FOX Translator
No data currently available.
No data currently available.
Some mutual funds want you to pay for the privilege of them (or your investment adviser) taking your money to invest. It's called a load, and it works like a cover charge to get into a nightclub. Luckily, there are such things as no-load funds. As the name implies, shares of these funds are sold without a fee paid to a broker or investment advisor.
The entire amount you invest in no-load funds goes to work for your returns. On the other hand, with load funds, right off the bat you're charged commission (not to mention other fees incurred over the life of the investment). Let's say, for example, you invest $25,000 into a load fund that charges a 5% commission. This costs you $1,250 off the top, bringing your actual investment down to only $23,750.
The often-cited horse race analogy argues against investing in load funds. Here's the logic behind it: Would you place a bet on a horse that had to start a race 200 yards behind the others? Well, maybe you would if you got a tip from a sketchy, trench coat-clad man in a dark alley. However, under most circumstances, it's not smart to put your money on that handicapped horse.
But some argue that at times that man in the trench coat (aka your broker) knows more about the horses than you do, and has a better shot at picking a winner. Also, sometimes these fees are unavoidable because some funds are available only through investment advisers.
Cost-benefit analysis can help determine when a load fund is worth it (in other words, when it will score you a load) and when it is better to "do it yourself" and avoid the fees. Load-fund fees range depending on share class and can cover a variety of costs, such as paper work and fund management.
Home / Markets / Industries / Finance
Wednesday, May 14, 2008
Zacks Analyst Blog Highlights: Xoma Ltd., Goldman Sachs, Priceline.com, ON Semiconductor and LSI Logic
Comtex
CHICAGO, May 14, 2008 (BUSINESS WIRE) ----Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Xoma Ltd. (Nasdaq: XOMA), Goldman Sachs (NYSE: GS), Priceline.com (Nasdaq: PCLN), ON Semiconductor (Nasdaq: ONNN) and LSI Logic (NYSE: LSI).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579
Here are highlights from Tuesday's Analyst Blog:
XOMA Making the Right Moves
Advancement of XOMA-052 in the current phase I trials remains the chief focus of the management of Xoma Ltd. (Nasdaq: XOMA). Data on these two trials are expected in the third quarter 2008. We expect an initiation of a phase I trial on XOMA-629 also in the third quarter 2008.
Management will look to bring in one additional collaboration partner on board at some point this year. All the above milestones should get the stock moving higher in the second half of the year.
We believe Xoma's antibody discovery platform is starting to show signs of paying off, as both -052 and -629 could prove to be significant products in the not-so-distant future. The name remains significantly under-valued in our view.
Royalty revenue continues to provide meaningful growth to Xoma. Sales of Raptiva totaled $61 million in the first quarter 2008. Sales of Lucentis totaled $393 million in the first quarter. Both products are growing at double-digits rates. In May 2008 Xoma used this growing royalty line to secure a $55 million loan with Goldman Sachs (NYSE: GS). But with the shares trading at $2.15, Xoma is a very volatile stock.
Don't Chase Priceline Shares Here
Priceline.com's (Nasdaq: PCLN) first quarter results easily blew past consensus estimates, and management's guidance for 2008 was equally bullish. The strength in Priceline.com's international business and operating expense controls continue to drive the company's impressive results.
What's more, we think the company is well-positioned to weather a slowdown in consumer spending due to the value proposition it offers customers. Still, we wouldn't chase the shares here, as they trade at over 25x our 2008 EPS estimate. That is a pricey multiple in the current market.
We have been bullish on PCLN shares since we upgraded the stock in January of 2006, when it was trading around $22 per share. However, we think the stock, which is now trading around $140, is fairly valued. We think it is appropriate to go with a neutral stance.
ON Semi On the Right Path
ON Semiconductor Corporation (Nasdaq: ONNN) is an original equipment manufacturer (OEM) of primarily analog semiconductors used within a diverse set of end markets. March quarter results beat consensus estimates on the top and bottom-line.
Next quarter's revenue guidance is for 3%-6% growth. Management anticipates that total revenues will be approximately $545 to $560 million in the second quarter of 2008. Further, they expect that average selling prices for the second quarter of 2008 will be down approximately two per cent sequentially. Backlog represents over 85% of next quarter's revenue projection.
The company has also begun to get significant revenue from its recent major purchase of LSI Logic's (NYSE: LSI) Gresham, Oregon wafer facility, which has the potential to be a solid revenue driver. The products produced at the Gresham facility are of the high-margin variety. We feel the stock is under valued at these levels, and recommend investors Buy the shares.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=2649.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=2677
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4580.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
SOURCE: Zacks.com
Zacks.com Mark Vickery Web Content Editor 312-265-9380 Visit: www.zacks.com
Copyright Business Wire 2008
Market Snapshot
| Symbol | Last Price | Netchange | Volume |
|---|---|---|---|
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
