1. FRIDAY, FEB 7 2014 WEEKLY MEETING INVESTMENT CLUB

2. PREVIEW 1. Market Update 2. Club Overview 3. Interview Tips 4. Stock Fundamentals

3. Market Update

4. Expedia Earnings Reported earnings – Earnings beat estimates Stock appreciated 13% after hours Was down 4.3% due to search-engine concerns Difficult to separate from competitors Club has enjoyed 30% gains

5. Long-Term Jobless Benefits Rejected Republicans blocked 3 month extension Could hurt consumer confidence Discourages workers to continue job search Issue could be revived depending on debt limit

6. Market Volatility The S&P 500 appreciated 30% - 2013 Investors estimate between 8-10% for 2014 Reduce positions in U.S. small company stocks Blue chip stocks / short – term bonds Tech giants Apple and Cisco highlighted  Established infrastructure  Pay dividends

7. Improved Labor Market Fed officials concerned with fast falling unemployment Contradicts Okun’s Law By U6 measure, unemployment was 13.1% When should Fed raise rates?  Too quickly: dampen economic recovery  Too slow: fuels inflation, financial bubbles

8. Global Economy Continued pessimism for economic recovery Sentiment based upon:  Tumbling stock prices  Fed’s taper of QE  Weak U.S. reports in car sales, home sales, hiring  Emerging Markets: Brazil growth down 5% since 2011  Concerns in Chinese growth (2 nd largest economy)

9. CLUB OVERVIEW

10. Investment Club OVERVIEW: 1. Close to $500,000 2. Over 40 stocks 3. Strictly Student Run

11. GOALS 1. Manage and Grow Portfolio 2. Educate Members 3. Network

12. WHY INVESTMENT CLUB?

13. New Ideas 1. Shareholder Meeting

14. Ideas 2. Freshman Investing Crash Course 3. Wall Street Panel

15. Ideas 4. Stock Pitch Battle 5. WSJ Quiz

16. Ideas 6. Mentorship Program 7. Interview Prep

17. INTEVIEW PREP

18. INTERVIEW PREP NETWORKING, NETWORING, NETWORKING WHAT YOU NEED: *** STRONG GPA *** UNDERSTANDING OF MARKETS *** DESIRE TO LEARN

19. Wall Street Interview COURSE WORK: - Financial Accounting, Financial Theory, Corporate Finance, ect.

20. COMMON QUESTIONS FIT QUESTIONS: 1. How did you prepare for this interview? - Coursework, WSJ, Barrons, ect. 2. Describe a moment when you worked under pressure? - Time crunch, stick to basics

21. Banking Questions 1. What is the main goal of an investment bank? - Get company from point A to B 2. Briefly tell me about recent major financial transactions? 3. Explain Structure of XYZ Bank? - Read 10K

22. Questions 4. Most important trends in economy? 5. Do you follow a certain stock? 6. Role of a summer intern/ full time analyst? 7. Why XYZ Bank? - CEO: Direction of firm

23. FINANCIAL QUETIONS 1. How does Net Income influence all 3 financial statements? - Income Statement, Balance Sheet, Cash Flow 2. Basic Methods for Valuing a Company? - Comparable Analysis - Precedent Transaction Analysis - DCF

24. BRAIN TEASERS Q: You’ve got a 10 x 10 x 10 cube made up of 1 x 1 x 1 smaller cubes. The outside of the larger cube is completely painted red. On how many of the smaller cubes is there any red paint?

25. BRAIN TEASER A: First, note that the larger cube is made up of 1000 smaller cubes. The easiest way to think about this is how many cubes are NOT painted? 8 x 8 x 8 inner cubes are not painted which equals 512 cubes. Therefore, 1000 – 512 = 488 cubes that have some paint. Alternatively, we can calculate this by saying that two 10 x 10 sides are painted (200) plus two 10 x 8 sides (160) plus two 8 x 8 sides (128). 200 + 160 + 128 = 488.

26. RESOURCES 1. FINANCIAL NEWS OUTLET 2. MACABACUS. COM 3. WALLSTREETOASIS.COM 4. GLASSDOOR.COM

27. Qualitative Analysis of Tesla (TSLA) BY BRENDAN GOVER

28. Common Qualitative Measures Dan Killmurray ’85 (UBS) TAM Moat

29. Management Management track record/compensation package Elon Musk Previous/current other business ventures

30. COMMENTS? How can the club improve? Suggestions?