Vice-President Tom Calland

Updates...

Real Portfolio... ASOS Barclays Easy Jet Savills Oxford Instruments?

HAYS Investment The Economist Future Guest Speakers Queries Bloomberg Test...

Bloomberg Test

Wednesday 13th March 2013 @ 1.30pm.

IT SUITE D; John Foster Building

Multiple Choice Exam

Free of charge

Seven of the first 60 test takers from LJMUhave already been contacted for careeropportunities with BP and GETCO.

Not just for finance students...

Accounting & Finance Adam Abbas

Fantasy Account

Profit = £14,503.44

Very encouraging start to opening period of 2013

Overall FTSE 100 has increased by 4.o3% since Jan 2013

LSU trading has seen a profit increase of 15% since Jan 2013

Society Competition

Top 20 traders in the society.

Exceptional performances from these individuals.

Standard rate of interest currently; 2.5%

Screenshot taken: Monday 26th January 2013 – 14.30

1st - £50.002nd - £25.003rd - £10.00

Annual Reports – What Are They?

Definition: A report created annually that provides an analysis and assessment of the trends of the past year.

A required document that is made available to fund shareholders on a fiscal year basis. It discloses certain aspects of a the company’s  operations and financial condition

The information within an annual report has to meet the Accounting Standards Board criteria of being relevant, reliable, comparable and understandable.

Why Are They Important: Annual reports help shareholders understand how their

investment is doing.   They are also a good starting point for people who are considering buying shares in a company for the first time

When preparing or analysing an annual report it gives the user the opportunity to reflect on the financial standing of the business for the current year and compare the given information with previous periods as to see the true credibility of the company.

Annual Reports – What Are They?

The report must be provided to shareholders to describe the company’s operations and financial conditions. The front part of the report often contains a glossy introduction with an impressive combination of graphics, photos and an accompanying narrative, all of which chronicle the company’s activities over the past year. The back part of the report contains detailed financial and operational information.

Typically, an annual report will contain  the following sections:

                                                  -Financial Highlights                                                  -Letter to the Shareholders                                                  -Narrative Text, Graphics and Photos                                                  -Management's Discussion and Analysis                                                  -Financial Statements: Balance Sheet, Profit and Loss etc.                                                  -Notes to financial statements                                                  -Auditor's Report                                                  -Summary Financial Data                                                  -Corporate Information

2011 Barclays PLC Annual Report (PDF)

Why Useful for Investment Society?

• Important to get a good understanding of company data beyond simple “is it going up or down” mentality

• In future years the society will have to be able to make supportable decisions regarding stocks and compare its past and present investments

• Gives an opportunity to put your university modules into action by applying what you learnt in the classroom to the real world.

Fund Manager Jonny Murphy

27th February – 9:30am

Overall Performance

We are still in profit overall of £14,114.71

This is less than previous weeks due to recent events and a relative dip in the market. This will be discussed further on.

If we check again at today’s close, arguably the performance will be better.

Changes to the portfolio

Sold Ceres Power Holdings with a profit of £4525

Sold Kazakhmys with a slight loss of £100

Bought into Oxford Instruments – recommended last time and should provide stability

Also bought Thomas Cook Group – represents good value

Mulberry

Mulberry has remained our strongest performer; brand power and buying at a very ‘cheap’ rate has prevailed in this instance. This has been a very safe stock for our portfolio and could be a recommendation.

Mulberry

easyJet

easyJet has also been one of our strongest performers; HOWEVER!!!!

Arguably, it has hit its peak value at 10.00 and may start to either drop off, or remain around this value.

Overall, we have made a great return from this stock.

easyJet

Thomas Cook Group

Unfortunately I made the transaction to buy £10,000 worth of TCG shares on Friday – immediately after the markets took a dip and we have lost £750.

The strategy here is to hold until they return to their value and not to sell straight away. I believe they will continue to rise consistently as they are good value.

Thomas Cook Group

So, why did the markets take a dip?

Moody’s reduced the UK’s credit rating from AAA to AA1 – this did not have such a majorly detrimental effect on the markets, but UK based shares did take a slight hit as confidence in UK investments decreases.

The main reason behind the dip is the Italian elections.

Italian Election Deadlock

European stock markets have fallen, with the inconclusive election result in Italy raising fears that political deadlock will delay economic reforms.

Italy's FTSE MIB index fell 4.9%, while London's FTSE 100 shed 1.3% and share markets in Frankfurt and Paris fell well over 2% each.

Yields on Italian bonds also rose – indicative of wary lenders to Italy.

FTSE 100 & 350 performance

Fund Performance

We should be on target to make 20% profit by the end of the academic year if stocks continue the way they are.

ANY RECOMMENDATIONS?!

Analyst Terry Mc Grenaghan

Alternative Investment Vehicles

Currently the Club only deals in stocks but there are other options.

These include FOREX or Foreign Exchange Government Bonds/Gilts High Interest Bank Accounts Gold and other precious metals Property

FOREX

Involves the buying and selling of currency. High earning potential. Low starting capital with high leverage.

Up to 200 times original capital investment With no commission. 24 Hours 5 Days a week.

Bid: Price a bank would offer to buy the currency.

Ask: Price a bank would offer to sell it.

Bank will pocket the difference known as the “Bid/Ask Spread”.

Movements in these rates are known as Pips (1/100 of 1%)

FOREX Trends

Recent UK Moody’s AAA to AA1 downgrade weakening the pound.

Longer-term, analysts expect the fall in value of the pound to continue. It has lost about 7% of its value against the dollar and euro this year. (BBC News)

UK losing safe haven status??

FOREX Note

Different FOREX markets Spot Futures Forwards

With this high leverage comes high risk you may lose 200times your original investment!

Currencies are still quite volatile as countries are only beginning to deal with problems left by the 2008 financial crisis.

Government Bonds

Government promises to pay regular interest payments.

Along with Capital Sum upon maturity of the Bond.

These are generally low risk followed by equally modest returns.

The risk/return of Bonds depends of the strength of the country in question.

This is reflected in the yield offered.

High Risk Greece high of 37.10% March 2012

Bond Trend: Irish ECB Deal Key bank debt deal with ECB. Bank Debt to be converted to bonds. Soon to make more 10year Bonds available. Strong performance as Bonds are down to pre recession

levels of 3.8%

Analyst/ Marketing Thuong-Le Phong

Oxford Instruments (OXIG)

Oxford Instruments is the first substantial commercial spin-out company from the Uni of Oxford

Specialises in design, manufacture and support of hi-tech tools and systems for industry research

Products: Coating Thickness Measurement, Cryogenic Systems, Electron Spectroscopy, Nanofabrication, Spectrometers, Superconducting Magnets.

2nd January 2013, Mars: The NASA “curiosity” land rover analysed surface samples of the mars for the first time, using a specially designed Oxford Instruments X-ray tube.

Outstanding products?

Business Conduct

Strong global presence Quick at entering new markets where science is

becoming more important Strong emphasis on opportunities to grow Smart business strategy?

Stock Performance

Proven to be a safe investment which is resistant to shock

Steady growth (going up by 500 points every year)

Broker recommendations tend towards Buy Solid stock performance?