OIG Meeting Nov 3rd

There is certainly a lot of information today.

Ruilin introduced 2 buzz words: Sharpe Ratio and LTM. Both are very useful tools to analyze stocks and portfolio performance. Then we reviewed our portfolio (AT LAST!!) now that our password works again. Yufan sold China Education Alliance (CEU) in front of all of us. We are glad that today it made a 7% growth, that’s more than 1oo dollars recouped.

Then everyone got a piece of news cut off from the Wall Street Journal. We shouted out the words that we didn’t understand. Here is a list of them:

Arbitrage: the simultaneous buy and sale of an asset to profit through the inefficiency of the market. (Isn’t that neat?)

Alpha: One of the five useful tools in Modern Portfolio Theory. It basically compares the risk-adjusted performance of a portfolio with a benchmark index (e.g. LIBOR, MSCI, S& P 500, etc)

TIPS: Treasury Inflation Protected Securities. In other words, it’s used to protect your assets against the threat of inflation.

Quantitative Easing: OMC through FOMC–Check your intro to Macro book! Just remember that bond prices and interest rates are inversely related.

Gross Margin: Revenue net of Sold Goods. For comparison, please refer to Net Margin, Operating Margin, etc.

One last thing: reminder. For those of you that are joining us for the trip to New York, please show up at 6:45 am (I know it’s early) at Pem Arch. We will depart for Manhattan at that time.