Q. My husband and I own shares of Tyson Foods Inc. Can they continue to do as well as they have been doing, or is the run over? - LK, via the Internet

A. The world's largest meat company, with leading positions in the processing of beef, chicken and pork, is benefiting from increased restaurant traffic in 2010.

That, plus more consumers cooking meat at home, represents improvement from the previous period of consumer cutbacks. Processors reduced their production in 2008 due to higher feed costs and the economic slowdown, with the resulting lower supply now leading to higher meat prices.

Shares of Tyson Foods are up 43 percent this year following last year's 42 percent increase. The company, which posted a profit in its most recent quarter versus a year-earlier loss, has been streamlining plants, trimming staff and reducing debt.

Beef represents about 40 percent of revenues, chicken 36 percent, pork 13 percent and prepared foods the remainder. Selling through food services and supermarkets under the Tyson brand, it is increasingly emphasising the more profitable prepared and microwavable foods.

It received a boost from Russia's decision to resume US imports of chicken, which had been halted earlier this year on claims that a chlorine rinse violated its food safety rules. On the other hand, China has imposed tariffs on US chicken products this year.

Shares of Tyson Foods receive a consensus "buy" from Wall Street analysts, according to Thomson Reuters, consisting of six "strong buys," two "buys" and seven "holds". Moody's Investors Services raised its outlook for the company to stable from negative because of "greater stability in feed input costs and better pricing for the protein sector".

Long-time executive Donnie Smith became the firm's CEO in late 2009. Retired chairman Don Tyson controls nearly 70 percent of the firm's voting stock.

Dependent on volatile commodity prices, Tyson Foods has shortened production cycles and will be helped near-term by lower grain prices.

Avian flu, swine flu or mad cow disease can potentially pose problems for the entire meat industry.

Tyson Foods has settled a decade-long Labour Department dispute in which it agreed to pay $500,000 in overtime wages to workers at an Alabama plant for the hours spent putting on and taking off sanitary gear at the beginning and end of their shifts.

Earnings are expected to rise six-fold this year and decline three percent next year. The projected five-year annualised return of 10 percent compares to a 33 percent increase expected for the meat and food industry.

Q. Is Lazard Emerging Markets Equity Fund a good way to play that type of market? It was recommended to me. - BK, via the Internet

A. It depends on how adventuresome you are.

While this fund features an experienced portfolio manager with proven success, it has the price run-ups and steep drops familiar to emerging-markets investors. For example, it was down 48 percent in 2008 and up 69 percent in 2009.

The $14.7 billion Lazard Emerging Markets Equity Fund is up 27 percent over the past 12 months and up 2.5 percent over the three-year annualised period. Both results rank in the upper one-tenth of diversified emerging markets funds.

"The emerging-markets asset class is risky, so investors shouldn't put too much of their portfolio into it," advised Gregg Wolper, senior analyst with Morningstar Inc. in Chicago. "Day-to-day portfolio manager James Donald is disciplined, does not like to buy pricy stocks and will sell holdings when they go over a certain amount."

Donald joined Lazard Asset Management in 1996 and was named co-manager of this fund in November 2001. John Reinsberg, one of the fund's co-managers since its 1994 introduction, is a veteran investor who oversees the firm's international investing. Two other co-managers also work on the fund.

The top stocks often include names not emphasised in other emerging-markets funds.

It doesn't take large stakes in individual stocks, with no weighting of more than five percent of assets and a limit even lower than that for smaller stocks.

Financial services, industrial materials and consumer goods are the largest stock concentrations in Lazard Emerging Markets Equity Fund. In terms of countries, Brazil represents 22 percent of portfolio assets, while South Korea and South Africa are each about 12 percent. Turkey and Mexico are other significant country holdings.

Top stocks recently included Brazil's Banco do Brasil SA, Vale SA, Cielo SA, Redecard SA and Usinas Siderurgicas de Minas Gerais; Turkey's Turkiye Is Bankasi; Taiwan Semiconductor Manufacturing and South Korea's Shinhan Financial Group Co. Ltd. and Russia's Lukoil Co.

This "no-load" (no sales charge) fund requires a $2,500 minimum initial investment and has an expense ratio of 1.55 percent.

Q. What fees are tied to annuities? - MS, via the Internet

A. There are a number of fees connected with annuities, which are part insurance policy and part investment product.

Terrence Herr, managing partner with Herr Capital Management LLC, notes the following:

— Mortality and expense fee, which represents the cost of doing business with the insurer, ranging from less than one percent to more than 1.5 percent.

— The fund or sub-account expense ratio, covering costs associated with the underlying investment, usually less than one percent.

— Income or living benefits fee ranging from one-half percent to 1.75 percent that covers an added rider to guarantee an income stream as a hedge against market decline. Not included with all annuities.

"Today it is the reason we find most people are buying annuities," said Mr. Herr. "If you put in $100,000 and there's a five percent guarantee, next year that account is worth $105,000 regardless of the market."

— Surrender cost, the fee for early withdrawal. It is typically seven percent the first year and declines a percentage each year.

"If you're in an annuity for the right reason (a long-term commitment) you shouldn't be concerned with early withdrawal," concluded Mr. Herr.

Andrew Leckey answers questions only through the column. Address inquiries to Andrew Leckey, 555 N Central Ave., Suite 302, Phoenix, Ariz. 85004-1248, or by e-mail at andrewinv@aol.com

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