Investment PortfolioUniversity of Michigan, FlintFinancial Management Association

Economic Forecast

Economy is on an upward trend Economic growth stock market growth

The Stock Picks…

1. General Electric Co. (GE) Consumer and Energy Industry

2. Priceline Group, Inc. (PCLN) Travel Industry

3. The WhiteWave Foods Company (WWAV) Food Industry

4. Walt Disney Co. (DIS) Entertainment Industry

General Electric Co. (GE)Management

Jeffrey R. Immelt, Chairman of the Board and Chief Executive Officer• Named one of the “World’s Best CEOs” three times by Barron’s• Since serving as CEO, GE has been named “America’s Most Admired Company” and one of “The

World’s Most Respected Companies”• Has held several global leadership positions since coming to GE in 1982, including roles in GE's

Plastics, Appliances, and Healthcare businesses.• In 1989 he became an officer of GE and joined the GE Capital Board in 1997• Financial pivot plan for company from 2014 – 2016:

1. Growing EPS each year2. Achieving 75% of earnings from industrial businesses3. Returning $50 billion to investors4. Growing margins and returns.

• In 2014, GE’s share performance trailed S&P 500 returns; over the past five years, their total returns grew by 96%.

General Electric Co. (GE)

Advantages Recently rebalanced its portfolio

• 75% GE industrials• 25% GE capitol

Fair value is higher than GE’s stock price

Oil and gas sector wont have as much of an effect because of their diversification

Earnings estimate = 5% - 8% growth

Risks Weakening oil prices may negatively

affect the company’s oil and gas segment

Diversified Conglomerate

Priceline Group, Inc. (PCLN)Management

Darren Huston, President & CEO• Became CEO in 2014.• Previous CEO of Booking.com.

Jeffery Boyd, Former CEO & Present Chairman of the Board.• CEO from 2001-2013.• Made major acquisitions such as

Booking.com and Agonda. • Built Priceline into what it is today.

Priceline Group, Inc. (PCLN)

Advantages Lower oil prices cause the price of airfare to

decrease, resulting in more people willing to travel and use their products/services

Fair value is higher than PCLN’s stock price Growth in industry because of low oil prices Earnings estimate = 16% - 23% growth Forecasted stock price = $1206 per share

$53 (4.62%) growth per share

Risks Receives much of its revenue from

international markets• Exposes company to foreign exchange

rate fluctuations

Provider of online travel and travel related reservations

“The biggest travel trend for 2015 will be the continuing decline of the price of oil. This is going to have a very big impact on the

travelers– in a good way.”-Dan Wasiolek

The WhiteWave Foods Company (WWAV)Management

Greg L. Engles Chairman of the Board of Directors and Chief Executive Officer

• Chief Executive Officer of Dean Foods Company, a leading beverage company and former parent company of WhiteWave from 1994-2012

• WhiteWave has been the fastest growing food company in the U.S. for the past four yearsunder Engles.

• Delivered year-over-year adjusted earnings per share growth of 36%, excluding investments in their China joint venture, and meeting or exceeding quarterly earnings guidance in every quarter

• Provided oversight to the merger and acquisition strategy resulting in the acquisition and integration of Earthbound Farm and So Delicious Dairy Free, and the successful execution of the China joint venture with China Mengniu Dairy Company Limited

The WhiteWave Foods Company (WWAV)

Advantages Walmart sells Horizon WhiteWave

products Organic foods

• Organic foods industry expect a 16% growth by 2020

Earnings estimate = 16% - 24% growth

Risks More companies can rise to make

organic foods• More competition

Organic foods are currently in, but it has the possibility to fall through.

Consumer packaged food and beverage company. Manufactures plant-based foods and beverages.

Walt Disney Co. (DIS)Management

Robert A Iger, Chairman of the Board and CEO• His strategic vision focuses on three fundamental pillars

1. Generating the best creative content possible2. Fostering innovation and utilizing the latest technology3. Expanding into new markets around the world

• Iger has built on Disney’s rich history of unforgettable acquisitions • Iger has made Disney an industry leader • Iger has many awards

1. Fortune Magazine’s “25 Most Powerful People in Business (2006, 2007)2. Institutional Investor Magazine “Best CEOs” (2008,09,10,11)3. Chief Executive Magazine “CEO of the Year” (2014)

Walt Disney Co. (DIS)

Advantages Movie line-up for 2016 Upcoming season for tourists and

vacationers Upcoming opening of a DisneyLand in

Shanghai Overvalued in the short-term, but in the

long-term will even out Earnings estimate = 13% - 16% growth

Risks Failed movies Evolution of television/changing media

A media conglomerate which include media networks, ESPN, ABC, parks, branded business, entertainment and consumer products.

Estimated growth is 2.54%

2012 2013 2014 2015Net Income $13,641,00

0$13,057,000

$15,233,000

$15,620,618

Total Assets $684,999,000

$656,560,000

$648,349,000

$664,846,907

Total Liabilities $561,973,000

$525,994,000

$529,190,000

$526,983,713

Total Stockholders’ Equity

$123,026,000

$130,566,000

$128,159,000

$137,863,194

2015 ForecastGE

2015 ForecastPCLN

Estimated growth is 10.28%

2012 2013 2014 2015Net Income $1,419,566 $1,892,663 $2,421,753 $2,670,765Total Assets $6,569,742 $10,444,46

0$14,940,563

$16,476,797

Total Liabilities $2,512,480 $3,534,731 $6,373,869 $6,465,833Total Stockholders’ Equity

$3,896,975 $6,909,729 $8,566,694 $10,010,964

Estimated growth is 9.99%

2012 2013 2014 2015Net Income $113,694 $99,041 $140,185 $155,292Total Assets $2,168,011 $2,283,184 $3,372,841 $3,709,865Total Liabilities $1,383,055 $1,321,745 $2,296,354 $2,560,870Total Stockholders’ Equity

$784,956 $961,439 $1,076,487 $1,148,995

2015 ForecastWWAV

Estimated growth is 7.06%

2012 2013 2014 2015Net Income $5,682,000 $6,136,000 $7,501,000 $8,107,837Total Assets $74,898,00

0$81,241,000

$84,186,000

$90,130,915

Total Liabilities $35,139,000

$35,812,000

$39,228,000

$40,950,194

Total Stockholders’ Equity

$39,759,000

$45,429,000

$44,958,000

$49,180,721

2015 ForecastDIS

RiskAnalysis

GE DIS WWAVPCLN S&P 500

Conclusion

We recommend that we buy the stocks Weights:

• GE – 13%• PCLN – 50% • WWAV – 17%• DIS – 20%

Sources

Morningstar Direct Software http://finance.yahoo.com/ http://www.priceline.com/?refid=PLGOOGLECPC&refclickid=D

%3AcBrand10776764420g33020072412&gclid=CM6isZDWmcUCFQGNaQodTIEAbg&query=priceline&kw=priceline&match=e&adp=1t1

http://www.whitewave.com/ https://disneyworld.disney.go.com/special-offers/stay-dine/?CMP=KNC-

WDW15_Q3FreeDine_BR|G|4151300.RR.AM.02.01.OF.Q3FreeDine&keyword_id=sAzch1pRn_dc|waltdisney|43157953780|p|1540wwa14043

http://www.ge.com/ http://www.bls.gov/