OIG General Board Meeting (11/06/2013)

The meeting started at 9:10 p.m

Kathy did a quick market update. Twitter finally set its IPO price at $26 with 70 million of its shares sold. On the other hand Blackberry’s plan to sell its business to Fairfax has failed. Instead the firm will receive $1 billion convertible-bond investment from Fairfax. Tesla also had bad news as its shares dropped by 16%. Dell, on the other hand, became private.

Then, Bryce did a quick market update. We sold McDonalds and Proto labs from our portfolio. Mcdonalds, although a solid blue chip company, was not showing growth for three years while Proto labs took a dip.

After the market update Yaxuan, one of the members of Portfolio Management team, presented a stock pitch about Valeant Pharmaceuticals in health sector. It is a publicly traded multinational pharmaceuticals company which falls in defensive sector. It has diversified product portfolio which presents it with a diverse revenue system. There is potential of growth because of their innovations in their field. Moreover, because they have low beta score their stocks are stable. The entire portfolio management team will look further into the stock pitch and make a decision.

Following the stock pitch, Dingwei provided everyone with a brain teaser, with the question being “how many golf balls were manufactured in USA per year?” Since such questions are actually used in job interviews, this was a fun yet rewarding activity for OIG members to do. The answer to this question, along with its methodology can be found in this website: http://brainteaserbible.com/interview-brainteaser-market-sizing-golf-balls-sold

The meeting ended at 10:00 pm. See you all next Wednesday at 9:00 pm in Taylor G.

OIG General Body Meeting (10/30/2013)

The meeting started at 9:10 pm.

Kathy did a quick Market update. Twitter IPO finally set its price at $17-$20 per share and is planning to sell 70 million shares.It is the second largest  IPO share for Internet company after Facebook. Apple has a strong outlook in stock market due to strong ipad growth. Last Friday, October 25 NASDAQ’s (National Association of Securities Dealers Automated Quotations) composite index neared 4000, powered by gains in Microsoft and Amazon.This was a significant moment since the last time the market reached this peak was on September 8, 2000, the last tech bubble. Also, Amazon has increasing revenues but zero profits since it is “A charitable company being run by elements of the investment community for the benefit of consumers”. Moreover, Fed will maintain its current asset purchase program.

Then,Bryce gave an update on our Portfolio. Our current portfolio consists of nine different stocks as follows:

  • Apple
  • Alliance Data System
  • Buffalo Wild Wings
  • Under Armour
  • Methode Electronics
  • McDonalds
  • Sprouts Farmers Market
  • Sanchez Energy Corp
  • Proto Labs

Most of the companies we have in our portfolio have high P/E ratio. Unless one is doing Value investing, one should not completely base off his portfolio decisions on P/E ratios. We currently have only $20,000 invested in our portfolio while we still have $100,000 in cash. So we encourage people to do stock pitches and bring more diverse companies to our portfolio!

After the update on our portfolio, Dingwei showed everyone two short videos on how to do a proper stock pitch. According to the videos, stock pitch should start with investment thesis. Then it should move on with Business revenue breakdown, company’s SWOT (Strength, Weakness, Opportunity, Threats), business efficiency, valuation and catalysts. The conclusion should consist of a summary of the everything one has talked about with particular focus on “Why should the stock be bought now?”.

The meeting concluded at 10pm. We will see you again on Wednesday, November 6 at Taylor G.

Did you know?

Blue Chip Company: According to Investopedia, Blue Chip company is a “A nationally recognized, well-established and financially sound company.” McDonalds, which is also in our portfolio, is a blue chip company.

Special Talk Program: Mr Jim Clarke on Value Investing and Investment Research

Mr Jim Clarke, here on referred to as Mr. Clarke, started the talk with a brief introduction about his work. Mr Clarke is the Co-manager of Brandywine Global Investment. He started off as financial analyst in Morgan Stanley, right after his graduation from Williams College and later on took on the path of value investing in Brandywine.

“Value Investing is an interesting way to invest capital”. With this he started talking about value investing. He shared an interesting story about technology stock prices in early 2000′s. The technology stock prices soared up due to the innovations in Microsoft. While everyone was after the technology stock shared, he and his company ended up buying Ball corporation’s stock, a company selling beverage cans. The reason for this was because the stock prices were significantly cheaper. According to Mr Clarke“You won’t buy the company everybody loves” because the costs are too high.

 Then he moved on to talk about the price,value and cost. Price is what you pay and value is what you get. He talked about Margin of Safety which is the difference between cost and value. Margin of safety is an important determinant in the stock market.

 He compared stocks to tiny pieces of business and told us to ask yourself the same questions you would ask as if you were buying a new business. One should look at the market price, cost, net earnings and debt as well as Assets and Liabilities. Only after taking all the aspects into consideration should one proceed with the purchase of the stocks.

 Concluding his talk on value investing, Mr Clarke ventured into “how to get an internship in this sector”. Four advices he gave were:

1. Should be ready to play with numbers

2. Read Wall Street Journal

3. Read books on investing

4. Networking with alumni in the respective field

He further suggested to not let few hundred dollars stop you from taking a job. After that we entered a Q/A session with students asking him questions ranging from investment, value investing to different job opportunities.

The talk ended at 10:15 pm. We would like to thank Mr. Jim Clarke for holding his talk and taking some time out from his busy schedule.

See you on Wednesday, 30th October. Until then “Buy fear and Sell Greed”!

Guest Speaker Jim Clarke Talks About Value Investing on Oct.23rd

This Wednesday, Oct 23rd, 9pm@Taylor G , Owl Investment Group will host a talk on value investing and investment research . We have the honor to invite Jim Clarke as our guest speaker. Mr.Clarke is the co-manager and head of Brandywine’s research of a $5 billion US large cap product.  He earned his B.A. in History from Williams College where he was a member of Phi Beta Kappa and graduated summa cum laude. He later earned an M.B.A. in Finance from Columbia University. Prior to his initial term of employment with Brandywine Global, Mr.Clarke worked as a financial analyst at Morgan Stanley in New York and Tokyo (1991-1995). And from 1997 to 2005, Jim worked as an equity analyst and portfolio manager for Brandywine Global’s large, mid and small cap value equity portfolios and was responsible for research coverage of the machinery and REIT sectors, contributing insight and stock recommendations for all of the firm’s domestic equity products. Mr.Clarke had a five year track record in the top 10% managing Brandywine Global’s US small cap product for clients including Coca Cola from 2000 to 2005.

Mr.Clarke will talk about value investing and answer questions about career paths in the field.

 

Annual Summer Internship Panel (10/02/2013)

Annual Summer Internship Panel started at 9:05 pm in Taylor G.

The panelists presenting their summer internship experiences were six students from Bryn Mawr and Haverford. Their name and their internship organization were as following:

  • Ethan Pan : Citi, Institutional Clients Group
  •  Erin Wilder: Citi, Global Markets; BNP
  •  Amy Zhao : The Vanguard Group, Portfolio Review Department
  •  Ivy Gluck : Brandywine Global Investment Management, Large Cap Value Team Product
  •  Tom Yi : Richmond Hill Investment, Value-investing hedge fund
  •  Judy Yeung: Jardine Matheson, Finance and General Services Department

The panelists first shared their general experience about their internships and what they did. Their internship activities ranged from doing stock pitches, researches, auditing reports to fund mapping and transaction banking. Then they talked about the most rewarding part of their internship, which included being acknowledged as a worker by senior members, client interactions as well as auditing reports.Their biggest challenges in internship were getting accustomed to the work environment, making recommendations to senior members, learning about political policies and coming out of the comfort zone.

Moving on to application process for their respective internships, each one of them had something different to offer. Erin talked about Boston Career firm while Ivy and Judy emphasized the importance of Bi-Co resources such as Lantern Lake and externships.

“You don’t need how to calculate premium price of option, what you need to know is what is happening in the market, and have a genuine love for finance.” As quoted by Erin this was the major theme of the advice from all panelists. They encouraged us to utilize our analytic background, provided by Liberal Arts environment and start learning few financial terms to show your interest.

After a brief Q/A session, the Annual Summer Internship Panel ended at 10 pm.

We would like to thank all our panelists for taking out time from their busy schedules to come and talk to interested students.  Good luck for your future endeavors!

2013 Summer Internship Panel. Wed, Oct 2nd, 9pm @Taylor G

Bryn Mawr Owl Investment Group is hosting the annual Summer Internship Panel this week. If you are interested in hearing more about summer opportunities and internships, please join us on Wed, October 2nd, 9pm @Taylor G . The panel will start promptly at 9pm, no Bryn Mawr Time.
We have recently updated our panelists list.

Updated list: 

* Ethan Pan : Citi, Institutional Clients Group
* Erin Wilder: Citi, Global Markets
* Amy Zhao : The Vanguard Group, Portfolio Review Department
* Ivy Gluck : Brandywine Global Investment Management, Large Cap Value                Team Product
* Tom Yi : Richmond Hill Investment, Value-investing hedge fund
* Judy Yeung: Jardine Matheson, Finance and General Services Department

The sharing session would be followed by a Q&A session.

Summer Internship Panel_3

 

OIG General Body Meeting (09/25/2013)

As per the Bryn Mawr tradition the meeting started at 9:10 pm.

Kathy, our Bank treasurer, gave a brief market update. US stocks ended mostly at lower level with blue chips suffering fourth straight loss. While financial and health sector were main gainers, industrial sector declined. Also, shares of Apple increased by 3.8%, with record sale of 9 million new iphones last weekend.Another big news was about JP Morgan paying $920 million to the London Whale.

Then Laura, one of the members of Portfolio Mangement Team, did a stock pitch about Boeing, which was the first stock pitch of this academic year. Boeing is known for its manufacture of airplanes as well as for defense and space securuty systems. They made $60 billion dollars in the first quater of this year, which was the total amount of what they made last year. It’s major rival is Airbus and they both sold same amount of models in the Paris show. Considering it is active in two different sectors, Boeing might turn out to be a profitable addition to our portfolio.

After a quick question answer session about Boeing stock pitch, Bryce, our Portfolio Manager, talked about SCO. While UCO represents the price of crude oil, SCO is its inverse. The financial stats on SCO can be found in following website: ttp://finance.yahoo.com/q?s=SCO

Then, Dingwei, our President gave an interesting Investing 101 session about financial statements. We focused specifically on Income statement, which basically specifies financial result over a time period. More information on Income statement can be found in the following website: http://www.investopedia.com/terms/i/incomestatement.asp

Dingwei also informed everyone about our Annual Summer Internship Panel, which will take place next week October 2, 2013 at Taylor Hall.

The meeting ended at 9:50pm. See you next week at our Annual Summer Internship Panel!

Adirondack Cup Competition Bryn Mawr Team for 2013-14 Elected!

We are pleased to announce the Adirondack Cup Competition Bryn Mawr Team for 2013-2014:

Dingwei Li ’15 (Team Leader)

Bryce Lewis ’16 (Assistant Team Leader)

Nkiruka Anizoba ’14

Erin Wilder ’14

Siyue Guo ’14

Ivy Gluck ’14

Yannan Li ’16

About Adirondack Cup:

Adirondack Funds operates the Adirondack Cup, an initiative through which college and graduate students from participating universities throughout New York and New England can create their own hypothetical small cap portfolio for six months. At the end of this time, the portfolio with the best return will win The Adirondack Cup.

See more information at: http://www.adirondackfunds.com/adirondack-cup/

Participants in the 2013/2014 challenge:

  • Binghamton University
  • State University of New York at Geneseo
  • Buffalo State, The State University of New York
  • State University of New York at Plattsburgh
  • Clarkson University
  • University at Albany 
  • State University of New York
  • Hofstra University The College at Brockport
  • State University of New York
  • Ithaca College Union College
  • Siena College 
  • Rochester Institute of Technology
  • Bryn Mawr College
  • St. John Fisher College
  • The College of St. Rose
  • St. Lawrence University
  • Wesleyan University

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