I was just watching this video on the double dip stock, apparently the guy doesn’t believe that there will be a double dip recession (and neither do I), but in any case, he started recommending stocks that he thinks will go up in case of a double dip recession. His picks were, in my opinion, the most horrible and unethical stocks out there:

LPS: Lender Processing Services is a company that provides the technology to banks to process all refinances, foreclosures, etc… LPS is currently trading at $31.26, 10 x EPS. This is the least horrible company of the trio.

CSH: Cash America is more or less a loan shark, they give high interest loans by mortgaging a piece of gold (or other things of value), and if the person fails to pay the debt on time, then they keep the piece of gold, that may be worth 10 times the loan given. A very disgusting stock that I will never ever trade. CSH is currently trading at $3.24, 9 X EPS.

PRAA: Portfolio Recovery Associates is a debt collecting agency. They buy bad debts from banks at around 40 cents for the dollar, and then they try to collect them, by any means necessary (and by any means I mean any means). Clearly the ugliest of the 3, the stock is trading at $67.20, 19 X EPS. PRAA is trading at nearly an all time high (which, ironically, tells you something good about the economy, as this means that people are paying back their debts).

What a horrible way to make money…