"Happy New Year. No, I'm not seven weeks late. 1.3 billion Chinese are celebrating the biggest holiday of the year -- Chinese New Year," notes Tony Sagami.

The contributing editor to UnCommon Wisdom explains, "The Lunar New Year is considered to be a combination of Thanksgiving, Christmas and New Year's all rolled into an elaborate celebration of reflection, gratitude, renewal and hope. It is the single most celebrated holiday in China.

"Instead of being 'reactive' and waiting for inflation, the Chinese leaders are choosing to be 'proactive' to head off inflation before it takes hold," says China stock specialist Tony Sagami in UnCommon Wisdom.

"The People's Bank of China (PBOC), China's central bank, increased the reserve requirements by 0.5% effective on January 18 from 15.5% for large banks and 13.5% for small banks.

"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.

"China is becoming a land of big milk drinkers; this year, China will consume 25 million tons of milk, putting it ahead of both France and Germany -- that's a 76% increase from 2000," observes Tony Sagami.

In The Asia Stock Alert, he explains, "The best way to profit from this Chinese milk boom, in my opinion, is to invest in China-based American Dairy (NYSE: ADY)." Here's the advisor's review.

"The Chinese currently consumes 24 pounds of dairy products per person each year versus a world average of almost 220 pounds annually.

"Coal accounts for more than 70% of China's electricity," says Tony Sagami. In Uncommon Wisdom, he looks to an ETF poised to benefit from long-term rising coal demand.

The advisor explains, "China's coal consumption is growing, and it is building coal-powered power plants at a breakneck pace.

"Why? Because they are much cheaper to build and operate than any other power-producing option. China is power starved, and coal is the main resource used for generating electricity in the country.

"Investing in the fertilizer business may not sound sexy, but the dynamics and fundamentals of the food business will turn it into one of the most profitable sectors you could find.," explains global expert Tony Sagami.

In his The Asia Stock Alert he suggests, "Every farmer needs to use fertilizer -- and the most used and most important fertilizer is potash. And Potash Corporation of Saskatchewan (NYSE: POT) is set to make a bundle supplying potash to the world."

"There are approximately 6.6 billion people on our planet today, but that number is expected to grow to 8.2 billion by 2030. That's a lot of mouths to feed. Plus, the amount of food each mouth is eating is also increasing.

"Decades of rampant economic growth have taken their toll on Chinese waterways; a recent survey found that nearly all -- 95% -- of urban water samples were polluted," explains China expert Tony Sagami.

In The Asia Stock Alert, he suggests, "Duoyuan Global Water (NYSE: DGW) recently went public on the NYSE; I believe it's the most profitable way to profit from China's desperate need to clean up its polluted water."

"Much of China's meager water supply isn't safe to drink. One-third of the country's rural population -- an estimated 360 million people -- does not have access to safe drinking water because more than 70% of China's rivers and lakes are polluted.

"Any coal-producing company located in and selling to China is going to be printing money," says Asia region stock speciality Tony Sagami.

In his The Asia Stock Alert, he explains, "And in my opinion, the best to profit from that sooty need is Yanzhou Coal (NYSE: YZC), a fully integrated company that does it all; the company mines, prepares, processes, sells and transports coal." Here's his bullish review.

"The concept of investing in coal may not sound very exciting, but it is when you realize we're talking about the primary source of power for a country with 1.3 billion people.

This post is part of a 12 articles feature on the best bets for investing in China. To see all the other recommendations in this special report, click here.

"Today, most independent drug stores in the U.S. have been replaced by the behemoth pharmacy departments; but in China, the business is still dominated by mom-and-pop operations." explains China stock expert Tony Sagami.

In his The Asia Stock Alert, he says, "But that is changing, and getting in on the ground floor with China Nepstar (NYSE: NPD) could make you a bundle of money."

"The Congressional Budget Office upped its 2009 fiscal year deficit forecast to $1.2 trillion; add in the stimulus plan, and the deficit could be above $2 trillion," says Tony Sagami.

The editor of The Asia Stock Alert says, "As a result, we believe that the U.S. dollar is in big, big trouble. To protect your portfolio -- or even profit from the falling dollar -- buy Merk Hard Currency Fund (MERKX)."

The advisor explains, "For a long time, we have depended on the confidence and generosity of foreigners, especially the Chinese and Saudi Arabians, to fund our deficit spending lifestyle. Those days, however, are coming to a close.

"With the Federal Reserve Bank cutting its short-term interest rate target to range from 0% to 0.25%, I doubt you'll see overseas investors lining up to buy our next-to-nothing yielding bonds. The U.S. is, unfortunately, a country in trouble and headed for a painful currency devaluation. Inflation is lurking around the corner.

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.

"Growth investors can hitch their portfolio to any number of Asian stars; I think one big winner is going to be China Mobile (NYSE: CHL)," says Tony Sagami in his specialized Asia Stock Alert.

"Mobile phones are much, much more than telephones to Asians. If you travel to Asia, one of the first things you'll notice is how most locals walking down the street have mobile phones glued to their ears.

"It would be a big mistake to think of China Mobile as simply a mobile phone provider. In addition to traditional calling services, the company offers value-added services such as voice mail, conference calling, instant messaging, text messaging, as well as accessing the Internet.

"Even though the price of computers has fallen dramatically in the last few years, a personal computer (PC) is still out of financial reach for the average Chinese. Meanwhile, mobile phones are both cheap and capable of many of the same functions as PCs.

"Look, $500 to $1,000 dollars for a PC may seem reasonable to you and me, but that is a small fortune for the typical Chinese consumer, who makes less than $3,000 a year.

"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.

"I believe the #1 rule for making money in the next decade is to get long whatever the Chinese are buying," says Tony Sagami in the Asia Stock Alert.

"China will need to consume an unprecedented amount of natural resources to fuel its red-hot economy," says the advisor who offers his speculations as to the most likely takeover candidates in three areas -- energy, metals and food.

"There's no doubt in my mind that China is on a buying spree. And I'm not just talking about oil, either. Fact is, the Chinese have a ravenous appetite for virtually all commodities.

"While I don't have any inside knowledge about what companies the Chinese have in their sights, I do know what industries are strategically important to their lofty growth objectives.

"China needs energy - and lots of it - so you can expect frenzied buying activity to lock up reliable supplies of multiple sources of energy. In my book, oil, natural gas, coal, and uranium are all key players. My #1 pick for an energy takeover: Cameco (NYSE: CCJ), the largest uranium producer in the world.

While many know that Bill Gates and Warren Buffet are the two wealthiest, Tony Sagami notes that few know the third: Sheldon Adelson. In his Asia Stock Alert, he explains, "Adelson is the founder and CEO of Las Vegas Sands (NYSE: LVS), our latest featured stock." Here, he looks at the gaming company and its bright prospects in Macau.

"Due to its strategic location in the South China Sea, Macau has a rich history as an Asian trading hub. To this day, it looks more European than Asian. And its popularity with tourists is absolutely exploding - an
estimated 27 million visited Macau last year.

"The majority (55%) came from mainland China, but many more visited from Hong Kong (30%) and Taiwan (9%). These tourists are flocking to Macau not because of its history or picturesque seaside location. They're coming to gamble.

"And boy, did they gamble! On my last visit to Macau, I saw table after table filled with boisterous high rollers routinely making $100,000 bets. These 'whales' account for about 80% of Macau's gambling revenues.

"Today, Macau has become the Las Vegas of China. It is the only city in the region with fully legalized gambling. And gambling is deeply engrained in the Asian culture. Plus, Macau is within a five-hour flight of three billion people - nearly half the world's population.