smif final report-2015:2016

Annual Report

Fall 2015 – Spring 2016

Student Managed Investment FundSchool of Business and Economics

SUNY PlattsburghMay 2016

TickerBuy % of Portfolio Sell Dividend Return

Date Quantity Price Cost Date Quantity Price Net Proceeds $ %AAPL 10/15/2015 9 $ 110.96 $ 998.64 9.98% 4/29/2016 9 $ 93.17 $ 838.53 $ 9.36 $ (150.75) -15.10%

ALK 10/15/2015 13 $ 74.91 $ 973.83 9.73% 4/29/2016 13 $ 70.48 $ 916.19 6.175 $ (51.47) -5.29%

BECN 2/16/2016 15 $ 33.38 $ 500.70 5.00% 4/29/2016 15 $ 42.30 $ 634.55 0 $ 133.85 26.73%

DIS 10/15/2015 10 $ 107.78 $ 1,077.80 10.77% 4/29/2016 10 $ 102.90 $ 1,029.02 7.1 $ (41.68) -3.87%

ESS 2/16/2016 2 $ 197.00 $ 394.00 3.94% 4/29/2016 2 $ 219.83 $ 439.65 3.2 $ 48.85 12.40%

FIT 10/15/2015 27 $ 36.94 $ 997.38 9.97% 4/29/2016 27 $ 18.01 $ 486.32 0 $ (511.06) -51.24%

GILD 2/16/2016 5 $ 90.72 $ 453.60 4.53% 4/29/2016 5 $ 88.60 $ 442.98 2.15 $ (8.47) -1.87%

GPRO 11/4/2015 40 $ 24.60 $ 984.00 9.83% 4/29/2016 40 $ 12.67 $ 506.92 0 $ (477.08) -48.48%

MDLZ 2/16/2016 13 $ 38.64 $ 502.32 5.02% 4/29/2016 13 $ 42.62 $ 554.09 2.21 $ 53.98 10.75%

OCLS 10/15/2015 840 $ 1.19 $ 998.76 9.98% 4/29/2016 840 $ 0.98 $ 823.28 0 $ (175.48) -17.57%

PFE 2/16/2016 17 $ 29.50 $ 501.50 5.01% 4/29/2016 17 $ 32.56 $ 553.52 5.1 $ 57.12 11.39%

SCHW 10/15/2015 35 $ 28.65 $ 1,002.75 10.02% 4/29/2016 35 $ 28.33 $ 991.63 4.2 $ (6.92) -0.69%

TSLA 2/16/2016 4 $ 155.00 $ 620.00 6.20% 4/29/2016 4 $ 238.76 $ 955.03 0 $ 335.03 54.04%

Securities Value $ 10,005.28 Securities Value $ 9,171.71 $ (794.08) -7.40%

Ticker Company Name Sector

AAPL Apple Technology

ALK Alaska Air Group Industrials

BECN Beacon Roofing Supply Consumer Goods & Services

DIS Walt Disney Consumer Goods & Services

ESS Essex Property Trust Financials

FIT Fitbit Technology

GILD Gilead Sciences Healthcare

GPRO GoPro Technology

MDLZ Mondelez Inernational Consumer Goods & Services

OCLS Oculus Innovative Sciences Healthcare

PFE Pfizer Healthcare

SCHW Charles Schwab Financials

TSLA Tesla Motors Consumer Goods & Services

Portfolio Value throughout the Year

Initial Portfolio Value: $10,727

Current Portfolio Value: $9,933


SUNY PlattsburghSpring 2016

Apple Inc. (AAPL) – NasdaqGSCurrent Price

93.24Market Cap

519.75B1Y Target Est

126.70Beta1.44

52-Week Range92.00 – 132.97

Div & Yield2.28 (2.40%)

Business Summary: Apple Inc. was founded in 1977 and is headquartered in Cupertino, California. Apple Inc. designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players to consumers, small and mid-sized businesses, education, and enterprise and government customers worldwide. The company also sells related software, services, accessories, networking solutions, and third-party digital content and applications. The company sells and delivers digital content and applications through the iTunes Store, App Store, iBooks Store, Mac App Store, and Apple Music. It also sells its products through its retail and online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers, and value-added resellers.

Key StatisticsValuation MeasuresEnterprise Value 544.36BTrailing P/E 9.98PEG Ratio 1.22Price/Sales 2.24Price/Book 4.10

Financial Highlights2015 2014 2013

Gross Margin (%) 40.06 38.59 37.62Profit Margin (%) 22.85 21.61 21.67Return on Assets (%) 20.50 18.06 19.39Return on Equity (%) 46.38 33.70 30.72EBITDA Margin (%) 34.91 32.83 32.43Diluted EPS 9.22 6.45 5.679

Investment Thesis:We rate Apple Inc. (AAPL) a Strong Buy. Based on the company’s key statistics and financial statements, the company has been experiencing growth for the last three fiscal years having increase in essential ratios. Apple have been increasing their product market size by adding new products. Also, the company is working on significant future projects that would allow them to diversify the market reducing overall risk. The current market stock price is close to 52-week low. Therefore, holding long position in Apple Inc. (AAPL) would be safe investment with significant growth in future.

Current Recommendation Trends

Strong Buy 17Buy 21Hold 8Underperform 0Sell 1

Analyst:

Zolboo Batbileg



Alaska Air Group, Inc. (ALK) -NYSE

Current Price69.14

Market Cap9.17B

1Y Target Est90.82

Beta0.803903

52-Week Range58.15 - 87.17

Div & Yield1.10 (1.43%)

Business Summary: Alaska Air Group, Inc., through its subsidiaries, provides passengers and cargo air transportation services primarily in the United States. The company operates through three segments: Alaska Mainline, Alaska Regional, and Horizon. It accommodates approximately 100 cities in Alaska, the Lower 48, Hawaii, Canada, Mexico, and Costa Rica. As of December 31, 2015, the company’s models consisted of 147 Boeing 737 jet aircraft; and 52 Bombardier Q400 turboprop aircraft. The company was founded in 1932 and is based in Seattle, Washington.

Key StatisticsValuation MeasuresEnterprise Value 8.65Trailing P/E 11.26PEG Ratio 0.66Price/Sales 1.96Price/Book 3.86


Gross Margin (%) 65.4 60.3 57.7Profit Margin (%) 15.15 11.27 -Return on Assets (%) 13.34 10.07 9.85Return on Equity (%) 31.24 - 29.45EBITDA Margin (%) 28.92 23.77 -Diluted EPS 6.56 4.42 3.58

Investment Thesis:Since 2013, Alaska air group’s shares have almost tripled since the start of 2013. Though Alaska air group has had trouble competing with its main rival, Delta airlines who have increased the amount of flights they offer in Seattle. Despite this threat that Delta airlines poses, Alaska air group is still known as the main name in Seattle and is working toward expanding their services to other cities. Their continued effort at expanding makes this stock a good buy in the future.



Analyst:

Liam O’Reilly



Beacon Roofing Supply, Inc. (BECN) NasdaqGSCurrent Price

42.40Market Cap

2.63B1Y Target Est

46.78Beta1.46

52-Week Range29.44-45.13

Div & YieldN/A

Business Summary: Beacon Roofing Supply, Inc. was founded in 1928 and is headquartered in Herndon, Virginia. Beacon Roofing specializes in delivering high quality products such as asphalt shingles, metal roofing, felts, wood shingles and shakes, nails and fasteners, metal edgings and flashings, prefabricated flashings, ridges and soffit vents, gutters and downspouts, and other accessories. Beacon Roofing mainstream market includes residential, and non-residential roofing manufacturers, home builders, building owners and various resellers. Beacon also provides superior roofing supplements such as fire treated plywood, synthetic decking, PVC trim boards, synthetic, millwork, and custom millwork. The company as of September 30th, 2015 operating in over 273 branches in over 40 states across the nation and 6 provinces in Canada. Beacon Roofing Supply, is audited by Ernst & Young LLP and has solid financial data.




Investment Thesis:We rate Beacon Roofing Supply, Inc. (BECN) a strong buy, buy, hold, underperform and sell. The company has experienced an increasing profit margin over the last three years. The housing market is currently in currently an upward trend. Gross margins over the last three years have been steadily increasing year-over-year. We believe it would be a buy.



Analyst:

Brandon Mitchell



The Walt Disney Company (DIS) – NYSECurrent Price

104.93Market Cap

171.77b1Y Target Est

133.92Beta1.46

52-Week Range86.25-122.08

Div & Yield1.42(1.37%)

Business Summary: The Walt Disney Company operates as a worldwide entertainment company. Walt Disney is broken into five segments: Media Networks, which operates cable and broadcast network, this includes ESPN, Disney Channels, and ABC Family, Pixar, and Marvel; Parks and Resorts, which includes Walt Disney World Resort in Florida, Disneyland in California, and Disney Spa & Resorts in Hawaii; Studio Entertainment, this part of the company produces a produces and acquires live-action and animated motion pictures, direct-to-video content, musical recordings, live stage plays and characters; Consumer products, this includes merchandising retail stores, publishing educational books and magazines; finally, Interactive, this includes creating and developing entertainment across interactive media platforms.



Gross Margin (%) 45.94 45.88 -Profit Margin (%) 16.87 16.39 14.73Return on Assets (%) 9.57 9.09 7.88Return on Equity (%) 18.43 16.64 14.45EBITDA Margin (%) 29.59 27.98 24.73Diluted EPS 4.9 4.26 3.38

Investment Thesis:We rate The Walt Disney Company (DIS) a Buy. Based on some of the company’s key statistics and financial statements, the company has been seeing tremendous growth in the company for the last five fiscal years. With continuous movie hits, from Star Wars, Frozen and The Jungle Book, Disney have been performing exceptional, surpassing earnings in 2014 and 2015. They are continuing to perform throughout 2016. With the release of The Jungle Book and reports of a Frozen 2, Walt Disney is looking to continue meeting and outperforming earning estimates. The current market stock price is below

Current Recommendation TrendsStrong Buy 5Buy 13Hold 15Underperform 1Sell 1

Analyst:

Christel Whint



their 52-week high. However, buying into the company and holding a long-term position in Walt Disney Company (DIS) could be safe investment while seeing significant growth in future.

Essex Property Trust Inc. (ESS)-NYSECurrent Price

228.87Market Cap

14.78 B1Y Target Est

245.96Beta0.49

52-Week Range191.25-244.71

Div & Yield6.40 (2.86%)

Business Summary: Essex Property Trust is a self-administered and self-managed real estate investment trust. Co, other words income-producing real estate company. Owns all of its interest in its real estate investments directly or indirectly through Essex Portfolio, L.P. (the Operating Partnership). Co. is the sole general partner of the Operating Partnership. Co. is engaged primarily in the ownership, operation, management, acquisition, development and redevelopment of predominantly apartment communities. As of Dec. 31, 2014, Co. owned or held an interest in 239 communities, aggregating 57,455 units, located along the West Coast, as well as four commercial buildings, and 12 active development projects with 2,920 units in various stages of development.




Investment Thesis:We rate Essex Property Trust Inc. (ESS) a Strong Buy. Based on the company’s key statistics and financial statements, the company has been experiencing growth for the last five consecutive fiscal years; having increase in essential ratios. The current market price stock price is 26 dollars away from its 1Y Target Est. Therefore, holding long position in Essex Property Trust Inc. (ESS) would be safe investment with significant growth in future.


Strong Buy 4Buy 9Hold 16

Analyst:

Bachana Tsiklauri



Underperform 0Sell 0

Fitbit, Inc. (FIT)- NYSE Current Price

13.88Market Cap

3.86B1Y Target Est

23.74BetaN/A

52-Week Range11.91 - 51.90

Div & YieldN/A(N/A)

Business Summary: The company was formerly known as Healthy Metrics Research, Inc. and changed its name to Fitbit, Inc. in October 2007. Fitbit, Inc. was founded in 2007 and headquartered is in San Francisco, California. Fitbit, Inc. provide health and fitness tracking devices that one could wear on their wrist. The products that they sell include Fitbit Zip, an entry-level wireless tracker that enables users to track daily activity statistics, such as steps, distance, calories burned, and active minutes; Fitbit One, a wireless tracker that one can clip on to their clothing which tracks floors climbed and sleep, as well as daily steps, distance, calories burned, and active minutes; Fitbit Flex, a tracker worn on one’s wrist that tracks steps, distance, calories burned, active minutes, and sleep; and Fitbit Charge, an activity and sleep band, which tracks steps, distance, calories burned, active minutes, floors climbed, and sleep.



Gross Margin (%) 48.5 48.0 22.2Profit Margin (%) 9.45 17.68 -19.19Return on Assets (%) 16.33 30.51 -Return on Equity (%) 31.24 180.71 -EBITDA Margin (%) 16.69 19.98 3.51Diluted EPS 0.75 0.72 0.63

Investment Thesis: We rate Fitbit, Inc. (FIT) as a hold. As the market is becoming more and more used to their line of products, this number will continue to increase. There are so many well-known fans of Fitbit who endorse their products as well such as


Analyst:

Liam O’Reilly



Britney Spears and President Barack Obama to name a couple. Right now, Fitbit is not the right time to buy, however, we believe that it has a lot of potential in the future.


Gilead Sciences Inc. (GILD) – NasdaqGSCurrent Price

85.86Market Cap


111.48Beta

1.2523052-Week Range

81.89-123.37Div & Yield

1.72 (1.71%)

Business Summary: Gilead Sciences, Inc. is a biopharmaceutical company that creates medicines to treat various diseases and conditions. The company has product lines in various stages of development for the treatment of HIV/AIDS and liver diseases, such as hepatitis B virus and hepatitis C virus; inflammation/oncology; serious cardiovascular; and respiratory conditions, as well as diabetic nephropathy and Ebola. Gilead has been a growing biopharmaceutical company since 1987 with CEO John Martin since 1996. Gilead focuses on creating simpler drugs for conditions that do not yet have a lot of options available as treatments.




Investment Thesis:We recommend a “Strong Buy” rating for Gilead Sciences (GILD). Gilead is currently trading near to their 52-week low ($81.89), they recently acquired Nimbus Apollo, a $400 million organization that is developing liver treatments.


Strong Buy 7

Analyst:

Robert Baker



Similar to their accusation of Sovaldi in 2011, this could result in large scale revenue growth for Gilead. Remaining one of the cheaper-trading Biotech organizations, Gilead is a tremendously profitable Biotech mogul that has a proven history of developing and acquiring successful franchises.

Buy 10Hold 8Underperform 0Sell 0

GoPro, Inc. (GPRO) – NasdaqGSCurrent Price

10.71Market Cap

1.75B1Y Target Est

12.69Beta0.66

52-Week Range9.78 – 64.74

Div & YieldN/A (N/A)

Business Summary: GoPro, Inc. is currently developing hardware and software applications to help customers with the process of capturing, managing, and sharing footage, video or still. GoPro’s primary product line is the HERO line of capturing devices, geared towards customers engaging in any type of activity; ranging from deep sea diving to back country skiing. Whether the customer is using the devices for everyday photography, or an extreme sport, GoPro also produces mountable and wearable accessories for the cameras, including the chest piece, and a mount for a helmet. GoPro is also developing high end video editing software called GoPro Studio, allowing customers to make and edit videos from their GoPro content.




Investment Thesis:We rate GoPro, Inc. (GPRO) a Buy. Based on the company’s key statistics and financial statements, the company has been experiencing a harsh decline. Currently, GoPro is trading only a dollar higher than their 52-week low, making


Analyst:

Benjamin Duchano



this a good time to invest in GoPro, as it is speculated to not drop below that price. GoPro is developing a “revolutionary” editing software, in addition to new innovations involving GoPro’s new drone, and virtual reality videos. GoPro also just recently hired one of the lead Designers on Apple, Inc.’s incredible lead design team. GoPro has a long way to go and unlimited room for growth.


Mondelez International, Inc. (MDLZ) – NasdaqGSCurrent Price

43.92Market Cap

68.33B1Y Target Est

45.47Beta1.06

52-Week Range35.88 – 48.58

Div & Yield0.68 (1.61%)

Business Summary: Mondelez International, Inc. was founded in 2000 as Kraft Foods Inc. and is headquartered in Deerfield, IL. Mondelez International, Inc. manufactures and markets snack food and beverage products in about 165 countries around the world. The company’s portfolio includes the top nine brands: LU, Cadbury, Cadbury Dairy Milk and Milka chocolates, Nabisco and Oreo biscuits, Trident gum, Jacobs coffee and Tang powdered beverages; and other 58 brands. The company’s product falls into five categories: biscuits, including cookies, crackers and salted snacks; chocolate; beverages, including coffee and powdered beverages; gum and candy; and cheese and grocery products. The company sells its products to supermarket chains, wholesalers, distributors, convenience stores, gasoline stations, drug stores, and other company owned and independent sales offices and agencies.




Investment Thesis:We rate Mondelez International Inc. (MDLZ) a Buy. Based on company’s key statistics and financial statements, the company has experienced a significant growth in their profit margin and other essential ratios in the past year. It was mainly due to the fact that the company has combined its wholly owned coffee


Strong Buy 4Buy 10

Analyst:Zolzaya

Jargalsaikhan



businesses in July 2015, increasing the operating income and decreasing selling and administrative expenses. Moreover, following the trend of its industry, the company is working towards cutting costs. Recently, the company has entered into an e-commerce partnership with Alibaba Group. Considering all the information, we believe that the company will grow in the future, thus holding a long position in Mondelez International Inc. (MDLZ) would be a safe investment.

Hold 8Underperform 1Sell 0

Oculus Innovative Sciences, Inc. (OCLS) – NasdaqCMCurrent Price

1.02Market Cap

21.34M1Y Target Est

3.00Beta0.70

52-Week Range0.70-1.97

Div & YieldN/A

Business Summary: Oculus Innovative Sciences, Inc. is a specialty device and pharmaceutical company. The Company develops and markets solutions for the treatment of dermatological conditions and advanced tissue care in both humans and animals. The Company offers wound care products which are sold into the human and animal healthcare markets in the United States, Mexico and Europe. The Company also operates a microbiology contract testing laboratory division that provides consulting and laboratory services to medical companies that design and manufacture biomedical devices and drugs, as well as testing of products and the Company's products. The Company's key technology, Microcyn is based on electrically charged oxychloride small molecules designed to target a range of pathogens that cause disease. The Company completed Phase II trials for Microcyn technology.

Key StatisticsValuation MeasuresEnterprise Value 12.11MTrailing P/E N/APEG Ratio N/APrice/Sales 1.17Price/Book 1.98


Gross Margin (%) 52.61 61.44 69.52Profit Margin (%) -59.21 27.33 -35.12Return on Assets (%) -45.78 22.39 -53.24Return on Equity (%) -68.03 46.27 -338.06EBITDA Margin (%) -57.37 37.14 -26.29Diluted EPS -0.85 0.54 -1.30

Investment Thesis:We rate Oculus Innovative Sciences, Inc. (OCLS) a strong buy. Even though Current Recommendation Trends

Analyst:

Hunter Russell



their key statistics dropped in almost every category last year, this year is looking up. They recently announced that they have received a new 510(k) clearance from the U.S. Food and Drug Administration for the company’s new Microcyn-based Lasercyn Gel. This will allow them to bring this new product to the market and increase revenue. With a one-year target of 3.00, three times the current price, now is a great time to invest in this company.


Pfizer Inc. (PFE) – NYSECurrent Price

33.57Market Cap


37.90Beta1.08

52-Week Range28.56-36.15

Div & Yield1.14 (3.48%)

Business Summary: Pfizer Inc., a pharmaceutical company, was founded in 1849 and its headquarters is located in New York, New York. Pfizer Inc. creates, develops, manufactures and sells healthcare products to the global market. The company serves wholesalers, retailers, hospitals, clinics, pharmacies, and many other customers. Pfizer Inc. is divided into groups including Global Innovative Pharmaceuticals, Global Vaccines, Oncology and Consumer Healthcare, as well as other various groups. The groups as a whole create, register, and mass produce medicine for various diseases and ailments such as inflammation, joint pain, cardiovascular diseases and vaccines. The Company brand names are Advil, Nexium, Robitussin, Dimetapp, ChapStick, and Preparation H. They also produce generic pharmaceuticals, and sterile injectable products. Pfizer Inc. also has licensing, research, and collaboration agreements with other various pharmaceutical companies including Syndax, Servier, and Portola Pharmaceuticals.




Analyst:

James Prusik



Investment Thesis:We rate Pfizer (PFE) as a buy. Pfizer has been recently specializing in particular business units and has been considering splitting the company in order to maximize efficiency after a failed attempt to merge with Allergan. Additionally, various ratios, such as P/E, are within an acceptable range of showing constant and steady growth. Lastly, the current price of Pfizer is at almost the 52-week median price and the 1-year target estimate is $37.90, which is slightly higher than the 52-week maximum.



The Charles Schwab Corporation (SCHW)– NYSECurrent Price

27.54Market Cap

37.54B1Y Target Est

32.25Beta1.58

52-Week Range21.51-37.52

Div & Yield0.28 (0.97%)

Business Summary: The Charles Schwab Corporation was founded in 1971 and is headquartered in San Francisco, California. Charles Schwab Inc., through its subsidiaries, provides wealth management, securities brokerage, banking, money management, custody, and financial advisory services. Charles Schwab Inc. provides both Investor Services and Advisor Services, and the company is segmented accordingly. The company also provides brokerage accounts along with their own mutual funds, ETFs, customized advice and solutions, tailored portfolios and specialized planning and portfolio management. The company serves individuals and institutional clients in the United States, Puerto Rico, London, and Hong Kong.



Gross Margin (%) - - -Profit Margin (%) 35.7 34.7 31.4Return on Assets (%) 0.86 0.89 0.77Return on Equity (%) 11.48 11.91 10.73EBITDA Margin (%) 39.23 38.2 37.18Diluted EPS 1.03 0.95 0.78

Investment Thesis:

Analyst:

Zolboo Batbileg



We rate The Charles Schwab Corporation (SCHW) a hold. Based on the company’s key statistics and technical analysis, the company has experienced limited growth this year despite increased revenues for the past three years. As of Friday April 22nd, the company’s board declared a 17% increase to the quarterly cash dividend to 7 cents per share. This shows that they have renewed confidence in their ability to deliver higher earnings, thus reassuring investors to hold their shares until further notice.



Tesla Motors, Inc. (TSLA) – NasdaqGSCurrent Price

211.53Market Cap

33.21B1Y Target Est

245.13Beta1.11

52-Week Range141.05-286.65

Div & YieldN/A(N/A)

Business Summary: Tesla Motors, Inc. designs, develops, manufactures, and sells electric vehicles and stationary energy storage products in the United States, China, Norway, and internationally. It primarily offers sedans and sport utility vehicles. The company also offers electric vehicle powertrain components and systems to other manufacturers. Tesla Motors, Inc. sells its products through a network of Tesla stores and galleries, as well as through Internet. The company was founded in 2003 and is headquartered in Palo Alto, California.

Key StatisticsValuation MeasuresEnterprise Value 32.23BTrailing P/E N/APEG Ratio 5.58Price/Sales 8.28Price/Book 30.62


Gross Margin (%) 22.82 27.57 22.66Profit Margin (%) (21.96

)(9.19) (3.68)

Return on Assets (%) (12.75)

(7.11) (4.19)

Return on Equity (%) (88.84)

(37.25) (18.69)

EBITDA Margin (%) (11.85)

(2.36) 2.25

Diluted EPS (6.93) (2.36) (0.62)

Analyst:

William

Kane



Investment Thesis:We recommend a “Hold” rating for Tesla Motors (TSLA). Recently Tesla released their Model 3; a vehicle that is more affordable for the working class. Starting at $35K, it has quickly been backordered by 325K units. This among other factors helped Tesla to gain a predicted $14 Billion in future sales. With the due date set in fall of 2017, Tesla’s stock should continue to rise. ROBERT BAKER IS GAY.



smif final report-2015:2016

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