"Longer term, history suggests that Citigroup (NYSE: C) will be one of the best turnaround plays out there -- if we have the intestinal fortitude to stick it out," says Keith Fitz-Gerald in The Money Map Reporter.

"Based on Travelers alone, Citi's breakup value is roughly 30% higher than where it is trading today. Other business lines suggest even more money on the table.

"That is why we want to be net buyers at these levels just like some of the smartest money on the planet, including companies like PIMCO and even investors such as Wilber Ross who are legendary for buying on the cheap.

"That doesn't mean there won't be more down days to come or that we won't hate every day we own Citi, but the financial sector is essential to the economy and being able to buy in for 25 cents on the dollar makes sense for any savvy investor looking to the longer term.

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.

"My favorite conservative choice for 2008 is Merrill Lynch (NYSE: MER)," says Yola Edwards, editor of the technically oriented Yola Edward's Charts.

"The jobs market is holding up very well and the risk of recession in the United States appears unlikely given the Federal Reserve's accommodating monetary policy to stave off recessionary threats and contain the subprime fallout.

"Merrill Lynch suggests that year-end 2008 will be marked by a 2.50% Fed funds rate with further easing to 2% by the first half of 2009.

"Among those hardest hit in the subprime credit crisis was Merrill Lynch & Company, which plunged almost 50% from its January highs of $94 in what appears to be a fourth wave correction. Technically, the recent November weekly lows at $50.50 formed a tweezers bottom and offered the stock support from which it has rallied.

"At a minimum we could expect a 38.2 % rally from the lows suggesting a possible upside target to about $67.50 over the next month. However, over the next year we can anticipate the stock to rally 61.8%, from its recent low, to about $77.38 as it bases and works through the corrective phase."

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.

"My favorite conservative idea for 2008 is Apollo Investment Co. (NASDAQ: AINV)," says Adrian Day, editor of The Global Analyst.

"The company makes investments of debt and equity to medium-sized businesses, and a Regulated Investment Co. pays out most of its net income in dividends. Like other RICs, the dividends tend to be high and growing, but also like other RICs, it was caught up in the market turbulence of the past few months affecting all finance companies.

"Apollo Investment, the public arm of the eponymous New York private equity firm, came out just over three years ago. It is large ($2.2 billion market cap), financially conservative, and tends to do larger deals than most similar outfits.

"Its average investment is now just over $47 million, and as the fund grows, this should get larger still. It has investments in 67 companies, just over half of which is in sub debt.