Welcome!

1. Welcome! January 10th, 2010

2. Agenda • Recap Fall Quarter • Update on Winter Quarter • Audience Recommendations

3. Our Officers • President: Ross Klosterman klosterman.53@buckeyemail.osu.edu • Vice President: Steven Billupsbillups.13@buckeyemail.osu.edu • Treasurer: Chris Zychzych.5@osu.edu • Public Relations: Neil Jindaljindal.neil@gmail.com • Portfolio Manager: Luke Birkbirk.14@osu.edu • Adviser: Kurtis Roush

4. How to know what to invest in? • 2 methods: • Fundamental Analysis • Technical Analysis • Most lean one way or the other • We focus on fundamental and value (basically interchangeable) investing • We will cover both

5. What do we do here? • We want to make you comfortable enough to put some of your own money in that warzone known as the stock market • With the right knowledge and practice, you can navigate that warzone to your benefit

6. What does it mean to own a stock? • Share of Stock: A security representing fractional ownership in a firm and a claim on its net assets and earnings. • Value of stock changes with market • Voting rights • Do many things with stocks: • Buy (hold long positions) • Sell • Short selling (short position) • Cover short • More on this later…

7. What is a fund? • A collection of stocks, other equity and debt instruments • Can track a particular index (such as the Dow Jones or S&P 500) • Diversification • “It’s the only free lunch”

8. More on Investing in Funds This Quarter…

9. Business Analysis • Procter & Gamble • Competitive advantages? • Brand names? • Ability to raise prices with inflation? • Economic moat? • Industry and type of product? • Consistency?

10. Accounting Analysis • Do the firm’s accounting policies reflect the business reality of the firm? • If not, we must make adjustments

11. Financial Statements • Balance Sheet: A list of the things owned and owed by the firm and the difference between the two • Income Statement: A list of the resources acquired and consumed by a firm over a period of time • Cash Flow Statement: A list of the flows of cash in and out of a company over a period of time

12. At a later date we will introduce more advanced concepts of accounting • Financial Ratios • Profitability, Leverage, Solvency, Liquidity, Efficiency • Comparison to other companies in the same industry • Valuation modeling • Is the company’s equity more than its market cap? • Anything else you guys would like to learn more about

13. Balance Sheet for P&G

14. Reminders About Value Line • Good starting point • Usually a reliable source for objective data aggregated in a consistent format • It’s generally a good idea to ignore Value Line’s predictions (or any analyst predictions for that matter)

15. Accessible via OSU libraries and ccig.osu.edu.

16. Choosing a Broker • Now that we know the basics of a company, how do we open an account to trade? • MANY options…

17. 1. Thinkorswim • My personal favorite, as well as Barron’s • Great customer support • Very innovative • Zero downtime in 2008 • Extensive, robust trading platform • Tons of tools… watch live CNBC… community • Biggest drawback – acquired by TD Ameritrade. • Yet to see any real detrimental effect

18. Placing an Order

19. Types of Orders • Market – brokers buys/sells for the current market price • Limit –an order to buy or sell a set number of shares at a specified price or better • A Limit Order guarantees price, but not an execution • Stop-Loss – similar to limit, buy or sell at a certain price • Limit downside of short sell • Protect existing profits • Stop Limit – combines stop order (1) w/ limit order (2) • Control when the trade takes place • Trailing Stop – parameter w/ trailing feature

20. What is Technical Analysis?

21. How is Technical Analysis used?

22. Charts

23. Charts

24. Support/Resistance • Support – price level at which demand is thought to be strong enough to prevent the price from declining further • Resistance – price level at which selling is thought to be strong enough to prevent the price from rising further

25. RSI/MACD • RSI- momentum oscillator that measures the speed and change of price movements • Moving Average Convergence/Divergence (MACD) – one of the simplest and most reliable indicators • Bollinger Bands – allows users to compare volatility and relative price levels over a period of time.

26. New Indicators! • Williams %R-A momentum indicator that works much like the Stochastic Oscillator. It is especially popular for measuring overbought and oversold levels • Wilder’s DMI (ADX)-Used to evaluate the strength of a current trend, be it up or down

27. Stochastics (Full)-The Stochastic Oscillator is a momentum indicator that shows the location of the current close relative to the high/low range over a set number of periods.

29. Final Thoughts • NOT FOOLPROOF! • *cannot be stressed enough • Do your FA • Questions? • Klosterman.53@buckeyemail.osu.edu

30. What do YOU want to know? • Cost for the year is $20 • Pizza and pop at every meeting, as well as t-shirts • We only exist because you come here so.. What can we do to make this experience most beneficial to all of you. We are going to take these considerations seriously.

31. New Website! • Still http://ccig.osu.edu • Easier for us to update, looks better • Will put up .ppt soon!

32. Wall St. Training Pt. 2 • EXCEL IN MERGERS & LBOsAn Intense 2-Day Seminar in M&A and LBO1/22/11-1/23/11 | 9AM – 5PM Location: TBD (Probably SB 320/330… or Gerlach)Learn M&A deal structuring techniques Build merger models and accretion/dilution Comprehend capital structure changes Build and analyze quick & dirty LBO model Special segment on resume, interview & career development tips

33. Thanks! • Questions? • Comments?