"We like stocks. And we like a lot of 'em. We focus on broadly diversified investments in undervalued stocks for their long-term appreciation potential," says value investor John Buckingham.

The money manager and editor of The Prudent Speculator explains, "Each month, we suggest a group of stocks that could help serve as a portfolio foundation. Here's a look at three such portfolio 'foundation' stocks: Kraft Foods (KFT), Verizon Communications (VZ) and Waste Management (WM).

"We follow an approach to investng that focuses on broadly diversified investments in undervalued stocks for their long-term appreciation potential," says value investor John Buckingham.

The money manager and editor of The Prudent Speculator explains, " Two recently featured ideas -- Abbott Laboratories (ABT) and Baxter International (BAX) -- are among those we feel could serve as a portfolio foundation or as a new ideas for well- diversified holdings.

"We recommend broad portfolio diversification is a core tenet of our investment approach; however, we think the tech sector in particular presents some attractive opportunities, especially in the large-cap arena," says value investor John Buckingham.

The money manager and editor of The Prudent Speculator explains, "One stock we particularly like for the coming year is Cisco Systems (CSCO).

This post is one in a series in which more than 60 newsletter advisors share their Top Stock Picks for 2011. This special report is courtesy of TheStockAdvisors.com.

"We recommend broad portfolio diversification is a core tenet of our investment approach," says value investor John Buckingham.

The editor of The Prudent Speculator explains, "However, we think the tech sector presents some attractive opportunities, especially in the large-cap arena. Oone stock we particularly like for the coming year is Cisco (CSCO).

"Spun-off from American Express in 2005, Ameriprise Financial (AMP) is in the midst of a transformation from an insurer to a full-blown money management firm," notes long-term value investor John Buckingham.

The editor of The Prudent Speculator explains, "Eyeing an opportunity to gather assets on the cheap, the company spent close to $2 billion during the financial crisis.

"The company purchased Columbia Asset Management, J&W Seligman and H&R Block Financial. In total, it acquired $224 billion in new assets, bringing total assets under management to over $445 billion.

"We discriminate among investments primarily by their relative valuation metrics; we buy only those stocks we find undervalued relative to their own trading history, their peers or that of the market in general," says value investor John Buckingham.

The editor of The Prudent Speculator explains, "Two such buys are Marathon Oil (MRO) and Tsakos Energy Navigation (TNP).

"Both stocks could be chosen as part of the foundation of a portfolio for new investors or for those seeking to diversify their holdings.

"At some point, the bearish outlook on consumer spending will become a crowded trade, as too much focus on risk threatens to blind one to opportunities that the ongoing pessimism and market turmoil have created," says John Buckingham.

The value investor and editor of The Prudent Speculator explains, "While we are not clamoring to add new names with general retail exposure, the receding tide has brought low all boats, including Tiffany & Co. (TIF), a company with a ubiquitous worldwide brand.

"We think there is too much risk to owning pure refiners in this environment," says John Buckingham.

The editor of The Prudent Speculator explains, "However, there is one company with a valuation now hurt by its refining exposure, but that is shifting upstream in a way that makes the eventual mix worth owning now: Marathon Oil (MRO).

"Since the turn of the century, Marathon Oil has generated an average of 85% of its revenue from refining. And profit coming from the upstream division was weighted by taxes and royalties. As a result, the company has traditionally been valued much more like a refiner than a true integrated oil company.

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.

Cogent Inc. (NASDAQ: COGT) is a top speculative idea from Mark Mowrey, editor of the Prudent Speculator TechValue Report. He explains, "Cogent's identification technology emphasizes the uniqueness of the human fingerprint as the best method for identifying its owner.

"Other potentially more reliable technologies exist, such as retinal, facial, voice, and vascular identification, but none has proved as long-term successful in the field as fingerprint matching. Applications include the obvious, like law enforcement and access restriction, and the not so obvious, such as laptop security and fingerprint-based payment systems.

"Revenue peaked in 2005, the bulk coming from two primary customers: the U.S. Department of Homeland Security and the National Electoral Council of Venezuela. Work continues with both agencies, but orders have become less predictable.