LaPorte Torch Fund - College of Business Administration

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Dec 5, 2012 (4 years and 6 months ago)

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Brad Clark
*

Hunter Hawkins

* Koral Stache

2


TABLE OF CONTENTS


TABLE OF

CONTENTS………………..……………………………………………..……………………
……………
……..

2

I.

EXECUTIVE SUMMARY………………..…………………………………………………………………

3

II.

INVESTMENT THESIS……………………………………………………………………………….…….

4

III.

TABLE 1: QUARTER 2

PERFORMANCE SNAPSHOT…….……………………………………

5

IV.

BEST AND WORST PERFORMERS, RISK MET
RICS...…………………………………………

6

a.

TABLE 2: BEST PERFORMERS

QUARTER 2

b.

TABLE 3:
BEST PERFORMERS YEAR
-
TO
-
DATE

c.

TABLE 4: WORST PERFORMERS QUARTER 2

d.

TABLE 5: WORST PERFORMERS YEAR
-
TO
-
DATE

e.

TABLE 6
: QUARTER 1 RISK METRICS

V.

P/E RATIO, DIVIDEND YIELD AND DIVIDEND
ANALYSIS…………………………….…….

7

a.

TABLE 7
: PRICE TO EARNINGS RATIO

b.

TABLE 8
: DIVIDEND YIELD

c.

FIGURE 1: DIVIDEND ANALYSIS

VI.

SECTOR ALLOCATION…………………..…………………………………………………..…………..

8

a.

FIGURE 2:

ALLOCATION OF STOCKS IN S&P 500
…………………………………….

8

b.

FIGURE 3:

ALLOCATION OF STOCK
S IN LAPORTE PORTFOLIO
………………..


9

c.

FIGURE 4: L
APORTE PORTFOLIO QUARTERLY RETURNS
…………………………

9

VII.

ECONOMIC OUTLOOK…………………
……………………..…………………………….………….

10

VIII.

STOCKS IN BRIEF

a.

CONSUMER STAPLES

i.

PEPSICO
……………………………………………………………………………
……..

11

ii.

PROCTOR &
GAMBLE………………………………………………………
……….

11

iii.

REYNOLDS
AMERICAN………………………………………………………
……..

12

iv.

WAL
-
MART ST
ORES………………..……..…………………………………
……..

12

b.

FINANCIAL

i.

EZCORP……………………………………………………………………………
………

13

c.

HEALTH CARE

i.

AMGEN………………………………….…………………………………………
……..

13

ii.

BECTON, DICKINSON
AND COMPANY………………………………
………

14

iii.

BRISTOL
-
MYERS SQUIBB...………………………………………………
……….

14

iv.

JOHNSON & JOHNSON...…………………………………………………
……….

15

v.

STRYKER...………………………………………………….……………………
………

15

d.

INDUSTRIALS

i.

GENERAL ELECTRIC...………………………………………………………
……….

16

ii.

GOODRICH...……………………………………
……………………..………
……….

16

iii.

MCDERMOTT...………………………………………….……………………
……….

17

iv.

3M COMPANY...………………………………………………………………
………

17

v.

TBSI INTERNATIONAL...……………………………………………………
………

18

e.

INFORMATION TECHNOLOGY

i.

CISCO………………………………………………………………………………
………

18

ii.

DELL...……………………………………………………………………
…….……
……


19

f.

MATERIALS

i.

PRAXAIR……………………..……………………………………………………
……..

19

ii.

VULCAN MATERIALS...………………………………………………………
……..

19

g.

UTILITIES

i.

POWERSHARES WATER RESOURCES ETF...…………………………
…….

20

ii.

VEOLIA ENVIRONNEMENT...………………………………………………
……..

20

IX.

REFERENCES…………………………
………………………………………………………………….…….

22

X.

APPENDIX…………………….………
………………………………………………………………………..

24

3


EXECUTIVE SUMMARY




Results

The balance of the LaPorte Torch Fund portfolio on Jan 1, 2009, was $176,697.74. The balance of the
Fund on March 31, 2009
,

was $157,
009.13.

This change in value represents a loss of $19,688.61 or
11.14% for the second quarter. The balance of the Fund on October 1, 2008
,

was $209,052.89,
representing a loss of $52,043.76 or 24.90% over our tenure.


The S&P 500, including dividends, had a retu
rn of
-
30.54% in the second quarter. The LaPorte portfolio
achieved 19.40% higher returns than the S&P 500 during the second quarter. Due to the uncertain
economic environment for investing, the average allocation to cash durin
g the second quarter was
9.
97%. To further bolster our cash position, we focused on acquiring stable stocks with higher dividend
yields in this second quarter. As evidence of our strategy, the dividend yield in the first quarter was
0.37% as compared to 0.83% in the second quarter
.


In examining the portfolio on a risk
-
adjusted basis, the Sharpe & Treynor metrics for the LaPorte Fund,
while similar to those of the S&P 500, indicate that the LaPorte Fund earned a lower return per unit of
risk. On an annual basis, the LaPorte Fund’s

Sharpe measure is
-
1.83 versus the S&P 500’s measure of
-
1.13. Using the Treynor measure, the LaPorte Fund’s excess return per unit of systematic risk is
-
0.05
(beta of 0.65) versus
-
0.03 (beta of 1.00) for the S&P 500. LaPorte’s beta of 0.65 is less th
an the beta of
the S&P 500, which is 1.00, indicating that our portfolio of stocks is a less risky investment than the
market as a whole.


















4


INVESTMENT THESIS



The LaPorte
F
und managers’ investment strategy is to maintain a long
-
term growth position while
establishing some short
-
term positive returns in the portfolio. During the time of our tenure, we
believe the economy will remain in a recessionary period. We expect diffi
cult market conditions to
continue throughout our tenure with further increases in unemployment, increases in foreclosures,
decreases in consumer confidence, decreases in consumer spending, and decreases in bank lending.


We believe the combination of th
ese issues emphasizes the importance of investing in companies that
maintain a solid cash position and strong dividend payments. Furthermore, we will invest in
companies that maintain diversification through their investing and operating activities. Spec
ifically,
due to a lack of consumer spending, we will avoid stocks that require discretionary income to generate
revenues. Overall, we will continue to focus on the long
-
term objective of the portfolio, which is to
outperform our benchmark, the S&P 500, w
hile creating positive returns.





Sincerely,







_______________________



__________________________

Brad Clark





Hunter Hawkins






_______________________


Koral Stache



5




TABLE 1: Quarter 2

Perfor
mance Snapshot (as of 3/31/2009
)

Sectors & Equities

Ticker

Price

No. of
shares

% of
Portfolio
(as
3/31/09)

Market Value
(as of 3/31/09)

Holding
Period
Return

Tenure
Unrealized
G/L

Consumer Staples















Pepsico, Inc.

PEP

51.48

200

6.56%

$10,296.00

-
25.98%

(3,703.00)

Procter &
Gamble Co.

PG

47.09

200

6.00%

$9,418.00

-
31.28%

(4,360.00)

Reynolds American

RAI

35.84

200

4.57%

$7,168.00

-
24.54%

(2,386.00)

Wal
-
Mart Stores Inc.

WMT

52.1

200

6.64%

$10,420.00

-
12.61%

(1,510.50)







800

23.76%

$37,302.00



(11,959.50)

Financials















EZCORP Inc.

EZPW

11.57

400

2.95%

$4,628.00

-
17.71%

(996.00)







400

2.95%

$4,628.00



(996.00)

Health Care















Amgen Inc.

AMGN

49.52

200

6.31%

$9,904.00

-
16.45%

(1,950.00)

Becton, Dickinson and Company

BDX

67.24

200

8.57%

$13,448.00

-
15.40%

(2,472.00)

Bristol
-
Meyers Squibb Co.

BMY

21.92

400

5.58%

$8,768.00

8.11%

676.00

Johnson & Johnson

JNJ

52.6

200

6.70%

$10,520.00

-
22.75%

(3,152.00)

Stryker Corp.

SYK

34.04

200

4.34%

$6,808.00

-
44.72%

(5,572.00)







1200

31.49%

$49,448.00



(12,470.00)

Industrials















General Electric Co.

GE

10.11

500

3.22%

$5,055.00

-
53.51%

(3,411.35)

Goodrich Corp.

GR

37.89

225

5.43%

$8,525.25

-
8.32%

(778.50)

McDermott International Inc.

MDR

13.39

128

1.09%

$1,713.92

-
47.59%

(1,556.48)

3M Co.

MMM

49.72

150

4.75%

$7,458.00

-
25.74%

(2,637.00)

TBS International Limited

TBSI

7.35

200

0.94%

$1,470.00

-
45.39%

(1,222.00)







1203

15.43%

$24,222.17



(9,605.33)

Information Technology















Cisco Systems, Inc.

CSCO

16.77

400

4.27%

$6,708.00

-
25.66%

(2,316.00)







400

4.27%

$6,708.00



(2,316.00)

Materials















Praxair Inc.

PX

67.29

100

4.29%

$6,729.00

-
5.12%

(367.00)

Vulcan Materials Co.

VMC

44.29

150

4.23%

$6,643.50

-
39.23%

(4,384.50)







250

8.52%

$13,372.50



(4,751.50)

Utilities















Powershares Water Port ETF

PHO

11.93

300

2.28%

$3,579.00

-
34.93%

(1,928.37)

Veolia Inc.

VE

20.9

100

1.33%

$2,090.00

-
49.37%

(2,038.00)







400

3.61%

$5,669.00



(3,966.37)

















Cash







9.97%

$15,659.46





Q2 Total Portfolio Value and Return








$ 157,009.13

-
24.90%

($52,043.76)

Q2 S&P 500 Return (9/30/2008
-

3/31/2009)









-
11.01%



Holding Period S&P 500 Return (9/30/2008
-

3/31/2009)









-
30.54%






6


QUARTER 2
BEST AND WORST PERFORMERS, RISK METRICS


Table 2: Best Performers
Q2
(including dividends)



Best Performers

Ticker

Quarter 2

Return

McDermott Int'l

MDR

35.53%

Praxair Inc.

PX

14.03
%

Goodrich Corp.

GR

3.03
%


Table 3: Best Performers YTD
(including dividends)

Best Performers

Ticker

Year
-
to
-
Date Return

Bristol
-
Myers Squibb

BMY

8.11
%

Praxair Inc.

PX

-
5.12
%

Goodrich Corp.

GR

-
8.32
%


Table 4
: Worst Performers
Q2
(including dividends)

Best Performers

Ticker

Quarterly

2
Return

General
Electric

GE

-
35.68
%

Vulcan Materials

VMC

-
35.64
%

Veolia

Environment

VE

-
34.09
%


Table 5: Worst Performers YTD (including dividends)

Best Performers

Ticker

Year
-
to
-
Date Return

General Electric

GE

-
53.51
%

Veolia Environment

VE

-
49.37
%

McDermott Int’l

MDR

-
47.59
%


Table 6
: Quarter 2 Risk Metrics (as of 3/31/2009
)

Risk Metrics

Q1 as of 12/31/2008

Q2 as of 03/31/2009

YTD 10/01/2008 to 12/31/2008



Portfolio

S&P 500

Portfolio

S&P 500

Portfolio

S&P 500

Beta

0.711

1.000

0.646

1.000

0.693

1.000

StdDev

3.059%

4.249%

1.854%

2.651%

2.533%

3.547%

Daily Return

-
0.216%

-
0.298%

-
0.177%

-
0.157%

-
0.197%

-
0.229%









RiskFree Rate*

0.287%

0.287%

0.200%

0.200%

0.246%

0.246%

Daily Risk Free Rate

0.080%

0.080%

0.055%

0.055%

0.068%

0.068%









Annualized
Treynor

-
1.5212

-
1.3789

-
1.3100

-
0.
7737

-
0.
96794

-
1.08456

Annualized Sharpe

-
1.851

-
1.699

-
2.390

-
1.528

-
2.000

-
1.601


Source: Bloomberg terminal (generic 90
-
day t
-
bill)



7


P/E RATIO, DIVIDEND YIELD, AND DIVIDEND ANALYSIS


Table 7
: Price
-
to
-
Earnings
Ratio



2nd

Quarter

LaPorte Portfolio

-
40.96
*

S&P 500


24.92
**

Source: *Mergent, Yahoofinance and Standard and Poors

**S&P 500 P/E is ttm historical average as of 3/31/200
9


Table 8
: Dividend Yield



2nd

Quarter

Annualized

LaPorte Portfolio

0.83
%*

3.31
%

S&P 500

3.51
%
**

2.85
%

Source:
*finance.yahoo.com and Bloomberg

*
*
Bloomberg



The LaPorte

Fund
portfolio’s P/E ratio of 22.35 was about five points higher than the S&
P 500’s P/E
ratio of 17.21. This difference indicates that investors place a higher value on our stocks than the
market. They are willing to pay more per unit of income, which indicates that our stocks are held in
higher regard than the market as a whole
.


Figure 1: Dividend Analysis


Source:
http://finance.yahoo.com




0%
10%
20%
30%
40%
50%
60%
70%
80%
PEP
PG
RAI
WMT
AMGN
BDX
BMY
JNJ
SYK
GE
GR
MDR
MMM
TBSI
CSCO
DELL
PX
VMC
PHO
VE
Quarter 2 LaPorte Dividend Analysis

Payout Ratio
TTM Dividend Yield
8



SECTOR ALLOCATION


Due to the nature of the volatile economy, our portfolio allocation differs from the
allocation of stocks
that make up the
S
&P 500. We have invested heavily in Health Care (
31.49%), Consumer Staples
(23.76%) and Industrials (15.43
%). Thes
e three sectors represent 70.68% of our portfolio for Quarter
2.

We hope to minimize the effect of the recession by relying on these three
sectors
, whose products
and/or services we believe will continue to be in demand. We have not invested in the energy
sector
because we believe
it is
too risky in t
his uncertain economic climate. However
,
we have made a play in
the financial sector in a co
mpany called EZCORP, which is a cash advance

lender and
pawnshop. We
believe that in this recession, companies like EZC
ORP will benefit. Add
itionally, in order to lower our
exposure in the information technology sector, we sold Dell.




Figure 2: Alloca
tion of Stocks in S&P 500 (as of
3/31/09
)


Source: Bloomberg


















18%

14%

13%

13%

12%

10%

9%

4%

4%

3%

S&P 500 by Sector

Information Technology
Health Care
Energy
Financials
Consumer Staples
Industrials
Consumer Discretionary
Utilities
Telecommunication
9


Figure 3: Allocation of Stocks in L
aPorte Portfolio (as of 3/31/09
)


Source: Bloomberg




Figur
e 4: LaPorte Portfolio Quarterly and Holding Period

Returns


Source:
http://finance.yahoo.com

and Bloomberg




0%

3%

0%

4%

40%

20%

5%

11%

0%

4%

13%

LaPorte by Sector

Consumer Discretionary
Consumer Staples
Energy
Financials
Health Care
Industrials
Information Technology
Materials
Telecommunication
Services
Utilities
-60.00%
-50.00%
-40.00%
-30.00%
-20.00%
-10.00%
0.00%
10.00%
20.00%
30.00%
40.00%
AMGN
BDX
BMY
CSCO
DELL
EZPW
GE
GR
JNJ
MDR
MMM
PEP
PG
PHO
PX
RAI
SYK
TBSI
VE
VMC
WMT
LaPorte Stock Returns

Quarter 2 Returns
Holding Period Returns
10


ECONOMIC OUTLOOK



The fourth quarter of 2008 was historic on many different levels. First, the current administration
announced it was bailing out the Big Three automakers.

The upcoming administration stated it expects
the bailout to exceed $850 billion. Furthermore, the Federal Reserve made historic rate cuts of 75
basis points.
i

Due to the significant credit crunch, new home sales plunged 2.9% in November 2008,
bringing
new home sales to their lowest level since January 2001.
ii

However, mortgage applications
were high once again in December, with the 30
-
year mortgage rates around 5.25%. The dollar
continued to weaken, with oil prices dropping below $40 per barrel. All o
f the historic negative
economic events that occurred in the fourth quarter leave us wondering what the economic outlook
will be both over the next year and during our tenure.


Analysts project an average of
-
3.5% in GDP in the first quarter of 2009 along
with an estimated
-
1.6%
in GDP for 2009.
iii

Not only do analysts expect the economy to shrink over 2009, but also the
unemployment rate is expected to increase to 8.3%. The Fed rate is expected to remain well below 1%
with an estimate of 0.5%.


We learned
the world’s economies are tied together as shown with a “global recession.”
Unfortunately, this quarter was a precursor to what we believe is on the horizon. Since all signs point
to an economy in distress this coming year, our investment strategy and re
solve are more important
than ever.


The economy is showing signs
of stabilizing

as consumer spending rose in February for the second
month in a row. Althou
gh these gains are only modest,
0.6 percent in Janua
ry and 0.2 percent in
February,
they are posit
ive signs that consumer confidence is slowly coming back. The previous six
months had seen a decline in consumer spending, which comprises 70 percent of tot
al economic
activity. Consumer spending is also on the rise
, an indication of

a possible change in

attitude towards
the economy.
iv

Although these are positive indications, we must be hesitant to recognize this short
trend as a long
-
term upswing in the economy.



11


STOCKS IN BRIEF


Consumer Staples:

As of March 31, 2009, we have four positions in the Consumer Staples sector: PepsiCo Inc., Procter &
Gamble Co., Reynolds American Inc., and Wal
-
Mart Stores Inc. Together these four companies
represent 23.76% of our portfolio and have a total market value
of $37,302.


PepsiCo Inc. (PEP),

[
6.56% of portfolio]



Quarterly Return:
PepsiCo’s r
eturn for this quarter was
-
4.45
% as consumers continued to cut
down on discretionary spending. However, the near future looks to be brighter for Pepsi as the
decline in c
ommodity prices will allow it to increase its expenditures on advertising and
promotion. PepsiCo will use the money saved from declined input costs, as well as the cash
made from increasing its beverage and food prices to fund the advertising campaigns, w
hich
should result in increased sales and revenues.
v



Description:
PepsiCo Inc. is one of the world’s leading providers of popular snacks and
beverages, selling its products in over 200 countries. PepsiCo employs approximately 185,000
people worldwide, and

its portfolio consists of 18 brands, with each one making more than $1
billion in annual retail sales. Its principal businesses include Pepsi
-
Cola
beverages;

Gatorade
sports drinks, Quaker Foods, Tropicana and Frito
-
Lay snacks.
vi



Investment Thesis:

We
held PepsiCo during this quarter because we believe it is a solid
consumer staple that will provide consistent returns in the coming months of the economic
recession. PepsiCo has a strong portfolio of brands that are market leaders in their respective
cat
egories. Frito
-
Lay is now the number one seller of snack foods in North America, due to its
direct
-
store
-
delivery system. PepsiCo’s strong cash position has allowed it to expand its
operations globally, where it can take advantage of emerging markets to gr
ow its snack food
and beverage brands.
vii

Unlike companies that are low on cash, PepsiCo is not in danger of
collapse. While its plans for global expansion may have to be executed over a longer period, we
feel PepsiCo is still a stable food and beverage com
pany that will use its strong brand equity
and diverse portfolio to generate returns.


Procter & Gamble (PG)
[6% of portfolio]



Quarterly Return:
Procter & Gamble’s re
turn for this quarter was
-
23.18
%. This loss was due to
a tough economy and price sensiti
ve consumers, who responded to price increases by
tightening their wallets and only purchasing necessary consumer staples, or switching to off
-
brand products. In an effort to get back on track, CEO A.G. Lafley said Procter & Gamble would
focus on achieving

strategic consistency and long
-
term growth by working on its core
competencies, which includes building leading brands that deliver enhanced customer value,
creating innovative and differentiated products, and rigorously managing its costs, cash and
firm
productivity.
viii



Description:
As the world’s largest consumer products manufacturer, Procter & Gamble sells its
products in over 180 countries worldwide, through mass market, retail and grocery store.
Procter &

Gamble is organized into three Global Business Units (GBUs):
Beauty and Health;
12


Household Care; and Gillette GBU. Procter & Gamble portfolio consists of 24 brands that each
earns over $1 billion in annual revenue.
ix

Investment Thesis:
We
believe Procter &

Gamble is a
strong, financially sound company that
prides itself on building a portfolio with a wide range of prices, in order to serve consumers in
every incom
e bracket. Procter & Gamble’s

broad product offerings provide its investors with
consistently
stable revenue growth every year. Procter & Gamble also has the potential for
higher than average growth internationally, since nearly $25 billion of its annual sales come
from emerging markets.

Procter & Gamble’s trademark attributes of product developmen
t,
brand building and ability to adapt to changing economic climates will help the company
weather the economic recession in the coming months.


Reynolds American Inc. (RAI)
[4.57% of portfolio]



Quarterly Return:
Reynolds American’s return for this quarter

was
-
8.98
%.

This loss was due

in

part to increased food and energy prices. Consumers
that are price
-
sensitive
are cutting back
on cigarettes or
are
switching to lower
-
priced brands.



Description:
Reynolds American is the parent company of R.J. Reynolds
Tobacco Company;
Conwood Company LLC; Santa Fe Natural Tobacco Company, Inc; and R.J. Reynolds Global
Products, Inc.
x


As the U.S.’s second
-
largest tobacco
manufacturer;

Reynolds American’s brands
include Camel, Kool, Pall Mall, Winston and Doral, which ar
e five of the ten U.S. leading
cigarettes. The company was founded in 1875 and is headquartered in Winston
-
Salem, North
Carolina.
xi



Investment Thesis:
We held Reynolds American because of the popularity of cigarettes and
tobacco products, along with the com
pany’s high dividend yield. Reynolds American’s trailing
dividend yield was 9% in 2008, which guarantees investors a substantial amount of cash in hand
in this volatile economic environment. Reynolds American is the second largest domestic
cigarette manuf
acturer, and owns five of the top ten cigarette brands. The acquisition of the
smokeless tobacco entity Conwood in 2006 helped Reynolds American’s profitability. Conwood
is delivering double
-
digit sales growth and holds the second position in its market.
We believe
that Reynolds American will rely more heavily on its smokeless tobacco entity to generate
revenues, as the FDA now has regulatory power over the tobacco industry. The next few
quarters may see earnings decline
s due to the new cigarette tax.
xii

Du
e to this tax
increase,
revenues for all cigarette companies will probably decrease in the

coming quarters. Retailers
will be

looking to temporarily decrease their inventory and avoid the $0.62 floor tax charged
per pack of cigarettes.
xiii



Wal
-
Mart (WMT)
[
6.64% of portfolio]



Quarterly Return:
Wal
-
Mart’s r
eturn for this quarter was
-
6.64
%. Wal
-
Mart was certainly not
immune to the weakening economy and severe decline in consumer spending this quarter.
However, in February, Wal
-
Mart posted a 5.1 percent
increase in same store sales (stores open
at least a year) due to is wide variety of products and low prices.
xiv




Description:
Wal
-
Mart is the world’s largest retailer, operating 971 discount stores, 2,447
supercenters, 132 neighborhood markets, and 591 Sam

s

Clubs in the United States as of 2008.
Wal
-
Mart has a presence in 13 countries, including Brazil, Canada, Guatemala, Japan, the UK
13


and China. The company was founded in 1945 and is based in Bentonville, Arkansas. Wal
-
Mart
employs over 2 million full
-
t
ime workers and had over $400 billion in revenue in 2007.
xv



Investment Thesis:
During t
his tough economic time, we believe holding

Wal
-
Mart’s stock is a
solid investment decision. Although it is not immune from the turmoil of the market, Wal
-
Mart’s wide variety of basic consumer goods and staples ensures its continued survival and
ability to thrive in the future. In an effort to ad
just to the recession,
Wal
-
Mart is now focusing
on its core customers, promoting its everyday low prices and offering $4 generic prescriptions.
Wal
-
Mart is cutting out its high
-
end apparel lines, slowing domestic growth and doing a much
better job of mana
ging its inventory and keeping those costs low.
xvi



Financial:

As of March 31, 2009, we have one position in the
financial

sector: EZCorp. This stock represents
2.95% of our portfolio and has a total market value of $4,628.


EZCORP Inc. (EZPW),

[2.95% of
portfolio]



Quarterly Return:
EZCORP’s return for the quarter was
-
17.71%. The reduction in EZCORP’s
stock price
was adversely affected by the

rumors circulating
from
Congress making changes to
the usury laws, which would cap some of EZCORP’s loan rates.
xvii




Description
: EZCORP meets the short
-
term cash needs of individuals by lending

cash

or
providing credit services. EZCORP engages in pawn loans, which are non
-
recourse loans
collateralized by tangible personal property, ranging from jewelry to sporting goo
ds. Further,
EZCORP provides signature loans, which consist of either payday loans or fee
-
based credit
services. As of September 30, 2008
,

pawn loans were available in 294 locations in the United
States and 38

locations

in Mexico, as well as signature lo
ans from 71 pawn stores and 477
EZMONEY stores
.
xviii



Investment Thesis:
As unemployment continued to grow, we saw EZCORP as a way to take
advantage of the furthering credit crisis. We thought that households dependent on two
income sources might begin to struggle and even be forced to survive off
of
one provider as
unemployme
nt began to rise. These households would be forced to take on short
-
term loans in
order to make weekly payments. Thus, we figured EZCORP would be a good play in that it not
only provided these short
-
term loans to lower income
families but is also

a major

player in the
pawn shop business. As more people were
affected by

the credit crisis, they were forced to
pawn items to help pay off bills, resulting in an increase

in inventory at pawnshops.
However,
we continue to believe the decrease in revenues fro
m t
he change in usury laws will

not offset
the increase in business from pawn
-
based loans and sales
xix
.


Health Care:

As of March 31, 2009, we have five positions in the Health Care sector: Amgen Inc., Becton, Dickinson
and Co., Bristol
-
Myers Squibb Co., Johnso
n & Johnson, and Stryker Corp. Together these five
companies represent 31.49% of our portfolio and have a total market value of $49,448.00.


Amgen Inc. (AMGN
),
[6.31% of portfolio]



Quarterly return
: Amgen’s re
turn for this quarter was
-
14.25
%.

14




Descrip
tion
: Amgen is a biotechnology company that engages in the discovery, development,
manufacture, and marketing of human therapeutics based on advances in cellular and
molecular biology. It markets human therapeutic products in the areas of supportive cancer

care, nephrology, inflammation, and oncology. Amgen markets its products to healthcare
providers, including physicians or their clinics, dialysis centers, hospitals, and pharmacies
primarily in the United States, Europe, and Canada. Amgen was founded in
1980 and is based in
Thousand Oaks, California.
xx



Investment thesis
: The FDA has approved
Phase III for denosumab, a biotechnology drug
aimed at osteoporosis in menopausal women. Other key products include Epogen/Aranesp
(anemia), Neupogen/Neulasta
(neutropenia), and Enbrel (inflammatory disease).
xxi


We still
believe Amgen has a very strong pipeline for the remainder of 2009 creating a competitive
advantage that will generate growth in revenues.
In contrast, the

approval of generic
biotechnology drug
s in the United States is a concern for Amgen. However, due to the
combination of significant R&D expenditures required to develop generics and the patents that
generally exist between 5 and 14 years (Waxman Bill) with biotechnology drugs, Amgen
maintains

its competitive advantage over the generic competition.
xxii

We maintain a solid hold
position for Amgen throughout the remainder of 2009.


Becton, Dickinson and Co. (BDX),

[8.57% of portfolio]



Quarterly return:
Becton, Dickinson and Company’s r
eturn for
this quarter was
-
0.72
%.



Description:
Becton, Dickinson and Company, a medical technology company, develops,
manufactures, and sells medical supplies, devices, laboratory equipment, and diagnostic
products worldwide. Becton, Dickinson and Company is the

leading provider of diabetes
needles, IV needles, and safety needles. Becton, Dickinson and Company also derives over half
of its revenues outside of the United States. Since 2004, Becton, Dickinson and Company has
increased its dividend per share every

year.
xxiii




Investment thesis:
The same concern regarding the Obama health care plan and generics
applies to Becton
,

Dickinson

and Company
. Fortunately, Becton
,
Dickinson
and Company
generates approximately 58% of its revenues from basic hospital supplies.
xxiv

Regardless of what
changes take place towards drug spending, staple hospital supplies that are purchased
daily

will
remain. Approximately 53% of sales are generated from syringes, scalpels, and prefilled
prescriptions that will be unaffected by the Obama administration. In addition, as more
ambulatory surgery centers are built each year, Becton
,

Dickinson and Co
mpany’s

revenues will
continue to grow with these hospital staples. The combination of its fundamental product lines
and excellent dividend yield result in a hold position for the LaPorte portfolio.


Bristol
-
Myers Squibb Co. (BMY),

[5.58% of portfolio]



Quarterly return:

Bristol
-
Myers Squibb’s
r
eturn for this quarter was
-
4.39
%. Bristol
-
Myers
Squibb continues to be ahead of the curve in the pharmaceutical industry.



Description:
Bristol
-
Myers Squibb engages in the discovery, development, licensing,
manufacture, marketing, distribution, and sale of pharmaceuticals and other health care
related products worldwide.
xxv

Bristol
-
Myers Squibb has two business segments:
Pharmaceuticals and Nutritionals. In the Pharmaceutical industry, Bristol
-
Myers Squibb s
ells to
hospitals, wholesalers, distributors, physicians, government agencies and pharmacies. The
15


company, formerly known as Bristol
-
Myers Company, was founded in 1887 and is
headquartered in New York, New York. On December 10, 2008, Citigroup upgraded B
ristol
-
Myers Squibb from a hold position to a buy position.



Investment thesis:
Bristol
-
Myers Squibb received positive news from the FDA regarding the
drug, Onglyza. This drug reduces the blood sugar levels in type II diabetes patients. Unlike
other simi
lar treatments, Onglyza has no correlation to heart issues when the patient takes the
medication.
xxvi

This is a marketable competitive advantage for Bristol
-
Myers Squibb. As the
epidemic of type II diabetes continues to increase, a larger potential market wi
ll exist. The
diabetes market ranges from $300 million to over $1 billion in sales. The strong pipeline and
dividend yield continue to provide a hold position despite the generic drug concerns.


Johnson & Johnson (JNJ),

[6.70% of portfolio]



Quarterly ret
urn:

Johnson & Johnson’s re
turn for this quarter was
-
11.32
%.



Description:
Johnson & Johnson engages in the research and development, manufacture, and
sale of various products in the Health Care field worldwide. Its Consumer segment provides
products u
sed in baby care, skin care, oral care, wound care, and women

s health care fields, as
well as nutritional and over
-
the
-
counter pharmaceutical products.
xxvii



Investment thesis:

Johnson & Johnson has
two patents expiring this year; however, the market
has
been aware of this information for some time; therefore,
the decline in stock price should
not be completely related to these expirations. Obama’s health care plan causes concern for
generic competition. This may explain Johnson & Johnson’s decline in va
lue over the past
quarter. However, almost half of Johnson & Johnson’s sales are international. Thus, a weak
dollar internationally translates into greater profits here in the United States.


Johnson & Johnson’s Biopatch has shown in studies it reduces

catheter related infections by
61%. Furthermore, Biopatch has shown to reduce staph infections. Staph infections are
becoming more prevalent in hospitals due to the infection’s ability to fight antibiotics. These
infections kill approximately 19,000 pe
ople per year in the United States.
xxviii



Johnson & Johnson continues to raise its dividend every year, as it has the past 46 years.
xxix

This
increase represents a solid cash position, which has been critical during the recession. Moving
forward, Johnson & Joh
nson will be able
to utilize its cash for

future pipeline R&D and dividend
payments. Because of these reasons, we maintain a long
-
term hold position with Johnson &
Johnson.


Stryker Corp. (SYK),

[4.34% of portfolio]



Quarterly return:

Stryker’s return for

this quarter
was
-
13.79
%
.



Description:
Stryker, together with its subsidiaries, operates as a medical technology company
worldwide. It operates in two segments,
Orthopedic

Implants and MedSurg Equipment.
xxx



Investment thesis:

The medical device maker's
profit rose 13 percent in 2008, to $1.15 billion,
or $2.78 per share. Revenue grew 12 percent to $6.72 billion. However, Stryker
’s

stock lost
nearly half its value during the year, falling to $39.95 from $74.72

at the end of 2007.
xxxi

More
recently, Stryker w
as abl
e to increase its net i
ncome the past quarter by approximately $4
million.
xxxii

Stryker continues to enforce its 20% growth in sales with its sales force. This
16


cutthroat sales strategy and Stryker’s brand equity with orthopedic surgeons provide a
compe
titive advantage over many other device manufacturers. As the aging population
increases over the next decade, more patients will be required to have some form of
orthopedic surgery.
Thus, we still believe in holding a long
-
term position with Stryker.


I
ndustrials:

As of March 31, 2009, we have five positions in the Industrials sector: General Electric Co., Goodrich
Corp., McDermott International Inc., 3M Co., and TBS International Limited. Together these five
companies represent 15.43% of our portfolio and have a to
tal market value of $24,222.17.

General Electric Co. (GE),

[3.22% of portfolio]



Quarterly return:
General Electric’s re
turn for this quarter was
-
35.68
%. A continued decline in
the overall market, as well as the financial segment led to a decline in the stock price of General
Electric. Further, out of fears of a downgrade, which would have caused an immediate payout
of $8 billion in cash, General Elect
ric reduced its dividend,
and as a result

its stock pric
e
tumbled

below $8 per share towards the end of February
xxxiii
. However, with a slight rebound
in the market and favorable news for General
Electric’s

infrastructure segment from the
stimulus package, its

stock price rebounded closer to $10 per share by the end of the
quarter.
xxxiv



Description:

General Electric is a global company that plays in the energy infrastructure,
technology, media, and financial services fields. Its energy infrastructure segment prod
uces
turbines, generators, and combined cycle systems. The technology infrastructure segment
manufactures products such as jet engines, military and commercial aircraft, and aerospace
systems. Its NBC Universal segment engages in the production and distr
ibution of films and
television programs as well as the management of theme parks. The Capital Finance segment
offers loans, leases and other financial services. Its Consumer & Industrial segment produces
various household appliance, lighting products, a
nd electrical equipment and control products.

xxxv
,
xxxvi



Investment Thesis:

General Electric was hurt more than we had anticipated which resulted in a
dividend decrease and a subsequent drop in the stock price. At such a depressed value, we
would have been hard

pressed to liquidate our shares. However, with promising recent
developments

related to its infrastructure segment, we remain optimistic that General Electric
can rebound in the long
-
term.
xxxvii


Goodrich Corp. (GR),

[5.43% of portfolio]




Quarterly return:

G
oodrich Corporation’s return

for this quarter was 3.03
%. Operating margin
and revenues continued to grow for Go
odrich Corporation. However,

global economic
uncertainty and the threat of cancellations and deferrals
of orders from
the airline companies

hamp
ered its ability to generate better returns
xxxviii
.



Description:

Goodrich Corporation is a supplier of components, systems and services to the
commercial and general aviation airplane markets. The Company is also a supplier of systems
and products to the
global defense and space markets. The Company's products and services
are sold to customers in North America, Europe and Asia
xxxix
.

17




Investment Thesis:
Goodrich Corporation currently has a 2.46% dividend yield. This dividend
payment is beneficial during tough

times. The com
pany must make cost cutbacks

in order to
remain competitive and sustain growth into the next year. The global diversity of Goodyear
creates a plethora of opportunities, yet the continued aviation industry’s sl
owdown raises
concerns. In ad
dition
, any increase in oil prices could hamper the aviation industry even more,
which in turn could increase the number of cancellations by airlines further hampering
Goodrich Corporations bottom line
xl
.


McDermott International Inc. (MDR),

[1.09% of portf
olio]



Quarterly Return:
McDermott’s return for the quarter was 35.53%. This gain was due to
delayed work in the previous quarter finally getting back on schedule. McDermott had to take
a $70 million cost adjustment in the oil and gas construction segment

in the Middle East

last
quarter
, which in part caused its low earnings. In addition, due to bad weather, McDermott’s
workers were only able to work 40% of the time scheduled. However, now that the claim
settlement is behind
,

McDermott and management ant
icipates completing those three delayed
Middle East projects by year’s end. Furthermore, McDermott just signed a Letter of Intent for a
project that is worth over $1 billion in its offshore construction segment
xli
. Former executive
vice president
,

Stephen Johnson
,

was appointed the new chief operating officer and president
of McDermott on April 1
st
.
xlii




Description
: McDermott is a global engineering and construction company that operates in
three segments: Offshore Oil and Gas Construction, Governmen
t Operations, and Power
Generation Systems. Its customers are mainly utilities and other power generators, as well as
national oil companies and the US government. McDermott employs over 25,000 people and
operates in over 20 countries worldwide.
xliii



Investmen
t Thesis:
McDermott’s substantial gain this quarter proved that the economy is
showing signs of life and that the company’s experience in the oil, gas and nuclear energy
sectors makes it a good long
-
term investment. Furthermore, the industry estimates th
at it will
take $2.2 trillion to upgrade the U.S.’s aging infrastructure system, taking place over the next
five years
xliv
.

McDermott will look to capitalize on international opportunities in its capital
projects, since international regulations are less str
ingent. McDermott ended 2008 with over
$9.8 billion in backlog orders and over $1 billion in its government operations segment (its most
profitable segment). Furthermore, McDermott is in a solid position to borrow, with over $750
million in available capa
city left on its existing credit facilities
xlv
.


3M Co. (MMM),

[4.75% of portfolio]



Quarterly return:

3M’s re
turn for this quarter was
-
12.70
%. 3M’s credit rating was downgraded
to AA
-

from AA on March 18. However, 3M continues to maintain a healthy balan
ce sheet and
has a times interest earned of near 30
xlvi
.



Description: F
undamentally 3M is a science
-
based company. Its core businesses are in
industrial products, healthcare technology, adhesives, display films, and 40 more technology
platforms. The
company receives approximately half of its revenues from international markets
and 30% from emerging markets
xlvii
.



Investment Thesis:

The Company has locations in 60 countries and has created a strong global
infrastructure in order to take advantage of
the gr
owth of emerging markets
. We believe the
18


company’s strong balance sheet, with over $2 billion in cash, will give 3M many opportunities
to rebound as the global economy slowly improves. Additionally, a 3.46% dividend yield further
strengthens holding onto

this stock. Recently, 3M offered early retirement to 11% of its U.S.
workforce in order to maintain margins in suc
h a volatile economy. 3M’s

diversification and
strong financials should help them weather the storm and
rebound with the economy.
xlviii


TBS Int
ernational Limited (TBSI)
,
[0.94 % of portfolio]



Quarterly return:
TBSI’s return for the quarter was
-
26.72%. The combination of the credit
crisis and the lack of foreign demand for dry bulk goods led to this decline. However, as fuel
prices and credit
availability both declined, TBSI rebounded. We believe that demand for dry
bulk commodities in developing should rebound in the future
.
xlix



Description:
TBSI, an ocean transportation services company, offers shipping solutions through
liner, parcel, bulk, a
nd vessel chartering services. TBSI operates a fleet of multipurpose
tweendeckers, along with handysize and handymax bulk carriers that carry steel products,
metal concentrates, fertilizer, salt, sugar, grain, chemicals, industrial goods, aggregates, and
g
eneral cargo.
l




Investment Thesis:
TBSI was purchased for the portfolio because the demand for ocean
transportation continued to grow, despite higher fuel prices. We had believed that demand
would continue to grow even further, as we thought transportati
on would continue to increase
globally. However, with the current global recession continuing, and U.S. exports decreasing
more than imports, it seems unlikely that goods other than grains and consumer staples will be
transported. How well TBSI is able t
o react to these changes will determine its future
profitability.
li



Information Technology:

As of March 31, 2009, we have one position in the Information Technology sector: Cisco Systems, Inc
because we sold Dell during the second quarter. This compan
y represents 4.27% of our portfolio and
has a total market value of $6,708.

Cisco Systems Inc. (CSCO),

[4.27 % of portfolio]



Quarterly return:

Cisco’s return for this quarter was 2.88%. As companies began to cut costs,
Cisco’s business
-
to
-
business communications systems grew in demand, but were not able to
offset the overall decrease in spending
lii
.



Description:

Cisco designs, manufactures, and s
ells Internet Protocol (IP)
-
based networking
along with other products relating to the communications and information technology industry
worldwide.
liii



Investment thesis:
Recently, Cisco spent $105 million in order to purchase a
software company
and will

en
ter the server market. An entrance into the server market creates an odd
relationship with Cisco and HP, as Cisco builds HP’s servers and is now going to compete
directly with HP. There is

room for growth in the ser
ver market, but

it produces lower margi
ns
then Cisc
o’s other business segments. However,

we believe any boost in revenue from this
new market for Cisco will help offset any continued slowdown of sales in other business
segments
liv
.

19


Dell Inc. (DELL),

[
0
% of portfolio]



Quarterly return:

Dell’s return for this quarter was
-
19.82%. The combination of growing
competition, combined with the weakened economy, had a direct impact on Dell’s recent
negative performance.
Due to a decline in performance

and our predicted decline in the overall
co
mputer retail segment, we liquidated Dell on February 26
lv
.



Description:


Dell and its subsidiaries engage in the design, development, manufacture,
marketing, sale, and support of computer systems and services worldwide
.” “Dell sells its
products and servi
ces directly to consumers through sales representatives, telephone
-
based
sales, and online at
www.dell.com
, as well as through various indirect sales channels.”

lvi



Investment thesis:

We believed that Dell was not position
ed well for the future; hence
,

we sold
the stock on the 26 of February. Dell is a player i
n a very price sensitive market

in a time of
decre
ased consumer spending. Also
, the majority of Dell’s revenue comes from computer sales
and in particular
replacement computer sales from businesses. During a time of economic
volatility, it is unlikely that companies would be replacing older computers when they are
reducing employee counts to cut costs. Thus, we believed it was best to liquidate Dell, as we

did not believe they had a way to make up for lost revenue.
lvii
.


Materials:

As of March 31, 2009, we have two positions in the Materials sector: Praxair Inc. and Vulcan Materials
Co. Together these two companies represent 8.52% of our portfolio and have a
total market value of
$13,372.50.


Praxair Inc. (PX)
,
[
4.29% of portfolio]



Quarterly return:

Praxair’s re
turn for this quarter was 14.03
%. Praxair reduced its economic
exposure in North America by going global, but still nearly half of its revenues come
from the
US. Praxair is one of four main players in an industry that exhibits oligopoly traits, and thus has
a lot of power over its consumers. However, in a time of economic volatility, it has not seemed
to make a difference
lviii
.



Description:
Praxair oper
ates in the industrial gas industry, a stable and utility like market with
products that have a multitude of uses throughout the industrialized world. Industrial gases are
used in many industries, including health care, chemical, and petroleum refining, ae
rospace,
and water treatment, providing insulation against any industry
-
specific downturns.
Praxair is
the largest industrial gases company in North and South America, and one of the largest
worldwide,
with 2007 sales of $9.4 billion
lix
.




Investment Thesis:
The economic downturn in the U.S. will continue to hamper
Praxair in the
future.

A continued slowdown of the global economy, increasing global competition, and
cumbersome 15
-
year contracts could provide future problems for Praxair and
it could be a
stock that we consider liquidating over the next several months, barring any drastic changes in
Praxair’s environment
lx
.


Vulcan Materials Co. (VMC),

[4.23% of portfolio]



Quarterly return:

Vulcan Materials re
turn for this quarter was
-
35.64
%
.

20




Description:

Vulcan Materials Company, through its subsidiaries, produces construction
aggregates and other construction

materials in the United States and Mexico. The company
operates in three segments: Aggregates, Asphalt mix and Concrete, and Cement.
lxi



Investment thesis:

Vulcan Materials continues to be a difficult stock to predict. We believe
Obama’s infrastructure plan will utilize Vulcan Materials and its assets. However, Vulcan
Materials has continued to be volatile in daily trading.
For 2008, V
ulcan reported its net income
fell to $228.6 million, or $2.06 per share, from $450.9 million, or $4.54 per share, in 2007.
Earnings from continuing operations in 2008 totaled $231 million, or $2.08 per share. Total
revenue rose to $3.65 billion, from $3.3
3 billion, in 2007.
lxii

An explanation for the reduction in
2008 earnings can be explained by a goodwill impairment charge of $233 million that Vulcan
Materials had to report for 2008
lxiii
. Management reduced its bonuses by half for 2008 because

of the reduction in net income indicating corporate governance responsibility.

At this point, we
still maintain a hold position with Vulcan Materials.


Utilities:

As of March 31, 2009, we have two positions in the Utilities sector: PowerShares Water
Res
ources ETF and Veolia Environment SA. Together these two companies represent 3.61% of our
portfolio and have a total market value of $5,669.


PowerShares Water Resources ETF (PHO),

[2.28% of portfolio]



Quarterly Return:
PowerShares Water Resources’ re
turn

for this quarter was
-
17.08
%
lxiv

This
loss is due to the fact that PowerShares Water Resources follows the Palisades Water Index,
and will be more volatile than stocks in other issues.
lxv



Description
: The PowerShares Water Resources ETF (AMEX: PHO) is the largest and oldest of
the two water investment funds sponsored by PowerShares. The ETF is based on the Palisades
Water Index, which targets companies that focus on the provision of clean, potable wa
ter,
along with the movement, treatment and technologies associated with water. The fund
includes 80% industrials, 8.51% utilities, 6% materials, and 5% information technology. Since its
inception in December 2005, the fund has accumulated $1.29 billion in

net assets.



Investment Thesis:
We are holding PowerShares Water Resources because it contains many
different sectors and this diversity minimizes the risk associated with investing. Additionally,
water treatment, management and the technologies associa
ted with these areas are becoming
a top priority for many cities in the U.S. and around the world. As concern grows regarding
clean water and its management, we believe more capital will be invested into these areas and
ETFs like PowerShares Water Resourc
es will benefit.
lxvi


Veolia Environment SA (VE),

[
1.33% of portfolio]



Quarterly Return:
Veolia’s return for this quarter was
-
34.09%. This loss can be partly
attributed to the general economic downturn and declining energy prices..
xxxix

Veolia

plans to
di
spose of $3.08 billion in assets in order to generate capital for growth. CEO
Henri Proglio said
that his company is going to downsize its Sulo waste management division in Germany, after
taking a $545.3 million impairment charge for the division in the la
st quarter. Although
disposing of assets to free up capital and downsizing an unprofitable business are good moves,
Veolia’s debt of $20.9 billion (which is 3.6 times that of core earnings) remains a problem.
21


Veolia will keep its dividends at $1.53 a share

for 2009, rather than increasing the dividend by
10%
lxvii
.



Description:
Veolia is a global company, providing environmental management services to
individuals, as well as industrial and commercial customers. VE and its subsidiaries operate in
four sectors: Wa
ter, Environmental Services, Energy Services and Transportation. Founded in
1853 as Vivendi Environment, Veolia Environment has over 150 years experience in the
environmental services business. The company is located in Paris, France and has over 319,500

full
-
time employees.
.
xl




Investment Thesis:
Veolia serves both the public and private sector, and offers a wide range of
services. Cities around the world are forming partnerships with Veolia to provide waste removal
services, as well as supply clean
drinking water. The company currently owns and operates the
world’s largest desalination plant in the Middle East. Furthermore, China’s market for water
and waste management services is growing at a rate of 20% annually. With its extensive
expertise, yea
rs of experience and global presence, we believe that few competitors can offer
customers what Veolia can. Veolia offers investors a stable return, since it enters into contracts
that last an average of twenty years and it has a 90% retention rate with its

customers.
lxviii

.






22



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http://economictrends.com

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xv

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xvii

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xviii

http://finance.yahoo.com/q/pr?s=EZPW

xix

http://finance.yahoo.com/news/
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Stays
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zacks
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14745574.html

xxii

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xxiv

http://www.cnbc.com/id/29553197/?__source=yahoo%7Cheadline%7Cquote%7Ctext%7C&par=yahoo

xxv

http://finance.yahoo.com/q/pr?s=BMY

xxvi

http://finance.yahoo.com/news/FDA
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BristolMyers
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diabetes
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http://finance.yaho
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xxviii

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xxx

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xxxi

http://finance.yahoo.com/news/Stryker
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CEO
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got
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pay
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package
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apf
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14701719.html

xxxii

http://finance.yahoo.com/q/is?s=syk

xxxiii

http://zerohedge.blogspot.com/2009/03/ges
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8
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downgrade
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time
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bomb.html

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For
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23








xxxviii

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bill
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who
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is
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vwsf
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1253.html

xxxvi

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htt
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xxxviii

http://library.morningstar.com.proxy.lib.utk.edu:90/stocknet/MorningstarAnalysis
.aspx?Country=USA&Symbol=GR

xxxix

http://www.goodrich.com

xl

http://library.morningstar.com.proxy.lib.utk.edu:90/stocknet/MorningstarAnalysis.aspx?Country=USA&Symbol=GR

xli

http://seekingalpha.com/article/123920
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mcdermott
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international
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inc
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q4
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2008
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earnings
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call
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xlii

http://houston.bizjournals.com/houston/stories/2009/03/30/daily28.html?ana=yfcpc

xliii

http://finance.yahoo.com/q/pr?s=MDR

xliv

http://finance.yahoo.com/news/ETFs
-
Stimulated
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By
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ibd
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14752610.html

xlv

http://seekingalpha.com/article/123920
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mcdermott
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internati
onal
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inc
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q4
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2008
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earnings
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call
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transcript?source=yahoo

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http://library.morningstar.com.proxy.lib.utk.edu:90/stocknet/MorningstarAnalysis.aspx?Country=USA&Symbol=MMM

xlvii

http://finance.yahoo.com/q/pr?s=MMM

xlviii

http://library.morningstar.com.proxy.lib.utk.edu:9
0/stocknet/MorningstarAnalysis.aspx?Country=USA&Symbol=MMM

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13, 2008

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http://research.thoms
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lviii

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http://www.praxair.com

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http://library.morningstar.com.proxy.lib.utk.edu:90/stocknet/MorningstarAnalysis.aspx?Country=USA&Symbol=PX

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apf
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14745042.html.













24








APPENDIX


Quarter 2 Transaction History
:


Acquisitions

1st Quarter

Date

Company

Ticker

Cost Basis

Shares

Price

Change in Cash

11/15/2008

General Electric

GE


$ 5,025.40

250

20.06

($5,025.40)

Total 1st Quarter Acquisitions











($5,025.40)


Second Quarter

Date

Company

Ticker

Cost Basis

Shares

Price

Change in Cash

1/29/2009

EZCorp Inc.

EZPW

$5,684.55

400

$14.06

($5,684.55)

Total 2nd
Quarter Acquisitions









($5,684.55)

Total Acquisitions











($10,709.95)

2nd Quarter Liquidations

Date

Company

Ticker

Cost Basis

Shares

Price

Change in Cash

2/26/2009

DELL

DELL

$3,325.03

400

$8.21

$3,325.03

Total Liquidations











$3,325.03

2nd Quarter Commission Fees

Date

Company

Ticker







Change in Cash

1/29/2009

EZCorp Inc.

EZPW







($10.95)

2/26/2009

DELL

DELL







-
10.95

Total Commission Fees Paid









($21.90)

2nd Quarter Dividends



Date

Company

Dividend

Change in Cash



3/31/2009

Becton, Dickinson and Co.


$ 66.00







3/31/2009

PepsiCo Inc.


$ 85.00







3/31/2009

PowerShares Water
Resources


$ 0.63







3/16/2009

Praxair Inc.


$ 40.00







3/12/2009

3M Co.


$ 76.50







3/10/2009

Johnson & Johnson


$ 92.00







3/10/2009

Vulcan Materals Co.


$ 73.50







2/17/2009

Procter & Gamble Co.


$ 80.00







2/2/2009

Bristol
-
Myers Squibb Co.


$ 124.00







1/30/2009

Stryker Corp.


$ 80.00







1/26/2009

General Electric Co.


$ 155.00







1/2/2009

Becton, Dickinson and Co.


$ 66.00







1/2/2009

Goodrich Corp.


$ 56.25







1/2/2009

PepsiCo Inc.


$ 85.00







1/2/2009

Reynolds American Inc.


$ 170.00







1/2/2009

Wal
-
Mart Stores Inc.


$ 47.50





Total Dividends










$ 1,297.38


25