General Meeting(3/5/2015)

Market Update

U.S Market:

  • 4th Quarter GDP data down to 2.2% from 2.6% and GPD is expected to be further revised down to 2%
  • Auto sales rose in Feb despite poor weather: GM sales up 4.2%; Chrysler sales rose 5.6%
  • Dollar continued to strengthen: Hit 11 year-high vs Euro, which fell to $1.1088
  • Nasdaq fell below 5000 level on Tuesday


  • China lowers growth target to about 7%
  • ECB on Thursday is expected to unveil details of bond buying program: 60 billion euro of bonds each month for 18 month
  • GDF Suez, a French Energy Company issues 2.5 billion euro of bond including zero coupon bond
  • More about zero coupon bond:


  • J&J is nearing a deal for cancer drug maker Pharmacyclics
  • Pharmacyclics has won expanded approval from US health regulators on its breakthrough cancer drug Imbruvica, which is expected to achieve annual peak sales of up to $6 billion
  • Shares of Pharmacyclics rose 6.3%
  • Abercrombie& Fitch shares down 13.1%, though profit beats expectation
  • Germany agreed to pay Airbus 623million euros in loans for the new Airbus A250 wide body jet.
  • Airbus has received billions of euro in preferential loans from European government to support the development of new jetliner models.

Stock pitchCoach (COH)


  • Founded in 1941 and acquired by Sara Lee Corp. in 1985
  • Products: Handbags, Accessories, Footwear, Jewelry, Wearables, etc.
  • Main American luxury goods retailer
  •  Current Price: $41.95
  • Market Cap: 11.85 B
  • P/E: 20.93
  • Debt/Equity Ratio: 2.27


  • 2/15/2015: Quarterly cash dividend of 0.33375 over common share


  • Seasonality
  • Global sourcing risks
  • Dependency on global sourcing center
  • Intellectual property protection
  • Popularity of brand and fads
  • Consolidation of retail business

Why Coach:

  • Coach lost lots of market share in the past years, the slowdown of competitors could mean a chance to gain back what it lost
  • New styles reminiscent of recent fashions seen at current shows
  • “Brand Transformation” has had positive outcomes on revenue as well as brand perception
  • Recent acquisitions give leverage
  • Plans to expand into South and Central America, as well as broadening line of men’s products


  • Long term hold for at least a year

Congratulations on our first stock pitch this year!

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