diversification
What is diversification?
Diversification involves the planned distribution of investments across various securities to minimize the risk exposure to a specific industry or geographic segment. However, the risk of over-diversification exists, in which an investor can at best expect to mirror the market returns, minus any brokerage fees or management expenses.
What is diversification?
ATLANTIC TELE-NETWORK $74.34 (Nasdaq symbol ATNI; TSINetwork Rating: Speculative) (340- 777-8000; www.atni.com; Shares outstanding: 16.0 million; Market cap: $1.2 billion; Dividend yield: 1.6%) owns wireless and wireline (traditional telephone and Internet) operations in the U.S. Southwest, New England, New York State, Guyana, Bermuda and parts of the Caribbean islands.
The company continues to expand its wireless capacity and coverage. That’s paying off as customers use more mobile data for services like music downloads, mobile gaming and e-books.
As well, earlier this year, Atlantic entered the solar energy market by acquiring 28 solar farms in Massachusetts, California and New Jersey. The company paid $103 million for these assets ($64 million in cash and the assumption of $39 million of debt).
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The company continues to expand its wireless capacity and coverage. That’s paying off as customers use more mobile data for services like music downloads, mobile gaming and e-books.
As well, earlier this year, Atlantic entered the solar energy market by acquiring 28 solar farms in Massachusetts, California and New Jersey. The company paid $103 million for these assets ($64 million in cash and the assumption of $39 million of debt).
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Today, a look at how good companies deal with adverse circumstances. Two dominant Japanese carmakers, Toyota and Honda, have had to deal with massive recalls and repairs from faulty airbag inflators. But both continue to benefit from strong international sales and a lower Japanese yen. Faulty airbag inflators made by Takata Corp. have forced Toyota to recall 8.1 million vehicles since 2008, while Honda has had to fix 20 million cars....
Two U.S. stocks that tap into “big data” to serve financial firms are good stocks to buy as they trade near their all-time highs.
FORTIS INC., $36.28, Toronto symbol FTS, began supplying electricity to St. John’s, Newfoundland, in 1885. The company is now the main power utility in Newfoundland and PEI. As part of diversification plan, Fortis acquired other power utilities in other parts of Canada, as well as in the U.S. and Caribbean. It also invested in office buildings and hotels. The company now wants to focus on its highly successful utilities. As a result, it recently sold its commercial real estate operations for $430 million. This business’s properties, located in New Brunswick, Nova Scotia and Newfoundland and Labrador, included 10 office buildings, one mixed-use office complex and three shopping centres....
Meta Description: Thanks to a key European acquisition and new fleet of planes, FedEx maintains its position as one of our best stocks to buy in the U.S.
Our latest update on two Canadian bank stocks, both of which have seen their international expansion plans bear strong results.
As the “Internet of Things” grows, Texas Instruments’ strong focus on analog chips makes it one of our top U.S. stocks to invest in.
As it improves the performance of a big 2013 acquisition, ConAgra solidifies its position as one of our top stocks to buy in the U.S.
To know how to trade stocks successfully, you need to know the right time to sell stocks. Here’s our advice.
ISHARES MSCI EMERGING MARKETS INDEX FUND $40.91 (New York symbol EEM; buy or sell through brokers) aims to track the MSCI Emerging Markets Index. The fund’s geographic breakdown includes China, 24.8%; South Korea, 14.6%; Taiwan, 12.9%; South Africa, 7.4%; Brazil, 7.2%; India, 7.0%; Mexico, 4.6%; Russia, 3.9%; Malaysia, 3.3%; Indonesia, 2.5%; Thailand, 2.1%; and Turkey, 1.5%.
Its top holdings are Samsung Electronics (South Korea), 3.2%; Taiwan Semiconductor (computer chips), 2.9%; Tencent Holdings (China: Internet), 2.6%; China Mobile, 2.0%; China Construction Bank, 1.8%; Industrial & Commercial Bank of China, 1.6%; Naspers (South Africa: media and Internet), 1.4%; Hon Hai Precision Industry (Taiwan), 1.0%; and Ping An Insurance of China, 1.0%.
Its industry breakdown includes Financials, 28.1%; Information Technology, 19.0%; Consumer Discretionary, 9.3%; Consumer Staples, 8.0%; Energy, 7.8%; Telecommunication Services, 7.3%; Materials, 7.0%; and Industrials, 6.8%.
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Its top holdings are Samsung Electronics (South Korea), 3.2%; Taiwan Semiconductor (computer chips), 2.9%; Tencent Holdings (China: Internet), 2.6%; China Mobile, 2.0%; China Construction Bank, 1.8%; Industrial & Commercial Bank of China, 1.6%; Naspers (South Africa: media and Internet), 1.4%; Hon Hai Precision Industry (Taiwan), 1.0%; and Ping An Insurance of China, 1.0%.
Its industry breakdown includes Financials, 28.1%; Information Technology, 19.0%; Consumer Discretionary, 9.3%; Consumer Staples, 8.0%; Energy, 7.8%; Telecommunication Services, 7.3%; Materials, 7.0%; and Industrials, 6.8%.
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