BU Finance & Investment ClubSpring 2013

General Meeting – IM & IR Updates

 

2

Timeline for Finance Club

April 5th – 7th E-Board Interviews!

April 24th – May 1st Final Round Presentations

April 19th Wall Street Trip!

May 1st

Last General Meeting!

April 26th – 28th Summer Team Interviews!

 

3

Executive Board Interviews

President

VPs – Investment Research

VP – Investment Mgmt.

VP - Operations

VP - Alumni Outreach

VP - Technology

Positions April 5th – 7th

• Sign-up sheet will be provided a week+ prior to interviews

• A pre-assignment is required (explained in the next few slides)

 

4

Pre-AssignmentRules• 1 Page outline

• 3 measurable goals• “High level” strategy with

actionable, specific “low level” details

• 1 page timeline• When would you perform

each action• The assignment is due April

3rd, and is required to qualify for an interview

• It will be read prior to your interview.

• You will be considered based on your outline and timeline as well as your interview

 

5

Your Future in Finance Survey

The link is on the Finance & Investment Club Facebook Page!

Your input will be directly be used to construct Fall 2013's Your Future in Finance and the Alumni who will be invited to attend.

The survey includes potential seminars that we would like for you to rank how likely you are to attend.

You must answer the survey if you plan on attending the Wall Street Trip.

Your answers will not affect your candidacy for the limited Wall Street Trip sign ups.

 

6

Weekly IM Update

 

7

IM Weekly Update – Healthcare SectorSector Head: Fadi Humaid Current Holdings Update:

• Will report its fiscal 2013 third quarter financial results on Monday, April 8, 2013, after the close of the U.S. financial markets (What I presented last week was preliminary results)

• Management will host a conference call to discuss the results and answer questions beginning at 4:30 p.m. Eastern Time on April 8, 2013

Sector Holdings

TickerStock #1: ANGOStock #2: -Stock #3: -Stock#4: -

Market Capitalization:Stock #1: 394.63MStock #2: -Stock #3: -Stock#4: -

Performance (YTD):Stock #1: -0.79%Stock #2: -Stock #3: -Stock#4: -

 

8

IM Weekly Update – Technology, Media, and Telecom Sector

Sector Head: Vivian Chen Current Holdings Update:• Interxion (INXN):

• +26.55% since original investment• -1.6% last 7 days.

• Info Tech ETF (PSCT): • +6.29% YTD, +0.87% last 7 days.

• Utilities and Telecom Services ETF (PSCU): • +5.03% YTD, +0.60% last 7 days.

Sector Update:• Web $$$ Gets Laundering Rule: Firms that issue or exchange the

increasingly popular online cash will now be regulated in a similar manner as traditional money-order providers with new bookkeeping requirements and mandatory reporting for transactions of more than $10,000.

Sector HoldingsTicker

Stock #1: INXNStock #2: PSCTStock #3: PSCU

Market Capitalization:Stock #1: 1.78BStock #2: 108.67MStock #3: 29.94M

Performance (YTD):Stock #1: +1.07%Stock #2: +6.29%Stock #3: +5.03%

1/2/13

1/9/13

1/16/1

31/2

3/131/3

0/13

2/6/13

2/13/1

32/2

0/132/2

7/13

3/6/13

3/13/1

33/2

0/13

0.85

0.90

0.95

1.00

1.05

1.10

Year to Date

Portfolio SectorStock #1 Stock #2Stock #3

Mar

ket V

aluat

ion (1

/2/2

013

Base

)

2/12/1

32/1

6/132/2

0/132/2

4/132/2

8/13

3/4/13

3/8/13

3/12/1

33/1

6/133/2

0/133/2

4/13

0.85

0.90

0.95

1.00

1.05

1.10

Last 30 Days

Portfolio SectorStock #1 Stock #2Stock #3

Mar

ket V

aluat

ion (1

/31/

2013

Bas

e)

3/18/1

33/1

9/13

3/20/1

33/2

1/13

3/22/1

33/2

3/13

3/24/1

33/2

5/13

3/26/1

3 0.96

0.98

1.00

1.02

1.04

1.06

1.08

Last 7 Days

Portfolio SectorStock #1 Stock #2Stock #3

Mar

ket V

aluat

ion (1

/2/2

013

Base

)

 

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IM Weekly Update Template – Real Estate Sector

Sector Head: Kento Okamoto Sector Update:• S&P Case-Shiller index strengthens• Pending existing home sales decline 0.4%• US home price rose 8.1%. Most since 2006

Sector Holdings

TickerStock #1: KRGStock #2: SNHStock #3: GOVStock#4:

Market Capitalization:Stock #1: 516.63MMStock #2: 4.84BStock #3: 1.38BStock#4:

Performance (YTD):Stock #1: 13.66%Stock #2: 8.62%Stock #3: 2.44%Stock#4:

 

10

IM Weekly Update – Consumer Sector

Sector Head: Chris Kovalik Current Holdings Update:• Crocs opened 201 retail sites in 2012, global count to 537• Expects to add 70 to 95 more this year• Most of these are full retail stores vs. pop-up kiosks• Concerns with China & Europe

Sector Update:• U.S. Retail Sales Up Solid 1.1% in February• 236,000 new jobs in Feb• Discount sales rose 0.5 percent in February, non-disc.fell 1%• Consumer confidence surprise in march (decline)

0.800

0.850

0.900

0.950

1.000

1.050

1.100

1.150

1/2/2013 2/2/2013 3/2/2013

Mar

ket V

alua

tion

(1/2

/201

3 Ba

se)

Year to Date

Portfolio CROX Sector RUE PSCD

0.8500.9000.9501.0001.0501.1001.150

Mar

ket V

alua

tion

(1/2

/201

3 Ba

se)

Last 30 Days

Portfolio CROX SectorRUE PSCD PSCD

0.900

0.950

1.000

1.050

1.100

1.150

3/18

/201

3

3/19

/201

33/

20/2

013

3/21

/201

33/

22/2

013

3/23

/201

33/

24/2

013

3/25

/201

3

3/26

/201

33/

27/2

013

Mar

ket V

alua

tion

(1/2

/201

3 Ba

se)

Last 7 Days

Portfolio CROX SectorRUE PSCD

Sector Holdings

TickerStock #1: RUEStock #2: CROXStock #3: PSCDStock#4: PSCC

Market Capitalization:Stock #1: 0.69BStock #2: 1.36BStock #3: nmStock#4: nm

 

11

IM Weekly Update Template – Industrials Sector

Sector Head: Knut Kirchoff Current Holdings Update:• We are waiting for confirmation if we

exited WCN or not

Sector Update:• Boeing 787 might face a ban on long-

distance flight• Durable goods orders increased 5.7%

mainly due to transportation orders -0.5%

Sector Holdings

TickerStock #1: WCNStock #2: PSCIStock #3:Stock#4:

Market Capitalization:Stock #1: $4.22BStock #2: $29.91mmStock #3:Stock#4:

Performance (YTD):Stock #1: 5.7%Stock #2: 9.13%Stock #3:Stock#4:

Finance & Investment Club: Investment Management DivisionReal Estate Sector3/27/2013

Investment Associate: Arlind Hoxha

Kite Realty Group Maintain Coverage

 

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Company Overview

Kite Realty Group Trust (NYSE: KRG) is a real estate investment trust focused on the development, construction, acquisition, ownership and operation of neighborhood and community shopping centers in the United States.

Interests Amount

Retail Operating Properties 54

Operating Commercial Properties 2

Redevelopment 4

In-process Development Properties 3

Total Interest in Properties 63

% of Owned Square FootageIndianaFloridaTexasIllinoisGeorgiaWashingtonOhioNew JerseyOregon

 

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4th Quarter HighlightsKRG has had strong growth primarily due to increasing lease spreads and improvement in occupancy rates

KRG has also made an attempt to continue to grow through acquisitions- Six in-process developments and redevelopments totaling $240 million that are 81.4% pre-leased.- Conducting due diligence on the possible acquisition of two shopping centers in Greensville, South Carolina for $40 million in total

Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 20120.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

5.8%

3.2%

10.8%

6.6% 7.2%

14.6%

4.1%

25.5%

Leasing Spreads

Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 201291.0%

91.5%

92.0%

92.5%

93.0%

93.5%

94.0%

94.5%

92.3%

93.0% 93.1%93.4% 93.4%

93.0%

93.4%

94.2%

Occupancy Rates

 

15

Summary and Recommendation

KRG has returned 20.57% since January and has outperformed the S&P 600

We believe that KRG has already achieved most of its upside- Occupancy rates are at the highest in the last two years- Acquisition strategy may already be priced in with more than 80% of properties pre-

leased- The current price of $6.74 is above my 1 year target price of $6.34

Final Recommendation: Sell- We are looking to sell KRG and buy a REIT that offers a higher yield

Finance & Investment Club: Investment Management DivisionMaterials Sector3/27/2013

Sector Head: Yuzhao Wu

PKG Maintain Coverage

 

17

Maintain Coverage Report on PKG

Current Price: $44.08 Target Price: $45 Dividend Yield: 2.9% Upside from January: 13% Recommendation: Hold/Sell

– Potentially sell half of the position and replace by new pitches

– Or Keep the position and expand the weighting of materials sector in general

 

18

Positive Industry and Macro Condition Container board price increase again

– From $45 to $50 in March 11th

Export and domestic expenditure are on the rise

 

19

Growth Could be limited Most of the good news are factored in valuation Locked in the first quarter dividend already Management is not taking active positions in expansion

– Traditionally taking a conservative approach