Paris Hilton is still active, promoting her upcoming reality television series, launching a new hair-extensions line, reportedly working on another music album, and appearing inside and on the covers of numerous magazines.


Many of the companies that she is connected to are publicly traded, so Stockpickr.com has compiled them into a portfolio that Paris Hilton would love -- or, as she might say, stocks she would think are "hot."

Hilton will be starring in a new MTV reality series tentatively titled Paris Hilton's My New BFF, expected to begin broadcasting in October, in which she will be looking for a new Best Friend Forever. MTV is owned by Paramount, which is owned by Viacom (VIA.B). Viacom's new comedy Tropic Thunder is No. 1 in North American box offices for the second-straight week. The stock has a P/E of 10 and a PEG of 0.8.

Viacom is owned by the Fifth Third Disciplined Large Capital Value Institutional Fund, which has a Morningstar rating of five stars and is managed by James Kirk. The fund has had an average annual return of 11.39% over the last five years. The fund also owns ConocoPhillips (COP), which has a PE of 8 and a PEG of 0.7; MetLife (MET), with a P/E of 11 and a PEG of 0.74; and Kraft Foods (KFT), with a P/E of 20 and a PEG of 2.44.

Heiress Records, founded by Hilton in 2004, produced her debut album, Paris, in 2006. She is expected to release another album this year. Heiress is reportedly a sub-label of Warner Bros. Records, a division of Warner Music Group (WMG). Lyor Cohen, the top U.S. executive for Warner's recorded music, sold 23% of the stock he owns in the company, causing the stock to drop more than 10% on the day of the announcement. Warner recently reported negative earnings of 39 cents per share, and it pays a yield of 6.8%.

Warner Music shows up in the Stockpickr portfolio called Top-Yielding Entertainment Stocks, which lists companies in the entertainment business that pay high dividends. Other stocks in the portfolio include Cedar Fair (FUN), with an 8.8% yield; World Wrestling Entertainment (WWE), with an 8.6% yield; and Regal Entertainment Group (RGC), with a 7.2% yield.

Hilton has worked with Parlux Fragrances (PARL) to develop four perfumes so far: Paris Hilton, Just Me, Heiress and Can Can. Parlux also sells watches, purses, wallets and other items under the Paris Hilton brand. When Parlux first started offering the Paris perfume a few years ago, sales of its products increased by 47%. Parlux has a P/E of 523 and a PEG of 1.5. This is a very low-cap stock and should therefore be considered very speculative.

Parlux is owned by LaGrange Capital, a $330 million pure-play event-driven/special-situations fund managed by 2000 by Grange Johnson. The fund has had an average annual return of over 20% per year since inception. LaGrange also owns James River Coal (JRCC), with a forward P/E of 6; Coinstar (CSTR), with a forward P/E of 33; and Central European Media Enterprises (CETV), with a P/E of 24.

The list of all 10 stocks connected to Paris Hilton can be found at Stockpickr.com.

Posted on Sept. 2, 2008