General Meeting(12/03/2014)

Market update
ISM index is at 58.7 in Nov., which is a little lower than what it was in Oct.
In china, the HSBC purchasing managers index dropped to six months low, raising fears of a slowing Chinese economy.
Retail sales dropped 11% than last year during thanksgiving.
People’s Bank of China cut its one- year loan rate by 0.4percentage points
The ECB makes its policy announcement Thursday 11.21. Persistently low inflation and a flagging economic recovery have ramped up the pressure on the central bank.
GM and Chrysler on Tuesday posted their best Nov. U.S. sales figures in several years. Ford Motor Co. reported a decline.
OPEC Announcement
Announced that it declined to cut oil production.
Oil price dropped significantly on Friday.
Stock Pitch
Life Time Fitness, Inc.
Business Profile
Estb. 1992 in Chanhassen, MN
13 fitness centers
Designs, builds and operates fitness and athletic centers
Stock Summary
Prev. Close: 54.47
Open: 54.39
PE: 18.42
Beta: 1.44
Industry Statistics 2013
US HealthClub Industry Revenue: 2.4% growth past 5 years
US Health Club Memberships: 2.5% growth past 5 years
Core Members 2% growth past 5 years
Financials
in Q3 2014, total revenue grew 6.6%
Total revenue for the first nine months of 2014 grew 6.6%
Membership dues: 6% increase
In center revenue: 9% increase
Operating Cash Flow: 245M
Debt: Equity = 0.49
Expect 6.6% increase in revenue due to holiday season and expansion.
In the News
Dec 3: Acquired ShapeMed- wellness and non- surgical aesthetics company
Jan1-4: Million Workout Weekend
Holiday season memberships expected.
Forecast
They are expected to grow because of expansion
Suggest to be a short term holding

General Meeting(11/19/2014)

Market update
Monday: Japanese stocks suffered their worst daily drop in more than 3 months
The Nakkei Average tumbled 3%
U.S stocks mostly lowered on Monday due to Japanese recession
Walmart
WMT’s revenue growth has slightly outpaced the industry average of 0.9%
Net operating cash flow has significantly increased.
Sales grew in the home goods, apparel and health categories, as well as at the smaller Neighborhood Market stores. Online shopping was another bright spot
Target
Total sales increased 2.8%, beating the industry average
Gross profit at the U.S. segment inched up to 0.2%
Baker Hughes and Halliburton Merger
Halliburton, an oilfield- services provider, says it can slash 2 billion after acquiring its similar- sized rival
Actavis to buy Allergan
Bill Ackman’s stake in Allergan Inc. has almost doubled in revenue.
Actavis will purchase Botox maker Allergan in a 66 billion deal
The combined firm expects to have revenues of 23 billion in 2015

Stock pitch
J&J Snack Foods
Business overview
1971 Pennsauken, NJ
Consumer Goods; Processed& Packaged Goods
Manufactures, markets and distributes foods and beverages
U.S., Mexico, and Canada
Food Service, Retail supermarket and frozen Beverages
Seasonality Influence
 Stock summary
Small cap
P/E 26.9 (little bit higher than industry)
 Financials
Net sales increased 7% for the quarter and 6%  for the year
Very low in debt
Operating cash flow(100 mill)
Sufficient to fund future growth
Acquisitions can be a  potential growth
In the News
Partnership with Mondelez International
Oreo Churros (a new product):
The churros can be served with OREO cookie creme dip, supplied by J&J Snack Foods
 Risk and Competitors
Part of the risk with any food/ beverage/ service company is the ever- present threat of a downturn in consumer sentiment/spending
Wheat production
Given subsidiaries located and operating Canada, Mexico- risk lie in those markets
Competitors with similar products: Snyder Lance& Mrs. Fields
Forecasts
Growth: 5.84% in 2015, 6.50% in 2016
PE: 25.35 in 2015, 23.83 in 2016

 

General Meeting(11/13/2014)

Market Update
Unemployment fall10000 to 278 000
ECB keeps the key interest rate unchanged.
Euro has very low rate inflation
Comcast: service providers slipping: Obama urge FCC to adopt net neutrality
Alibaba:
Stock price up to 120(most because of bachelor’s day). Sales volume reached 9B
Tmall recently began allowing foreign brands to reach Chinese consumers directly through its network
Kate Spade:
Shares up 15.7% last Thursday on strong third quarter earning result
Net sales grew by 30%
Strength: notable ROE, revenue growth and good cash flow from operations
Weakness: higher debt management risk
Yahoo:
To acquire video advertising company Brightroll for $640 million
Combine yahoo’s premium desktop and mobile video adverting inventory with Brightroll’s platform
Healthcare industry
Government spending out of total GDP increases rapidly in recent 30 years
$8508 personal spending on health care in 2013
Hospital mergers can lead to price increases of up to 20.3%
Enter barriers: new drug development; demand for doctors; build a new hospital
FDA: New Drug Development Process: an average of 12 years
More joint hospital overseas
4 concerns: aging population and chronic diseases; cost and quality; access to cares; technology
Numerous digital and e-health/data initiatives are gaining critical mass
Stock Pitch
DXCM
A leading company of glucose Mortaring
1999- Founded
2005- IPO ON NASDAQ
Product:
Ambulatory product line
In- Hopspital Product Line
Others
Market opportunities:
Diabetes
Importance of Glucose Monitoring
Limitations of Existing Glucose Monitoring Products
Strategy:
Research
Technology
Direct Sales
Partnership
Coverage Policies
Broad Use
Customer Service
Regulation
FDA
Fraud and Abuse Laws NAD other Compliance Requirement
International Regulations
Risk
Net loss
Research
Acquisitions
Sales
Competitors
Roche Disetronic
LifeScan, Inc.
Bayer Corporation
News
FDA Approves Dexcom Share
Collaboration with Animas AND Tandem
Wearable Device (corporation with Apple)

JP Morgan Info Sessions Next Week

JP Morgan will be presenting two different events on campus next week each highlighting different JP Morgan programs. Come join us and don't miss out the great opportunities!

Date:  Wednesday, November 12
Time:  6:30pm
Place:  Wyndham Ely Room

Rick Mayell, Managing Director from the N.Y. office of JP Morgan will be talking about the 2015 Global Wealth Management Summer Analyst Program.  Tri-College interviews will be conducted for selected juniors here in February.  The job description is posted in Lantern Link.  Both sophomore and juniors are invited to attend the Information Session to learn more about the program.

 
Date:  Thursday, November 13
Time:  4:00pm
Place:  Thomas 110

JP Morgan panelists including our own Bluma Millman (BMC 2014) will discuss the Financial Analyst Development Program. Internship opportunities for sophomores and juniors will be discussed as well as full time opportunities for seniors.  Internship and full time opportunities for both of these positions are posted in LanternLink.  Students are encouraged to bring copies of their resume to this Information Session.  Sophomore, juniors and seniors welcome.

General Meeting (11/06/2014)

Market Update

The end of QE:
Officially announced last week that it end its QE program this month
Facebook:
Earning of 43 cents per share
Increase of 49% from last quarter
Facebook surprised investors, declaring 2015 a “Significant Investment Year”
Michael Kors Qtrly Earnings:
Net earnings of$1 per share on 1.06 billion in revenue.
Comparable store sales grew 16.4%, but fell short of the 19% growth forecast.
Following the release of the earnings results, shares of Michael Kors plunged as           much as 11% in pre- market trading action

Portfolio Update
NTT and VZ were add into the portfolio

 

 

General Meeting(10/29/2014)

Stock pitch

Verizon communications

Overview

  • Largest wireless service provider in the U.S by retail connections and revenue.

Completed 100% stake acquisition of Vodafone Group Feb 2014

  • Two sections: Verizon Wireless& Verizon Wireline

Stock and Financials Overview

  • Market Cap207.13B
  • P/E 10.78
  • EPS:4.63
  • 3rd quarter report: increase in revenue
  • Added 1.5 million new subscribers to its wireless service, beating analysts’ estimate.

Risk Factors

  • Missed expected 92 cents per share
  • Significant domestic and global competition faced by both the Wireless and Wireline segment.
  • Rapid technological development and changing consumer demand
  • Verizon’s has a significant amount of debt and it could further increase if Verizon incurs additional debt or does not retire existing debt.

Competitors

  • ATT
  • Sprint
  • T-Mobile

Opportunities

  • Increasing demand in mobile data and broadband service
  • Strong subscriber addition:
  • Wireless segment adds 1/4M postpaid connections
  • Wireline: Verizon added 130,000 net new FiOS Internet connections and 100,000 net new FiOS Video connections

General Meeting (10/22/2014)

Market update

  • Market trend dip last week but bounced back since 10/21

General concern in the market: increasing interest rate

  • Third quarter report is out:
    • Boeing shows strong 3rd quarter result:  17% increase in earning
    • Yahoo’s earning exceeds expectation but not very impressive compared to other companies.
    • Snap chat start to raise more money.

Stock pitch

ConocoPhillips(COP)

Overview:

  • The world’s largest independent exploration and production (E&P) company.
  • Explore for, produce, transport and market crude oil, bitumen, natural gas, liquefied natural gas (LNG) and natural gas liquids on a worldwide basis.
  • Have operations and activities in 27 countries.
  • Six operating segments defined by geographic region: Alaska, Lower 48 and Latin America, Canada, Europe, Asia Pacific and Middle East, and Other International.
  • No dominating competitors for any segment of business.
  • Goal: 3-5 % annual production and margin growth.

Risk

  • Prices of crude oil, bitumen, natural gas, natural gas liquids and liquefied natural gas.
  • Decline in volume of reserves.
  • Expenses on compliance with existing and future environmental laws and regulations.
  • Change in domestic and worldwide political and economic environment.
  • Changes in governmental regulations may impose price controls and limitations on production of crude oil, natural gas, bitumen, and natural gas liquids.

Decline in oil price- strategic focus

  • Higher cash margin developments by reducing production cost.
  • ConocoPhillps produces oil and gas at comparatively low rate compare to other oil and gas producers.

Reserve

  • 179%annual reserve placement in 2013
  • Continue adding deep water discoveries.
  • Increased production on reserves.

Balance sheet

  • Has enough assets to cover liability
  • Net tangible assets have been growing since 2012

Goldman Sachs On Campus Event

BACKSTAGE PASS:

CREATING CONNECTIONS IN FINANCE with Goldman Sachs

Friday, October 24 from 11:00am - 12:00pm (Thomas Hall, Quita Woodward Room)

Bryn Mawr Students Register here:  https://brynmawr.qualtrics.com/SE/?SID=SV_3wL5qB2MAoDNXH7

 

Explore traditional and alternative paths at Goldman Sachs with Edina Jung (BMC ’94) and Jamie Higgins (BMC ’98), learn about internship & full-time opportunities, and more.

 

Edina Jung (Mathematics ’94)

Edina is global head of Benefits and Wellness and head of Global Mobility Services in the Human Capital Management (HCM) Division. She is the MD sponsor for the HCM Asian Professionals Network and serves as a member of the Firmwide Asian Professionals Network Steering Committee. Edina is also a member of the Retirement Committee for the firm's US retirement plans. Prior to assuming her current role, Edina was head of Employee Special Investments and co-head of Global Benefits and Wellness. Earlier in her career, she was head of US Benefits. Edina joined Goldman Sachs in 2000 and was named managing director in 2011. Prior to joining the firm, Edina worked at ACS (formerly PricewaterhouseCoopers) in benefits administration. Edina earned a BA in Economics from Bryn Mawr College, where she serves on the President's Advisory Council. Edina and her husband have a daughter and live in Montclair, New Jersey.

 

Jamie Higgins (Mathematics ’98)

Jamie manages the US Supply team within the Global Securities Services (GSS) Securities Lending Group, which she joined in 2007. Prior to that, she co-managed the Corporate Repo Securities Lending team from 2006 to 2007. Earlier in her career, Jamie worked on the Securities Lending Demand team covering hedge fund clients. She joined Goldman Sachs in 1998 as an analyst and was named managing director in 2012. Jamie earned a BA in Mathematics from Bryn Mawr College in 1998.

NYC Women in Business Networking Event

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Pershing Square 2-

In collaboration with Pershing Square Capital Management,OIG is proudly presenting our 2014 NYC Women in Business Networking Event  on Friday, October 31st. We will have a firm visit to Pershing Square in New York City with invited businesswomen speakers (details are listed below), anda following cocktail event with alum Alexandra Kaufmann. This is a great opportunity to learn more about the finance industry and network with alumnae and career professionals!
List of Speakers:
Alexandra Kaufmann ’04 – Investor Relations, Pershing Square
Ashling Keenan ’04 – Point72
Nathalie Schallock – Hedge Fund Marketer
Jennifer Rusk ’05 – SignPost
Ayesha Gopal ’05 – RBC Equity Research
Sarah Judd Welch – Founder of Loyal
Marianne Bellotti – CTO & Founder of Thicket

Deepthi Welaratna – Founder of Thicket
Kristin Kraemer – Goldman Sachs Cap Intro
Mamta Jalan – Fund of Funds Analyst, Archstone
Wendy Li – Analyst, UJA Endowment
Lydia Thew – Senior Producer, CNBC
Marianne Bellotti – CTO & Founder of Exversion

Please SIGN UP using the following link: Sign up linkDeadline is October 22nd. Note that registration means your commitment to the event, and there will be a mandatory meeting next week for the attendees.

General Meeting (10/08/2014)

Market Updates

  • Hewlett- Packard split into 2 different smaller companies. Lots of big tech companies are trying to split into small ones (eBay/ PayPal; EMC/ VMware). Main reason is to narrow down their focuses.
  • Go pro Camera gifted 5.8 million toward charitable organization during lock up period.
  • Chinese Insurer, Anbang Insurance Group, buys Waldorf Astoria for a Record $1.95B

 

Stock Pitch

 

AerCap Holdings N.V. (AER)

  • Aviation company that engages in the leasing, financing, trading, sales and management of commercial aircraft and engines.
  • December 16, 2013 announced the acquisition of ILFC from AIG.

Airline Leasing Industry

  • Over a third of the world's airline fleet is now rented and the proportion is likely to keep growing
  • Many leasing companies also offer maintenance for the airlines at an additional cost.

Acquisition

  • The combined company will be the largest global franchise in the aircraft leasing industry.
  • Combined fleet of 1,329 aircraft and an order book for an additional 385.
  • Will allow for cost savings and operating efficiencies.
  • Lower tax expense.
  • Future profits and synergies are expected to reduce its leverage meaningfully over the following four to five years.

Revenue

  • Lease rental revenue:
  • Asia/Pacific/Russia 32%
  • North America 18%
  • Latin America 11%
  • Africa/Middle East 4%
  • Europe 35%

Recent Activity

  • Sold $2 billion worth of planes since December.
  • Well ahead of its disposal target averaging $1 billion a year.
  • Expected to meet a target of reaching a debt-to-equity ratio of around 3-to-1 by the end of next year.
  • Secured operators for 90% of the planes due for delivery by the end of 2016.

Risks

  • Interest Rates
  • Emerging Markets
  • Defaults
  • Continued Demand from Airlines

 

Recommendation

  • Buy
  • Asses the result of earnings report in November
  • Hold through end of December