Information Technology Investment Club Spring 2017 Prepared by: Nolan Bloyer

Outline Sector Profile Economic Analysis Current Holdings Recommendations

Sector Profile

Information Technology covers the following general areas: Technology Software & Services, including companies primarily developing software for fields such as the Internet, apps, database management etc, and companies that provide tech consulting and services, as well as data processing. Secondly, Technology Hardware and Equipment, including manufacturers and distributors of communications equipment, electronic equipment and related instruments. Thirdly, Semiconductors and Semiconductor Equipment Manufacturers.

Largest Companies

Lowest D/E of all sectors!

Economic Analysis

Economic Cycle

Industries in Information Technology CSCO V AVGO ATVI, MBLY

3M Chart- Tech vs S&P 500

1YR Chart- Tech vs S&P 500

3YR Chart- Tech vs S&P 500

Current Holdings

Activision Blizzard Inc (ATVI) Industry: Software ATVI develops and publishes games for video game consoles, PC, mobile devices and online social platforms. Operates through three segments: Activision Publishing, Blizzard Entertainment and King Digital Entertainment Popular franchises include: Call of Duty, World of Warcraft, StarCraft and Candy Crush Sega

Snapshot Purchased Date: December 8, 2016 Purchased Price: $36.26 Number of Shares: 30 Total Gain/Loss: +378.90 Annualized Return: +169.33%

3M Chart: ATVI vs S&P 500 VS XLK

Broadcom LTD (AVGO) Industry: Semiconductors & Semiconductor Equipment AVGO designs, develops and supplies a range of complex digital and mixed signal complemental metal oxide semiconductor based devices and analog III- V based products worldwide Semiconductor elements are in groups III and V on periodic table (Silicon, Germanium) Headquartered in Singapore since 2005

Snapshot Purchased Date: April 10, 2016 Purchased Price: $157.43 Number of Shares: 7 Total Gain/Loss: +430.78 Annualized Return: +41.75

3M Chart: AVGO vs S&P 500 vs XLK

Cisco Systems Inc (CSCO) Industry: Communication Equipment CSCO designs, manufactures, and sells IP based networking and other products related to the communications and information technology industry worldwide Largest company within its industry

Snapshot Purchased Date: October 19, 2014 Purchased Price: $23.25 Number of Shares: 26 Total Gain/Loss: +281.58 Annualized Return: +19.57

3M Chart: CSCO vs S&P 500 VS XLK

Mobileye NV (MBLY) Industry: Software MBLY develops computer vision and machine learning-based sensing products, mapping and driving technology solutions for advances driver assistance systems and autonomous driving technologies Headquartered in Jerusalem, Israel Acquired by Intel Corporation for 15.3B on March 13, 2017

Snapshot Purchased Date: November 17, 2016 Purchased Price: $39.95 Number of Shares: 33 Total Gain/Loss: +687.39 Annualized Return: +222.54%

3M Chart: MBLY vs S&P 500 vs XLK

Visa Inc (V) Industry: IT Services V operates as a payments technology worldwide. V facilitates commerce through transfer of value and information among consumers, merchants and financial institutions Headquartered in San Francisco, California

Snapshot Purchased Date: April 1, 2015 Purchased Price: $64.95 Number of Shares: 20 Total Gain/Loss: +484.82 Annualized Return: +17.68%

3M Chart: V vs S&P 500 vs XLK

Recommendations

Information Technology sector has a bullish outlook for 2017 Driven by companies wanting to increase productivity, potentially eliminated human capital and replacing with technological advancements where plausible Capital expenditures have been below trends for several years on technology upgrades within companies ATVI- Hold MBLY- Hold V- Hold AVGO- Hold for now, but review CSCO- Hold for now, but review