1 / 29

General Body Meeting 9/15/10

General Body Meeting 9/15/10. Agenda. Announcements Junior analysts Upcoming info sessions Financial regulation headline Portfolio review General Growth Properties Update Brain teaser answer Conclusion. Junior analysts. Tech: David Kim, Zach Peskin , Josh Lyons, Nicole Kim Media:

angus
Download Presentation

General Body Meeting 9/15/10

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. General Body Meeting 9/15/10

  2. Agenda • Announcements • Junior analysts • Upcoming info sessions • Financial regulation headline • Portfolio review • General Growth Properties Update • Brain teaser answer • Conclusion

  3. Junior analysts • Tech: David Kim, Zach Peskin, Josh Lyons, Nicole Kim • Media: • Macro: Duane Mitchell, Larry Kogos, Mollie Maher • Financial Institutions: Phil Crawford, Adam Nicoletti, Albert Esteves, Jessica Zapas • Real Estate: James Bosco, Wen Jun Wong, Brian Hong • Energy: StephMenke, Andrew Schoen, Stephen Lane, Andrew Kugler • Consumer/Retail: Philip Gatto, James Rockas, Andrew Schrichte • Industrials/Basic Materials:

  4. Buying shares • All members participating in the management of the fund must purchase a minimum of 3 shares • Investments will be collected next week

  5. What to do next • If you are a junior analyst • Reach out to your senior analyst and await instructions • Attendance at general body meetings is mandatory • If you are not a junior analyst • Highly encouraged to attend education sessions (5:00-6:00pm)

  6. Basel III • Banks will have to keep more capital on hand to protect against huge investment losses • They have to hold common equity to the value of 4.5% of their assets by 2015 up from 2% • By 2019, need a 2.5% capital conservation buffer of common equity to be run down during financial stress • Tier 1 leverage ratio of 3% • Bank stocks led gains for Europe’s stock markets • The euro gained 0.7% against the dollar

  7. Credit Suisse Group(CS) • P/E ratio 9.2 compared to industry 10.7 • CHF 14 million net inflows of new assets • Increase in market share in AM and IB • Industry-leading capital strength; Tier 1 of 16% • Continued movement to a more conservative risk profile • Hiring up 5% • Q2 EPS of $1.12 with share price of $46.91 • Recommendation: Hold

  8. Technology Sector Holdings • Cisco Systems, Inc. (CSCO) • Consumer electronics, networking and communications • Hewlett-Packard (HPQ) • Computing, data storage, and networking hardware • iGo, Inc (IGOI) • Power products for electronic devices

  9. Cisco and HP

  10. iGo, Inc • Different story from Cisco and HP • Short-term play

  11. América Móvil (NYSE: AMX)

  12. AMX- Overview • Leading provider of wireless telecommunications in Mexico, owned by Carlos Slim • Fifth largest mobile operator (number of subscribers) in the world • Largest company in Latin America: operates throughout Latin America, U.S.A., and South America

  13. AMX – Recent News • Performance since summer: up 3% • Fixed line expansion to compete with telefonica • Acquires Telmex, Mexico’s largest carrier of telephone and Internet service • Partially owns NETC, largest cable operator in Brazil • Q2 Earning • Subscribers up 30.7% • Revenue up 12% YOY

  14. AMX - Analysis • Bullish on Latin America • Control over Mexico telecom market • Growth in fixed line operation • Strong liquidity position • Some concern over 3G competition

  15. GLD • Current Price: 123.99

  16. GLD (continued) • Falling value of the USD • Against Euro, CAD, AUD, Asian currencies • Growth and strong demand from China and India • Consistent fear of inflation (though experienced volatility along the way)

  17. Union Pacific Corp (UNP) • Recommendation: Hold • Thesis: • Best way to play recovering economy • Efficient method of transportation • Undervalued • Great business with a durable competitive advantage

  18. Major Events Since Purchase • Post purchase drop • Bad outlook by management • Rebound • Warren Buffett: BNI • Reports earlier this year of higher car loadings.

  19. Recent Events • Q2 Earnings • Record EPS of $1.40 • 52% improvement yoy. • Total revenue growth of 27% yoy • All segments • Operating Ratio of 69.4% • Best ever

  20. Occidental Petroleum (OXY) • Recommendation: Hold • Oil and gas producer • Small chemical business • Strong balance sheet • Debt/Equity .08 • Steady production gains • Primarily onshore

  21. Original Thesis • Oil was undervalued • Good reserve replacement ratio • Well run company

  22. Second Quarter Earnings • Q2 2010 net income $1.1 billion ($1.31 per diluted share). • Quarterly yoy production volume growth of over 3 ½ percent. • Management style

  23. Boardwalk Pipeline Partners (BWP) • Simple: Gas transportation and Storage in Southeast Region • Tax advantaged set-up • Dividend of 6.5%

  24. Thesis • Take the yield • Natural gas supply growth  pipeline demand increase. • Profit and yield will rise. • Barriers to competition • If market range bound, profit comes from dividends

  25. Recent events • Q2 Earnings • Revenue disappoints • Likely temporary • Joint anomalies • Basis spreads on interruptibles • Macroeconomic weakness • Treasury yields dropping • Range bound market

  26. Procter & Gamble • The Procter & Gamble Company manufactures and markets consumer products in countries throughout the world. • The Company provides products in the laundry and cleaning, paper, beauty care, food and beverage, and health care segments. • Procter & Gamble's products are sold primarily through mass merchandisers, grocery stores, membership club stores, drug stores, and neighborhood stores.

  27. Original Thesis • Portfolio of strong billion dollar brands • Consumer preference for quality and strong value in tough economic environment • Consistent strong performance throughout all markets • Trading at a discount due to fearful market sentiment despite stronger fundamentals • Low risk play on economic recovery

  28. Flat Performance, Currently at $60.64

  29. Updates • New Environmentally Friendly Compacted Laundry Detergent Formula to join Future Friendly Portfolio of Products • P&G reaffirmed expected organic sales growth of 4-6% • P&G investing $1 billion over 5 years in China to develop research and manufacturing centers closer to consumers • Look for PG to beat analyst estimates and for the stock price to bump up

More Related