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.

Big Lots Inc. (NYSE: BIG) is a favorite conservative idea from David Fried, editor of The Buyback Letter. He explains, "Investors should indulge their 'inner bargain hunter' and put the nation's largest closeout retailer, Big Lots, in their stock shopping basket.

"Shopping -- and particularly deal hunting -- continue to be hugely popular pastimes, and discount stores are a good pick in a crummy or waffling economy. The company keeps a flexible inventory, has well-located and plentiful retail locations, and its sheer size ($2.5 billion market cap) gives it international buying power smaller chains cannot match.

"A new CEO has focused Big Lots, closing underperforming stores and introducing a new goal to encourage existing customers to spend more per visit. This strategy, called 'raise the ring,' has revived sales growth and paid off in improved earnings.

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.

Although advisors participating in the Top Picks Report were limited to two stock picks, we allowed John Bollinger to select three, in compliance with the strategy employed in his The Capital Growth Letter.

He explains, "My strategy is not about stock picking in the sense of what will do best in 2007. Rather we ask what is doing well now, invest in that, hold for as long as the performance is satisfactory and then move on. This method is known as the cast-out method of relative-strength investing.

"As an example, let's take a look at our ETF Sector Portfolio. After a careful screening process we have selected 27 sector ETFs as candidates for this portfolio. Let's suppose that we are just starting out. To get going we would purchase the top three ranked ETFs and hold them for as long as they are ranked better than the middle of the list.

"When one of the funds drops below the midpoint of the ranking, it will be sold and replaced with the highest-ranked fund that is not already held in the portfolio. We use daily data and conduct reviews on a weekly basis. There are several other rules, but that's the essence of the program.

"We have found this cast-out approach to relative-strength investing delivers the sort of performance that we are after in our practice, and that it has an acceptable risk-reward relationship. As of December 18th, our top three ranked sector funds are: iShares Global Telecom (ASE: IXP), iShares Select Energy (ASE: XLE), and Powershares Dynamic Media (ASE: PBS)."

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.

iShares MSCI Canada (ASE: EWC), an exchange-traded fund, is the top conservative investment idea for 2007 from ETF expert Carl Delfeld, editor of the Chartwell ETF Advisor.

Delfeld explains, "For a conservative pick, I like Canada. The overall Canadian market, as reflected in the iShares Canada index is trading at just 14 times earnings with strong currency, fiscal discipline, and great play on long-term commodity upswing.

"The perception that Canada is nothing but a commodity play is wrongheaded. In fact, the Canadian economy is well diversified, with only 5% of of its GDP attributed to mining. About 15% of GDP comes from tourism and 60% from services. It also represents a sizable and liquid stock market, and a healthy and vibrant financial center."

To see Carl's favorite speculative 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.

Pele Mountain Resources (CDNX: GEM) is the top speculative idea for 2007 from Yola Edwards -- for those speculators who are fully aware of the very high risks inherent in a low priced junior mining stock.

The editor of Yola's Charts says, "Diamonds are a girl's best friend, so the saying goes, but add to that, a mix of gold, uranium and base metals and you have a gem of a company. Pele Mountain Resources, which explores and develops in northern Ontario, is virtually unknown.

"Pele owns 100% of its Elliott Lake uranium project, which was abandoned years ago when falling uranium prices undermined the property's economic viability. However, global demand and limited supply is expected to support the resurgence of uranium prices.

"Technically, the stock has traced out a solid three-year saucer base from 2003-2006 and has recently broken out to the upside with several significant upside breakout points. The fifth primary wave advance, of the first wave of intermediate degree, should complete at about $1.70.

"But in my view, that's just the beginning. Future reports may confirmed the continuation of the mineralized zone within the Elliott Lake boundaries; if so, this stock would be grossly undervalued. Pele Mountain has 63.2 million shares outstanding and is debt free."

To see Yola's favorite conservative stock for 2007, click here.