OIG General Board Meeting (04/02/2014)

Market Update: 
 
  • The U.S. stocks rose after the postive economic reports that gave investors more reasons for optimism about U.S. growth. This gain in stocks came after decrease in the Treasury bonds.
  • General Motors issued a recall for about 1.5 million vehicles because of a steering defect.
  • Apple increased by 0.1% as it was in talks to buy Japan’s Renesas SP Drivers, which makes power-saving smartphone chips, for around $1 billion.
  • Goldman Sachs edged up 0.7% as it is close to selling a trading business based in New York.
  • Google splits into GOOG and GOOGL. Shareholders will get two shares for every one they owned. One set of shares , called Class A, will trade under GOOGL while the other, Class C, will be listed under historic ticker GOOG. Votes of Class A will be counted as one vote while Class C will be worthless in terms of voting.
  • The first quarter of this year was busiest since 2000. 64 companies went public in the U.S. and raised $10.6 billion. Around 50% of the IPO’s were from healthcare sectors. Technology firms were active as well. Companies such as Box Inc., Go Pro are also expected to go public.

Stock Pitch: 

Name: TLT (Treasury Bond) 
TLT reflects the price of 20 years or older treasury bonds.It was priced around $109 and also has dividends of 2.9%.TMF is another similar stock which is leveraged three times more than TLT. 
Trends: TMF shot up in April through July and then declines until following year. 
Why? TLT is a safe stock because it is not a company, which means that it will not go bankrupt.However, it will also not hoot up like other stocks do. Our portfolio has many bull stocks, so TLT will counterbalance them. 
Prediction for the stock: Since Quantitative Easing (QE) has been reduced, which means that printing of money has been reduced in economy, less stocks are bought. As demand for stocks decrease, price of stocks are increasing. This means that people will look for safer haven, which is provided by bonds.

What can we do? We can buy 100% TLT bonds, which means fewer risks,less volatility and fewer gains. Also, we can buy 100% TMF bonds which entails nore risks. Thus, a balanced combination of TLT and TMF bonds is another option. 

Investment Terms: 

Bond Investment: It is a long term investment. In Bond investment investors loans money to either governmental or corporate entity that borrows funds for a defined period of time. Bonds are then utilized by the entity to finance various projects. (http://www.investopedia.com/terms/b/bond.asp)
Exchange Traded Funds (ETFs): It is a security which tracks index but trades like stock on an exchange. (http://www.investopedia.com/terms/e/etf.asp)
One we have in our portfolio mimicks S&P 500. 
Helpful fact: Bonds and index funds can be used along with stocks to diversify portfolio. 

 

Lunch with Fidelity Senior VP, 4/15

Samantha O’Neil , (’90 Sociology) Senior Vice President, Integrated Marketing, Fidelity Investment Group, will be visiting campus on Apr.15th. Samantha has 20+ years of experience in marketing. She is also part of company-wide initiative to engage more women in planning for their financial futures.  Please join us for this rare opportunity.

Registration link : https://brynmawr.qualtrics.com/SE/?SID=SV_9YMOWDvGUV1D6Cx

OIG General Board Meeting (03/26/2014)

Market Update:
  • Treasury prices rose as concerns eased about Fed increasing interest rates sooner than expected
  • European Central Bank president Mario Draggi told that he sees economy recovering but necessary efforts are required to maintain price stability
  • Chinese manufacturing and trade data reports have been weaker. So many marekt watchers are anticipating stimulus of People’s Bank of China.
  • In Stock market: The Dow Jones Industrial average was down by 38.54 points. The S&P 500 was down by 17.48 points while The Nasdaq decreased by 125.56 points. The Nasdaq closed at its lowest level on Wednesday, March 26 in six weeks.  (Source: ABCNews)
  • Fed’s annual banking stress test was conducted. 29 of the 30 largest institutions were able to adequately capitalize and withstand severely adverse economic situations, except for Zions Bancorporation. This test is conducted to check if a bank has enough capital to handle adverse economic situations.
  • Fitch Ratings has affirmed the U.S credit ratings at the top-notch triple A-Level, with a stable outlook.
  • Apple (AAPL) shares went high after their discussion with Comcast about possible streaming deal. Facebook (FB) shares were down , after its announcement late Tuesday that it will acquire Oculus VR in a $2 billion cash and stock deal.

 

Portfolio Update:
We purchased more airline companies because revenue growth is expected. We chose Delta and Spirit Airlines to purchase. Delta has high earnings per share and low P/E ratio, while Spirit specializes in cheap airfare. Also Spirit has high earnings per share. However, we are planning to get rid of Alaska Air as we do not to overflow our portfolio with just one type of industry. We also purchased Disney Walt, which is a major leader in media industry. We decided to hold Michael Kors because there is expectation of more growth. Also retail industry, which includes Michael Kors and Under Armour, has had fast growth.
Focus on NetEase:
NetEase is one of our companies in our portfolio. It went public around 2000 and have 7600 employees. It is involved in online games, e-commerce, mobile games and other services. It has massive marketing platform. It has high profit margin and has high potential of revenue growth because of its innovative games and applications.
In order to learn more about NetEase, you can access their official website: http://ir.netease.com/phoenix.zhtml?c=122303&p=irol-irhome
Stock Pitch: 
A short video of “How to Stock Pitch in 13 slides?” was shown. The link to the video is:
https://www.youtube.com/watch?v=sVXop1o5Kv4

Sign Up For Barclays Trip

If you still would like to register for this Friday’s Barclays visit, p lease email info@bicofinance.org. The deadline for signing up is midnight today.

Trip Information

Date: Friday March 28th

Event Start Time: 2:00 pm

Duration: 3-4 hours

Location: New York City (near Times Square)

Barclays Mandatory Meeting and Travel Information

Please note that if you sign up for this trip, you must  attend the following MANDATORY MEETING

Date: Tuesday, March 25th

Duration: 6:30 – 7:30 pm

Location: Haverford, Stokes 010

For Friday’s trip please make sure that you have an adequate supply of cash for food purchases and transportation. You must buy your Megabus ticket ASAP (see transportation information section below for more information).

Transportation Information:

Event Location/Address: Barclays Capital, 745 Seventh Avenue, New York, NY 10019

Everyone has the freedom to arrange their own travel plans for arriving to the event. Make sure you arrive in NYC by no later than 1:00 pm! We will all meet at 1:30 pm at the Barclays Capital building in order to go through security as a group. If you would like to travel with the board, you are more than welcome to join us! The board’s travel plans are as follows:

Meet at the Septa Haverford R5 station

(To: 30th Street)

Departs: 8:12 am

Arrives: 8:33 am

Price for ticket: ~$5.00

**Meet at 8:00 am**

You will need to purchase a ticket at the station or on the train.

(You can also hop onto the same train at the Ardmore station if that station is closer. Departs: 8:14 am)

Megabus

(To: NY, 7th Ave & 28th St.)

Departs: 9:00 am

Arrives: 11:30 am

Price for ticket: $13.50

1) Buy your ticket ASAP . If you do not reserve your spot early, you might have to take a later bus.

2) We will reimburse you for your Megabus ticket to New York only.

**You must send your e-ticket to info@bicofinance.org as soon as you purchase your ticket in order to be reimbursed**

NY Metro

(To: Barclays)

Time: TBA

Price for ticket ~$2.25

We will take the 1 train uptown from the Megabus stop in NYC to Barclays. Board Contact Info:

(925) 899-9473 Matt Corbin

(818) 515-0072 Alex Villalta

(610) 509-5697 Cecilia Li

(678) 761-3047 Tom Yi

(626) 807-6604 Leslie Tjing

(646) 330-1895 Ethan Pan

1. Everyone is responsible for arranging their own transportation after the site visit. The club will not be covering these transportation costs

2. Due to budget constraints, the club will be covering only the Megabus cost on the way to New York, and will reimburse you up to a total of $15.00. The Septa tickets to 30th Street and the 1 train tickets to Barclays will not be covered (the price should be about $5.00 and $2.25 respectively).

OIG General Board Meeting (03/19/2014)

Market Update this week includes:

  • Fed announced that tapering is most likely to end in October or November. After six months, which is as early as April of next year, interest rates will be raised. After Janet Yellen, new leader of Fed, announced this possibility of increase in interest rates, stock and bond prices tumbled down.
  • In bond market, shorter dated bonds suffered the most in Wednesday’s sell off.
  • US $, however, increased against both euro and yen after the announcement of Fed
  • China’s economy weakened sharply during the first two months of the year. The slowdown was across the board , including retail, manufacturing, housing and investment
  • Alibaba announced last Sunday that it has begun the process of Initial Public Offering in the U.S. Yahoo has around 24% stake in Alibaba. Due to this announcement, Yahoo was 3.6% up pre-market.

A short presentation on Michael Porter’s Five Forces Model:

Michael Porter is is the Bishop William Lawrence University Professor at Harvard University, based at Harvard Business School in Boston (hbd.org). The Five Forces Model is a simple tool to understand where power lies in business situation.The five forces are:

1)Threat of New Entrants

Business Power is affected by new entrants as they can enter a profitable market and take away the profits. So industries make use of certain barriers to entry such as:

-Economies of scale                    -Brand identity

-Proprietary product differences  -Being early to market

-Capital requirements                  -Benefit driven vs image driven products

2)Bargaining Power of Suppliers

This talks about the relative power suppliers have to increase prices. Higher differentiation in input characteristics leads to higher bargaining power ,while presence of substitutes lead to lower bargaining power. Supplier concentration, which is the ratio of total output of products to total number of firms supplying the product, is also an important concept. Higher supplier concentration means the bargaining power of supplier increases.

3)Threat of Substitutes

If substitutes are available then buyers will have more bargaining power. Factors which affect threat of substitutes are: Cost of switching, price of substitutes and buyer’s likelihood to substitute.

4)Bargaining Power of Buyers

This talks about how easy it is for buyers to influence prices. This depends upon the number of buyers and the importance of buyer to the supplier. Often, the powerful buyers have enough power to dictate prices.

5)Rivalry Determinants

If there are many rivals in the industry producing equally attractive goods, then the bargaining power of suppliers decreases and vice versa.

Also, it is very important to compare the revenue of individual firm with its industry. Even if it has enough revenue it might still be underperforming when compared to industry’s performance.

Question related to Five Forces model: A telecommunication company is not earning enough profits. How can Michael Porter’s Five Forces Model be applied here to increase its profits?

Great News from Adirondack Cup Competition

As of today, Bryn Mawr College is in the FIRST PLACE. St.Lawrence University has been the first for quite some time, and as of today, we surpassed them. The competition is near to its end, so keep it up Owls! *The Adirondack Cup Competition requires participating teams to hypothetically invest 1 million in small cap stocks, the team with the highest return wins.

Important Business Model Presentation after Spring Break

Our next General Meeting is postponed till the week after Spring Break, on 19th March, 9pm @Taylor G. Beside market update and portfolio update, we’ll have an presentation on Business Competition and Michael Porter’s “Five Forces” Model as well as its applications. This will be a great opportunity to get some insights on how business models apply in the real world. We look forward to seeing you all after Spring Break. And meanwhile, we wish everyone good luck on their midterms and enjoy Spring Break.

 

3 Day Startup Summit in Philadelphia

Nvigor, a student run origanization that seeks to promote entrepreneurship at the collegiate level for students in the greater Philadelphia region (www.nvigor.org), is hosting the 3 Day Startup Summit in Philadelphia this year (philadelphia.3daystartup.org). This is a three day event from March 28 – March 30 where students can immerse themselves in the entrepreneurship environment and develop critical skills. Students will be connected with a powerful network of mentors together with 50 other students that share similar passions in entrepreneurship. Over the course of 3 days, students will create a business model, be in contact with potential customers and develop lasting professional/personal relationships.

The 3 Day Startup Summit are looking for students who can fulfill the following roles:

Software Engineer

Business (Finance, Marketing, Biz Dev)

Graphic Design (Web, Print)
Advertising, PR
Legal
Other: Wildcards, Raw Passion
Application Website: http://philadelphia.3daystartup.org/apply/. Application deadline is March 8, and applicants will be notified of their admissions status sometime between March 14-21. More information can be found at www.3daystartup.org, or by contacting founders@3daystartup.org.

 

OIG General Board Meeting (02/26/2014)

Market update this week includes: US stocks have been on rise due to strong housing data. However labour market is still weak as job market condition is still uncertain. Also, Tesla Motors has been doing very well and has gone up 18% over past two sessions to an all-time high. Facebook acquired What’sapp , which is an instant messaging service for smartphone, for $19 billion. Currently, facebook dominates global market. Line, which is similar to Whatsapp, is preparing its IPO as well and is currently evaluated around 27 billion. T-mobile’s revenue increases but was not as much as expected.

Portfolio update: New changes have been made in our portfolio since our last meeting. In order to diversify our portfolio management team bought stocks such as Alaska Air group, Simon Property group and JP Morgan. Our portfolio has been performing modestly and has currently increased by 17%. Also, Bryn Mawr is participating in Adirondack Competition and is currently second in position.

After the portfolio update, Bryce presented about “Bull and Bear Market”. Bull Market is associated with market which is trending upward with ¾  of all stocks rising. Generally, it has high consumer confidence and low unemployment level. Also it is considered to be spending market. On the other hand Bear Market is trending downwards with ¾ of all stocks decreasing. Generally, it is a selling market with low consumer confidence. US market right now is a dying bull market. Although stocks have been increasing, it is mostly because of the money fed by the Fed into the economy. For more information you can go to : http://www.investopedia.com/university/stocks/stocks7.asp

After the presentation, Dingwei asked a market sizing brain teaser. Everyone got into pairs and tried to solve the problem. The question was “How many trains are there on the London Underground?” The link for the answer is: http://www.oliverwyman.com/careers/join-us/interview-preparation/brain-teasers.html

Alum Seminar Series

Meet Amy Loftus ‘90, the Executive Vice President at Accolade, Inc. She has more than 20 years of experience in consulting, with a focus on health care. Don’t miss this great opportunity! Tue, 28 Jan. Noon-1:15pm @  at Pen Y Groes (The President’s House1007 Wyndon Ave. Corner of North Merion and Wyndon).