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Team

Winning
Aaron Lieske, Kyle Yancik, Steven Orsi

Our Strategy
-At first
-Large companies
-low risk low gains
-realized quickly this strategy was not competitive
-looked at the economy as a whole and began to reform our
strategy

Mid strategy
-We changed our strategy to make it more flexible
-increased risk
-risk tolerance increased to moderate
-Began shorting companies
-VRX was the first big success $26,050 in returns
-Moved our strategy to a Top-Down approach
-looked at the economy as a whole and subdivided it into
industries

Final strategy
Saw some up and downs with high risk tolerance strategy
Took a large loss on IBB

After large losses we changed our strategy


Moving to a safer low risk tolerance strategy

Low risk strategy


Investments in large relatively safe companies
Limited our risk and gains

Portfolio Overview

Holdings
Industry

Company

%owned

Aerospace/defense

United Technologies Corporation

0.95%

Aerospace/defense

The Boeing Company

6.89%

agriculture

Bunge

5.41%

Auto manufacturing

Toyota Motor Corp.

3.95%

Auto manufacturing

Honda Motor Company

1.19%

catalog & mail order houses

Amazon

5.93%

CATV systems

Netflix

0.98%

Diversified Machinery

Cummins

1.06%

Drug Delievery

Valeant Pharmaceuticals

4.45%

Cont.
Industry

Company

%owned

Farm and Construction

Caterpillar

0.34%

Financial

Ocwen Financial Corp.

0.50%

Health

iShares Nasdaq Biotechnology ETF

14.25%

Health

iShares Nasdaq Biotechnology ETF

13.75%

Health

Acadia Pharmaceuticals Inc.

2.63%

Home improvement

Home Depot

1.43%

Home improvement

Lowes

0.82%

Internet information provider

LinkedIn

1.23%

Iron Ore

Cliffs natural resources INC.

0.90%

Cont.
Industry

Company

%owned

Personal products

Herbalife

2.86%

restaurants

Dominos Pizza

5.78%

Specialty Eateries

Panera Bread

4.54%

Technology

Google

4.33%

Technology

Tableau Software

0.21%

Technology

Google

Technology

Avid Technology

0.23%

transportation

Southwest Airlines

1.06%

transportation

American Airlines

1.08%

transportation

Delta Airlines

1.27%

transportation

Jet Blue

0.58%

11.42%

Portfolio Beta

The Beta of a stock is something that helps investors to better understand the risk that
they are taking on by investing in stocks.

Our average beta:1.2274

Weighted average beta 1.06385

Highest Beta:Acadia Pharmaceuticals 3.16764

Lowest Beta: Domino's Pizza .052393

Google

Market Cap of $501.94B


P/E Ratio of 31.04
EPS of 23.59
Beta of .860078
Bought at $807.55
Bought more at $710.01
Sold at $742.87
Profit of $16,950

United Technologies Corporation

Market cap of $79.75B


P/E ratio of 11.06
Beta of 1.18
EPS 8.62
Bought at $88.38
Sold at $98.4
Profit of $10,020

Cliff Natural Resources

Market Cap of $388.16M


P/E Ratio of N/A
EPS of -5.13
Beta of .716149
Bought at $2.09/share
Sold at $2.70/share
Profit of $24,400

Valeant Pharmaceuticals

Market cap of 22.18B


P/E ratio of 37.33
Beta is .05812
EPS 1.74
Shorted them at $82.95
Covering the short at $77.75
$26,050 profit

Cummins

Market Cap of $19.61 billion


P/E Ratio of 14.69
EPS of 7.84
Beta of 1.13966
Bought at $99.11/share
Sold at $110.19/share
DIvidend revenue: $975
Profit of $12,055.00

Herbalife

Market Cap: 5.36 billion


P/E Ratio: 14.57
EPS: 3.97
Beta: 1.42453
shorted at: $53.32
covered at: $52.36
Profit: $4,800

iShares Nasdaq Biotechnology ETF

Net Assets- 6.40B


Yield- 0.09%
Annual holding turnover 33%
First Purchase Price-$265.79
5000 shares
Second Purchase Price-$256.5
5000 shares
Sell Price-$254.86
Current Price-$287.55

Top 10 Holdings (57.61% of Total Assets)


Company

Symbo
l

% Assets

Amgen Inc.

AMGN

8.24

Gilead Sciences, Inc.

GILD

8.23

Biogen Inc.

BIIB

7.84

Celgene Corporation

CELG

7.76

Regeneron Pharmaceuticals,
Inc.

REGN

7.05

Illumina, Inc.

ILMN

4.22

Mylan N.V.

MYL

4.02

Alexion Pharmaceuticals, Inc.

ALXN

3.86

Vertex Pharmaceuticals
Incorpor

VRTX

3.63

Incyte Corporation

INCY

2.76

Toyota & Honda


Toyota

Honda

Market Cap

P/E Ratio

7.74

10.55

Beta

.591013

1.08713

EPS

13.14

2.56

Bought

$108.47

$27.67

Sold

$100.66

$26.40

# Shares

3400

4000

Profit

156.29B

-$26,554

48.96B

-$5,080

The Boeing Company

Market Cap

85.91B

P/E Ratio

17.43

Beta

EPS

Sold Short

$128.59

Covered Short

$127.88

# Shares

5000

Profit

$5,350

1.28465
7.44

Home Depot & Lowes


Home Depot

Lowes

Market Cap

P/E Ratio

24.65

27.63

Beta

.990855

1.11327

EPS

5.46

2.73

Bought

$133.65

$76.18

Sold

$133.62

$75.03

# Shares

1000

1000

Profit

168.45B

-$30.00

67.70B

-$1,150

S&P 500
-A conglomerate of 500 different companies
-all with varying Liquidity and Market sizes
-Made up of companies from different industries
-Our portfolios performance was benchmarked on the S&P
500:
-the following Graph shows our performance compared
to the S&P 500
-over a 4 week period

S&P 500 return


Overall return for trading period: 5.71%
Effective annual return: 34.73%

SWOT Analysis
Strengths- First we are very well diversified investing in
many different types of industries. We also like to mix our
portfolio with risky and less risky stocks to insure that we
are still playing it safe just with an added chance to make a
large return on investment.

Weaknesses- Some of our stocks have an extremely high


beta and can be very volatile at times. Human error based
on emotions and constant fluctuation of the market.

Cont.
Opportunities- Some opportunities we had were missed
during our game. Several times we could have easily made
more money on stocks if we had just trusted our strategy
and stuck with it even though the market was sinking.

Threats- Some threats to our company would be the low


prices of oil affecting the transportation industry. Also
companies that falsified earnings like google really hurt us
towards the beginning. The last threat would be new drugs
being proven bad by the FDA as almost a third of our
portfolio was in the health industry.

Portfolio performance
Blue: S&P 500
Red: Portfolio

Return on Portfolio
Total return on our portfolio was $65,821 and $65,241 after
commission over 5.2 holding periods
That is a 2.19% return and 2.17% after commission
The chart below explains the 1,3, and 5 year return with and
without commission