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
Monday, May 12, 2008
Zacks Bull and Bear of the Day Highlights: DIRECTV, Ambac Financial, Standard Motor Products, Concur Technologies and Interstate Hotels
Comtex
CHICAGO, May 12, 2008 (BUSINESS WIRE) ----Zacks Equity Research highlights DIRECTV (NYSE: DTV) as the Bull of the Day and Ambac Financial Group (NYSE: ABK) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Standard Motor Products (NYSE: SMP), Concur Technologies (Nasdaq: CNQR) and Interstate Hotels & Resorts (NYSE: IHR).
Full analysis of all these stocks is available at http://at.zacks.com/?id=2676.
Here is a synopsis of all five stocks:
Bull of the Day: DIRECTV (NYSE: DTV)
DIRECTV has vigorously grown its free cash flow and earnings over the last two years. It is now cutting churn-related costs, and raising the quality of its subscriber base by tightening credit standards. We believe the company is poised to sustain its strong revenue and earnings growth.
Bear of the Day: Ambac Financial Group (NYSE: ABK)
1Q08 operating results were a negative $6.93 per share, due to non-cash, mark-to-market losses on its credit derivative exposures of $1.7 billion pretax. Given the rating agency's negative outlook (with further downgrades possible) and competitive challenges from writing new business during the quarter, these have and should continue to weigh on ABK's ability to generate revenue and EPS over the near term.
Latest Posts on the Zacks Analyst Blog:
Standard Motor Products (NYSE: SMP)
Standard Motor Products, Inc. has achieved significant cost savings due to the successful integration of the Dana Engine Management business. The company also has strong brand recognition and a less cyclical end-market within the auto and auto parts industry. Moreover, SMP expects to benefit from the shifting of its production facilities to Mexico on account of low labor costs. Further, the company's temperature control segment is facing strong competition with the Chinese imports.
Concur Technologies (Nasdaq: CNQR)
Concur Technologies reported results for its second quarter of 2008 that exceeded our revenue and earnings estimates. There was very strong growth in higher-margined subscription revenues in the quarter. We have raised our 2008 revenue projection to reflect an anticipated 63.5% year-over-year growth rate, and have also increased our earnings estimate based on company guidance.
The stock trades at a significant P/E premium to the S&P 500, its industry mean and median, and even its well-established peers. While Concur has a slightly weaker balance sheet but strong near-term fundamentals, we are concerned about the company's long-term prospects, as eventually it will begin to bump heads with the major industry players as it continues to grow at a significant pace.
Interstate Hotels & Resorts (NYSE: IHR)
We maintain our Buy rating on shares of Interstate Hotels & Resorts following the release of Q1 financial results. Given the company's recent steps to expand its wholly-owned hotel portfolio, in addition to its efforts to increase its joint-venture ownership positions, we believe that the current share price represents an attractive entry point.
The company's third-party management portfolio has stabilized and recent steps to expand internationally have created significant growth potential, in our opinion. Our target price of $6.00 per share reflects a weighted average EBITDA multiple of approximately 9.5x our 2008 estimate.
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=2649.
About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
About the Analyst Blog
Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.
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 by visiting 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=4582.
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 312-265-9380 Visit: www.zacks.com
Copyright Business Wire 2008
Market Snapshot
| Symbol | Last Price | Netchange | Volume |
|---|---|---|---|
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
