AS promised last week, we are setting out our tips for 2007.

Bill Hawksley has selected Deutsche Post. Internet shopping is a growth business, not only in the UK, but also worldwide and Deutsche Post, as the world's leading logistics group, will therefore benefit from this.

As a euro share, it should also benefit from the expected revaluation of the euro against the dollar and sterling in 2007, as national banks seek to diversify their dollar reserves and the US dollar continues to weaken. At a unit price of £15.28 the shares stand on a modest prospective p/e ratio of just 11.7x and sport a prospective dividend yield of over 4.3%.

Chris Bragg says that he is going for Tandem Group, which is involved with a range of products including Falcon, Dawes, Claud Butler, Shogun, Tourismo, British Eagle and Optima bicycles. The company has had a tough time of it of late and the share price has plunged to just 6.75p. However, production of cycles has been moved overseas and troubles at the Pot Black snooker business have been addressed.

These changes should have started to impact in the second half of the current financial year, which ends on January 31 and long suffering shareholders (myself included!) will be hoping that the next set of results are more positive. Fundamentally, the shares look cheap and if the management do turn things around, then the share price could soar.

Clearly it is not a one-way bet as the company has made losses in the recent past, but Tandem Group retains net cash and represents a calculated gamble with strong upside potential.

Lucy Clapham has selected Arena Leisure at 57.5p as her share for 2007. It is much more than a play on horseracing - it is a land-backed business that is being run actively for shareholder value.

Arena manages racecourses at Doncaster, Wolverhampton, Lingfield Park, Windsor, Southwell, Folkestone and Worcester and derives its income from a number of sources - a tax levied on on-course and off-course betting which is passed back to the racecourses; admission fees; the hire of facilities; catering and the sale of TV rights to the betting shops. Finally, Arena owns significant surplus land at Folkestone and Lingfield Park - both within 60 miles of London - which could unlock value if developed.

Finally, Simon Flather has chosen the specialist financial group Private and Commercial Finance. The company operates through two divisions, consumer and business finance, primarily providing finance for the purchase of cars, vans and other vehicles. The group had a torrid time between 2003 and 2005, partly due to an ill-fated diversification programme, but a return to its core business of lending money has seen a strong recovery in its fortunes. Although a modest loss was made in the first half of 2006, the 15 month accounting period to March 2007 should see the group return to profit, with strong growth forecast for the following year. At 21.5p, the shares are a BUY.

WARNING: Opinions expressed are the writers' judgments at the time of writing. The information does not constitute a personal recommendation.