SIM Stock Presentation Information Technology Ellie Mc Cabe
SIM Stock Presentation: Information Technology Ellie Mc. Cabe, Steven Munn, Jordan Kopman, Matthew Mc. Gahan, Noah Mitchell
Table of Contents v Sector Overview v Recommendation v Stocks v Alphabet v Apple v Arris International v Cognizant v Dell (VM Ware) v Microsoft v Vantiv v Conclusion 2
Sector Overview 3
22. 82% 23. 60% 4
5
Recommendation 6
Recommendation v Sell 14 basis points of Apple to end at 5. 00% cap v Sell VMare completely v Use 278 basis points to buy Arris International Stock Current Change New Alphabet 5. 00% 0. 00% 5. 00% Apple 5. 14% -0. 14% 5. 00% Arris 0. 00% +2. 78% Cognizant 4. 83% 0. 00% 4. 83% Microsoft 0. 23% 0. 00% 0. 23% Vantiv 4. 98% 0. 00% 4. 98% VM Ware 2. 64% -2. 64% 0. 00% 7
Stock Information 8
HOLD Alphabet, Inc. Ticker GOOGL Current Sim % 5. 00% Alphabet, Inc. is an American multinational conglomerate created in 2015 as the parent company of Google. The company is located in Mountain View, California. Alphabet is the parent company to Google as well as many start-up type companies including Waymo, Verily, and Google. X. Current Price $1, 056. 52 Price Target $962. 66 Dividend Yield N/A Potential Upside -8. 9% P/E 38. 29 Recommended % 5. 00% 9
HOLD Apple Inc. , founded in 1977 in California, is a technology company that designs, manufactures and markets mobile communications and media devices, personal computers and a variety of software applications. Apple also provides services and network solutions, as well as offers thirdparty applications and digital content. Ticker AAPL Current Sim % 5. 14% Recommended % 5. 00% Current Price $174. 01 Price Target $182. 22 Dividend Yield 1. 44% Potential Upside 6. 14% P/E 18. 94 10
HOLD Apple Inc. v Apple stock price has been up 45% on the year Ticker AAPL Current Sim % 5. 14% Recommended % 5. 00% Current Price $174. 01 Price Target $182. 22 Dividend Yield 1. 44% Potential Upside 6. 14% P/E 18. 94 11
BUY Arris Intl. Arris International Plc is a telecommunications equipment manufacturing company that provides cable operators with high-speed data, video and telephony systems. The company’s innovations combine hardware, software, and services across the cloud, network, and home to power TV and Internet for millions of people around the globe. Ticker ARRS Current Sim % 0. 00% Recommended % 2. 78% Current Price $28. 97 Price Target $30. 81 Dividend Yield N/A Potential Upside 6. 4% P/E 33. 00 12
BUY Arris Intl. v Increased number of broadband subscribers v Increase in connected devices per household v Increase in data usage per household v High-tech products demanding more advanced communications equipment Ticker ARRS Current Sim % 0. 00% Recommended % 2. 78% Current Price $28. 97 Price Target $30. 81 Dividend Yield N/A Potential Upside 6. 4% P/E 33. 00 13
BUY Arris Intl. v Set-top boxes are decreasing in U. S. , but increasing worldwide v Pressure from over-the-top media and increased competition from between service providers are resulting in demand for new set-top boxes. Ticker ARRS Current Sim % 0. 00% Recommended % 2. 78% Current Price $28. 97 Price Target $30. 81 Dividend Yield N/A Potential Upside 6. 4% P/E 33. 00 14
BUY Arris Intl. v Set-top boxes are decreasing in U. S. , but increasing worldwide v Pressure from over-the-top media and increased competition from between service providers are resulting in demand for new set-top boxes. Ticker ARRS Current Sim % 0. 00% Recommended % 2. 78% Current Price $28. 97 Price Target $30. 81 Dividend Yield N/A Potential Upside 6. 4% P/E 33. 00 15
BUY Arris Intl. v Service providers projected to have higher capital expenditures in order to meet customers demand of higher bandwidth and faster speeds v ARRIS offers DOCSIS 3. 1 modems which support gigabit speeds. Ticker ARRS Current Sim % 0. 00% Recommended % 2. 78% Current Price $28. 97 Price Target $30. 81 Dividend Yield N/A Potential Upside 6. 4% P/E 33. 00 16
BUY Arris Intl. v Service providers projected to have higher capital expenditures in order to meet customers demand of higher bandwidth and faster speeds v ARRIS offers DOCSIS 3. 1 modems which support gigabit speeds. Ticker ARRS Current Sim % 0. 00% Recommended % 2. 78% Current Price $28. 97 Price Target $30. 81 Dividend Yield N/A Potential Upside 6. 4% P/E 33. 00 17
BUY Arris Intl. v In the process of acquiring Ruckus Wireless from Brocade for $800 million v Allows ARRIS to expand into enterprise Wi-Fi market and capture cost synergies Ticker ARRS Current Sim % 0. 00% Recommended % 2. 78% Current Price $28. 97 Price Target $30. 81 Dividend Yield N/A Potential Upside 6. 4% P/E 33. 00 18
HOLD Cognizant is an Information Technology consulting firm based out of Teaneck, New Jersey. Led by Francisco D’Souza, Cognizant has experienced rapid growth since the crisis. Cognizant has four major business lines: Healthcare, Financials, Manufacturing/Retail/Logistics, & Other (Other includes energy, consumer goods, communications, media, etc. ). Ticker CTSH Current Sim % 4. 83% Recommended % 4. 83% Current Price $72. 40 Price Target $83. 20 Dividend Yield 0. 81% Potential Upside 11. 5% P/E 21. 94 19
SELL Dell (VMware) Ticker VMW Current Sim % 2. 64% VMware, Inc. is a subsidiary of Dell Technologies that provides cloud computing and platform virtualization software and services. Current Price $124. 22 Price Target $88. 00 Dividend Yield N/A Potential Upside -29. 00% P/E 39. 14 Recommended % 0. 00% 20
SELL Dell (VMware) v Cannot compete in public/hybrid cloud realm Ticker VMW Current Sim % 2. 64% Recommended % 0. 00% Current Price $124. 22 Price Target $88. 00 Dividend Yield N/A Potential Upside -29. 00% P/E 39. 14 21
SELL Dell (VMware) v Cannot compete in public/hybrid cloud realm Ticker VMW Current Sim % 2. 64% Recommended % 0. 00% Current Price $124. 22 Price Target $88. 00 Dividend Yield N/A Potential Upside -29. 00% P/E 39. 14 22
SELL Dell (VMware) Ticker VMW Current Sim % 2. 64% Recommended % 0. 00% v Dell ownership is potentially threatening to Current Price business activities Price Target $124. 22 $88. 00 Dividend Yield N/A Potential Upside -29. 00% P/E 39. 14 23
HOLD Microsoft Corporation is an American technological company located in Redmond, Washington. The company focuses on the development of computer software, consumer electronics, personal computers, and services. Ticker MSFT Current Sim % 0. 23% Recommended % 0. 23% Current Price $83. 62 Price Target $70. 06 Dividend Yield 2. 00% Potential Upside -16. 2% P/E 30. 72 24
HOLD Vantiv, Inc. is a payment processing and technology company located in Cincinnati, Ohio. Led By Charles Drucker, the firm was founded in 1971 and currently employs 3, 600 people. Vantiv is the largest U. S. merchant acquirer by general purpose transaction volume. Ticker VNTV Current Sim % 4. 98% Recommended % 4. 98% Current Price $73. 14 Price Target $72. 04 Dividend Yield N/A Potential Upside -1. 53% P/E 61. 83 25
Conclusion 26
Conclusion v Keep sector at current weight in SIM portfolio (slightly underweighted) v Sell 14 basis points of Apple to end at 5. 00% cap v Sell VM Ware completely v Use 278 basis points to buy Arris International 27
Questions? 28
Appendices 29
Alphabet, Inc. DCF 30
Apple, Inc. DCF 31
Arris Intl. DCF 32
Cognizant DCF 33
Dell (VM Ware) DCF 34
Microsoft DCF 35
Vantiv, Inc. DCF 36
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