Establishing an appropriate asset mix is a dynamic process, and it plays a key role in determining your portfolio’s overall risk and return. As such, your portfolio’s asset mix should reflect your goals at any point in time. Here we outline some different strategies of establishing asset allocations and examine their basic management approaches.
Strategic Asset Allocation
This method establishes and adheres to a “base policy mix” – a proportional combination of assets based on expected rates of return for each asset class. For example, if stocks have historically returned 10% per year and bonds have returned 5% per year, a mix of 50% stocks and 50% bonds would be expected to return 7.5% per year.
Constant-Weighting Asset Allocation
Strategic asset allocation generally implies a buy-and-hold strategy, even as the shift in values of assets causes a drift from the initially established policy mix. For this reason, you may choose to adopt a constant-weighting approach to asset allocation. With this approach, you continually rebalance your portfolio. For example, if one asset is declining in value, you would purchase more of that asset; and if that asset value is increasing, you would sell it.
Best Logistics Companies To Invest In 2014: Synutra International Inc.(SYUT)
Synutra International, Inc., through its subsidiaries, engages in the production, marketing, and distribution of dairy based nutritional products primarily in the People?s Republic of China. The company offers powdered infant and adult formula products for adults and children under the Super, U-Smart, My Angel, Mingshan, and Helanruniu brand names; prepared baby food for babies and children under the Huiliduo brand name; and nutritional ingredients and supplements, such as chondroitin sulfate, microencapsulated Docosahexanoic Acid, and Arachidonic Acid. It also sells milk powder, whey protein, and raw milk to industrial customers. The company markets its products under Shengyuan or Synutra brands. It sells its products through sales and distribution network covering 30 provinces and provincial-level municipalities in China. Synutra International, Inc. is headquartered in Rockville, Maryland.
- [By Seth Jayson]
Synutra International (Nasdaq: SYUT ) is expected to report Q4 earnings on June 13. Here’s what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Synutra International’s revenues will contract -9.1% and EPS will decrease -84.6%.
- [By Seth Jayson]
Synutra International (Nasdaq: SYUT ) reported earnings on June 13. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q4), Synutra International missed estimates on revenues and beat expectations on earnings per share.
Best Logistics Companies To Invest In 2014: GTT Communications Inc (GTT)
GTT Communications, Inc., formerly Global Telecom & Technology, Inc., incorporated on January 3, 2005, is a global network integrator providing a portfolio of Wide-Area Network (WAN), dedicated Internet access and managed data services. The Company combines multiple networks and technologies, such as traditional OC-x, MPLS and Ethernet, to deliver solutions designed for each client’s requirements. The Company improves its client performance through its Client Management Database (CMD), providing customers with an integrated support system for all of their services. It is provides solutions, project management and 24×7 global operations support. In May 2012, the Company acquired nLayer Communications Inc. In April 2013, Neutral Tandem Inc acquired the global data services business of Global Telecom & Technology Inc.
The Company’s global operations consist of two parts: global customer operations, and global network operations and engineering. Customer oper ations include project management and development of its CMD system. Global project management assures the implementation of a customer services after the sale. Network operations and engineering consists of global Network Operations Center (NOC) and Engineering and Information and Communications Technology (ICT). The NOC receives, prioritizes, tracks and resolves network outages or other customer needs, along with provisioning and testing of services. Engineering provides support for the NOC and the sales team, as well as carrying out all provisioning for GTT Network Services. ICT manages all internal desktop, and network and server infrastructure.
The Company competes with Level 3, Qwest, KPN, XO Communications, COLT, Verizon Business, AT&T, British Telecom, NTT and Deutsche Telekom.
- [By The GeoTeam]
This brings us to Global Telecom (GTT), a company that provides customers with innovative connectivity solutions by utilizing its own network assets.
Best Logistics Companies To Invest In 2014: Toyota Motor Corp Ltd Ord(TM)
Toyota Motor Corporation engages in the design, manufacture, assembly, and sale of passenger cars, minivans, and commercial vehicles. It offers conventional engine vehicles, including subcompact and compact cars under the Corolla, Yaris, micropremium iQ, Passo, Ractis, Vitz, and Etios brand names; mini-vehicles, passenger vehicles, commercial vehicles, and auto parts under Toyota brand name; mid-size cars under the Camry, REIZ, Avensis, and Mark X brand names; luxury cars under the Lexus and Crown brands; Century limousine; sports cars under the Scion tC and Lexus brands; sport-utility vehicles under the Sequoia, 4Runner, RAV4, Highlander, FJ Cruiser, and Land Cruiser brands; pickup trucks under the Tacoma and Tundra brands; minivans under the Alphard, Vellfire, Corolla Verso, Wish, Hiace, Regius Ace, Estima, Noah, Voxy, Sienta, Isis, Passo Sette, and the Sienna brands; cabwagons; large, medium, and small trucks; and large, small, and micro-buses. The company also provides hybrid cars under Prius and Crown brands. In addition, it offers a range of financial services comprising retail financing, retail leasing, wholesale financing, and insurance; and credit cards and housing loans. Further, the company designs and manufactures prefabricated housing, as well as involves in the information technology related businesses, such as an e-commerce marketplace known as GAZOO.com; and sales promotions for KDDI communication related products, primarily the au brand. It sells its vehicles in approximately 170 countries and regions, including Japan, North America, Europe, and Asia. The company was founded in 1933 and is headquartered in Toyota City, Japan.
- [By Ben Levisohn]
Barra’s testimony is just the latest twist in the saga that has resulted in General Motors losing 15% so far this year, and lagging competitors like Ford Motor (F) and Toyota Motor (TM). To sum up: General Motors has recalled 6.3 million cars; explained that some engineers knew about the problem with faulty ignition switches nearly 10 years ago; is being investigated by the House, Senate and the Justice Department; and even concerns about discounts to its trucks (which seem really quaint right now in light of everything else).
- [By WWW.DAILYFINANCE.COM]
Joe Raedle/Getty Images DETROIT — U.S. auto sales went out like a lion in March. Automakers said Tuesday that new car and truck sales picked up speed halfway through the month, culminating in a strong final weekend. Toyota (TM) dealers had their two best sales weekends of the year at the end of the month, the company said. “We’re optimistic that momentum will spring us into April,” said Bill Fay, who manages the Toyota division in the U.S. Industry sales rose 6 percent to 1.5 million vehicles, far outpacing analyst expectations. The sales pace was the fastest since November, according to Autodata Corp. March sales helped rescue what was otherwise a disappointing first quarter. Analysts had predicted flat growth for the first three months of this year after harsh weather in January and February hurt sales. But March helped pull first quarter sales up 1.4 percent. The month saw some big gainers. Chrysler’s sales rose 13 percent on demand for Ram pickups and the new Jeep Cherokee SUV. Subaru’s sales were up 21 percent; its new Forester SUV jumped 53 percent to nearly 14,000. Toyota’s sales rose 5 percent. Sales of the Prius hybrid fell 16 percent, as stable gas prices caused consumer interest in efficient vehicles to wane. But demand for its pickups and SUVs was strong. General Motors’ (GM) sales were up 4 percent despite a series of safety recalls of older model vehicles. Buick saw double-digit gains because of its new Encore SUV, and sales of the Chevrolet Silverado pickup rose 7 percent. Jessica Caldwell, a senior analyst with the car shopping site Edmunds.com, said buyer consideration for GM brands on Edmunds’ Web site has remained steady despite the recall crisis, which is currently the subject of several federal investigations. “Shoppers still see it as a trusted brand,” she said. Nissan’s sales were up 8 percent. Ford’s (F) rose 3 percent, with a 5-percent gain for the F-Series pickup compensating for lower car sales. Volkswagen’s sales fel
Best Logistics Companies To Invest In 2014: Array BioPharma Inc.(ARRY)
Array BioPharma Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of small molecule drugs to treat patients afflicted with cancer and inflammatory diseases in North America, Europe, and the Asia Pacific. Its programs under development include ARRY-520, a kinesin spindle protein inhibitor in Phase 2 clinical trial for patients with multiple myeloma; ARRY-614, a p38/Tie-2 dual inhibitor in Phase 1 clinical trial for patients with myelodysplastic syndrome; ARRY-380, a HER2 inhibitor in Phase 1 clinical trial for breast cancer; ARRY-797, a p38 inhibitor in Phase 2 clinical trial for pain; and ARRY-502, a CRTh2 antagonist in Phase 1 clinical trial for allergic inflammation. The company?s partnered drugs in clinical development comprise Selumetinib and AZD8330 MEK inhibitors for cancer in Phase 2 trial; MEK162 and MEK300 MEK inhibitors for cancer in Phase 2 trial; Danoprevir, a Hepatitis C virus protease inhibitor in Phase 2 trial; A RRY-543, a HER2/EGFR inhibitor in Phase 2 trial for solid tumors; and LY2603618, a ChK-1 inhibitor in Phase 2 trial for cancer. Its partnered drugs in clinical development also include AMG 151, a glucokinase activator in Phase 1b trial for Type 2 diabetes; GDC-0068, a AKT inhibitor in Phase 1b trial for cancer; VTX-2337, a toll-like receptor in Phase 1b trial for cancer; VTX-1463, a toll-like receptor in Phase 1b trial for allergy; ARRY-382, a cFMS inhibitor in Phase 1 trial for cancer; and ARRY-575 and GDC-0425, which are ChK-1 inhibitors in Phase 1 trial for cancer. The company has collaborations with Amgen, Inc.; ASLAN Pharmaceuticals Pte Ltd.; AstraZeneca, PLC; Celgene Corporation; Genentech, Inc.; Novartis International Pharmaceutical Ltd.; InterMune, Inc.; Eli Lilly and Company; and VentiRx Pharmaceuticals, Inc for the development and commercialization of the partnered drugs. Array BioPharma Inc. was founded in 1998 and is headquartered in Boulder, Colorado.
- [By John Udovich]
Biotech and the cancer treatment segment of the biotech market has been a hot area for some time with important cancer stocks like large cap Celgene Corporation (NASDAQ: CELG) and small caps Array BioPharma (NASDAQ: ARRY), Cancer Genetics Inc (NASDAQ: CGIX), EXACT Sciences Corporation (NASDAQ: EXAS) and MetaStat Inc (OTCMKTS: MTST) all producing a steady flow of important news for investors this week or in recent weeks. Consider the following:
- [By Sean Williams]
Array BioPharma (NASDAQ: ARRY ) presented some particularly intriguing findings with its MEK inhibitor, selumetinib, which it has licensed out to AstraZeneca to treat uveal melanoma (cancer of the eye). Historically this is a very difficult to treat disease, but initial studies of selumetinib more than doubled the time it took for the disease to progress compared to the current standard of treatment, temozolomide. In trials, selumetinib delivered 15.9 weeks without disease progression, an overall response rate of 50%, and major tumor shrinkage exhibited in 15% of patients. For temozolomide, steady disease was only established for a median of seven weeks with no tumor shrinkage present.
Best Logistics Companies To Invest In 2014: Consumer Discretionary Select Sector SPDR Fund (XLY)
Consumer Discretionary Select Sector SPDR Fund (the Fund) seeks to provide investment results that correspond to the price and yield performance of the Consumer Discretionary Select Sector of the S&P 500 Index (the Index). The Index includes companies from industries, such as automobiles and components, consumer durables, apparel, hotels, restaurants, leisure, media and retailing.
The Fund utilizes a passive or indexing investment approach to invest in a portfolio of stocks that seek to replicate the Index. The Fund’s investment advisor is SSgA Funds Management, Inc.
- [By ]
The January correction hit the Select Sector SPDR Consumer Discretionary (XLY) hard as it dropped from a high of $66.85 to a low of $61.03. The rebound has been equally sharp as XLY recently made a new high of $67.85. The seasonal analysis shows that XLY forms a major bottom on or around October 11 (line 1) and then rallies up through January 10.
- [By Ben Eisen]
The consumer discretionary sector of the S&P 500 has been going gangbusters this year, climbing 36.6%, while the Select Sector SPDR-Consumer Discretionary exchange-traded fund (XLY) is similarly up 36.7%, hitting a record earlier this month. That outperformance has supported the broader S&P 500, which is up 26.5% this year.
- [By Tom Aspray]
First, let’s look at the quarter by quarter performance for 2013, as well as how the Select Sector ETFs are doing so far in the 4th quarter. Two of my favorite ETFs as we started 2013, the Select Sector SPDR Health Care (XLV) and the Select Sector SPDR Consumer Discretionary (XLY) are the top gainers in 2013.
- [By Ben Levisohn]
The Consumer Discretionary Select Sector SPDR (XLY) has dropped 1.1% to $60.39, while the Financial Select Sector SPDR(XLF) is off 0.9% at $20.23. Hardest hit is the Utilities Select Sector SPDR (XLU), which has dropped 1.6% to $37.32, while the Industrial Select Sector SPDR ETF (XLI) has fallen 1% to $46.49. The Technology Select Sector SPDR (XLK) is the top performer: It’s down 0.5% at $32.39.
Best Logistics Companies To Invest In 2014: Diageo plc(DEO)
Diageo plc engages in producing, distilling, brewing, bottling, packaging, distributing, developing, and marketing spirits, beer, and wine products worldwide. It offers a range of brands, including Johnnie Walker scotch whiskies, Smirnoff vodka and Smirnoff ready to drink products, Baileys Original Irish Cream liqueur, Crown Royal Canadian whisky, Captain Morgan rum and rum based products, Jose Cuervo tequila, JeB scotch whisky, Buchanan?s scotch whisky, Windsor Premier scotch whisky, Ketel One vodka, Ciroc vodka, Tanqueray gin, Bushmills Irish whiskey, and Guinness stout. The company also provides other spirits brands that comprise Gordon?s gin and vodka, Old Parr scotch whisky, Bell?s scotch whisky, The Classic Malts scotch whiskies, Seagram?s 7 Crown whiskey and Seagram?s VO whisky, Cacique rum, White Horse scotch whisky, Don Julio tequila, and Bundaberg rum. In addition, it offers beer under various brands, such as Malta Guinness non-alcoholic malt, Harp lager, Tu sker lager, Smithwick?s ale, Senator lager, and Red Stripe lager; and wine under a range of brands, including Blossom Hill, Sterling Vineyards, Beaulieu Vineyard, Navarro Correas, Acacia Vineyard, Rosenblum Cellars, Piat d?Or, Chalone Vineyard, and Santa Rita. Further, Diageo plc owns the distribution rights for the Jose Cuervo tequila brands in North America and internationally. The company was founded in 1886 and is based in London, the United Kingdom.
- [By Patricio Kehoe] ld’s leading producer of branded premium spirits, wine and beer (Guinness Stout), this company has built an $80 billion market capital empire leading the alcoholic beverage industry. In addition to the aforementioned brands, this firm also owns 34% of the premium champagne and cognac maker Moet Hennessy. Since investment gurus Ruane Cunniff (Trades, Portfolio) and Steven Cohen (Trades, Portfolio) bought this company’s shares last quarter, I decided to take a look at its profitable business model.
A Well-Rounded Business Model
When Diageo’s CEO Ivan Menezes declared last quarter that the company would not be buying Beam Inc. (BEAM) in order to boost its bourbon and tequila portfolio, it became clear that the firm was well off as it is. And I applaud management’s decision to hold back, because this firm’s unmatched spirit portfolio combined with its vast distribution network make it a solid global market leader. Although the company operates in 180 countries, its particularly strong position in the U.S. market is highly beneficial, as this is the most profitable spirits market worldwide. The distribution, handled by 2,800 exclusive salespeople that only attend the company’s namesake brands, is highly profitable, resulting in domestic operating margins of almost 40%. Also, these distributor relationships cover 80% of the company’s U.S. volume, making for a business model that would be very difficult for new market entrants to duplicate.
Furthermore, after the row of acquisitions executed this past decade, including Seagram, Allied Domecq and Mey Icki, Diageo is now focusing on its expansion strategy in the emerging markets of India, China and Africa. Spinning off most of its noncore operating business, except its beer portfolio, which acts as a gateway to spirits and is therefore crucial for growth in the African region, was also an accurate move. Long-term expansion will benefit investors as the company gains additional distribution
- [By Philip Springer]
What’s this week’s big story for investors?
Candidate #1: RadioShack (NYSE: RSH) said it will close up to 1,100 of its nearly 5,200 US stores amid widening losses. The company also announced that revenue in the fourth quarter of 2013 fell 20 percent from year-earlier levels.
It doesn’t matter whether the latest announcement is in addition to or merely an expansion of the company’s Feb. 5 statement that it would close 500 stores. That, in turn, shortly followed the beleaguered company’s $4 million expenditure for a widely praised but clearly ill-timed 30-second ad during the Super Bowl.
Also this week, Radio Shack agreed to pay its top executives “retention” bonuses, saying their skills are critical to the company’s comeback plan. CEO Joe Magnacca will get a $500,000 payment, while other executives will receive $187,500 to $275,000.
The stock currently trades around $2, down from its 1999 peak of $61.
No, that’s not the week’s big story. But it was too good to ignore.
Candidate #2: The current bull market celebrates its fifth birthday this week, with the Standard & Poor’s 500 delivering a total return of about 175 percent during that time.
Since 1921, the median bull market has been 50 months long and has delivered 115 percent in price appreciation. So this market is older and better than most. Still, the conditions aren’t yet present to suggest the end is near. Indeed, Wednesday’s advance, the best of the year to date, was exceptional for both its breadth and heavy volume.
The five-year anniversary also means that stocks, mutual funds, exchange-traded funds, closed-end funds and so on will boast very good five-year returns. Don’t be overly impressed. Reason: Almost everybody will be a winner. (Other than Radio Shack.) But you should dig deeper: Comparisons will be useful to sort out leaders and laggards f or potential investme
Best Logistics Companies To Invest In 2014: Knoll Inc (KNL)
Knoll, Inc., incorporated on December 15, 1995, is a designer and manufacturer of workplace furnishings, textiles and fine leathers. The Company operates in three segments: Office, Studio and Coverings. The Office segment includes systems, seating, storage, tables, desks and KnollExtra ergonomic accessories, as well as the international sales of the Company’s North American Office products. The Studio segment includes the Company’s KnollStudio division, the Company’s European subsidiaries, which primarily sell KnollStudio products, and Richard Schultz Design. The KnollStudio portfolio includes a range of lounge seating, side, cafe and dining chairs, barstools, and conference, dining and occasional tables. Richard Schultz Design provides outdoor furniture. The Coverings segment includes KnollTextiles, Spinneybeck (including Filzfelt), and Edelman Leather. In February 2014, Knoll Inc completed the acquisition of Holly Hunt Enterprises, Inc.
The Company’s systems furniture consists principally of functionally integrated panels or table desks, work surfaces, pedestal and other storage units, power and data systems and lighting. The Company’s systems furniture product lines include panel and desk-based planning models, which consists of Antenna Workspaces, Reff Profiles, AutoStrada, Dividends Horizon, Morrison, Equity and Currents. The Company’s principal seating product lines include generation by Knoll, ReGeneration by Knoll, LIFE, RPM and Chadwick. Essentials Work Chairs’ Pro, Tech, and Sport models offer a range of four task and two side chairs suitable to any office style from the traditional to the progressive. The Company’s files and storage products, featuring the Template, Calibre and Series 2 product lines, are designed with features to maximize storage capabilities throughout the workplace.
The Company’s core files and storage products consist of lateral files, mobile pedest als and other storage units, bookcases and overhead storage ! cabinets.. The Company offers collections of adjustable tables, as well as meeting, conference, training, dining, and cafe tables for large scale projects and standalone desks and table desks. The Company’s Interaction and Upstart product lines include adjustable, work, meeting, conference and training tables. These product lines range from independent tables to tables suitable for workstations that support individual preferences for computer and writing heights to plannable desks that can be linked together to build and reshape larger work areas. KnollExtra offers accessories that complement Knoll office furniture products, including technology support accessories, desktop organizational tools, lighting and storage.
The KnollStudio portfolio includes a range of lounge seating; side, cafe and dining chairs, barstools, and conference, dining and occasional tables. The Company’s studio segment includes the Knoll Europe businesses. Kno ll Europe provides products and services primarily to its European clients, whose aesthetics and styles can be different from its North America clients. A majority of Knoll Europe’s business is Knoll Studio products, but Knoll Europe also offers a product profile that enables its customers to purchase a complete office environment. In addition, it offers certain products designed specifically for the European market. In Europe, the core product categories include KnollStudio, desk systems, including the Wa desking system, the KnollScope, and the PL1 system, seating, including a range of chairs, and storage units, which are designed to complement Knoll desk products. During 2012, it acquired Richard Schultz Design, Inc., a designer and manufacturer of outdoor furniture for the residential, hospitality, and contract office furniture markets.
The Company’s Coverings segment consists of KnollTextiles, Spinneybeck Leather (including Fil zfelt products), and Edelman Leather. KnollTextiles offers u! pholstery,! panel fabrics, wallcoverings and drapery that harmonize color, pattern and texture and offers products for corporate, hospitality, healthcare and residential interiors. KnollTextiles products are used in the manufacture of Knoll furniture and are sold to clients for use in other manufacturers’ products. Spinneybeck Enterprises, Inc., (Spinneybeck), the Company’s wholly owned subsidiary, offers leathers and related products, including leather rugs and wall panels. Spinneybeck supplies upholstery leather for use on Knoll furniture and for sale directly to clients, including other office furniture manufacturers, upholsterers, aviation, custom coach and boating manufacturers. Edelman Leather LLC, (Edelman) its wholly owned subsidiary, supplies fine leathers to residential, hospitality, aviation and contract office furniture markets. Edelman, offers a residential showroom network where designers and retail consumers can sample its products.
The Company competes with Herman Miller, Inc., Steelcase, Inc., Haworth, Inc., HNI Corporation and Teknion Corporation.
- [By John Udovich]
Small cap office furniture stock Steelcase Inc (NYSE: SCS) jumped 11.66% after beating earnings expectations, meaning it might be time to take a closer look at the stock along with potential office or commercial furniture stock peers like HNI Corp (NYSE: HNI), Knoll Inc (NYSE: KNL) and Virco Mfg. Corporation (NASDAQ: VIRC). After all, the performance of any company selling office or commercial furniture would tend to give some insights into the office or employment markets.
- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market’s best stocks, it’s worth checking up on your companies’ free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That’s what we do with this series. Today, we’re checking in on Knoll (NYSE: KNL ) , whose recent revenue and earnings are plotted below.
Best Logistics Companies To Invest In 2014: WisdomTree International Dividend Ex Financial Fund (DOO)
WisdomTree International Dividend Top 100 Fund (The Fund) is a non-diversified fund. It seeks investment results that closely correspond to the price and yield performance, before fees and expenses, of the WisdomTree International Dividend Top 100 Index (The Index). The fund is managed by WisdomTree Asset Management, Inc.
The Index measures the performance of the 100 highest dividend-yielding companies in the WisdomTree International LargeCap Dividend Index. The Index is created by selecting the top 100 companies ranked by highest dividend yield from the WisdomTree International LargeCap Dividend Index.
- [By Eric Lam]
“Companies that come to market are coming from sectors that work,” said Brian Huen, managing partner at Red Sky Capital Management Ltd. in Toronto. He helps manage C$220 million with the firm, and participated in the offerings for Choice Properties, Information Services Corp., and Ski-Doo maker BRP Inc. (DOO) “People certainly aren’t bringing any gold IPOs to market. So investors are focusing on buying deals in the right markets, as opposed to the wider market which has exposure to resources.”