This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

China expert Paul Goodwin selects E-House Holdings (NYSE: EJ) -- the leading real-estate firm in China -- as his favorite idea for the coming year.

The editor of The Cabot China & Emerging Markets Report explains, "In 2008, housing values in China plunged, and E-House's stock price plunged right along with them." Here, he explains why this year should see improving prospects.

"E-House is the leading real-estate firm in China, and that's becoming a bigger deal these days. The massive migration from China's farms and villages to the cities put huge pressure on housing stocks and E-House's role in providing agency and brokerage services to market new housing developments gave the company a huge boost in 2007.

"On the other hand, 2008 was a different story. A slowing Chinese economy and overvaluation caused by rampant speculation had the same effect in China as it did in the U.S. Housing values plunged, and EJ's price plunged right along with them.