bu finance & investment club spring 2013
DESCRIPTION
General Meeting – IM & IR Updates. BU Finance & Investment Club Spring 2013. Timeline for Finance Club. April 5 th – 7 th E-Board Interviews!. April 24 th – May 1 st Final Round Presentations. April 19 th Wall Street Trip!. April 26 th – 28 th Summer Team Interviews!. May 1 st - PowerPoint PPT PresentationTRANSCRIPT
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
)
9
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
13
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
14
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