"New Oriental Education (NYSE: EDU), which offers English language instruction to Chinese students, recently fell sharply after disappointing the Wall Street crowd," says Tony Sagami.

In his The Asia Stock Alert. the China stock specialist suggests, "This pullback is creating a buying opportunity. Indeed, this is your big chance to buy it on sale.

"Digging deeper, EDU's numbers contain both bad and good news. Among the good news, EDU earned $1.57 per share of profits last quarter, which is exactly what the consensus forecast was and 27% more than the same period last year.

"The Chinese Dragon strikes again," says small cap expert Jim Oberweis, Jr., adding, "So far in 2009, the MSCI China Index is up 30% and our Oberweis China Opportunities Fund (OBCHX) has gained 62%."

In his The Oberweis Report, he says, "China will be a great place to invest over the medium-to-long term, even if unpredictable in the short term."

Here, the advisor and money manager reveals four stocks that he considers "some of the most interesting Chinese ADRs to buy now: E-House (NYSE: EJ), Asia Info Holdings (NASDAQ: ASIA), New Oriental Education (NYSE: EDU), and Longtop Financial (NYSE: LFT).

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.

"New Oriental Education (NYSE: EDU), the largest English instruction and college prep course school in China, is my top pick for 2009 says China stock expert Tony Sagami.

In his specialized newsletter, the Asia Stock Alert, he explains, "Every time I travel to Asia, I'm on the lookout for new ideas; on my latest trip I found that one of the oldest stocks in our portfolio -- New Oriental -- is still one of the very best.

"I've previously attended New Oriental classes in Shanghai and Shenzhen before, and during the Olympics, I visited their home office in Beijing. The registration desk had a steady stream of students signing up for new classes throughout the day.

"Its bookstore was just as busy as the registration desk. The most popular books were Chinese versions of SAT, GRE, GMAT, and TOEFL (Test of English as a Foreign Language) preparation guides, as well as college-specific books.

"China places high value on education, making New Oriental Education & Technology Group (NYSE: EDU) somewhat defensive in a growth-stunted economy," says Chris Rowe. (Incidentally, we reviewed two U.S. education stocks in a post yesterday.)

Meanwhile, in The Tycoon Report, Rowe explains, "We believe a slowing global economy will have minimal impact on the education sector in China." Here's his review of this firm, which operates English language schools.

"New Oriental Education is a rapidly growing company that provides private educational services to over 1.3 million students via 207 school centers, primarily in the People's Republic of China. They help privately prepare Chinese for admission tests to foreign universities emphasizing English.

"It offers its program, service, and products in six areas: language training; test preparation; primary and secondary school; educational content, software, and other technology development and distribution; online education; and other services and products.

"I consider the stock to be somewhat defensive in a growth-stunted economy. And while you may be able to make large short-term profits on this stocks, the goal in this recommendation is to be very long-term holders.

In a special report on investing in China, global expert John Christy looks at New Oriental Education (NYSE: EDU). Here's the latest from The Forbes International Investment Report.

"No discussion of 'traditional Chinese values' can be complete without mentioning the importance of education. The Chinese education ethic intersects with the country's recent embrace of capitalism in New Oriental Education, China's leading private education company.

"Founded in 1993, New Oriental is one of China's great entrepreneurial success stories, making its founder and chief executive Michael Yu a billionaire. The company operates a network of nearly 250 schools and learning centers in 38 cities across China.

"These schools teach English, foreign languages, test preparation and more. Think of it as a cross between Berlitz and Kaplan, but with a much bigger target audience.

"New Oriental sells for 43 times analyst forecasts for fiscal 2009 earnings. While that's not cheap, New Oriental has a dominant position in its market and a history of delivering growth. Earnings are expected to grow 50% next year.

"And thanks to the high priority that many Chinese place on education, New Oriental's services aren't as much of a 'discretionary' purchase as they might seem. Demand for most of New Oriental's courses should hold up well even if China's economy cools."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

"I haven't wavered in my belief that New Oriental Education (NYSE: EDU) is the single best stock I've run into during my 25-year investment career," asserts Tony Sagami in The Asia Stock Alert.

"The company's latest quarterly results only reinforce that belief. The Chinese are signing up in droves for basic English classes that are offered by New Oriental.

"First quarter profits rose $11.6 million, to 29 cents per share, from $8.4 million or 22 cents during the same period a year ago. That, by the way, is well above the 23 cents Wall Street was expecting.

"Revenue jumped from $32.8 million a year ago to $48.1 million, a 47% spurt. That number is extremely impressive given the fact that China was hit with its worst snowstorm in 50 years and caused many classes to be canceled.

"The Olympics have long been a boon to stock markets of host countries," notes Tony Sagami, a leading global stock advisor with a noted specialty in Asian markets.

In his Asia Stock Alert newsletter, he notes, "I believe the chief beneficiaries of the Olympic Games will be consumer and travel-related stocks. And within these sectors, I've chosen six stocks poised to bring home Olympic gold from Beijing."

"We saw a 19% gain in the Spanish stock market in the 12 months before the 1992 Barcelona Olympics, and the 27% gain in the Greek stock market in the year before the 2004 Athens Olympics. And those countries were not growing at a fraction of the breakneck pace that China is. So it wouldn't surprise me to see the Chinese stock market do even better.

Olympic Gold Winner #1: China Mobile (NYSE: CHL):

"It seems like every person I see in China has a cell phone glued to their ear. And the cell phone is not just the primary voice communication medium in China; it is also the common way most Chinese access the Internet and email. In China, the cell phone 'is' the personal computer.

"Heck, most new high-rise condominium and apartment complexes being built in China aren't even wired for land lines. Once you understand the device's role, you'll see why China Mobile has more cell phone users (360 million) than the U.S. has people. I expect a lot of cell phone calls and text messages during the Beijing Olympics!

Education is certainly a big deal in China. In fact, one of the hottest IPOs over the past few years has been the New Oriental Education & Technology Group (NYSE: EDU), which provides English instruction in China.

Well, US investors will have another chance for another education play from China: Noah Education Holdings. This week, the company filed for a public offering.

Basically, the company is a provider of interactive education content for a variety of subjects like English, math, history, physics and so on (there are more than 28,000 titles).

Interestingly enough, the primary delivery platform for the content is from handheld digital learning devices (DLDs). The systems have also proven useful for e-dictionaries.

And the financial looks good. As of last year, Noah's revenues were $72.9 million and net income came to $8.7 million.

The lead underwriter is Deutsche Bank Securities and the proposed ticker is "NED."

You can find the IPO prospectus at the SEC's website. Also, if you want to check out other IPOs, click here.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements.

Tony Sagami, editor of Asia Stock Alert, calls New Oriental Education (NYSE: EDU) – which provides English language instruction in China -- the "single best stock idea in the world."

New Oriental, he notes, recently reported quarterly results showing a 4 cent per share loss for the quarter. He notes, that while this was a 65% improvement over the same period last year, it was 1 cent profit Wall Street was expecting.

The reason for the shortfall, he observes, was that increased marketing and advertising expenses. Thus, he notes, "While all that extra spending hurt profits last quarter, it should pay off in spades down the road." In fact, he adds,
That's why revenues jumped by 29% to $24.9 million, slightly ahead of the consensus estimate of $24 million."

Meanwhile, he notes that total student enrollments in language training and test preparation courses for the quarter ending May 31 increased by 31.5% year-over-year to approximately 314,000.

With the growing interest in investing in China, an increasing number of advisers are spending more of their time in the region, meeting with managements and getting first-hand experience about Chinese companies.

One such adviser is Tony Sagami, editor of The Asia Stock Alert. Back from his latest visit to the region, he has added New Oriental Education (NYSE:EDU) to his portfolio.

The company helps Chinese learn English and other languages. Sagami asks, "How much do I like New Oriental? If there was only one stock that you could own, this is the one."

And while the company has just gone through what is supposed to be its slowest time of year, the adviser notes, "Somebody forgot to tell the people running EDU that business should slow down, because it is still booming."