Subfields in Finance – 09/30/2015

Market Update – by Linh C. Nguyen:

  • The Q3 market report shows the Labor market was doing well with more job openings, while Commodities and Housing markets were not doing so well with the dropping price of oil and gold.
  • The U.S stock tumbled a lot in Q3.
  • Microchip Credit Card became standard. News reported that it will be a different, but more secure way to pay. However, it takes time for market to adapt to it.

Stock Pitch – NETFLIX (NFLX) – by Fatema Esaa:

  • NETFLIX is doing Internet television network. The outstanding points about NFLX are that it has high user credibility and weak competitors. Also it keeps expanding original content and is entering Japan and other foreign markets.
  • The risk of NFLX is that it has the possibility of expanding too fast. Moreover, the Television and Music market is a volatile market. In addition, Japanese and other Asian TV markets are already very developed.
  • OIG’s recommendation is: BUY.

Career Opportunities in Finance – by Nancy Yannan Li:

  • Most finance jobs are divided into buy-side (hedge funds, asset managers, private equity, venture capital, mutual funds, etc.) and sell-side (investment banks, stock brokers, and market makers). They play different roles in the market.
  • A financial services company is usually divided into three parts: front, middle and back office. All of them play important roles in the company.
  • Consulting is not a part of the buy-side or sell-side, but is always mentioned when we talk about finance careers. It examines a client’s organization, works out the best approach to improve it, and implements agreed actions to bring about positive, lasting and profitable change.


Investing 101 – 9/23/2015

Market update – by Linh C. Nguyen:

  • Oil price dramatically declines over the past 14 months. Big companies suffered from paying revenues to interest on debt. Also many oil companies had laid off thousands of employees.
  • Based on the concern about fragile global economy, low US inflation rate, and unstable stock market, the Fed decided to hold off from raising interest rate.
  • Boeing signs massive deal to sell 300 aircraft to Chinese firm. Following is the link of this news video.

Stock Pitch-Why not Kors – by Hunter Rendleman:

  • Michael Kors Holdings Limited (KORS) was doing extremely successful overseas and at home from the end of 2013 to 2014. During 2014, KORS had significant increase in stock price. Therefore, OIG decided to start buying KORS from Dec 2013.
  • However, KORS, as a fashion company, is risky. Their supply and demand basically depends on consumers’ personal preference. They also face competition from other similar fashion brands.
  • Starting from Q1 2015, people realized that KORS was overvalued, and thus the stock price drops quickly. In Sep 2015, OIG decided to sell all the shares of KORS.

Investing 101 – by Nancy Yannan Li:

  • “Investing is the act of committing money or capital to an endeavor with the expectation of obtaining an additional income or profit.”
  • In order to make wise investment decisions, analysis is essential. There are two types of analysis: fundamental analysis (qualitative and quantitative research) and technical analysis (statistics analyzing). For fundamental analysis, there are two approaches: top-down (start from sectors or industries to specific companies) and bottom-up (start from companies and then consider micro factors).
  • Here are some useful resources: Investopedia, Yahoo! Finance, Google Finance, Wall Street Journal, Mergent Online, and Zinio Magazine Subscription.

Annual Summer Internship Panel – 9/16/2015


Panelists list is as follows:

• Rachael Abraham (Economics Major, Class of 2017, BMC) :

– Select Venture Partners, Washington DC

– Investment and Return Summer Intern

• Angela M. Blatz ( Economics & German Major, Class of 2016, BMC):

– J.P. Morgan, New York, NY

– Asset Management: Private Bank Capital Market Intern

• Siran Tang (Mathematics Major, Class of 2016, BMC):

– Cantor Fitzgerald, New York, NY

– eCommerce: Summer Intern

• Nancy Yannan Li (Economics Major, Class of 2016, BMC) :

– Barclays Capital, New York, NY

– Global Markets: Sales and Trading Intern

• Ziye Lin (Mathematics & Computer Science Major, Class of 2016, BMC ):

– Transamerica, Baltimore, MD

– Corporate Risk Management: Actuarial Intern

Panelists shared experiences of their summer internship. They talked about their responsibilities as summer interns, the most rewarding moments and also the challenges they faced.

We would like to thank all of the panelists for coming and sharing their experiences with us.

Introductory Meeting – 9/9/2015

This is the first meeting Bryn Mawr Owl Investment Group holds for 2015 fall semester.

This meeting is mainly for new students to know about OIG. Firstly, Yannan Li, the president of OIG, introduced key facts about OIG and gave a preview of the special events OIG will hold this year. Then, Siran Tang, the portfolio manager, gave a brief portfolio report. Following that, we played icebreakers and brainteasers to let members get to know each other better.

We thank all who came for their interests in OIG.

Welcome New Board Members & Portfolio Committee

We are proud to announce our new Board Members and Portfolio Management Committee!

Board Members 2015-2016

Executive Director: Nancy Yannan Li

Portfolio Manager: Siran Tang

Treasurer: Linh Nguyen

Public Relations Chair: Camilla Dornquast

Secretary: Trista Cao

Portfolio Management Committee 2015-2016

Siran Tang
Linh Nguyen
Hunter Rendleman
Camilla Dornquast
Fatema Sheikh
Rachael Abraham

Wish the new board members and portfolio management committee the best of luck for the upcoming academic year!

General Meeting(04/08/2015)

Market Update

U.S Market

  • Stocks higher last week on Easter Holiday
  • Job Report was disappointing
  • Stocks moved higher today after Fed’s minutes
  • Members of FOM: appropriate to raise interest rate at June meeting
  • Central bank doesn’t need a rise in core inflation before normalizing policy
  • Dow up 0.2%, S&P up 0.3% and Nasdaq up 0.8%
  • U.S crude oil dropped a lot

Foreign Market

  • Europe’s stimulus package has caused borrowing cost to decrease significantly
  • Several countries to issue 5- yr bond with negative yield
  • Hong Kong stock hit seven year high


  • FedEx announced to purchase TNT Express for 4.4 billion Euro in cash
  • Royal Dutch Shell to purchase BG Group for 69.6 billion in cash and share.(horizontal merger)

General Meeting(04/01/2015)

Market Update

U.S Market

  • The benchmark U.S oil price jumped 5.2% to its largest one- day gain in nearly two months
  • Lower than expected economic data such as private employment and manufacturing data, caused stocks to fall

Foreign Market

  • Greece failed on Tuesday to reach an initial deal on reforms with its lenders, a precondition for financial.
  • Chinese officials indicated that there is room to ease monetary policy to help boost economic growth


Go Daddy IPO:

  • Internet domain registrar and web hosting company
  • IPO priced at 20 per share and opened today at 26.15, 1 41% increase
  • IPO raised about $ 440 million
  • Revenue rose 52% in last 3 years.

Google Smartbox

  • Google announced that it will release its first version of Smartbox soon, a home- friendly, high-tech mailing box system

Stock Pitch

Skyworks Solutions Inc.

Skyworks Strategy

  • Diversification
  • Industry- Leading Technology
  • Customer Relations
  • Delivering Operational Excellence

Risk Factors

  • Erosion of average selling prices of established products is typical of the semiconductor industry
  • The competitive environment in the semiconductor industry
  • The availability of raw materials from suppliers
  • Environmental Regulations
  • Demand for products generally occurs in first fiscal quarter ending in December and he lowest demand for handset products generally occurs in our second fiscal quarter ending in March
  • Apple is 30% of their business so apple has a significant influence on its business

Research & Development

  • Invested 226.3 million, 212.5 million and 168. Million in research and development activities during the fiscal year ended 2013,2014 and 2015

An interesting Shark tank episode that we watched:–rqtw

General Meeting(3/25/2015)

Market Update

U.S Market

  • Crude oil futures rallied 3.6% to 49.21 a barrel, gaining for the fourth day in a row
  • Dollar retreats from historic high


Nike: solid fiscal 2015 third quarter result

  • Double digit revenue grow
  • Excluding currency fluctuation 12% growth in rev
  • Including dollar appreciate 7% growth

Kraft and Heinz merge to form the world’s largest food and beverage company

  • Merger valued around 48 million
  • Post-merger revenue around 38 million

Facebook plans to add reservation booking, online order tracking and custom videos on messenger

Stock Pitch: Coco- cola (KO)

Business Overview

  • World’s largest manufacturer, distributor and marketer of non- alcoholic beverage
  • Produce both carbonated and non- carbonated beverage
  • Has 8.4% global market share.
  • Its competitor Pepsi Co holds the NO. 6- 3.6%
  • Pepsi defend structure as a beverage and snack foods business—- coke is digging deeper into beverages
  • Consistent issuance of dividend

Stock Summary

  • Dependency on emerging markets, which have become more volatile in recent times
  • 2015 will be transitional years—- rewards 2016-2017 onward.
  • And since the start of 2007, Coco- cola has outperformed both Pepsi and the S&P 200 on a total return basis, shares of coco-cola are up 113%, while Pepsi is up 94%


  • Net operating revenue 45998
  • Stable cash flows- stocks extremely low price volatility
  • Carbonated soft drink volumes declined by 3.2%
  • Expenses decreased slightly year to year, except AD—3,499-3,266
  • EPS grew 5% in both the quarter and the full year
  • The revenue has grown from around 8 million
  • ROA 7.46; ROE 22.26; Revenue 46.00 B; Net Income 7.10 B; Gross Profit 28.11 B

In the News

  • New product- Fairlife milk
  • Product of smaller cans, less calorie, sugar 7.5 oz, 90 cal
  • Cloud technology
  • 30 billion in developing markets around the world over the next five years
  • Management expects 2015 to be a “transition year”
  • 16% stake in Keurig Green Mountain

Risk and competitor

  • Health and wellness concerns
  • Raw materials-corn syrup, aluminum, plastic, oranges, water
  • Needs to balance risk of new innovation with low growth rates of established products
  • Strength of U.S dollar- broad exposure to foreign currencies
  • Competitors: PepsiCo (Pepsi) Cadbury Schweppes (Dr. Pepper)

General Meeting(3/18/2015)

Market Update

  • U.S Economy added 295000 jobs in Feb, which is well above the 240000 expected by economists
  • Unemployment rate dropped to 5.5% from 5.7% due to people dropping out of the workforce
  • Job opening in the U.S rose 2.4% in Jan to 5 million, reaching a 14 year high
  • U.S dollar recently yet again hit multiyear highs against the euro and also multiyear highs against Japanese Yen
  • Sweden’s central bank recently further cut its key policy interest rate from -0.1 to- 0.25 and expanded its bond- buying program
  • China shares climbed to near seven- year high


  • Tencent’s net profit rose 50% from the same quarter last year. Profit mostly driven by online games and mobile games built on its mobile Wechat and QQ platform
  • In the 4th quarter, 82% of Tencent’s revenue was from online games, while advertising revenue only accounted for 13%

Banking Industry

Industry research general steps:

  • Business model (product& services model, revenue model)
  • Risk factor& macro environment (Top down, Bottom up)
  • Case studies on a few companies
  • Porter’s Five Forces

Types of Banks

  • Commercial banks: deposits and loans: take deposits and make high interest from loans
  • Investment Banks: underwrites stock and bond issues, trades, investment management, merger and acquisitions advisory
  • Merchant banks: provide capital for equity
  • Central banks: regulatory role, lender of last resort

2007-08 Financial& Economic Crises

  • Banking Industry Consolidation
  • Bail out and moral hazard

Post- Crisis Regulation

  • Basel Accords (recommended international standard)
  • Volcker Rule: against proprietary trading( Investment banks use their own money to invest instead of clients’ money)

CCAR (Comprehensive Capital Analysis and Review)

  • Annul stress test
  • Capital requirement
  • Cost on risk management and compliance

Trends& Opportunities

  • Mobile banking
  • Predictive banking& Customer Analytics
  • Digital and social selling
  • New product development

Shake Shack and the Fast Casual Industry

Shake Shack: a Manhattan-based burger joint

IPO: Jan 2015

  • With initial price of $21 per dollar
  • Hit &45 on the first day of its debut
  • Raised $ 105 million
  • Operates 663 restaurants, only 31 company- operated
  • Menu choices are very limited

Shake Shack’s successful IPO once again proved investors’ appetite for Fast Casual

the Fast Casual Industry

Characterized by:

  • Affordability
  • High quality ingredients: fresh
  • Convenience: fast service
  • Customization: flexible offering
  • A full view of how the food is prepared
  • Higher price as compared to Fast Food Restaurants
  • Fast Casual’s Competitiveness
  • Consumers look for best value proposition, not necessarily cheapest price
  • Emphasis on offering better product but still at an affordable price
  • Caters to a heightened interest in healthy food

Risk Factors for Shake Shack:

Competition from similar burger joints

  • The Habit restaurant
  • McDonald’s and Wendy’s innovative items and attempts at customization
  • Risk of over- expansion
  • Goal of opening 450 stores may be ambitious
  • Risk of lower profits, higher operating costs
  • Over reliance on Manhattan for rev and profit margin

Risk of Beef Cost

  • SHAK lost $1.4 million in the fourth quarter due to higher cost in beef
  • Meat from producers that adhere to more stringent welfare practices and don’t use antibiotics or hormones.












Annual Donation Application. Deadline Friday, March 20th

As many of you may know, the student-run investment club Owl Investment Group gives annual donations to various Bryn Mawr clubs as a way of giving back to our community. If your club has upcoming projects or events that you think are beneficial to the Bryn Mawr community, and you still need funding for them, you can apply now for the OIG Club Donation Event. Please click on the link below to fill out a Request Form :

You may request a maximum of $1,000.00. The deadline for the OIG online donation application is this Friday, March 20th, 11:59 pm. Once the Form is submitted, we’ll get back to you as to when your club/organization may come in for a presentation of your request to the OIG club members by Sunday, March 22nd. If you are selected for a presentation, please submit your presentation powerpoint to us by March 25th, 11: 59pm . If granted an interview, your group MUST present your proposal by PowerPoint at an OIG members meeting. Your proposal must include a detailed budget for the funds requested. You can request donations on behalf of a club or as an individual student proposing a project or event.