ITT passes the Buffett model."

This post is part of a special report, Top Picks for 2010, the 27th annual survey in which TheStockAdvisors.com asks the nation's leading advisors for their single favorite stock for the new year. See all 80 stocks listed here.

Validea is an intriguing advisory that bases its stock selections on the known investment criteria of legendary stock market investors.

John Reese explains, "China Mobile Ltd. (CHL) is one of the rare stocks to get approval from three of tour Guru Strategy computer models; it earns top marks from my Warren Buffett-, Peter Lynch-, and James O'Shaughnessy-based models."