Asset allocation has a larger impact on overall results than specific security selection. Researchers argue about the degree of impact, but all agree the impact is major. Asset allocation comes first, and then security selection within asset categories.
Apart from cash reserves for expected withdrawals, or as dry powder for tactical purchases, the primary assets in allocation are stocks and bonds. Let's look at the 37-year history from 1976-2012 for various allocation levels between US bonds and US stocks.
Good proxy ETFs for US stocks would be IWV (Russell 3000) or VTI (CRSP US Total Market Index). For US bonds, good proxy ETFs would be AGG or BND, both tracking the Barclay's Aggregate Bond Index.
First let's look at a summary for each of three allocation risk levels: 60/40 stock/bonds, 80/20 and 20/80.
You will notice in Figures 1-3 that higher stock allocations produced higher mean returns, but also higher volatility, more loss years, and more severe worst years, as well as higher best years.
Mine Safety Appliances Company develops, manufactures, and supplies health and safety products used by workers in the fire service, homeland security, construction, and other industries, as well as the military. It offers respiratory protection products, including self contained breathing apparatus, air-purifying respirators, gas masks, and escape hoods; and portable and permanent gas detection instruments, such as single-and multi-gas hand-held detectors, multi-point permanently installed gas detection systems, flame detectors, and open-path infrared gas detectors. The company also provides thermal imaging cameras; head, eye, face, and hearing protection products, such as industrial hard hats, fire helmets, and military helmets and communication systems; and body protection products comprising fall protection equipment and ballistic body armor. In addition, it offers consumer and contractor safety products through retail channels. The company?s products are used by first responders; general industry workers; military personnel; oil, gas, petrochemical, and chemical workers; hazmat and confined space workers; and construction workers and contractors. Mine Safety Appliances Company sells its products in North America, Europe, and internationally. The company was founded in 1914 and is based in Pittsburgh, Pennsylvania.
Advisors' Opinion: - [By Chuck Saletta]
Next up? Even more cash
This week, the IPIG portfolio expects the dividends to keep rolling in. On Monday, safety-equipment provider Mine Safety Appliances (NYSE: MSA ) is expected to pay $0.30 per share to the portfolio for the 36 shares it owns. That's a decent increase from the $0.28 per share the company had been paying in previous quarters.
Best Healthcare Equipment Stocks To Invest In 2015: Fidelity National Information Services Inc (FIS)
Fidelity National Information Services, Inc. (FIS), incorporated on March 2, 2001, is a global provider of banking and payments technologies. The Company operates in four segments: Financial Solutions Group (FSG), Payment Solutions Group (PSG), International Solutions Group (ISG) and Corporate and Other Segment. The Company is engaged in payment processing and banking solutions, providing software, services and outsourcing of the technology. The Company offers financial institution core processing, card issuer and transaction processing services, including the NYCE Network, a national electronic funds transfer (EFT) network. FIS serves more than 14,000 institutions in over 100 countries. In February 2011, FIS acquired GIFTS Software, Inc., a provider of integrated funds transfer, Web-based cash management systems and anti-money laundering (AML) solutions. In April 2012, it acquired ICS Risk Advisors and Memento, Inc. In August 2012, the Company completed the sale of its Healthcare Solutions business to an investment fund affiliated with Lightyear Capital LLC. In March 2013, it announced the acquisition of mFoundry.
Financial Solutions Group
FSG is to provide the software and services for the core processing, customer channel, treasury, cash management, wealth management and capital market operations of its financial institution customers in North America. The Company services the core and related ancillary processing needs of North American banks, credit unions, automotive financial companies, commercial lenders, and independent community and savings institutions. FIS offers a selection of in-house and outsourced solutions to banking customers that span the range of asset sizes. Its solutions in this segment include Core Processing and Ancillary Applications, Channel Solutions, Decision and Risk Management Solutions, Syndicated Loan Applications, Global Commercial Services and Strategic Consulting Services.
The Company�� processing software applications are de! signed to run banking processes for its financial institution clients, including deposit and lending systems, customer management, and other central management systems. The Company also offers a number of services that are ancillary to the primary applications listed above, including branch automation, back office support systems and compliance support. In addition, its wealth management services offer a set of Internet-enabled services to financial services providers that address the specific needs of markets, as well as commercial clients. These solutions address asset and liability aggregation, trust and investment account management, client and regulatory reporting, and employee retirement benefit services. The Company also offers an application suite that assists automotive finance institutions in evaluating loan applications and credit risk, and allows automotive finance institutions to manage their loan and lease portfolios.
The Company�� suite of retail delivery applications enables financial institutions to integrate customer-facing operations and back-office processes, thereby improving customer interaction across all channels (branch offices, Internet, automated teller machine (ATM), call centers). Its Consumer Electronic Banking and Business Internet Banking both provide a set of cash management capabilities, enabling customers to manage banking and payments through the Internet, mobile devices, accounting software and telephone. Corporate Electronic Banking solutions provide commercial treasury capabilities, including cash management services and multi-bank collection and disbursement services that address the specialized needs of corporate customers. FIS systems provide accounting and reconciliation for such transactions, serving as the system of record and providing regulatory compliance, risk assessment and fraud management tools.
The Company�� decision solutions offers a spectrum of options that cover the account lifecycle from helping to identify qualified! account ! applicants to managing mature customer accounts and fraud. Its applications include know-your-customer, new account decisioning, new account opening, account and transaction management, fraud management and collections. Its risk management services utilize its risk management models and data sources to assist in detecting fraud and assessing the risk of opening a new account or accepting a check at either the point-of-sale, a physical branch location, or through the Internet. Its systems utilize a combination of advanced authentication procedures, predictive analytics, artificial intelligence modeling and shared databases to assess and detect fraud risk for deposit transactions for financial institutions.
The Company�� syndicated loan applications are designed to support wholesale and commercial banking requirements necessary for all aspects of syndicated commercial loan origination and management. Its global commercial services include solutions, both onshore and offshore, designed to meet the technology challenges facing principally Unites States based clients, large or small. Its technology solutions range in scope from consulting engagements to application development projects and from operations support for a single application to management of information technology infrastructures. The Company also provides outsourcing teams todeliver customer service. With the The Capital Markets Company NV (Capco) acquisition, it provides integrated consulting, technology and transformation services. Capco specializes in banking; capital markets; wealth and investment management; finance, risk and compliance, and technology. Capco's North American operations are included in FSG.
Payment Solutions Group
PSG provides a set of software and services for the EFT, card processing, item processing, bill payment, and government and healthcare payments processing needs of its customers in North America. PSG is focused on servicing the payment and electronic funds transfer needs o! f North A! merican headquartered banks and credit unions, commercial lenders, independent community and savings institutions and healthcare and government institutions. Its solutions in this segment include Electronic Funds Transfer, Item Processing and Output Services, Credit Card Solutions, Government and Healthcare Payments Solutions, ePayment Solutions and Check Authorization.
The Company�� electronic funds transfer and debit card processing businesses offer settlement and card management solutions for financial institution card issuers. It provides traditional ATM- and personal identification number (PIN)-based debit network access and emerging real-time payment alternatives through NYCE. It is also a provider of prepaid card services, which include gift cards and reloadable cards, with end-to-end solutions for development, processing and administration of stored-value programs.
The Company�� item processing services furnish financial institutions with the equipment needed to capture data from checks, transaction tickets and other items; image and sort items; process exceptions through keying, and perform balancing, archiving and the production of statements. Its item processing services are utilized by more than 1,500 financial institutions. Its solutions include distributed ( non-centralized) data capture, check and remittance processing, fraud detection, and document and report management. Its Endpoint Exchange Network enables United States financial institutions to clear their check-based transactions by allowing for the exchange of check images between member institutions. The Company offers a number of output services that are ancillary to the primary solutions it provide, including print and mail capabilities and card personalization fulfillment services. Its CSF Designer document composition software is used by many clients in various industries to furnish printed or electronically produced invoices and statements for customized customer communication. Its print and mail! services! offers computer output solutions for the creation, management and delivery of print and fulfillment needs. The Company provides its card personalization fulfillment services for branded credit cards and branded and non-branded debit and prepaid cards. More than 5,200 financial institutions utilize a combination of its technology and/or services to issue VISA, MasterCard or American Express branded credit and debit cards or other electronic payment cards for use by both consumer and business accounts. Its services range from card production and activation to a range of fraud management services to value-added loyalty programs designed to increase card usage and fee-based revenues.
FIS healthcare payments solutions facilitate the exchange of information and funds among patients, payers, providers and financial institutions. With Web-enabled tools, a Health Savings Account (HSA) platform, multi-purse benefit debit cards that cover multiple spending accounts with a single card and combined eligibility/payment cards, FIS enables consumers and third-party benefits administrators to have integrated benefit account management of HSAs, Flexible Spending Accounts (FSA), Health Reimbursement Agreements (HRA) and dependent care and transportation accounts. It also provides customized electronic service applications for government agencies, including Internal Revenue Service (IRS) payment services. It also facilitates the collection of state income taxes, real estate taxes, utility bills, vehicle registration fees, driver�� license renewal fees, parking tickets, traffic citations, tuition payments, court fees and fines, hunting and fishing license fees, as well as various business licenses.
The Company provides bill publishing and bill consolidation technology for its customers, generating millions of monthly bills and servicing both billers and financial institution customers. Online bill payment functionality includes credit and debit card-based expedited payments. Its end-to-end prese! ntment an! d payment solution provides an all-in-one solution to meet billers��needs for the distribution and collection of bills and other customer documents. FIS also provides automated clearing house (ACH) processing. Its check authorization business provides check risk management and related services to businesses accepting or cashing checks. Its services assess the likelihood (and often provide a guarantee) that a check will clear.
International Solutions Group
The Company provides core banking applications, channel solutions, card and merchant services, item processing and check risk management solutions to financial institutions, card issuers and retailers. Its international operations leverage existing applications and provide services for the specific business needs of its customers in targeted international markets. Services are delivered from 28 operations centers around the world. Its payment solutions services include outsourced card-issuer services and customer support, payment processing and switching services, prepaid and debit card processing, item processing, software licensing and maintenance, outsourced ATM management and retail point-of-sale check warranty services. Its financial solutions services include fully outsourced core bank processing arrangements, application management, software licensing and maintenance, facilities management and consulting services, including Capco's international operations.
Corporate and Other Segment
The Corporate and Other segment consists of the corporate overhead costs that are not allocated to operating segments. These include costs related to human resources, finance, legal, accounting, domestic sales and marketing, merger and acquisition activity and amortization of acquisition-related intangibles and other costs that are not considered when management evaluates operating segment performance.
The Company competes with Fiserv, Inc., Jack Henry and Associates, Inc., Open Solutions, Inc., In! ternation! al Business Machines Corporation (IBM), Accenture Ltd., Alliance Data Systems Corporation, DST Systems, Harland Financial Solutions, Inc., SEI Investments Company, S1Corporation, SunGard Data Systems, Inc., Alnova Technologies Corporation, Oracle Financial Services Software Limited, Misys plc, Infosys Technologies Limited, Temenos Group AG, MasterCard Incorporated, Visa Inc., First Data Corporation, Total System Services, Inc., HP Enterprise Services, Payment Systems for Credit Unions (PSCU), Heartland Payments Systems, Inc. and Global Payments, Inc.
Advisors' Opinion: Best Healthcare Equipment Stocks To Invest In 2015: TICC Capital Corp.(TICC)
TICC Capital Corp., a business development company, operates as a closed-end, non-diversified management investment company. The firm invests in both public and private companies. It invests in secured and unsecured senior debt, subordinated debt, junior subordinated debt, preferred stock, and common stock. The firm primarily invests in debt and/or equity securities of technology-related companies that operate in the computer software, Internet, information technology infrastructure and services, media, telecommunications and telecommunications equipment, semiconductors, hardware, technology-enabled services, semiconductor capital equipment, medical device technology, diversified technology, and networking systems sectors. It concentrates its investments in companies having annual revenues of less than $200 million and a market capitalization or enterprise value of less than $300 million. The firm invests between $5 million and $30 million per transaction. It seeks to exit its investments within 7 years. It serves as the investment adviser to TICC. The company was formerly known as Technology Investment Capital Corp. and changed its name to TICC Capital Corp. in December 2007. TICC Capital Corp. was founded in 2003 and is headquartered in Greenwich, Connecticut.
Advisors' Opinion: - [By Brian Pacampara]
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, closed-end asset manager TICC Capital Corp. (NASDAQ: TICC ) has earned a respected four-star ranking.
- [By Monica Gerson]
TICC Capital (NASDAQ: TICC) is estimated to report its Q4 earnings at $0.28 per share on revenue of $28.43 million.
Fuel-Tech (NASDAQ: FTEK) is expected to post its Q4 earnings at $0.06 per share on revenue of $29.00 million.
Best Healthcare Equipment Stocks To Invest In 2015: Deutsche Boerse AG (DB1)
Deutsche Boerse AG is a Germany-based international financial marketplace operator. It operates four business segments: Xetra; Eurex; Clearstream, and Market Data & Analytics. The Xetra business segment comprises three business areas: cash market using the Xetra electronic trading system and Xetra Frankfurt specialist trading; central counterparty for equities, and admission of securities to listing. The Eurex business segment comprises four business areas: electronic derivatives market trading platform Eurex; electronic options trading platform ISE; over-the-counter trading platforms Eurex Bonds, Eurex Repo, and Eurex Clearing. The Clearstream business segment comprises three business areas: custody, administration and settlement services for securities; global securities financing services, and investment funds services. The Market Data & Analytics business segment comprises two business areas: sales of price information and information distribution, and index development and sales.
Advisors' Opinion: - [By Nikolaj Gammeltoft]
IntercontinentalExchange, the energy and commodity futures bourse known as ICE, is buying the U.S. equity exchange operator as the profitability of stock trading declines and derivatives generate more income. European Union regulators approved the deal on June 24 after blocking Deutsche Boerse AG (DB1)�� purchase of NYSE last year, citing concern over competition in derivatives and clearing.
- [By Whitney Kisling]
A fault today halted transactions on Deutsche Boerse AG (DB1)�� Eurex unit, Europe�� largest derivatives market, for about an hour through 9:20 a.m. Frankfurt time.
- [By Nikolaj Gammeltoft]
The mishap followed others earlier in the week. An Oct. 30 malfunction interrupted data transmission at Deutsche Boerse AG (DB1)�� International Securities Exchange, while Nasdaq was unable to distribute prices for its benchmark stock indexes for almost an hour on Oct. 29. The breakdowns refocused concern that the distribution of trading over dozens of mostly automated venues has made U.S. securities markets fundamentally flawed.
- [By Jonathan Morgan]
QSC AG (QSC), a provider of telephony and data services to small and medium-sized businesses, jumped 9.5 percent after posting an increase in quarterly net income. Deutsche Boerse AG (DB1) retreated 2.7 percent after Equinet Bank AG downgraded the shares to sell.
Best Healthcare Equipment Stocks To Invest In 2015: Coronado Biosciences Inc (CNDO)
Coronado Biosciences, Inc., incorporated on June 28, 2006, is a biopharmaceutical company focused on the development of novel immunotherapy biologic agents for the treatment of autoimmune diseases and cancer. The Company�� two principal pharmaceutical product candidates in clinical development include Trichuris suis ova or CNDO-201 (TSO) a biologic comprising of the microscopic eggs of the porcine whipworm, for the treatment of autoimmune diseases, such as Crohn�� disease (Crohn��), ulcerative colitis (UC) and multiple sclerosis (MS), and CNDO-109, a compound that activates natural killer (NK) cells of the immune system to seek and destroy cancer cells, for the treatment of acute myeloid leukemia (AML). In January 2011, the Company acquired the OvaMed GmbH License.
TSO
TSO is the microscopic eggs of a parasitic helminth, or worm, that is found in pigs. In September 2011, the Company filed an Investigational New Drug Application (IND) with the United States Food and Drug Administration (FDA) and it initiated a single dose, dose escalation study in patients with Crohn�� in February 2012. The Phase 1 clinical trial was a multi-center, sequential dose-escalation, double-blind, placebo-controlled study, the primary objective of which was to evaluate the safety and tolerability of TSO. The trial enrolled 36 patients with Crohn�� ranging in age from 20 to 54 with an equal distribution of male and female patients in three single dose cohorts of orally administered 500, 2500 and 7500 ova. Each cohort had 12 patients, with nine patients receiving TSO and three receiving placebo.
CNDO-109
CNDO-109 is a lysate (disrupted CTV-1 cells, cell membrane fragments, cell proteins and other cellular components) that activates donor NK cells. CTV-1 is a leukemic cell line recently re-classified as a T-cell acute lymphocytic leukemia (ALL). The Company has worldwide rights to develop and commercialize CNDO-109 activated NK cells for the treatment of cancer fro! m UCLB. In February 2012, the Company submitted an IND for the CNDO-109 activated NK cell product in the United States. The treatment of patients with CNDO-109 activated NK cells involves several steps. The activated NK cells are infused into the patient after resting NK cells are incubated with CNDO-109 for at least eight hours. Preparation of CNDO-109 activated NK cells takes about 24 hours from start to finish.
The Company competes with Centocor Ortho Biotech Inc.�� Remicade , UCB S.A.�� Cimzia, Abbott Laboratories��Humira, Biogen Idec�� Avonex, Bayer Healthcare Pharmaceuticals��Betaseron, Teva Pharmaceuticals Industries, Ltd.�� Copaxone and Novartis AG�� Gilenya.
Advisors' Opinion: - [By Roberto Pedone]
Coronado Biosciences (CNDO) is a biopharmaceutical company focused on novel immunotherapy biologic agents for autoimmune diseases and cancer. This stock closed up 4.9% to $8.22 in Thursday's trading session.
Thursday's Range: $7.84-$8.29
52-Week Range: $4.00-$12.70
Thursday's Volume: 323,000
Three-Month Average Volume: 390,192
From a technical perspective, CNDO spiked higher here right above its 200-day moving average of $7.63 with decent upside volume. This stock has been downtrending badly for the last three months, with shares falling from its high of $12.70 to its recent low of $7.32. During that move, shares of CNDO have been consistently making lower highs and lower lows, which is bearish technical price action. Shares of CNDO now look ready to reverse that trend and potentially trigger a near-term breakout trade. That trade will hit if CNDO manages to take out some near-term overhead resistance levels at $8.56 to $8.94 with high volume.
Traders should now look for long-biased trades in CNDO as long as it's trending above its 200-day at $7.63 or above more support at $7.32 and then once it sustains a move or close above those breakout levels with volume that hits near or above 390,192 shares. If that breakout hits soon, then CNDO will set up to re-test or possibly take out its next major overhead resistance levels at $9.50 to $10.35. Any high-volume move above those levels will then put its next major resistance level at $11 into range for shares of CNDO.
- [By Grace L. Williams]
Honorable mentions go out to Coronado Biosciences (CNDO), after its CEO Harlan Weisman and Jay Lobell, a longtime director, joined forces and bought 20,000 shares for $152,100; and to Anacor Pharmaceuticals (ANAC) after CFO Geoffrey Parker bought 33,000 shares for $224,300. InsiderScore noted that Parker�� purchase was his largest to date and called it a ��ompelling positive event.��/p>
- [By Ben Fox Rubin]
Biopharmaceutical firm Coronado Biosciences Inc.(CNDO) said a recent pilot study found that the first five patients using its potential autism treatment showed statistically significant separation from placebo, in favor of the drug. The treatment was also well-tolerated. The study is still ongoing. Shares jumped 26% to $2.25 premarket.
Best Healthcare Equipment Stocks To Invest In 2015: Capella Education Company(CPLA)
Capella Education Company operates as an online postsecondary education services company in the United States and internationally. The company, trough its Capella University, offers various doctoral, master?s, and bachelor?s programs primarily for working adults in public service leadership, behavioral health and human services, business management and technology, and education markets; and online distance learning services for degree-entry programs and doctoral level programs in various disciplines, including business, management, psychology, law, and computing disciplines. It also provides learner support services, such as academic services comprising new learner orientation, technical support, academic advising, research services, online tutoring, and writing services; and administrative services through the telephone and Internet. In addition, the company?s learner support services include library services, such as access to collection of online journals, eBooks, an d interlibrary loan services; and career center services comprising career counseling, job search advising, and career management support services to learners and alumni. As of December 31, 2011, the company offered approximately 1,450 online courses and 43 academic programs with 140 specializations to approximately 37,000 learners. Capella Education Company was founded in 1991 and is headquartered in Minneapolis, Minnesota.
Advisors' Opinion: - [By Bill Smith]
Competition
ESI competes with many other for-profit ventures, including:
Other for-profit educators, such as: Strayer (STRA), Apollo (APOL), DeVry (DV), Capella (CPLA), Corinthian Colleges (COCO), and Career Education Corporation (CECO)Traditional colleges/universitiesCommunity colleges
Sales, EBITDA and Earnings
ESI has steadily increased revenue and earnings. In the last decade they've grown revenue at 20.8%; EBITDA at 34.4%; FCF at 22.5%, and Book Value at 8.5%.
- [By Jeremy Bowman]
So what: ITT Educational Services (NYSE: ESI ) reported earnings earlier this morning, shooting up 30%, and earlier this week,�Capella Education (NASDAQ: CPLA ) jumped 15% after reporting, and is now approaching a new 52-week high. The education sector has gotten hammered over the last couple of years, but investors seem to be getting the feeling that enrollment numbers are bottoming. One exception was DeVry (NYSE: DV ) , which fell sharply after reporting earnings earlier this week, but still managed to gain 5.8% today.
- [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 Capella Education (Nasdaq: CPLA ) , whose recent revenue and earnings are plotted below.
Best Healthcare Equipment Stocks To Invest In 2015: TESARO Inc (TSRO)
TESARO, Inc. (TESARO), incorporated in March 2010, is a development-stage, oncology-focused biopharmaceutical company for cancer patients. The Company focuses on rolapitant and TSR-011 product. The Company�� marketed products and product candidates in development treat cancer through non-specific damage to cellular components or alter cell metabolism or internal repair mechanisms to the demise of cancer cells.
Rolapitant
Rolapitant is a potent and long-acting neurokinin-1, or NK-1, receptor antagonist is in Phase III clinical trials for the prevention of chemotherapy induced nausea and vomiting (CINV). It is in Phase III clinical trials. CINV, if not prevented by prophylaxis, has the potential to afflict up to 90% or more of cancer patients undergoing chemotherapy, depending upon the type of chemotherapy administered the dosing schedule of the chemotherapy, and the patients' age and gender, among other predisposing factors. Prolonged nausea and vomiting may result in unwanted weight loss, dehydration and malnutrition, as well as hospitalization. The Company has in-licensed the rights to rolapitant from OPKO Health, Inc.
TSR-011
TSR-011 is an orally available ALK inhibitor in preclinical development. ALK is known to be involved in certain types of cancers, including subsets of NSCLC, neuroblastoma and lymphoma. For patients in these subsets, the ALK gene is fused to an activating partner or contains point mutations, resulting in constitutive activation of ALK and the growth of cancer cells and tumor development. Inhibition of ALK in these cancer cells results in cell death and tumor growth inhibition or regression. In August 2011, the United States Food and Drug Administration approved the first ALK inhibitor, developed by Pfizer Inc., Xalkori (crizotinib), which was approved for the treatment of patients with locally advanced or metastatic NSCLC that are ALK positive.
The Company competes with GlaxoSmithKline plc, Roche Holding Ltd! . and Sanofi S.A.
Advisors' Opinion: - [By Brian Orelli]
Tesaro (NASDAQ: TSRO ) is also up today after announcing that it established a partnership with clinicians to run the phase 3 development of its PARP inhibitor, niraparib. The trial will enroll about 300 breast cancer patients with BRCA mutations, comparing niraparib to investigators' choice of other breast cancer treatments.
- [By Jake L'Ecuyer]
Equities Trading UP
Tesaro (NASDAQ: TSRO) shares shot up 20.78 percent to $29.00 after the company reported successful primary and secondary endpoints in final Phase 3 trial for rolapitant.
- [By Jake L'Ecuyer]
Equities Trading UP
Tesaro (NASDAQ: TSRO) shares shot up 18.28 percent to $28.40 after the company reported successful primary and secondary endpoints in final Phase 3 trial for rolapitant.
- [By Brian Pacampara]
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biopharmaceutical company TESARO (NASDAQ: TSRO ) has received the dreaded one-star ranking.
