In last year's Best Stocks for 2007 report, Vivian Lewis was our top performer; her selection of DryShips rose nearly 400%.

This year, the editor of Global Investing Pro  looks to Israel-based Elbit Imaging Ltd. (NASDAQ: EMITF) as her new favorite speculative idea. Elbit, despite its high-tech name, is primarily recommended as a play on its commerical real estate development actiivities in Eastern Europe and India.

“EMITF is a subsidiary of Europe Israel (M.M.S.) Ltd. which operates in the construction, operation, management and sale of shopping and entertainment centers in Israel, Central and Eastern Europe, and India.

“The company also owns hotels, primarily in major European cities, and manages and sells hotels through its Elscint Ltd. subsidiary.

“The company is also involved in investments in the research and development, production, and marketing of magnetic resonance imaging guided focused ultrasound treatment equipment, through its sub, InSightec Ltd.

“The Israeli firm's subsidiary Plaza Centers NV (which trade on the London exchange with the symbol PLAZ) has opened the Arena Plaza Shopping and Entertainment Center in Budapest, Hungary's largest. It is fully occupied.

“There is gossip in Israel that PLAZ will do a capital-raising in Warsaw where PLAZ was recently listed. PLAZ, a developer of shopping and entertainment centers, is the first Israeli-owned company listed in Poland. (It has a dual listing in Warsaw the London Stock Exchange.)

“Plaza Centers has been active in central Europe and Poland since 1996. It has built, managed, and sold seven Polish shopping centers. While other Israeli groups are also doing deals in Russia and Eastern Europe, EMITF is my favorite way to play the trend.

“Plaza Centers also set up a joint venture with Romanian developer BAS Development, to develop five residential and office projects. Plaza Centers will own 50.1% of the joint venture and BAS will own the rest.

“EMITF has another joint venture to develop a residential, office, medical, and IT park in Bangalore, India. Now it appears that EMITF is considering offering Plaza Centers half of its 50% partnership in the joint venture.

”EMITF predicts more than $4 billion in proceeds from the Bangalore project. We would rather keep it all. Meanwhile, the stock yields 2.8 percent but the company periodically issues stock dividends when great deals are done.”