SIM Stock Presentation: Information Technology Ellie McCabe, Steven Munn, Jordan Kopman, Matthew McGahan, Noah Mitchell

Table of Contents Sector Overview Recommendation Stocks Alphabet Apple Arris International Cognizant Dell (VM Ware) Microsoft Vantiv Conclusion

Sector Overview

22.82% 23.60%

Recommendation

Recommendation Sell 14 basis points of Apple to end at 5.00% cap Sell VMare completely Use 278 basis points to buy Arris International Stock Current Change New Alphabet 5.00% 0.00% Apple 5.14% -0.14% Arris +2.78% 2.78% Cognizant 4.83% Microsoft 0.23% Vantiv 4.98% VM Ware 2.64% -2.64%

Stock Information

HOLD Alphabet, Inc. Ticker GOOGL Current Sim % 5.00% Recommended % Current Price $1,056.52 Price Target $962.66 Dividend Yield N/A Potential Upside -8.9% P/E 38.29 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 GoogleX.

HOLD Apple Inc. 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 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 third-party applications and digital content.

HOLD Apple Inc. 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 Apple stock price has been up 45% on the year

BUY Arris Intl. 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 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.

BUY Arris Intl. 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 Increased number of broadband subscribers Increase in connected devices per household Increase in data usage per household High-tech products demanding more advanced communications equipment

BUY Arris Intl. 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 Set-top boxes are decreasing in U.S., but increasing worldwide Pressure from over-the-top media and increased competition from between service providers are resulting in demand for new set-top boxes.

BUY Arris Intl. 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 Set-top boxes are decreasing in U.S., but increasing worldwide Pressure from over-the-top media and increased competition from between service providers are resulting in demand for new set-top boxes.

BUY Arris Intl. 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 Service providers projected to have higher capital expenditures in order to meet customers demand of higher bandwidth and faster speeds ARRIS offers DOCSIS 3.1 modems which support gigabit speeds.

BUY Arris Intl. 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 Service providers projected to have higher capital expenditures in order to meet customers demand of higher bandwidth and faster speeds ARRIS offers DOCSIS 3.1 modems which support gigabit speeds.

BUY Arris Intl. 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 In the process of acquiring Ruckus Wireless from Brocade for $800 million Allows ARRIS to expand into enterprise Wi-Fi market and capture cost synergies

HOLD Cognizant Ticker CTSH Current Sim % 4.83% Recommended % Current Price $72.40 Price Target $83.20 Dividend Yield 0.81% Potential Upside 11.5% P/E 21.94 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.).

SELL Dell (VMware) 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 VMware, Inc. is a subsidiary of Dell Technologies that provides cloud computing and platform virtualization software and services.

SELL Dell (VMware) 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 Cannot compete in public/hybrid cloud realm

SELL Dell (VMware) 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 Cannot compete in public/hybrid cloud realm

SELL Dell (VMware) 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 Dell ownership is potentially threatening to business activities

HOLD Microsoft Ticker MSFT Current Sim % 0.23% Recommended % Current Price $83.62 Price Target $70.06 Dividend Yield 2.00% Potential Upside -16.2% P/E 30.72 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.

HOLD Vantiv, Inc. Ticker VNTV Current Sim % 4.98% Recommended % Current Price $73.14 Price Target $72.04 Dividend Yield N/A Potential Upside -1.53% P/E 61.83 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.

Conclusion

Conclusion Keep sector at current weight in SIM portfolio (slightly underweighted) Sell 14 basis points of Apple to end at 5.00% cap Sell VM Ware completely Use 278 basis points to buy Arris International

Questions?

Appendices

Alphabet, Inc. DCF

Apple, Inc. DCF

Arris Intl. DCF

Cognizant DCF

Dell (VM Ware) DCF

Microsoft DCF

Vantiv, Inc. DCF