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:
- Alliance Data System
- Buffalo Wild Wings
- Under Armour
- Methode Electronics
- 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.