Green

1
Green Gold Fund

• Recommendation Buy Nike (NKE)

2
Key Investment Points

• High-growth, significant upcoming opportunities
• Unfairly discounted valuation following company
  turnaround
• Spin off of ABC division will unlock value

3
Industry Overview

• Industry competitive dynamics
• Are products commoditized? Monopoly? ASP going
  down due to competition? (Impact on profit
  margins)
• Industry demand drivers
• What causes customers to buy this companys
  product?
• Industry trends
• What kind of shifts in demand are occurring (and
  what impact on top, bottom line)?
• E.g. consumer preference for higher-margin green
  alternatives
• Growth outlook
• What are the key metrics of this industry?

4
Nike (NKE) Company Profile

• Business profile How does this company
  generate revenue?
• International vs. domestic
• Growth/earnings outlook
• Management quality
• Length of tenure doesnt equal experience or
  quality
• Is management shareholder friendly? Honest? Can
  they execute?
• Competitive landscape, product positioning
• Does company have a sustainable competitive
  advantage?

5
Investment Information
Prev Close 61.03
1y Target Est 71.40
52wk Range 51.50 - 67.93
Avg Vol (3m) 3,820,250
Market Cap 29.68B
P/E (ttm) 17.69
EPS (ttm) 3.376
Div Yield 0.92 (1.50)
Forward P/E
3 Year Price Graph (Morningstar)
6
SWOT Analysis

• SWOT analysis, and how each point impacts company
  EPS/valuation multiple

Strengths Uniqueness of Products Globalization Strive for continuous Improvement Strong Research Development Weak Dollar Weaknesses Dependence on Demand for Products in Sales Marketing Foot Locker- significant Customer ( over 10) Futures Ordering Program Transportation Costs
Opportunities Competitive Advantage in sponsoring athletes Research Development Trademarks Cost Efficient Marketing Olympic Games in China Threats International Operations and Trade Competition Dependence on Innovation Dependence on high quality endorsers of their products
7
Investment Thesis

• In one sentence, answer the question Why should
  we own this stock now?
• Why overweight?
• Key value drivers
• Potential Catalysts
• Key questions
• Key risks

8
Portfolio Placement / Recommendation

• Sector Consumer Discretionary
• Industry Group Retailing
• Current Holdings ZUMZ, VCR
• Target Sector Allocation 7, 24,772
• Current Sector Allocation 2.24 , 7,927
• Remaining Allocation 4.76, 16,845
• BUY 130 shares of NKE at Market Price (approx.
  8,000, 2.26 of portfolio)
• Holding Period/Exit Strategy 2-3 years, Consider
  selling if stock price rises above 80 or below
  40 or if fundamentals change dramatically