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E-Commerce Synthetic ETF

E-Commerce Synthetic ETF. Kevin Raisch Malika Ladha Nick Gordon Steven Lackey Mike Omlor. E-Commerce Overview Analysis Portfolio Manager: Kevin Raisch. E-Commerce Background What makes up E-Commerce? Why purchase E-Commerce stocks? Analysis of the E-Commerce market

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E-Commerce Synthetic ETF

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  1. E-Commerce Synthetic ETF Kevin Raisch Malika Ladha Nick Gordon Steven Lackey Mike Omlor

  2. E-Commerce Overview AnalysisPortfolio Manager: Kevin Raisch • E-Commerce Background • What makes up E-Commerce? • Why purchase E-Commerce stocks? • Analysis of the E-Commerce market • What are the strengths/opportunities? • Stock Recommendations

  3. E-Commerce Synthetic ETF OverviewPortfolio Manager: Kevin Raisch • What would it hold? • 4 Stock holdings to start • eBay (EBAY) • Amazon (AMZN) • Baidu (BIDU) • FedEx (FDX) • Large Size Market Cap • Majority are Growth Stocks • S&P 500 Sectors: Consumer Discretionary, Information Technology, and Industrials • Why purchase E-Commerce? • Based onTwo Trends • Demographics (25-34 year old population) • Mobile Proliferation (movement towards increased mobile capabilities)

  4. Analysis of E-CommercePortfolio Manager: Nick Gordon What are the strengths/opportunities? • E-Commerce sales over next 3 years will grow at 16.8% annually • 15.3% growth in U.S. E-Commerce over previous 3 years • Goldman Sachs estimates 4x growth in E-Commerce by 2017 • M-Commerce (Mobile) helping to stem E-Commerce growth • M-Commerce represented $25B of retain sales in 2012 • Or 14% of total US E-Commerce sales • Global E-Commerce sales could top $1B by 2016 • Incoming 25-34 generation to spend more in E-Commerce ($18,000+)

  5. BUY Analysis of E-CommercePortfolio Manager: Steven Lackey • Baidu (BIDU: NASDAQ) • Strengths and Opportunities: • Google of China • Go-to search engine • Provides multitude of services • Most online advertising sales in China • ROE: 35% • Earnings Growth Rate: 22%

  6. BUY Analysis of E-CommercePortfolio Manager: Michael Omlor • eBay (EBAY: NASDAQ) • Strengths and Opportunities: • Globally recognized • The original and one of the largest online auctions sites. • Largest online payment system (PayPal) • Expanding into overnight shipping

  7. BUY Analysis of E-CommercePortfolio Manager: Malika Ladha • Amazon (AMZN: NASDAQ) • Strengths and Opportunities: • Dominant market leader • Diversity of products • Global Brand Recognition • Scale is an advantage • Earnings Growth Rate: 36.45% • P/S: 2.34 • P/E: 1297.5

  8. BUY Analysis of E-CommercePortfolio Manager: Steven Lackey • FedEx (FDX: NYSE) • Strengths and Opportunities: • More products delivered via delivery companies • Out-performing analysts expectations • Further expansion internationally (Mexico, China) • Operates in four different sectors of product delivery • P/S: 1.0 • P/E: 15.6

  9. Buy new E-Commerce Synthetic ETF (Voting Item) • Buy Amazon • Buy Baidu • Buy E-Bay • Transfer some of existing FedEx shares from “Legacy Stocks” • Stocks will be equally-weighted at 0.625% • Total target weight of portfolio dollars: 2.5% • Purchases are funded by sales of Autoliv, Disney, EMC, & Intel

  10. Questions? Questions?

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