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