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.

Dylan Jovine, editor of The Tycoon Report, chose RadioShack Corp. (NYSE: RSH) as his top pick. The stock had risen 100% as of June 1, 2007. The advisor recommends selling the shares.

His new recommendation for the second half of 2007 is United Healthcare Group (NYSE: UNH). The advisor asks, "How can you tell the difference between a buying opportunity and a 'value trap'? One way to do so is to separate the behavior of the stock price from the strength of the underlying business.

"For example, if a company has a strong underlying business that continues to grow (even as its stock price shrinks under the light of scandal), the inverse action of the stock going down while the business 'goes up' tends to lead to a buying opportunity.

"One great example of this is United Healthcare Group. Under the taint of the options back-dating scandal, last year Wall Street punished the stock by sending its shares down by nearly 30%, shaving off close to $20 billion in stock market value for a scandal that is expected to cost the company roughly $1.5 billion in restatements.

Down from its 2000 high of nearly $100 a share to $20 in recent trading, Jason Jovine believes the time has come for long-term buy and hold investors to buy Time Warner, Inc. (NYSE:TWX).

The editor of The Tycoon Report asks, "This stock went down over 80% in the last seven years! What in the world happened?"

One primary factor was the market itself. Indeed, we all remember the bear market phase beginning in 2000. Another factor was its sector. Jovine notes, "Anything related to technology had led the market to its peak in the 1990's, and anything related to technology from 2000 on was to get severely punished regardless of the company or its earnings."

In addition, the advisor points to the merger with AOL as part of the problem. "This merger was announced near the stock's high," he explains. "After that, of course, we had the terrorist attacks on 9/11 and the accounting scandals which later followed."

Now, however, he sees the company's problems as being in the past. He says, "I believe that the stock has been punished enough and is now a very good buy."

He notes, "Overall revenues last year rose by over 4%. In their family of companies -- including AOL, HBO, Time Warner Cable, Turner Broadcasting System, New Line Cinema, Warner Bros. Entertainment, and Time Inc. -- the growth mainly came from Time Warner Cable and their networks, where revenues increased 34% and 7% respectively."

Meanwhile, he points to the stock's price to earnings ratio at about 12.5. He says, "Just as a point of comparison, Comcast (NASDAQ:CMCSK) has a p/e of about 32. In other words, you are paying a lot more for the earnings of Comcast than you are for Time Warner's. I know that they do not have the same exact business models, but I still believe that Time Warner is undervalued at this price, and the comparison is still valid."

As to future prospects, he adds, "I think that Time Warner will either exceed or come in on the high end of their earnings projections when their next earnings announcement comes out in early May; stay tuned."

The stock, he concludes, is best suited for those with a long-term horizon. He says, "In my view, investors should buy the stock and hold it. This is an investment."

For more stock picks from the leading financial newsletter advisors, visit Steven Halpern's free website, TheStockAdvisors.com.

Having just completed the Top Picks report for 2007 – the 24th consecutive year I have surveyed the newsletter advisors for their favorite stocks -- I thought I would share some observations to help readers best use the information in this feature.

And over the next few days, I will post articles to share observations on the stocks and sectors chosen, discuss the participating advisors, and highlight some of last year's top performers to help guide you in assessing this year's report.

I'll begin today by noting some caveats that should be kept in mind by those who are considering buying stocks from among the list of Top Picks. The advisors who have participated in this year's project were asked to submit a favorite speculative and/or conservative stock for the year ahead.

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.

Radio Shack Corp. (NYSE: RSH) is the top speculative idea for 2007 from Dylan Jovine. The editor of The Tycoon Report notes, "The sale of the season is being offered by an emotionally unstable 'Mr. Market,' who, at the moment, happens to be very depressed on the retail sector in general and Radio Shack in particular.

"Meanwhile, I believe quality management is particularly important to the future prospects of any value investment. It's not the only thing I look at by any means, but with Radio Shack, it's what has me so excited.

"On July 7th of 2006, Radio Shack's board elected Julian Day to become Chairman and CEO of the company. This is the same man who took over at K-Mart and led them out of bankruptcy, increasing the company's value from $1.5 billion to $9 billion.

"The easiest and fastest thing Day will do is to focus on increasing operating margins. I would bet a lot of money -- based on Day's track record -- that he'll turn this ship around inside of the next 18 to 24 months. When Day is done doing his job, the chances are high that Radio Shack's margins will look similar to how they looked in 2000.

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.

Hilton Hotels Corp. (NYSE: HLT) is the favorite conservative play from Dylan Jovine, editor of The Tycoon Report. He explains, "During the past two years, while Paris Hilton has been getting all the press, it's been the Hilton Corporation that's truly been doing great things.

"If HLT reaches $35 per share, sit tight and wait for a pullback. Meanwhile, here are the top reasons Hilton is worth owning:

• Hilton wasn't doing anything for a long time but just managing its assets. Last year they decided to buy back their international arm. They got their house in order and are now expanding. From 2001 to present, profit margins have been steadily increasing.
• I've always loved the hotel business: You build something -- which means that your heavy costs are incurred up front -- and then, if you know how to market it, people come. Most risk is in development.
• During the past few years, Hilton increased capacity at their hotels by lowering costs and tightening operations. This is evidenced by the fact that sales have increased 8% from 2005 while operating income increased by 22% over 2004. Net income was up 93%!
• Transformative year in 2005: Acquired Hilton Lodgings PLC and became largest hotel company in the world with 2,800 properties and 475,000 rooms.
• Demand is very strong -- Hilton managed to raise prices above the inflation rate: That means pricing power.
• When Hilton bought the London Hotel, they decided to do an all-cash transaction, which meant they had to issue debt. The reason? They would rather take on debt then issue equity, realizing the upside.
• Increased operating margins: When you increase revenue but lower costs, you increase profitability. They've been doing that to perfection."

To see Dylan's favorite speculative stock pick for 2007, click here.