| It seems like everybody has their own hot | | | | What I love about this company is that its |
| picks these days. Watching CNBC, you are | | | | business model allows it to do well in good |
| bombarded by commercials for various systems | | | | times and in bad. In 2005, it loaned close to |
| that get you the hot stock picks. | | | | $600 million to cash and credit constrained |
| | | | customers, and the company's earnings per |
| In publications such as Investors Business | | | | share (EPS) has more than quintupled in the |
| Daily there are typically several pages | | | | past four years. |
| devoted to software programs and web sites | | | | |
| that promise hot picks for quick trades. | | | | With a recent P/E ratio of just 25, the price |
| | | | hasn't kept up with the growth of this, the |
| Obviously, if all of these so-called hot | | | | first of my hot picks. |
| stock picks were as hot as their pervaders | | | | |
| proport, then they wouldn't need to hock them | | | | The second of my hot stock picks in the |
| in cheesy commercials. Most of these systems | | | | growth arena is Paychex. This is another |
| and programs promise easy money, but sensible | | | | unknown, but it shouldn't be. Paychex is the |
| people know that nothing comes easy on Wall | | | | nation's second largest payroll processing |
| Street. | | | | firm, next to Automatic Data Processing. |
| | | | |
| Instead of promising a foolproof system for | | | | It has recorded fifteen consecutive years of |
| chart-based trades, this article delivers | | | | record profits, and it continues to diversify |
| truly hot picks for 2007 and beyond, based on | | | | its business model in order to accelerate |
| the actual business fundamentals of the | | | | growth. Recently, it moved into benefits and |
| underlying companies. | | | | human resources management. Another thing I |
| | | | like about this firm is that it has the small |
| A word of caution about these hot stock | | | | business market cornered, and has erected |
| picks: These hot picks are solely for | | | | substantial barriers to entry for would-be |
| entertainment purposes. I mention these | | | | competitors. |
| stocks only to offer my own thoughts and | | | | |
| opinions, and to perhaps spark some ideas. | | | | Hot Stock Picks: Value |
| | | | |
| I am not recommending that you buy these hot | | | | Microsoft (MSFT) and Intel (INTC) need no |
| stock picks without first doing substantial | | | | introduction. They have both been beaten down |
| research and then discussing them with your | | | | badly in recent times and may have nowhere to |
| financial advisor. | | | | go but up. |
| | | | |
| With that out of the way, on to the hot | | | | Microsoft's Vista operating system should be |
| picks. I have broken the stocks into two | | | | a great catalyst, and after that, the firm |
| groups: | | | | has room to grow in the telephony industry. |
| | | | |
| Hot stock picks for companies with | | | | Intel has suffered from intensifying |
| substantial opportunity for growth, and hot | | | | competition with rival AMD, but it certainly |
| picks for companies with share prices that | | | | has the resources to engineer a turnaround. |
| have recently been beaten down and may now be | | | | Since most Windows-based machines run with |
| undervalued. | | | | Intel chips, Vista will also be a great |
| | | | catalyst for Intel. |
| Hot Stock Picks: Growth | | | | |
| | | | Some would scoff at the characterization of |
| My hot stock picks for growth companies are | | | | such mega firms as Microsoft and Intel as hot |
| EZCorp (EZPW) and Paychex (PAYX). | | | | picks, but the fact is that people have lost |
| | | | their senses when it comes to these great |
| EZCorp is an amazing, unheard of company that | | | | American companies, and they are just too |
| has been on a path of torrid growth. The firm | | | | cheap to ignore. |
| operates pawn shops and payday loan centers | | | | |
| under the names EZPawn and EZMoney, | | | | Growth companies should be bought each time |
| respectively. Currently, the company has over | | | | they reach new highs, but beaten down value |
| 500 stores in 13 states, with plans to | | | | stocks like Microsoft and Intel, with solid |
| establish another 125 locations in the works. | | | | business fundamentals and great brand names |
| | | | and products, should be purchased on dips. |