Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.
Western Union (NYSE:WU ) is the favorite speculative idea for 2007 from Paul Tracy. The editor of StreetAuthority Market Advisor notes, "The company, which dates back to the early 1850s, has one of the most recognized names around the world. Today, Western Union is a financial powerhouse, generating some $4 billion in annual revenues.
"As the world's leading money transfer specialist, the firm operates a vast global network of 270,000 agent locations spread throughout nearly 200 countries. With more than a quarter of a million locations, Western Union's network dwarfs its closest rivals by a wide margin.
"In the digital age where the Internet is an increasingly popular transaction medium and ATMs are conveniently located at seemingly every major intersection, Western Union's core money transfer services may seem to be a bit dated. However, it is easy to forget that not everyone has a bank account or online access -- particularly in developing countries.
"With many workers moving to developed countries in search of higher wages, global immigration has been steadily expanding. Much of this growth is forecast to occur in nations such as China, India, and Mexico, where Western Union has an entrenched position.
"Even before Western Union was spun off from former parent First Data via a tax-free distribution, Wall Street had been ratcheting Western Union's short-term earnings forecasts lower.
"The tempered expectations were primarily due to the uncertain impact of U.S. immigration reform and the fact that remittances to Mexico have trailed off in recent quarters. However, as is often the case, these fears are overblown, particularly considering 80% of Western Union's agents are located outside of the U.S."
To see Paul's favorite speculative stock for 2007, click here.
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Reader Comments (Page 1 of 1)
1-01-2007 @ 5:38AM
Roger Davis said...
Interesting in western union stock
1-01-2007 @ 5:39AM
Roger Davis said...
SECOND TO NONE