Group Members:

Justin Kuntz

Pengcheng Luo

Insang Hwang

Chelsea Tabarez

Andrew Waag

Leanne Chou

Ann Nguyen

Kaixiong Shi

Emily Zhang

Portfolio PresentationGroup 4

Large Cap, 30%

Mid Cap, 20%

Small Cap, 30%

In-ter-na-

tional/

Emerging Mar-ket, 20%

Hello, I am James Kindleman, 22, just got out of college.Employer: The transportation security administration. Investment fund available: $100,000; unfortunately, 50% of my portfolio has been lost due to the recent financial crisis.Experience in Stocks: basicInvestment criteria:Willing to take high risk for high return, 30 year horizon

Small Cap

Giant Interactive Group Inc. (GA)

1. China's leading online game developers and operators

2. Established in 2004

3. went to public in 2007

4. markets and sells its prepaid game cards and game points through distributors and retail outlets

SWOT Analysis

Strengths

1. High revenue, high profit 2. High invest on research3. Strong management team

Weaknesses

1. Relatively young2. Game update is relatively slow

Opportunities1. High demand field – Game

Threats1. Other companies2. Chinese government

Qualitative Analysis

• Yuzhu Shi

• one of the most successful entrepreneur in China

• A list of successful companies

• Vision, Passion, Persistence

• Marketing Guru: Known by every Chinese

Quantitative Analysis

2007 2008 2009

3690

12978

16604

Research DevelopmentResearch DevelopmentResearch indicates

growing potential

Quantitative/Technical Analysis

5 Year Price Change

Year to Date Price Change

Category Value

Market Cap $2.0B

P/E ratio 16.59

Dividend yield 2.03%

EPS 0.52

52 Week low/high -6.03/-9.17

Annual profit (last year)

$120.0M

Net profit margin 60.86%

Source: http://money.cnn.com/quote/quote.html?symb=GAhttp://financials.morningstar.com/ratios/r.html?t=GA&culture=en-UShttp://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=GA:US

• Cliffs Natural Resources

• Established in 1847 in Cleveland, Ohio

• Specializes in mining iron ore and coal

• Largest producer of iron ore pellet in. N. America

• Trade on NYSE

Mid Cap

Strengths

-Operates mines internationally-Corporation is subdivided—handles all aspects of business

Weaknesses

-Heavily dependent on steel industry-Heavily dependent on China—biggest steel producer

Opportunities

-Increasing Chinese demand for iron ore-Increasing iron production capacity -Closing acquisition of Consolidated Thompson Iron Mines Limited

Threats

-2.4 billion long term debt-Harsh weather conditions-Increased Chinese self-sufficiency

SWOT Analysis

• 05/06: Added to Fortune 500’s list

• 04/28: Severe weather damages Oak Grove Mine

• 04/20: Settlement agreement with Essar Steel Algoma

• 04/12: Obtains approval for Thompson Iron Mines Limited acquisition

HTTP://FINANCE.YAHOO.COM/NEWS/CLIFFS-NATURAL-RESOURCES-INC-PRNEWS-3697739760.HTML?X=0&.V=1;HTTP://WWW.CLIFFSNATURALRESOURCES.COM/INVESTORS/PAGES/DEFAULT.ASPX

Qualitative Analysis

• Price: 88.93 (as of 5/6)

• Market cap: 12.06B

• P/E: 8.87

• EPS: 10.03

• Beta: 2.37

Quantitative/Technical Analysis

• Price: 92.45

• Market cap: 12.54B

• P/E: 9.22

• EPS: 10.03

• Beta: 2.37

Quantitative/Technical Analysis

• iShares MSCI South Korea Index

• Legal type: ETF(Exchange Trade Fund)

• Ticker Symbol: EWY

• Trading Center: NYSE

• Market Cap: 5.2B (Small)

• Inception Date: 05/10/2000 (10 years ago)

International/Emerging Market

Now, let us take a look at an Exchange Trade

Fund!

Benefits

•Buying and selling flexibility

•Market exposure and diversification

•Transparency

•Lower costs

Weaknesses

•Brokerage commission

•Cannot reinvest dividends

Advantages and Disadvantages of ETF

Basic mate-rials

Con-sumer cyclical

Fi-nan-cial ser-

vices

Realestate

Con-sumer

de-fen-sive

Healthcare

Utilities Com-munica-

tion ser-

vices

Energy Indus-trials

Tech-nology

0

5

10

15

20

25

30

35

15.9318.92

14.55

0 1.59 0 1.48 2.55 1.3

14.84

28.83

Sector Allocation

Quantitative Analysis

Sam-sung Elec-

tronics Co., Ltd.

(SSNLF)

Posco ADR

(PKX)

Hyundai Motor Com-pany Ltd. GDR

(HYUO)

Hyundai Mobis

Shin-han

Finan-cial

Group Co Ltd

LG Chem Ltd. GDR

(LGCD)

KB Fi-

nan-cial

Group

Hyundai Heavy Indus-

tries Co Ltd

Hynix Semi-con-

ductor Inc

Kia Motors Corp

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%17.43%

5.13% 4.71%3.07% 3.06% 2.96% 2.93% 2.84% 2.45% 2.35%

Top 10 Holdings

Quantitative Analysis

International Stocks ; 97.25%

Preferred Stock ; 2.61%

EWY Asset Allocation

Quantitative Analysis

Source:http://etfdb.com/etf/EWY/holdings/

Quantitative/Technical Analysis

Performance Comparison EWY/S&P500, Dow, NASDAQ

Blue: EWY, Red: NASDAQ Green: S&P 500, Purple: DOW

Category Value

Market Cap $5.24B

P/E Ratio 10

Yield 0.64

52 Week low/high 40.65 - 69.99

YTD return 12.71%

200 Day MA50 Day MA Price Change In the Past Five years

Quantitative/Technical Analysis

Source:http://finance.yahoo.com/q/hl?s=EWY+Holdings

• Netflix

• Founded in 1997

• America’s top provider in online movie rental subscription services and on-demand internet video streaming

• Traded in Nasdaq

Large cap

SWOT analysis

Strengths

•Lead market share of online rentals•World’s largest selection of DVDs•Affordable monthly price plans

Weaknesses

•No live/new content•Studios limit when various movies can become available for how long•Terms of content distribution are not exclusive

Opportunities

•Expanding services internationally•Expanding to video game rental•Branding: it has become a household name

Threats

•Other large retailers entering the online video rental market•Different types of online digital distribution (iTunes, Amazon.com)

Qualitative analysis

• 4/2011: Surpassed Comcast in being the country’s biggest provider of subscription video content

• 7/2010: Launching its instant streaming service in Canada

• 11/2008- 1/2010: Created deals with Microsoft, Sony, and Nintendo to have their Netflix services available on their game stations

• 10/2008: Announced partnership with Starz Entertainment

Quantitative/technical analysis

Category Value

Market Cap $12.10 billion

P/E Ratio $66.14

Dividend Yield

EPS $3.48

52 Week low/high $90.43- $254.98

Annual Profit (last year)

$160.9 million

Net Profit Margin 7.44%

Questions?