Shelby Umbarger ‘21 pitched The Progressive Corporation (NYSE:PGR) on March 29th, 2021. Progressive was founded in 1937 and is headquartered in Mayfield, Ohio. The company is the third largest auto-insurance company in the United States. Progressive Corporation operates in three segments: Personal, Commercial, and Property Lines, with the majority of Progressive’s revenue coming from Personal Lines. Progressive’s competitive advantages include Snapshot by Progressive and the Name Your Price Tool. Progressive’s strong management team, focus on advertising to build brand recognition and market share, and diversification from current SMIF holdings makes Progressive a buy for the portfolio. The class voted to buy 355 shares of PGR at market price, sell 195 shares of GILD, and sell 275 shares of XLB.
Emily Spitz ‘21 pitched NIKE, Inc. (NYSE: NKE) on March 29th, 2021. Nike is the largest athletic footwear and apparel company in the world. Nike sells products through wholesale retailers as well as through Direct-to-Consumer which includes Nike mono-brand stores and online platforms. In fiscal year 2020, about 39% of Nike’s revenue came from United State’s sales, and 61% of revenue came from international sales. The Consumer Direct Offense and Consumer Direct Acceleration strategies aim to better understand consumers and strengthen Direct-to-Consumer sales. Nike value drivers include increasing digital sales to 50% of total revenue, increasing market share opportunities in China and the women’s business, and continued strong athletic endorsements fueled by the return to organized sports. The class voted to buy 265 shares of NKE at market price, sell 100 shares of BABA, and sell 30 shares of SPY.
Paige Lawton ‘21 pitched FedEx Corporation (NYSE: FDX) on March 22nd, 2021. FedEx is a delivery service company headquartered in Memphis, Tennessee. It is the largest air express company and the second largest ground package transportation within the United States. Paige discussed the large need for FedEx services with the growing e-commerce market, a unique strategy operating all of their business markets separately, and a strong rebound in the BTB market post-pandemic as the key growth drivers of FedEx. The class voted to purchase 135 shares of FDX, sell 100 shares of FCN, and sell 65 shares of LMT.
On March 15th, Molly Paine pitched Nvidia Corporation (NASDAQ: NVDA) to the SMIF class. Nvidia corporation is a semiconductor devices company that designs, markets, and sells semiconductor products. Their industry leading graphics processors are used across various applications including PC gaming, artificial intelligence enterprises, autonomous driving platforms, robotics, medical imaging, and many others. Going forward, Nvidia is expanding their AI and data center platforms through the release of new products such as Nvidia AI Enterprise and the acquisition of Arm from Softbank. They are also expanding into cryptocurrency mining and see a tremendous growth area in their autonomous driving platform. The class approved the pitch and voted to buy 125 shares of NVDA, sell 100 shares of XLK, sell 40 shares of ADBE, sell 180 shares of APPL, sell 30 shares of SPY, and sell a June 18th, $500 call on 100 shares of NVDA.
On March 8th, Tommy Sopko pitched Merck (NYSE: MRK), a global healthcare company that develops medicines, vaccines, biologic therapies, and animal health solutions. Merck operates in two major segments: pharmaceuticals and animal health. Their largest area for growth is oncology, which is also their largest segment by revenue. Tommy discussed key risks and mitigants including a dependency on patent rights, international business, and successful R&D initiatives. The class approved the pitch and voted to buy 400 shares of MRK, sell 125 shares of ZTS, and sell 200 shares of EW.
Tyler Jones ‘21 pitched PayPal Holdings, Inc. (NASDAQ: PYPL) on March 1st, 2021. Within the primary PayPal brand and platform, PayPal offers their products and services to two main customer groups: businesses and consumers. For businesses, PayPal offers merchants the ability to accept digital payments through both in-store and e-commerce channels, with the mix skewed heavily towards e-commerce. For consumers using the core PayPal platform, users can send and receive payments anywhere in the world, as well as use the PayPal platform to complete payments to merchants and for other financial services. Tyler discussed PayPal’s position to benefit from the growing number of global digital payments, PayPal’s recent acquisition of the Chinese-based digital payments company Guofubao, and the monetization of Venmo as the key growth drivers of PayPal. The class voted to purchase 243 shares of PYPL at the market price on March 1st, 2021 and sell 475 shares of XLK at the market price on March 1st, 2021
Nathan Feyrer ‘21 pitched Renewable Energy Group, Inc (NASDAQ: REGI) on November 16th, 2020. REGI is the largest biodiesel and renewable diesel producer in North America. Biofuels help remove millions of tonnes of carbon emissions per year across North America and Europe. REGI has committed to refining and distributing top quality products to institutional and retail consumers, utilizing a low-cost feedstock derived from animal fats and cooking waste. The company currently plans on expanding its downstream business and growing capita expenditures to increase capacity and distribution capabilities. REGI’s renewable diesel, a direct substitute for petroleum based diesel, will continue to bolster sales, as they expand nameplate capacity in their Lousiania plant. The class voted to buy 530 shares of REGI at $60 and sell 1000 shares of XLE at $36.28.
Helen Fish ’21 pitched Estée Lauder Companies (NYSE: EL) on November 16th, 2020. Estée Lauder Companies Inc. is a marketer and manufacturer of skin care, fragrance, makeup, and hair care products. It launched in 1946 and has been expanding globally since then. The company provides the portfolio exposure to the resilient cosmetics industry. Estée Lauder operates within the Personal Care Products GICS industry group within Consumer Staples. The company has a proven track record or predicting and keeping up with fast-changing trends within the cosmetics and skin care industries. Estée Lauder has a precise focus on prestigious cosmetics, skin care, and fragrance. The brand portfolio strengthens the EL brand image and appeals to a number of different demographics. Estée Lauder in also working towards a number of initiatives in order to have environmental, social, and governance impact. The company has many value drivers including agility within the industry, a focus on growth trends, and strong positioning within the industry. The SMIF class voted to buy 150 shares of EL at an executed price of $256.00 and sell 390 shares of KR, 325 shares of CPB, and 145 shares of PG.