LAFAYETTE INVESTMENT CLUB 110510 AGENDA CLUB news FINANCIAL

LAFAYETTE INVESTMENT CLUB 11/05/10

AGENDA � CLUB news � FINANCIAL news � PORTFOLIO overview � SECTORS sign up! � WHAT IS AN ADR? � BAIDU presentation (vote!)

CLUB NEWS � SOLD TY, BOUGHT VESTAS � WALL STREET 2 – good time! � SPOT party - not too many people showed up � Next meeting: next Friday, Nov 12 th � Trip: Thu, Nov 11 th De. Sales University– Art/Business Conference, sign up with Career Services � Speaker: Holly Paul ’ 94, PWC, Monday, Nov 15 th Oechsle Hall

FINANCIAL NEWS � � � � � High Unemployment - 9. 6% (Stable/Stubborn) ECI Wages and Salaries: just over 1. 5%, slow and relatively stable recently Retail Sales: very strong recently and for quite a while Profits & Earnings have been large + new orders also strong. Consumer Sentiment: 67. 7, has been on a downward Trajectory Consumer Spending: Slow Growth GDP Growth: Slowing down Housing Sector: BAD!!! Home sales(both new and old) remain weak Inflation Subdued (Core PCE: 1. 4%) Inflation Expectation Fell in Sept MIXED !!!

WHAT’S NEW THIS WEEK � QE 2($600 billion of U. S. government bonds) Stock (Dow Jones Up by 1. 96%, SP 500 up by 1. 94%) � � Inflation Expectation just turned to rise

PORTFOLIO � Total AUM: approx. $350, 000 � Cash: approx. � Beta =. 89 (up from. 81) � Number of positions: $30, 000 42

PERFORMANCE • S&P 500 YTD 8% • Portfolio YTD approx. 8. 5%

TOP 11 HOLDINGS

TOP PERFORMERS � SCCO (PCU) 147% � DBB � IBM � AKAM � KMR � CAT 104% 85% 64% 43%

WORST PERFORMERS � BAC (only. 7%) 68% � MFC � GE 33% � BA 19% � INTC � GILD 44% 17% 16%

HOW MUCH DID WE MAKE YESTERDAY? $6, 178 IN A DAY

SECTORS

TMT (TECH, MEDIA, TELECOM)

ENERGY & COMMODITIES

FINANCIALS

HEALTHCARE AND BIOTECH

CONSUMERS AND INDUSTRIALS

ACTIVE MANAGEMENT � Markets have experienced a high correlation � Reasons: - ETFs - Macro driven trading - => PICK A SECTOR and follow it => MAKE GROUP PROPOSALS ON SECTORS

SECTORS – PLEASE SIGN UP! � TECHNOLOGY � FINANCIALS � ENERGY � HEALTHCARE � CONSUMERS

WHAT IS AN ADR?

COMMON STOCK � Represents a share of ownership in a corporation � Can be traded on exchanges (NASDAQ, NYSE, etc) � Can be traded OTC (in the “Pinks”)

OTC/PINK SHEETS � Companies that are small � May not meet exchange requirements � Possibly doesn’t meet SEC requirements

ADR � American Depository Receipt � Issued by foreign companies � Traded on US exchanges � Price based on home country price � Allows many benefits of ownership � Exposes buyer to currency risk

BAIDU VS GOOGLE � � � BIDU 110. 06 -0. 59 (-0. 53%) GOOG 624. 27 +4. 09 (0. 66%) Range 107. 10 - 112. 55 52 week 38. 47 - 113. 78 Open 112. 09 Vol / Avg. 13. 97 M/14. 10 M Mkt cap 38. 34 B P/E 91. 85 Div/yield EPS 1. 20 Shares 348. 33 M Beta 1. 79 Range 622. 10 - 629. 92 52 week 433. 63 - 629. 92 Open 624. 62 Vol / Avg. 3. 57 M/3. 52 M Mkt cap 199. 63 B P/E 25. 26 Div/yield EPS 24. 71 Shares 319. 78 M Beta 1. 21

BAIDU VS GOOGLE