LAFAYETTE COLLEGE INVESTMENT CLUB April 11 th. MARKET UPDATE 4/11.
Lafayette Investment Club
description
Transcript of Lafayette Investment Club
![Page 1: Lafayette Investment Club](https://reader035.fdocuments.us/reader035/viewer/2022062521/568168db550346895ddfd113/html5/thumbnails/1.jpg)
Lafayette Investment ClubApril 15 2011
![Page 2: Lafayette Investment Club](https://reader035.fdocuments.us/reader035/viewer/2022062521/568168db550346895ddfd113/html5/thumbnails/2.jpg)
Agenda Club News Portfolio Financial News Sell Recommendation: AMSC
![Page 3: Lafayette Investment Club](https://reader035.fdocuments.us/reader035/viewer/2022062521/568168db550346895ddfd113/html5/thumbnails/3.jpg)
Club News Hedge Fund Trip E-MAIL NANETTE COOLEY ([email protected])
TODAY!Hosted by Alex Hyman P'14, Cofounder Thursday, April 21, 12:00pm - 5:00pm
Movie “Inside Job” – FREE FOOD! by the Econ ClubMonday, April 18th, Hugel 100, 7:00pm - 9:00pm
![Page 4: Lafayette Investment Club](https://reader035.fdocuments.us/reader035/viewer/2022062521/568168db550346895ddfd113/html5/thumbnails/4.jpg)
OFFICER ELECTIONS Next Friday, April 20Analysts (2-3)PR (3)WebmasterSecretaryTreasurerPresident and VP
![Page 5: Lafayette Investment Club](https://reader035.fdocuments.us/reader035/viewer/2022062521/568168db550346895ddfd113/html5/thumbnails/5.jpg)
Portfolio January $368,344.58 April $370,293.23
YTD Portfolio Return .53% vs. S&P500 2.16%
WHY?
![Page 6: Lafayette Investment Club](https://reader035.fdocuments.us/reader035/viewer/2022062521/568168db550346895ddfd113/html5/thumbnails/6.jpg)
Portfolio
ENER13%
FINA13%
HEAL10%
MISC17%
ETFs19%
TECH24%
CASH4%
Sector Weights
![Page 7: Lafayette Investment Club](https://reader035.fdocuments.us/reader035/viewer/2022062521/568168db550346895ddfd113/html5/thumbnails/7.jpg)
Portfolio January to April ENERGY and COMMODITIES 5.07% FINANCIAL SERVICES -0.35% HEALTHCARE and BIOTECH 2.61% MISC 7.54% ETFs 5.16% TECHNOLOGY -7.36%
![Page 8: Lafayette Investment Club](https://reader035.fdocuments.us/reader035/viewer/2022062521/568168db550346895ddfd113/html5/thumbnails/8.jpg)
Financial News DJIA: 12380.05, up 0.03% - 12270.99, up 0.1%
![Page 9: Lafayette Investment Club](https://reader035.fdocuments.us/reader035/viewer/2022062521/568168db550346895ddfd113/html5/thumbnails/9.jpg)
Financial News OIL: 112.79 - 107.11, up 0.86 GOLD: 1454.90, up 2.00
![Page 10: Lafayette Investment Club](https://reader035.fdocuments.us/reader035/viewer/2022062521/568168db550346895ddfd113/html5/thumbnails/10.jpg)
Middle East Unrest
![Page 11: Lafayette Investment Club](https://reader035.fdocuments.us/reader035/viewer/2022062521/568168db550346895ddfd113/html5/thumbnails/11.jpg)
Budget Debates
![Page 12: Lafayette Investment Club](https://reader035.fdocuments.us/reader035/viewer/2022062521/568168db550346895ddfd113/html5/thumbnails/12.jpg)
Japan
![Page 13: Lafayette Investment Club](https://reader035.fdocuments.us/reader035/viewer/2022062521/568168db550346895ddfd113/html5/thumbnails/13.jpg)
Sell Recommendation: AMSC Miao and Greg
![Page 14: Lafayette Investment Club](https://reader035.fdocuments.us/reader035/viewer/2022062521/568168db550346895ddfd113/html5/thumbnails/14.jpg)
Overview 3 Areas of Focus:
Wind Energy (Turbine design, components, grid connections) Power Systems (Grid components motors) High Temperature Superconductor (HTS) wires
![Page 15: Lafayette Investment Club](https://reader035.fdocuments.us/reader035/viewer/2022062521/568168db550346895ddfd113/html5/thumbnails/15.jpg)
Some Numbers Current 13.01 52 week range: 12.54-38.88 P/E 15.16 Beta 1.58 EPS: 0.86
![Page 16: Lafayette Investment Club](https://reader035.fdocuments.us/reader035/viewer/2022062521/568168db550346895ddfd113/html5/thumbnails/16.jpg)
Financials
Only up to March 2010… Up to Dec 2010
Income Statement (Annually )
Income Statement (Quarterly)
![Page 17: Lafayette Investment Club](https://reader035.fdocuments.us/reader035/viewer/2022062521/568168db550346895ddfd113/html5/thumbnails/17.jpg)
More financials
Balance Sheet Quarterly Cash Flow
![Page 18: Lafayette Investment Club](https://reader035.fdocuments.us/reader035/viewer/2022062521/568168db550346895ddfd113/html5/thumbnails/18.jpg)
What was going on? Quarterly Cash Flow
Balance Sheet (Quarterly)
![Page 19: Lafayette Investment Club](https://reader035.fdocuments.us/reader035/viewer/2022062521/568168db550346895ddfd113/html5/thumbnails/19.jpg)
Something good about AMSC Overlap with other AMSC business
Government Support: $4.8M from the Department of Energy for further development of superconducting electrical cables.
Bright future of the business (long run): Energy Consumption
![Page 20: Lafayette Investment Club](https://reader035.fdocuments.us/reader035/viewer/2022062521/568168db550346895ddfd113/html5/thumbnails/20.jpg)
Recent Movement April 6th
![Page 21: Lafayette Investment Club](https://reader035.fdocuments.us/reader035/viewer/2022062521/568168db550346895ddfd113/html5/thumbnails/21.jpg)
Recent News Chinese Industrial company Sinovel, which accounts for
over 70% of AMSC’s revenues, declined to receive American Superconductors components due to inventory backup
“If Sinovel cancelled purchase orders or development contracts, or discontinued future purchases from us, we would likely be unable to replace the related revenues. This would have a serious negative impact on our operating results and financial position.”
-10-k for 2009
![Page 22: Lafayette Investment Club](https://reader035.fdocuments.us/reader035/viewer/2022062521/568168db550346895ddfd113/html5/thumbnails/22.jpg)
Other Negative News In March, AMSC said it would buy The Switch Engineering
Oy for $266 million -- $79 million of which would be paid in stock.
With the recent drop in AMSC's stock value it would require more shares to complete the deal which makes this acquisition less likely
![Page 23: Lafayette Investment Club](https://reader035.fdocuments.us/reader035/viewer/2022062521/568168db550346895ddfd113/html5/thumbnails/23.jpg)
Should we sell it? As a result of the recent withdrawal of Sinovels business,
AMSC will likely be running in the red light for at least one year, possible more
We recommend to Sell AMSC