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IT Sector Presentation

IT Sector Presentation. Kyle Schneider Patrick Symmonds. Information Technology in the S&P 500. Current Holdings. Akamai Technologies, Inc (AKAM) 1.03% Hewlett-Packard Company (HPQ) 3.68% Intel Corporation (INTC) 4.04% Microsoft Corporation  (MSFT) 5.02%. Class Recommendation.

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IT Sector Presentation

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  1. IT Sector Presentation Kyle Schneider Patrick Symmonds

  2. Information Technology in the S&P 500

  3. Current Holdings Akamai Technologies, Inc (AKAM) 1.03% Hewlett-Packard Company (HPQ) 3.68% Intel Corporation (INTC) 4.04% Microsoft Corporation  (MSFT) 5.02%

  4. Class Recommendation Current: Information Technology 1.38% Underweight Class Vote: Increase holdings up to 1% Overweight

  5. General Strategy • Intra-sector diversification • We like most current holdings • But see new opportunities • Industries: Communications Equipment Computer Hardware Computer Networks Computer Peripherals Computer Services Computer Storage Devices Electronic Instr. & Controls Office Equipment Scientific & Technical Instr. Semiconductors Software & Programming

  6. Proposed Holdings Akamai Technologies, Inc (AKAM) 0.00% Hewlett-Packard Company (HPQ) 3.00% Intel Corporation (INTC) 3.00% Microsoft Corporation (MSFT) 4.15% Research In Motion Limited USA (RIMM) 3.00% Google Inc. (GOOG) 3.00%

  7. Akamai • Recommendation • Sell our 103 basis points in Akamai • All CDN companies are facing uncertainty • Increased competition and alternatives taking away market share • Online video is currently increasing at a decreasing rate

  8. Akamai • Why the recent drop? • Lost three million in market capitalization in three weeks time • Second Quarter earnings, the company announced increased spending and lower margins • Market leader whose patents and early technological leads are wearing off • Increased CDN competition, price wars, video content growing online, but at slower rate • Priced very aggressively, such that any bad news would have caused the stock to slip

  9. Akamai

  10. Akamai

  11. Akamai

  12. Akamai

  13. Akamai

  14. Google • Recommendation • Purchase 300 basis points of SIM portfolio

  15. Google • Story • Had very good second quarter, but missed and was beaten up by market (over reaction) • Google phone in the works, expected release in 2008 or 2009 • Entering into battle for old analog distribution systems • Currently all earnings come from ads • Believes in investing in people, may harm short term, but good long term for long term growth

  16. Google

  17. Google

  18. Research in Motion • Manufacturer of BlackBerry communication device • Founded 1984, taken public • 40 Billion Dollar Market Cap • Canadian based company • Currently trading around $210-$215 • Price Target $265-$280 • Upside Potential 23%-33%

  19. Cons of Research in Motion • Trading close to all time high is price and many ratios • Competition from iPhone and other alternatives.

  20. Pros of Research in Motion • International Exposure large part of business and growing • Includes Europe and China • Recent decline presents good buying opportunity • Company is growing and has great upside potential

  21. Proposed Holdings Akamai Technologies, Inc (AKAM) 0.00% Hewlett-Packard Company (HPQ) 3.00% Intel Corporation (INTC) 3.00% Microsoft Corporation (MSFT) 4.15% Research In Motion Limited USA (RIMM) 3.00% Google Inc. (GOOG) 3.00%

  22. Questions?

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