General Meeting 1 9.9.2014 Opening Remarks Information about USIT –Who we are –What we are about...
-
Upload
rolf-henry -
Category
Documents
-
view
218 -
download
3
Transcript of General Meeting 1 9.9.2014 Opening Remarks Information about USIT –Who we are –What we are about...
General Meeting 19.9.2014
General Meeting 1
Opening Remarks
• Information about USIT – Who we are – What we are about
• Criticize me – Help me do a good job
General Meeting 1
Meeting Agenda
Announcements Portfolio Update Market Overview Lecture: Introduction to the World (Finance) Pitch: YNDX Important Dates
General Meeting 1
2014-2015 Campaign
• USIT will be giving away $1,000 this year – Funded by last year’s portfolio gains
• You decide where the money goes
General Meeting 1
Important Dates
• Thursday, Sept. 11, 7PM; CBA 4.328- SCG Workshop
• Thursday, Sept. 11, 11:59PM- Officer and SCG Apps Due• Sat., Sept. 13- Officer Interviews and SCG Lunch • Sun, Sept. 14- SCG Interviews
• Remember to pay your dues to apply for an officer position!
• 2 Free meetings • Get free T-shirt if you pay by midnight tonight
General Meeting 1
Leadership
Opportunities for leadership:
Operations & FinanceMarketing & Advertising
Investing
Logistics ChairAdvertising Chair SCG Junior Analyst
New USIT members are granted the title of Fund Analyst
Technology Chair
Treasurer
Membership Chair
General Meeting 1
Strategic Capital Group
Director of Investment
Director Director Director
Senior Analyst
Senior Analyst
Senior Analyst
Senior Analyst
Senior Analyst
Senior Analyst
Senior Analyst
Junior Analyst
Junior Analyst
Junior Analyst
Junior Analyst
Junior Analyst
Junior Analyst
Junior Analyst
Director Director
General Meeting 1
Opening Remarks cont.
• Applying to SCG• Applying for Officer positions • What happens if I don’t get
in? !?!??!!??!!??!!??!?!?!?!?!?!?!?!?!?!?!?
General Meeting 1
Announcements
•Build and manage your own virtual portfolio• Compete with other McCombs students
• Top three winners receive prizes in January
Register at usiteam.org/even
ts
Fall Portfolio Challenge
$5entry fee
General Meeting 1
Announcements
• Pitch a stock to a panel of industry professionals• Network with investors across the country
• Prize pool TBD
Saturday November 1SP
www.usiteam.org/events
THE TEXAS STOCK PITCH COMPETITION2014TX
General Meeting 1
Announcements
Free Wall Street Journal digital access for paid members
Contact [email protected] to receive login information
General Meeting 1
Workshop
WorkshopsEvery Thursday 7-8PMCBA 4.328
Topic this week:• Basic Terminology
General Meeting 1
VIP Speaker
WorkshopsEvery Thursday 7-8PMCBA 4.328
Topic this week:• Basic Terminology
General Meeting 1
Student Consulting Initiative
WorkshopsEvery Thursday 7-8PMCBA 4.328
Topic this week:• Basic Terminology
General Meeting 1
Portfolio Update
Stock Shares Cost per Share Total Cost Basis Price per Share Market Value Gain/Loss Gain/Loss %AAPL 21 $69.48 $1,459.08 $98.64 $2,071.44 $612.36 42.0%ADNC 50 $10.51 $525.50 $8.56 $428.00 ($97.50) -18.6%CBRX 125 $6.82 $852.13 $5.91 $739.21 ($112.91) -13.3%
IDT 75 $18.00 $1,349.65 $15.54 $1,165.50 ($184.15) -13.6%SWKH 400 $1.13 $450.00 $1.46 $584.00 $134.00 29.8%
U 125 $4.64 $579.68 $4.76 $594.86 $15.18 2.6%
AGX 25 $21.67 $541.75 $38.22 $955.50 $413.75 76.4%AIG 15 $49.37 $740.55 $55.18 $827.70 $87.15 11.8%
ACC 10 $35.73 $357.30 $39.85 $398.50 $41.20 11.5%
GY 50 $17.02 $851.00 $17.92 $896.00 $44.99 5.3%
LF 100 $8.21 $821.00 $6.32 $632.00 ($189.00) -23.0%
BBRY 100 $10.37 $1,037.00 $10.26 $1,025.50 ($11.50) -1.1%MUSA 15 $39.29 $589.35 $54.13 $811.95 $222.60 37.8%FNMA 100 3.21 321 3.44 $344.00 $23.00 7.2%
GENC 47 10.62 499.14 10.07 473.29 -25.85 -5.2%
General Meeting 1
Portfolio UpdateSector Exposures Dollar Amount % AllocationInformation Technology $3,524.94 34%Energy $0.00 0%Consumer Services $0.00 0%Consumer Goods $0.00 0%Financials $2,154.20 21%Industrials $2,324.79 22%Health Care $739.21 7%Utilities $0.00 0%Telecommunication Services $1,165.50 11%Basic Materials $594.86 6%
Sector Exposures + CashInformation Technology $3,524.9 26%Energy $0.0 0%Consumer Services $0.0 0%Consumer Goods $0.0 0%Financials $2,154.2 16%Industrials $2,324.8 17%Health Care $739.2 5%Utilities $0.0 0%Telecommunication Services $1,165.5 9%Basic Materials $594.9 4%Cash $3,049.3 22%
26%
0%
0%
0%
16%
17%
5% 0%
9%
4%
22% Information Technology
Energy
Consumer Services
Consumer Goods
Financials
Industrials
Health Care
Utilities
Telecommunication Services
Basic Materials
Cash
General Meeting 1
Portfolio Update
General Meeting 1
Portfolio Update
General Meeting 1
Portfolio Update
General Meeting 1
Investment Thesis - Gencor
Due to Gencor’s strong product differentiation and vertical
offerings coupled with strong highway industry growth and a consolidation of asphalt plants,
Gencor is well positioned with strong financial backing to seize substantial profits in the industry
and appreciate to $13.69 its value.GENC
General Meeting 1
Cash is near equal to Market Cap, perfect for capitalizing on future cash flows
General Meeting 1
Market Overview: Major Indices
General Meeting 1
Market Overview: Unemployment
142,000 Job created Unemployment rate drops to 6.1%
General Meeting 1
Market Overview: General News
General Meeting 1
Market Overview: General News
General Meeting 1
Alibaba IPO
What is Alibaba? Is it larger than Ebay and Amazon?
2013 transactions totaled $248 bn More than Ebay + Amazon
General Meeting 1
Alibaba IPO
Why am I talking about Alibaba? IPO
Midpoint price range of $155 bn
General Meeting 1
Alibaba IPO
2. By buying stock in Alibaba you get stock in? A. The Dallas Cowboys B. Chinese equivalent of social security C. Alibaba D. An agency in the Cayman Islands
1. By buying stock in Samsung you get stock in? A. The Bundesbank B. A off shore account in Jamaica C. Samsung D. A South Korean Pension fund
3. The largest IPO in U.S. history was? A. AT&T B. Visa C. General Motors D. Facebook
General Meeting 1
Lecture: Introduction
• Industry• Monetary Policy• Fiscal Policy• Econ• Relative Valuation
General Meeting 1
American Peak Oil
General Meeting 1
World Peak Oil
General Meeting 1
Crude Oil Production
General Meeting 1
Natural Gas Production
General Meeting 1
R/P Ratio
General Meeting 1
QE
• What is it – What were the stages?– Why was it implemented – Was it a good idea?
General Meeting 1
Quantitative Easing Stages
General Meeting 1
Zero Low Bound
General Meeting 1
US Debt
General Meeting 1
US Debt
General Meeting 1
US Debt
General Meeting 1
Econ
-3%
-1%
1%
3%
5%
0
40
80
120
160
2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2
GD
P G
row
th %
Inv
ento
ry C
han
ge
($ B
illio
ns)
Inventories v. GDP
Change in Inventories Quaterly GDP Growth
General Meeting 1
Cost of Capital
General Meeting 1
Stock Price
AAPL
$97.99 per share
FB
$76.67 per share
If we want to invest in cheap stocks (buy-low-sell-high), which would you invest in?
General Meeting 1
Stock price is arbitrary!
A company wants to sell a bunch of stock onto a stock exchange to raise money (IPO)
The company needs to raise $100 million
The company gets to choose the stock price it wants to issue the stock at
1 million shares @ $100 each10 million shares @ $10 each100 million shares @ $1 each1 billion shares @ $0.10 each
Price is only used to gauge how much you make off a buy-and-sell trade. It is NOT a determinant of value
General Meeting 1
Back to multiples
• We want to figure out if an investment is cheap
General Meeting 1
Relative Valuation
• Much in the way price is arbitrary for fruit until you standardize it per unit of weight, stock price can be standardized per unit of earnings
Price per share
Earnings per share
Total earnings / total shares
=Tells you how much you pay per dollar of earnings
Investors tend to want to pay less for a dollar of earnings like paying less per pound of fruit
=
General Meeting 1
Price to Earnings Example
AAPL
=15.82x
FB
$76.67$97.99
$6.19 $.92
=83.28x
General Meeting 1
Interpreting a P/E Multiple
• Lower isn’t always better– For better, safer, growing companies,
investors are willing to “pay a higher multiple”– Sometimes a higher multiple indicates
expectation the company will “grow into it”
• Cheap has two meanings– You can get a good price– But that also means you could be getting bad
quality