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