My Picks

Hey guys. First of all thanks for taking care of some issues last night without me. I think it was a good that you did that so we are clear heading to the meeting tomorrow.

My Pick for this quarter is AO Smith Corporation (AOS). This company is right up my alley. They are a leader in the residential and comercial water heating equipment. My company only uses AO Smith water heaters on any of our jobs (unless we are attaching an indirect hot water heater to a boiler, in that case we use the same manufacturer as the boiler).

They offer every type of water heater from gas to solar to electric, and they come in a wide range of efficiencies. The gas coompanies are offering up to $1,000 in rebates right now for people who are putting in high efficient equipment. We have sold a ton this year.

Right now it is trading at $38.15 per share and everything I have read since I started watching this stock is that it will outperform the market.

I said "picks" because I also like Chimera Investment Corp. (CIM). I heard about this stock from Mark's friend whos father is a hedge fund manager. I havent had too much time to research, but he said its a long term stock. The best thing about it is that it pays a 17% dividend! It is trading at $2.91 per share.

Chimera Investment Corporation is a specialty finance company that invests,
either directly or indirectly through its subsidiaries, in residential
mortgage-backed securities (RMBS), residential mortgage loans, commercial
mortgage loans, real estate-related securities and various other asset classes.

This is something that you hold on to for your kids college education...