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Do you want a larger income stream with lower risk investments? by J Randy Durig

April 23,2006


Do you want a larger income stream with lower risk investments?

CLOSED END FUNDS for GROWTH and INCOME

If you’re looking for more income, this article could shed some light on the advantages of deeply discounted closed end funds and demonstrated advantages over no-load mutual funds, exchange traded funds (EFT), and loaded mutual funds for income investors. In my over 20 years of investing I’ve constantly seen people make the same mistake of paying too much for their investment. This article is designed to educate on a very unique investment style designed to achieve a greater probability for growth, higher current income, and lower overall risk.


First some basic facts about closed end funds

According to Lee, Shleifer and Thaler (1990) from 1980-1998 the average discount on most US closed end fund varied from 0-20% and averaged around 5%.

According to the Investment Company Institute, at the end of 2005 there were 634 closed-end funds with combined assets of about $276.35 billion.
Many of the same managers of open end funds have loaded and no-load funds along with closed end funds and often have similar investments, risk, and returns.

The four main factors about closed ended fund from Lee, Shleiler and Thaler.
Closed end funds are:
1. Issued at net asset value (NAV) or above
2. On average they trade at a relative discount
3. The discount or premium is subject to wide variations over time and across all funds and classes.
4. At termination, the price converges back to NAV

How to increase your income

I will use the Gabelli Dividend & Income Trust or symbol (GDV) as our example. It’s currently trades at a 15.71 % discount and has a 6.64% income from dividends. What this means is that for every $85 dollars invested you will have $100 that’s working for you. At the end of every day the markets calculates the value of the portfolios. For instance, your portfolio is worth 100,000 dollars you could sell it to your spouse or someone else for $85,000 that is what a 15% discount means. Now if that $100,000 portfolio was paying 5.65% or $5,650 dollars per year in income as dividends, then a person now bought it at $85,000 will still receive that same dollar amount or $5,650 income. But since the income from the portfolio is the same and the cost is about $15,000 dollars lower than the new current income is 6.64%. We would like to take you through three simple examples, since the Gabelli investing family has closed loaded and no load funds. I would make the same assumption on the next three examples that the manager had the same stocks in each structure.

#1 Closed end fund
(a) You invest at a 15% discount and immediately start receiving almost a 6.64% current income. If you get lucky a buy out firm purchases the fund in the second year and turns it into a no load open-ended fund. The net asset value does not change. You still make 15% in principle and about 6.64% income per year; it works out to be 13.86 % per year over two years assuming no market change.
(b) If there is no buyout and the selling price and NAV did not change at all, you make 5.65% per year over two years
#2 No-load mutual fund & ETF You invest in a no load fund trading at NAV or ETF with no sales change and it has no change in net asset values in two years. At 5.40% per year in dividend and thus have a return of about 5.40% per year over two years.
#3 Loaded mutual fund You invest in the Gabelli fund with a 5.75% load fund. With a 5.75% load you’re paying $105.75 dollars for every $100 that gets invested, it will take over a year in dividends in this case to break even in principle. Again if the asset value does not change in two years your income is about 5.3% based on the dividend at NAV and that would net you about a 2.6% total return per year over 2 years.

Comparing #1(a) to #2 scenarios for the Gabelli funds.
If a buy-out did occur #1(a) would received a 15% gain in principle plus still receive about a 15% higher current income, the old closed end fund would be repositioned into #2 category as a no-load fund trading at NAV.
Conclusion: The larger the discount the higher probility of making money in principle

Comparing the #1(b) to #3 scenarios on the Gabelli funds
The closed end fund from the same family was about 20% cheaper for every dollar invested in principal plus assuming similar stocks you would receive about a 20% higher income per year.
Conclusion: The larger the discount the higher the income each year

Risks

The only two addition risks that we could identify was that closed end funds have:
1. Higher volatility- meaning the price could go up and down more than traditional mutual funds.
2.* Even if purchased at a large discount the discount could become even greater over time.

To Reduce Risk

With an effort to reduce the risks associated with closed ended funds at deep discounts with high income we recommend diversification using many different asset classes and fund families utilizing asset allocation approach. In our growth and income model we use 7 different asset classes to provide a balanced portfolio. This structure was designed to minimize fluctuations. For example, an event that might hurt one class of investments might benefit another. An example of this is after the 9/11 terrorist attack and the 2000 stock market crash. In both cases the stock market had a tremendous sell off, but the high grade bonds had very large rallies. During those two events the stock market and high grade bonds were not correlated. Many experts believe diversifying between asset classes is the single best way to reduce volatility risk

When building portfolio’s we use a selection criteria that focus on: unique asset classes, deep discount , high yield, consistency of payments, ongoing fee’s and other factors we incorporate into the selection are, past track record of the fund, and past track record of the management team, and of course the management team. We apply our selection criteria to over 600 closed ended funds with a goal to find only 1 or 2 in each asset class that fits our needs.

Simply don’t put all your eggs in one basket. If the assets classes are non-correlated then this reduces the portfolio risk.

How to Increase your Principle

Now performance here is what the USA Today said about discounted closed end funds “If you're patient, buying funds at a steep discount can be extremely lucrative? For example, suppose you divided the closed-end universe into fifths, starting with the most expensive. The priciest 20 percent gained 48 percent in the past five years. The 20 percent with the steepest discounts, however, soared 160 percent.”

According to USA today the returns for largest discounted closed end fund beat the premium funds by 300%

Common Sense

It just makes good common sense. The less you pay for an investment the higher the probability of getting a better return. Finding an investment at a 10-20% discount for similar portfolio’s that others are paying a premium is very basic to investing. The next time someone is selling you a ETF or a mutual fund with a 5% load just for income just remember this paper because you might be able to find a similar portfolio from the same managers in a closed end fund with 10-20% cheaper plus receive about a 10-20% higher current income.
If you invest in a deep discount closed end fund with high income you receive more invested principle for less money.

Our current growth & income model average statistics
Portfolio Average Yield 7.61%
Portfolio Average Discount to NAV 14.12%
Number of Closed end funds 8
Different fund families 8
Current Asset classes- Large Capitalization Growth, Growth, Global Income, Utilities, Foreign Government Income, Real Estate, Preferred, and Convertibles


Conclusion

It is our conclusion that when you pay less for investments you have a greater probability of achieving a higher return. With income investments we believe you could achieve the best of both worlds. With deeply discounted closed end funds with high income we believe you have a greater chance of increasing your principle, plus at the same time earning as much as a 20% higher income today.

Hopefully this paper demonstrated that utilizing deep discounted closed end funds combined with professional asset allocation, a portfolio can achieve a greater probability for growth, higher current income, combined with lower overall risk.


Randy Durig manages the several Portfolio's including the Growth @ Income Portfolio to see the full list go to www.durig.com
Durig’s Monopoly Blue Chip Portfolio National Performance Rankings: 3rdIn the United States, Ranked by 3 year annual return , for Large Capitalization Blend, 4th Quarter 2005, By Money Manager Review
Durig Capital is a registered investment advisor. If you know someone that would like our research services just enclose the name, day time phone, and email or rdurig@durig.com or call toll free 877-359-5319
Randy Durig owns Gabilli dividend and income trust in discretionary client's portfolios and in his own account. Past performance is not a guarantee for future returns. All information we believe to be correct but make no guarantee to accuracy

For more information about closed end mutual funds go to[url]http://www.durig.com[/url]. For more information about profession money management with investment newsletters go to [url]http://www.money-manager.us[/url] [url]http://www.investment-investment.us[/url]has about 70 articles including this one on just mutual funds, ETF and closed end mutual funds

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Canine Coccidia by Kristen Kesler

Intestinal tract infections in puppies are often caused by single cell organisms called coccidia.

What are coccidia?
Coccidia are small protozoans (one-celled organisms) that multiply in the intestinal tracts of dogs and cats, most commonly in puppies and kittens less than six months of age, in adult animals whose immune system is suppressed, or in animals who are stressed in other ways (e.g.; change in ownership, other disease present).

As a puppy ages, he tends to develop a natural immunity to the effects of coccidia. As an adult, he may carry coccidia in his intestines, and shed the cyst in the feces, but experience no ill effects. It should be mentioned that stress plays a role in the development of coccidia. It is not uncommon for a seemingly healthy puppy to arrive at his new home and develop diarrhea several days later leading to a diagnosis of coccidia. If the puppy has been at the new home for less than thirteen days, then he had coccidia before he arrived. This is because the incubation period (from exposure to illness) is about thirteen days. If the puppy has been with his new owner several weeks, then the exposure to coccidia most likely occurred after the animal arrived at the new home.

How are coccidia transmitted?
A puppy is not born with the coccidia organisms in his intestine. However, once born, the puppy is frequently exposed to his mother's feces, and if the mother is shedding the infective cysts in her feces, then the young animals will likely ingest them and coccidia will develop within their intestines. Since young puppies, usually those less than six months of age, have no immunity to coccidia, the organisms reproduce in great numbers and engulf the young animal's intestines. Oftentimes, this has severe effects.

From exposure to the coccidia in feces, to the onset of the illness, is about 13 days. Most puppies who are ill from coccidia are, therefore, two weeks of age and older. Although most infections result from contamination from the mother, this is not always the case. Any infected puppy or kitten is contagious to other puppies or kittens. In breeding facilities, shelters, animal hospitals, etc., it is wise to isolate those infected from those that are not.

What are the symptoms of coccidia?
The primary sign of an animal suffering with coccidia is diarrhea. The diarrhea may be mild to severe depending on the level of infection. Blood and mucous may be present, especially in advanced cases. Severely affected animals may also vomit, lose their appetite, become dehydrated, and in some instances, die from the disease.

Most infected puppies are in the four to twelve week age group. Because of this, the possibility of coccidia should always be considered when a loose stool or diarrhea is encountered in this age group. A microscopic fecal exam by a veterinarian will detect the cysts confirming a diagnosis.

What are the risks?
Although many cases are mild, it is not uncommon to see severe, bloody diarrhea result in dehydration and even death. This is most common in animals who are ill or infected with other parasites, bacteria, or viruses. Coccidia is very contagious, especially among young puppies. Entire kennels may become contaminated, with puppies of many age groups simultaneously affected.

What is the treatment of coccidia?
Fortunately, coccidia is treatable. Drugs such as Albon have been effective in the treatment and prevention of coccidia. Albon is a low-dosage, rapidly absorbed, long-acting sulfonamide, effective for the treatment of coccidia; however, Albon is only available through a prescription. Because these drugs do not kill the organisms, but rather inhibit their reproduction capabilities, elimination of coccidia from the intestine is not rapid. By stopping the ability of the protozoa to reproduce, time is allowed for the puppy's own immunity to develop and remove the organisms.

How is coccidia prevented or controlled?
Because coccidia is spread by the feces of carrier animals, it is very important to practice strict sanitation. All fecal material should be removed. Housing needs to be such that food and water cannot become contaminated with feces. Clean water should be provided at all times.

Sulfa drugs administered orally such as Albon are approved for use in dogs and have been very effective in treating the disease. Many kennel owners try to prevent the disease through continuous medication. The best strategy to prevent disease is through the reduction and elimination of stress and to thoroughly treat any infected dogs. Dogs that exhibit signs of coccidia should be isolated to help prevent the contamination of the environment. Also, dogs should be bathed and sanitized whenever possible to eliminate as many of the organisms as possible in the environment.

The coccidia species in dogs and cats do not infect humans.

Lambriar Vet Supply is the Professional's Authority in the Pet Care Industry.

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Computer Education Training by Michael Bustamante

Computer education training is offered everywhere these days, from the preschool playroom, to vocational and trade schools, to the graduate level university classroom. The primary goal of computer education training in a vocational school setting is to prepare students for negotiating today's world, as every aspect of commerce and business today is tied to computers in some way or other.

Computer education training has come to mean attaining access to the world and learning how to negotiate through the intense exposure to and use of computer technology that surrounds us daily. Computer schools teach practical, real-world skills that are directly related to most careers in business, education, commerce, and communications today; they have become vital for moving and working around the entire globe. Computer education training can also enhance the efficiency of the home office, personal finances, home-spun craft making, or simply running a household.

Computer education training degree programs and certificate programs are available in nearly any area of choice, and are awarded for applications in fields of study including arts, humanities, sciences, information technology (IT), computer software and hardware, computer networking, government and business analysis, marketing, and commerce. Students who have completed comprehensive computer education training can apply this technology in traffic control, school curriculums, building design, or almost anything else imaginable.

Having successfully graduated from a quality vocational computer education training program assures some form of job security, whether choosing to work at home, a small business, or in some large corporate office. Computer education training gives one the knowledge vital to competing in today's job market or just to enjoy being 'in the know.'

If you are interested in learning more about Computer Education Training and accredited Computer Schools and Online Computer Schools, research our website today and find the right school for you!

DISCLAIMER: Above is a GENERAL OVERVIEW and may or may not reflect specific practices, courses and/or services associated with ANY ONE particular school(s) that is or is not advertised on our website.

Copyright 2007 - All rights reserved by Media Positive Communications, Inc.

Notice: Publishers are free to use this article on an ezine or website, provided the article is reprinted in its entirety, including copyright and disclaimer, and ALL links remain intact and active.

Find Vocational Schools, Trade Schools, Colleges, Universities, and Online Schools offering Computer Education Training at SchoolsGalore.com, your educational resource to locate schools.

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Shoes: Bargainvaluedeals by Jill Matt

Shoes are the part of your personality that matters more then you think. If your dress is like a book to your personality, then Ill say shoes are the title of yourself. If you are wearing a fabulous designers dress along with matching jewelry and wearing a charming make-up including most suited hairstyle, but there is a still a possibility you may not look like a bombshell.

You might be thinking what got wrong? Yes, of course the shoes what else? If your shoes don’t match the mood of your dress, then there is no way that you can create an overall stunning look. On the other hand if you are wearing a good suit (not your one of your best collection), but wearing a nice matching shoe you can give a very elegant look. Shoes are necessary for giving a final touch to a suit. Shoe choice also reflects your sense of style. There are so many shoes styles that now it has become hard to like just one when you go for shoes shopping. At least when I go for buying a shoe, I always end-up buying at least 2-3 pair of shoes.

Besides styles there are lot kinds of footwear available in the market that even make it tougher for you to buying only one pair. On every different event or activity you can wear shoes according to your need. Most commonly used shoes are casual shoes then you have athletic shoes, running, walking, wrestling, sexy, dance, and wedding, bridal, dress, designer, neutralizer, branded, men, women and kids shoes to match with your occasions. You can get a huge variety of shoes in all three main categories as men, women and kids. For any celebration you can get footwear according to the atmosphere of event for women, men and children. There are open shoes, full, boots, sandals, fancy, canvas, and casual for all. Now it also depends on your choice, sometimes you can get a beautiful fancy sandal that may not be comfortable as well, normally high heel pretty gorgeous shoes are not very comfortable but they are worth wearing. And as you know everything has its price. Some people like fancy shoes only and others may only go for casual regardless of any event.

Casual shoes are best and most comfortable to your feet. Doesn’t matter what kind of foot pain you could be suffering from -corns, flat feet, fallen arches, once you find the right pair of casual shoes; you’re not going to want to ever leave home without them. Now you can find versatility in casual shoes and you can wear it with anything. Well you know what? I know what you are thinking doesn’t matter how comfortable any casual shoe is you’ll certainly go for a designers footwear when going for a party, well I am just telling you, that you can find a large variety in casual shoes, the choice of wearing them will always be yours. Doesn’t matter what shoe you go for but still there are few consideration you should look for.

A proper fit shoes should be the only choice if the shoes fits you properly only then you can see further features in it otherwise don’t buy that shoe doesn’t matter how much you long to do that? When you wear a shoe in a shop, try it and walk in the shop to confirm the right size. Too narrow or too big shoes can only cause pain and discomfort for your foot. The next thing you’ll be considering is your life style, Are you a working lady always on the go or a domestic woman? What sort of activities you perform everyday? As if you are a working woman don’t think of high heel, get nice, elegant comfortable formal wear for you, and also try to go for common colors that can go for a lot of dresses like black, brown or gray. And on the other hand if you remain home and take care of your family then you need casual wear and you can also go for fancy when you go out partying once in a while.

The climate of your dwelling area is extremely important for buying shoes. If you live in a colder region then despite of any kind and style try to buy close warm shoes that you can wear most of the times. And on a warm climate enjoy sandals and open pretty shoes wear. Besides these basic questions there can other needs too that call for other things to look for while purchasing shoes like if you need added support for that you can choose high - topped leather or canvas upper shoe. I’ll say prefer to avoid buying cheap shoes from sales or stall, as neither do they last long nor provide comfort. Try to wear a proper thick sock when you intend to particularly buy a new shoe. These are the tips you can use in buying men and kids shoes too. Regardless of all these tips I am sure you can judge by just merely looking at a shoe whether its worth buying or not. And I am sure this verdict is seldom wrong. Maybe you’ll be thinking why to fuss so much for buying a plain piece of shoes, well Ill say these little minute details add in your personality. And I am sure you’ll not compromise on your personality.

For more Information about shoes deals visit http://www.bargainvaluedeals.com/shoes.php

Jill Murtha hosts and expresses her passion for clothing and shoes through writing and discussion. She works for Less Corporation at http://www.ixs.net. Copyright Jill Murtha - http://www.classicalmesh.com

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