S TUDENT I NVESTMENT A SSOCIATION Spring 2012 MSU Student Investment Association1

A GENDA Overview of the SIA Survey Results Proposed Changes – Educational Series – Current Events Analyst Program Speakers/Roadshows MSU Student Investment Association2

O VERVIEW OF THE SIA – History Founded February 2004 The first undergraduate student run portfolio All majors are welcome ~ everyone needs to invest! – Objectives Education, application, promotion of members The SIA was established to educate members on investing in the stock market Opening the doors of Wall Street for our members – Membership Types General Membership Analyst Program Membership MSU Student Investment Association3

O RGANIZATION B REAKDOWN MSU Student Investment Association4 Analyst Program General Membership Networking Events Road Shows Educational Series Conduct AP Presentations Review AP Presentations Professional Speakers

S URVEY R ESULTS Too many AP presentations Would like to see more: – Investing Education – Current Events – Speakers Knowledge is too concentrated MSU Student Investment Association5

P ROPOSED C HANGES Regular Wednesday Meetings – Educational Series: 20 min – Current Event Overview/Analysis: 20 min – AP Presentation: 20 min AP Presentations on Mondays before regular Wednesday meetings – Open meetings – Best Presentation on Wednesday MSU Student Investment Association6

I NVESTING 101 Thomas Robb Morgan Stanley MSU Student Investment Association7

F INANCIAL E DUCATION Goal: Provide in-depth information on relative topics Main Areas: Investing 101 – 10% Security Analysis – 50% Networking – 30% Advanced Topics – 10% MSU Student Investment Association8

I NVESTING 101 What is investing? Strategies – Fundamental vs. Technical Buzz-words – Long/short – Small-cap/large-cap MSU Student Investment Association9

S ECURITY A NALYSIS Screening & Following Research – General – Industry – Business Valuation Presentation MSU Student Investment Association10

N ETWORKING Networking 101 – Resumes – LinkedIn Lead development Career opportunities Interviewing skills MSU Student Investment Association11

A DVANCED T OPICS Option Strategies Short-term trading Technical analysis Futures Quantitative Strategies Bloomberg MSU Student Investment Association12

F EEDBACK What do you want to learn? What are your priorities? What have we missed previous semesters? Where do you feel we could help you develop? MSU Student Investment Association13

C URRENT E VENTS What events would you like hear about? MSU Student Investment Association14

C URRENT E VENTS E XAMPLES European Crisis Federal Reserve Affects of Developing Regulation China Big Deals Iran  Investing Implications MSU Student Investment Association15

G ENERAL M EMBERSHIP General Members can participate in the following SIA activities: – Professional Speakers – Educational Series – Site Visits – Review/Critique Analyst Program presentation – Voting participation MSU Student Investment Association16

A NALYST P ROGRAM MSU Student Investment Association17 Clayton Meyers & Yuchen Su Unemployed

W HAT DO WE DO ? Apply theoretical skills in a real world scenario: – Conduct fundamental research to identify undervalued equity securities Analyze financial statements, macroeconomic overhangs, competitors etc. Construction of persuasive business presentations Manage a ~$20,000 real money portfolio MSU Student Investment Association18

S TRUCTURE O VERVIEW Stock Selection Committee Heads of AP (Macro Heads) Technology Sector Head Analyst Team(s) Financials Sector Head Analyst Team(s) Industrials Sector Head Analyst Team(s) Consumer Sector Head Analyst Team(s) Energy Sector Head Analyst Team(s) MSU Student Investment Association19

S ECTORS Financials Consumer Goods Industrials Technology Energy MSU Student Investment Association20

A NALYST T EAMS 3-4 members Ultimately responsible for stock pitches – minutes in length with a Q&A session afterwards Duties include – Finding quality companies – Security analysis – Preparing presentations – Working as a team to learn/educate MSU Student Investment Association21

S ECTOR H EADS Understand – Key industry drivers and trends – Fundamental determinants to success Maintain a close relationship with: – AP Heads: Sector strategy Holdings update – Analyst Teams: Educate and facilitate process Uphold quality of presentations MSU Student Investment Association22

H EADS OF A NALYST P ROGRAM Held responsible for overall structure and performance of the AP Work closely with Sectors Heads and Analyst Teams – Help mentor and educate Note quality of pitches and provide feedback Work with Stock Selection Committee in the evaluation of current holdings MSU Student Investment Association23

W HO S HOULD A PPLY ? Open to anyone interested in investing – All majors, years, etc. – Must be a paid member Advantages – Develop key business skills – Get a head start on FI/ACC/EC concepts – Great resume builder/interview topic – Semester Trips MSU Student Investment Association24

P ROFESSIONAL S PEAKERS Professionals within the financial services/investment industry Targeting 2 Speakers per semester depending on availability Past Speakers – Junior Mergers & Acquisitions Professionals (JMAP) of Detroit – Plante Moran Corporate Finance – Stout Risius Ross – Deloitte – General Mills – Bloomberg MSU Student Investment Association25

N EW Y ORK R OADSHOW Planned for Spring 2012 Strong alumni base Private Equity, Investment Banking, Sales & Trading, Corporate Finance MSU Student Investment Association26

R OAD S HOW R EQUIREMENTS Target: Early-Mid April ~$ per person people Applications will be required Think about why you want to attend & how you can positively impact the visits Must be a paid member MSU Student Investment Association27

W EBSITE V ISIT : WWW. MSUSIA. COM L IKE U S ON F ACEBOOK : S EARCH MSU S TUDENT I NVESTMENT A SSOCIATION MSU Student Investment Association28

J OIN THE SIA T EAM ! How to become a Member: – Fill out the application form online at: – $25 ~ One Semester – $30 ~ One Year (returning member) – $45 ~ One Year (new member) – $80 ~ Lifetime – You may also pay on our website using PayPal MSU Student Investment Association29

Q UESTIONS ? For more information, visit: Questions or Comments: MSU Student Investment Association30

What: M&A LBO Seminar When: February 18-19, 2012; 9AM-5PM Saturday, 9AM-3PM Sunday Where: BCC N105 Price: Professionals: $1,500, Student: $ % off regular price!!! Link: Contact: WHAT, WHEN AND WHERE?! CAREER DEVELOPMENT = SUPER-STAR LEARN THE TECHNICALS WANT TO BOOST YOUR CAREER? M&A Deal Structuring: asset vs. stock deals, cash vs. stock consideration Merger Modeling: Accretion Dilution and merger consequences, the “PE ratio” game Capital Structure changes: opportunity costs of share repurchases & recapitalizations LBO Modeling: leverage to maximize returns Destroy your competition by receiving internship/job Q&A’s before the interview! We’ll tell you how to stay competitive in 2012 and finish as the #1 intern/analyst! Essential for business majors and as a supplement for ANY liberal arts degree! Possible inclusion to our exclusive, invitation- only WST Banker’s Club (wstbankersclub.com)wstbankersclub.com Goldman Sachs, Morgan Stanley, JP Morgan, BofA/Merrill Lynch: we have contacts all over! Taught by senior industry professionals active on Wall Street to provide you the most up-to- date market information! Show us your enthusiasm and we’ll keep an eye on you!