Perhaps EZCorp (NASDAQ: EZPW) will have to create a section for surfboards and snakebite kits to accommodate the customers they hope to gain in Australia by investing in pawn shop operators, Cash Converters International Ltd.

The Texas based pawn shop and check cashing company invested $45 million for a 30% stake in the Cash Converters getting two seats on the board and making a grand leap half way around the world. Just last year they bought outright a Mexican company, expanding their North American operations.

Last December EZCorp was included on my list of nine suggestions for 2009. Since that time it has remained one of the two laggards. I still believe in the company that continues to expand, using its own cash as it maintains a very low level of debt.

The second quarter is now behind us and for the most part it was a positive one in terms of the market pushing higher almost 40%. This is the second review of my 2009 stock picks through June 30 (see: Chasing Value: 9 picks for 2009 -- APC, GE, ISRG, WFC and more). There was a lot of talk about green shoots this past quarter as Wall Street was looking for any small bit of optimistic data to support the market.

The federal printing presses continued to run at full speed pushing the dollar lower and oil prices higher. While the feds were printing money to cover their deficits, the States do not have that same luxury and many of them are having trouble balancing their budgets to the tune of billions of dollars.

This has been a good year for many stock pickers and my Chasing Value: 9 picks for 2009 -- APC, GE, ISRG, WFC and more is beating the market to date. The formal review will be published after the second quarter.

Among the stocks that have been doing surprisingly poorly, of the nine, is EZCORP (NASDAQ: EZPW) that owns and operates a chain of pawn shops and cash advance outlets.

Today it is trading significantly lower, from yesterday's close of $12.89, off about 14.5%, bouncing around the $11.00 mark. The stock is down on company news that earnings for the next two quarters and the full year would be down a few cents per share below analysts estimates and earlier company forecasts.

The 2009 clock is ticking loudly. Last December I posted Chasing Value: 9 picks for 2009 -- APC, GE, ISRG, WFC and more. This is the first follow-up, four months later, through April 30 2009.

The year started off with continued turbulence. We have a new president, Barack Obama, who will boldly lead us where no man has gone before -- trillions further in debt, most likely.

Not that this is his doing, but it is his chosen calling, and right now he is calling out to the Congress to move forward on various contentious budget proposals and continued federal stimulus packages.

The 2009 clock is ticking loudly. The year has started off with a lot of continued turbulence. We have a new president, Barack Obama, who will boldly lead us where no man has gone before -- two trillion further in debt, most likely.

Not that this is his doing, but it is his chosen calling, and right now he is calling out to the Senate minority to compromise, and get yet another federal stimulus package off the shelf and out the door.

This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

"EZCORP (NASDAQ: EZPW) -- our top pick for 2009 -- is poised to benefit from an economy that will probably see more tough times before improving," says Alex Kolb.

The editor of Zacks Breakout Letter explains, "The company operates pawnshops that provide the type of lending and credit services many turn to during rough economic conditions."

"EZCORP is expanding through acquisitions. It recently acquired the assets of 11 pawnshops located in Las Vegas and Henderson, Nevada. The opening of more stores in U.S. and Mexico is on the horizon for 2009.

"Furthermore, the company's earnings per share are expected to grow 18% over the next 3 to 5 years, which is also ahead of the industry average.

"The pawnshop play has a solid record of matching or beating analyst estimates. Dating back to 2004, EZPW missed consensus forecasts only 2 times, was in-line with estimates 4 times and was ahead of projections during the other quarters.

The first trading session of the 2009 may have brought some optimism with it as markets rallied, but it's difficult to imagine all our troubles over after a year that set one bad and worse record after another. Stocks mirrored the global economic slowdown brought on by the housing market and the financial markets crises.

Still, there are many who still seek to invest in hope that one day they could get nice returns on their investments. While the recent volatility in the stock market benefited some shrewd day traders, most investors know to stick to a long-term, stable investment plan.

To help achieve some of these long-term return, BloggingStocks contributors continued to suggest some companies to invest in, as well as some to avoid:

Activision Blizzard (NASDAQ: ATVI) -- despite having his confidence in the stock shaken somewhat lately as sales may have been softer than expected, Steven Mallas is still bullish on the stock and feels it is attractive at these levels. Take-Two Interactive (NASDAQ: TTWO), however, "seems a little scary to be buying in now," he says.

Anybody have capital gains to show this year? I didn't think so. Not unless you were shorting the market, and in particular financials. I got clobbered with everyone else. There were not many places to hide. Picking winners was like guessing where each piece of debris would land after the tornado moved through town.

The average crystal ball is looking quite foggy about now, nevertheless I have rummaged throughout the stock market to select nine stocks that I think offer more reward than risk. The market is priced for the worst in so many cases that I think the list could have included 50 companies without too much trouble.

In 2007 and 2008 I owned some but not all of the picks for the year. This year I own all of the stocks and they were all acquired in the latter part of the fourth quarter for a new portfolio.

Sometime in the future the economy will recover, maybe not with staggering gains, but it will recover. Ah, but you ask when? Well, trying to forecast that, would really be sticking my neck out.

If you are an avid reader then you have seen some predictions that speak of a recovery in the spring and some that push it out as far as 2011. Tough business that prediction business.

All that is well and good, but let me get to something that I do feel comfortable predicting, or at least repeating the daily news: UNEMPLOYMENT WILL BE GETTING A LOT WORSE in 2009. Who will benefit from this? I expect the church pews and bar stools will be in full use. I also think pawn shops, those lenders of last resort (excepting your local loan shark) will be doing a booming business.

The two most prominent pawn shops that are expanding organically and by acquisition are Cash America (NYSE: CSH) and EZCorp Inc. (NASDAQ: EZPW). Both are down this year but beating the indices by a fair margin.

"The credit crisis on Wall Street is headed for Main Street," says Mark Skousen, economist, professor, financial author and investment advisor.

In his The Hedge Fund Trader, he explains, "This means business is likely to jump at the nation's pawnbrokers." Here, he looks at EZCorp (NASDAQ: EZPW).

"Both the economy and the financial markets need consumer confidence for things to go smoothly. That is sorely lacking right now. As a result, I'm expecting a bumpy ride during the next few quarters.

"Predictably, low-income earners and middle-class individuals will be particularly hard hit by the downturn. That means business is likely to jump at the nation's pawnbrokers.

"So now is an excellent time to pick up a few shares of EZCorp. Based in Austin, Texas, EZCorp is a leader in the 'specialty consumer finance industry,' better known as pawn broking.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Alcoa Inc. (NYSE: AA) Q2 earnings decline on materials costs but beat analysts estimates (see transcript).
• Apollo Group Inc. (NASDAQ: APOL) solid Q3 results were accompanied by a share buyback program.
• Boeing Co. (NYSE: BA) warned that Q2 results will include a delay-related charge of 22 cents per share.
• Cash America International Inc. (NYSE: CSH) predicted Q2 earnings above previous guidance.
• EZcorp Inc. (NASDAQ: EZPW) predicted better-than-expected Q3 results due to strong sales.
• Family Dollar Stores Inc. (NYSE: FDO) beat Q3 expectations and raised its Q4 guidance.
• Flow International Corp. (NASDAQ: FLOW) swung to a better-than-expected Q4 profit on strong demand.
• General Electric Co. (NYSE: GE) reported mixed Q2 results and offered an uninspiring Q3 outlook (transcript).
• Helen of Troy Ltd. (NASDAQ: HELE) Q1 results were colored by write-downs and other charges.
• International Speedway Corp. (NASDAQ: ISCA) Q2 earnings soared while revenue slipped.
• Levis Strauss Q2 profitability plunged due to declining sales and higher administrative costs.
• Marriott International Inc. (NYSE: MAR) topped Q2 estimates but lowered its guidance (see transcript).

EZCORP (NASDAQ: EZPW) is one of the largest pawnshop operators in the United States. The firm offers non-recourse loans collateralized by tangible personal property, commonly known as pawn loans, through 294 EZPAWN locations in the U.S. and 30 outlets in Mexico. It also sells merchandise at these locations, primarily collateral forfeited from its pawn lending operations. The company offers short-term non-collateralized loans, often referred to as payday loans, at 461 EZMONEY shops and 71 of its EZPAWN locations.

The stock popped earlier in the week, on word of upside guidance from competitor Cash America International (NYSE: CSH). Shares then kept rising, when EZCORP upped its own numbers the next day. Management said it expected fiscal Q3 EPS of 25 cents, a figure above previous guidance (21 cents) and the consensus Street view (21 cents). The CEO cited stronger than expected sales in the company's EZPAWN stores and lower than expected signature loan bad debt in its EZMONEY shops. The firm also boosted Q4 EPS guidance to 35 cents (35 cent consensus) and FY08 EPS guidance to $1.19 ($1.15 consensus). Roth Capital subsequently reiterated its "buy" rating on the shares and raised its price target to $19.

As the new earnings season kicked off, Alcoa Inc. (NYSE: AA) posted better-than expected results, despite a decline in earnings, and Pepsi Bottling Group (NYSE: PBG) topped Wall Street expectations as well. This just goes to show that there is some good news in earnings if you know where to look. Here are a few recent, less-prominent examples.

Flow International Corp. (NASDAQ: FLOW), which makes industrial waterjet equipment, swung to a better-than-expected fiscal fourth-quarter profit of $13.3 million, or 35 cents per share, helped by a boost in sales due to strong demand and an income tax benefit. Revenue rose 21% to $63.3 million. Shares are creeping up from a 52-week low of $6.81 a week ago.

Motor sports company International Speedway Corp.'s (NASDAQ: ISCA) second-quarter profit rose 41% to $26 million, or 52 cents per share. However, revenue slipped 3% to $174.9 million as admission and food and merchandise sales declined. Results fell short of Wall Street expectations, and shares fell to a 52-week low of $36.36.

Apparel and footwear company Wolverine World Wide Inc. (NYSE: WWW), second-quarter profit of $16.8 million, or 33 cents per share, topped Wall Street expectations, as strong international results linked to the weaker dollar largely offset increased product and freight costs. Revenue climbed 7% to $267.4 million. But shares fell $3.11 to $23.46 in morning trading.

With the housing crisis and less-than-robust economy making paupers out of people who thought they were living the American Dream a few years ago, investors are looking for ways to capitalize. Yesterday, I wrote about the strong business that self-storage companies are doing housing the belongings of former homeowners.

Today's Heard on the Street column (subscription required) in the Wall Street Journal looks at another obvious beneficiary of other people's misfortune: pawn shops and payday lenders. Shares of companies like First Cash Financial Services (NASDAQ: FCFS) and EZCORP (NASDAQ: EZPW) have run up nicely in recent years but have since pulled back as times have gotten tighter. Some analysts blame the aggressive expansion of pawn shops into payday loans, which lack any form of collateral.

"The earnings strength of payday loans is untested in a tough economic environment, when borrowers who lose their jobs default on the loans," according to The Journal. "And the business has come under increasing fire from state legislatures and consumer groups, which contend that the fees on these uncollateralized loans often amount to interest rates of as much as 400% a year."

The contradiction here is remarkable, and the Journal doesn't point it out: investors are worried that payday lenders are running the risk of defaults high enough to wipe out the profits from high-interest loans. Meanwhile regulators and consumer groups are accusing the companies of charging outrageous interest rates. But which is it? If the high "interest" on the loans isn't enough to overcome defaults, then the interest rates aren't high enough! Perhaps this explains why none of the big banks offer payday loans.

EZCORP (NASDAQ: EZPW) is one of the largest operators of pawnshops in the United States. The firm offers non-recourse loans collateralized by tangible personal property, commonly known as pawn loans, through 294 EZPAWN locations in the U.S. and 25 outlets in Mexico. It also sells merchandise at these locations, primarily collateral forfeited from its pawn lending operations. The company offers short-term non-collateralized loans, often referred to as payday loans, at 448 EZMONEY shops and 74 of its EZPAWN locations.

The firm pleased investors least week, when it reported fiscal Q1 EPS of 29 cents and revenues of $112.3 million. Analysts had been looking for 28 cents and $111.4 million. Management also predicted Q2 EPS of 29 cents (29 cent consensus) and FY08 EPS of about $1.13 ($1.12 consensus). Roth Capital subsequently reiterated its "buy" rating on the issue and declared an $18 price target.