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Top Investments and Stock Picks for 2006

If you read the headlines today you will hear everything from recession, decline, slow start, etc... Everyone is commenting on losses or very marginal gains. Yet there are some investors like me that did really well in the last few years and are continuing to do well - and none of us fell for the late night TV investing scams (and they are ALL scams). Instead we were smart. This is how we did it and what we like (and you can verify the results or progress of these stocks by looking up their ticker symbols on the search engines Google and Yahoo):

1) Diversification is key - you need to have some percentage of your assets in mutual funds and exchange traded funds (ETF's). I recommend IJR (iShares S&P SmallCap 600 IJR Style/Mkt Cap ETF) as it follows the market, doesnt have wild fluctuations and always, consistently grows and pays dividends at the same time. IJR will be a great bet for a 20-30% gain in 2006.

2) Oil, natural gas and energy are king and anyone that says otherwise is an idiot. They will continue to grow and produce record profits throughout 2006. I highly recommend XTO - Cross Timbers Oil Co. Through the last 3 years their stock has grown over 800% and split numerous times. They are a definite ace in the hole and a runaway favorite. Great, solid management and a definite winner. I also like PNY, Piedmont Natural Gas. They are very consistent and produce very solid yields that they are always increasing. It won't produce the high returns of XTO, but a solid performer. XTO can be a highly volatile stock and is a rollercoaster of a ride at times but will produce solid results over time. PNY is a safe, solid investment and natural gas prices are only going to go up.

3) Hotels and travel - One name says it all CHH - Choice Hotels, they own most of your local Comfort inns and such. They average 50-60% gains per year and pay a slight dividend on top of that. A solid performer that tends to buck the economy.

4) Banks and financial institutions - BPOP, Popular Inc. The main latino bank of Puerto Rico and expanding into the U.S. You can buy it cheap right now and they are prime for a takeover - $$$. Solid dividends also and low price for a bank.

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Good investment value.

5) Mortgage companies - we will always need houses and a solid, customer service oriented company with a great record is a good buy. AHM (American Home Mortgage)- high yield, solid company, will produce great returns for 2006. Enough said.

6) Ebay, Yahoo, Google, Intel - You need to have a piece of the internet pie, but with whom? Ebay is your best bet. There is no competition - Yahoo tried and can't get their auctions off the ground. The others have simple technology that is easily copied and the risk is great and the returns limited. Google is questionable as it has risen well, but others with big pockets are stepping in hard - Yahoo and MSN.

Search engines like Google rise fast out of nowhere, but then they usually fall back into oblivion. Google is smart, though and is trying to diversify into other fields - maps, online libraries, gmail, etc... so they will stay, but I would go for Ebay. Ebay is trying to do what Walmart did - Expand into China, Japan, Korea, etc... With billions of new customers and no competition the skys the limit. Ebay will be rock solid for 2006.

There you have it. A safe, diversified group of true, proven performers that will guarantee you a great 2006. Also, they are all available through low cost trading companies - I recommend Sharebuilder - you can't beat $4 trades and their easy to use site. There is no need for a commissioned investment advisor (all they do is charge you extra money and fees, lie, and they can't possibly even come close to the workhorses I listed above). Do yourself a favor and print this out. If you care about your friends give it to them. Put it in your email lists. If you believe in helping others and making the world a better place then pass it on to everyone you can. These stocks will provide you and everyone else with solid gains for years. And a greater chance at financial freedom and the best thing is it didn't cost you a penny.

About the author:

David Maillie holds numerous patents including his recently awarded patent for headlight repair, cleaner and restorer. He can be reached at M.D. Wholesale: http://www.mdwholesale.com and at http://www.bestskinpeel.com