In her top-performing Global Investing advisory, Vivian Lewis looks at a lesser-known area of the income market -- non-cumulative preferreds -- explaining these vehicles and offering some favorites.

"Over 20 years ago, Barclays Bank, which is British, invented a new vehicle for raising money in the U.S. market to enhance its capital ratios and finance its growing dollar business.

"They were called non-cumulative preferred shares and were issued at $25/share to pay dividends four times a year just as normal U.S. stocks do. The clear target for these vehicles was U.S. retail investors.

Two leading global experts have both turned bullish on France's Veolia Environnement (NYSE: VE). Vivian Lewis, in her Global Investing, notes, "Veolia is the way to play the 'water works square' on the monopoly board."

Nicholas Vardy, editor of Global Stock Investor suggests, "The smart money is betting that water may be the 'oil of the 21st century.' And Veolia is my number one way to profit from this global megatrend."

Vivan Lewis says, "We recommend buying French water and sewage conglomerate Veolia at current prices; the stock has been brought down by niggling Euro-concern about its levels of debt. The company is also being penalized for acquisitions.

"Veolia is the former Générale des Eaux, a municipal service firm. This history creates an image problem for VE which is seen as a utility.

"Our main reason for the buy, apart from price, is that this is a fast growing company with good earnings in a hot sector. In 2007, VE had revneues of euros 32.6 bn, up 14% on which its recurring net profit fost 22.5% to euros 933.2 mn. Earnings per share were euros 2.16, up 13.7%.

"Another reason for liking VE is that it is moving into China big-time, with waterworks in Tianshin and Shibai and environmental service in Juijiang. All in all, France still represents 44% of sales and the rest of Europe 36%. VE does about 10% of its business in the U.S. and the Chinese are part of the remainder.

For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.

"Fear or war or nuclear conflagration is not the main reason for owning gold; rather, investors should buy gold to protect against inflation," explains Vivian Lewis, editor of Global Investing Pro, and the top stock picker in last year's Best Stocks report, with her selection of DryShips.

"This is not advice only for US investors. All central banks face a dilemma: On one hand, they can cut interest rates and print money to deflect subprime and credit crunch dangers while letting inflation rip. On the other, they can insist on discipline and inflation fighting, letting the economy's chips fall where they may.

"My top conservative investment idea for 2008 is StreetTracks Gold Trust (NYSE: GLD), which is an exchange-traded fund. In fact, the amount of gold held by StreetTracks now exceeds the gold reserves of China. It holds 602.37 tonnes of the yellow metal, whereas China only holds 600 tonnes. (A tonne is a metric measure equal to about 3,520 ounces.)

"US investors can also consider iShares Comex Gold (ASE: IAU). Both are ETFs that own physical gold bullion. However, they track different gold market prices.

"GLD tracks the London fixing and Comex ETF tracks the Chicago commodity price. You can buy whichever one is cheaper at the moment you decide on going for the gold."

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.

Vivian Lewis, editor of Global Investing, chose DryShips Inc. (NASDAQ: DRYS) as her top pick for 2007. The stock rose 126%, as of June 1, 2007. Here is her original recommendation on DRYS and her new favorite stock for the rest of 2007.

Meanwhile, the advisor now says, "DryShips is trading at a P/E of only 15, even now that the stock has gone up 300%. There is a lot of negativity about George Economou, who heads the company and now is the CFO.

"He headed a prior shipping company, which filed for bankruptcy after it could not pay back loans to British banks a decade ago. This was in the DryShips prospectus of course, and was also the subject of a report written by Kate Welling (former Barron's reporter) for a group shorting DRYS, including the Weeden brokerage firm.

"As a result, all this maybe makes DRYS cheaper than in would be otherwise. When I recommended DRYS in Global Investing in December 2005, I wanted it for its yield of 7.8%. That went up to 8.4% a year ago when the shorts were out in force, and the stock fell from $12.75 (our buy level) to $9.50.

"So the recovery is nice, but there is still an 'odor' around, which is why the resignation of the second CFO in a year causes some upset. I'm not giving up on this stock and indeed, perhaps would want to buy on weakness -- although as a holder, I am not sure I want to see weakness."

See all 20 stocks the advisors picked for the second half of 2007.

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.

DryShips Inc. (NASDAQ: DRYS) is the top speculative idea for 2007 from Vivian Lewis, editor of Global Investing. She notes, "The company is an operator of a drybulk cargo fleet, and produced no more negative surprises with its unaudited financial and operating results for the third quarter.

"True, there was a net loss of $9.4 million (a loss of 28 cents per share) from Forward Freight Agreement losses previously announced. They were made by the now-fired CFO early in 2006. He disastrously misjudged the drybulk charter rates trend.

"His replacement, Gregory Zikos, a lawyer, MBA, and investment banker, has just been named CFO and to the DRYS board. Meanwhile, Cantor Fitzgerald reiterated a 'buy' on DRYS, forecasting 2006 earnings at $2.24 and 2007 at $2.15, below earlier estimates but with more confidence. Cantor's target is $16.

"Apart from these losses, the rest of the quarter was within the norms of highly leveraged Greek shipping companies, and net income in the quarter would have been 50 cents per share.

"Meanwhile, Dryships' major shareholders (led by George Economou) reinvested the 20 cent per share dividend payment they were scheduled to receive in October, in the amount of about $3.1 million, in DryShips shares. For speculative investors, we consider the stock a strong buy."

To see Vivian's favorite conservative global idea for 2007, click here.

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.

Osaka, Japan-based Chris Loew -- who covers Japanese stocks for Global Investing -- picks both his speculative and conservative favorites for 2007 from the same consumer trend. He explains, "In the apparel sector, fur is huge this year. The must-have item in Japan this winter is a down coat with real raccoon or tanuki (raccoon-dog, fox family) fur trim on the hood (priced about $250).

"Sanei International Co., Ltd. (JP:3605) (Other OTC SNEIF) -- my conservative pick for 2007 -- owns a multitude of apparel brands, mainly for women, and operates 1,088 stores and is well positioned to profit from this frenzy.

"The stock is reasonably priced at a P/E around 15 to17, barely reflecting improved consumer demand this year. In '07, the real-fur trend and looser consumer spending should give Sanei shareholders a warm feeling.

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.

Canadian Oil Sands Trust (TSX: COS.UN) is the top conservative buy for 2007 from international investing expert Vivian Lewis. The editor of Global Investing notes, "Canada recently slapped surprise taxes on income trusts. Nevertheless, we think oil sands will also be a good idea even if not exempt from taxes on dividends.

"The main reason is that the dividends are pretty meager. COS pays 2.7%. This is not going to cause a sell-off in the share, even if the dividend is cut in 2011. The trust, however, dropped 10% in what I consider a mistaken reaction to the tax news.

"Meanwhile, Canadian Oil Sands Trust saw third quarter volumes and sales prices rise, which partly offset higher royalties paid, while net fell 27%. The dividend is 30 cents per unit. The stock is up 41%, including dividends, over the past year.