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.
Jill Henderson ’21 pitched Target Corporation (NYSE: TGT) on November 9th, 2020. Target is the 8th-largest retailer in the United States and has focused on enhancing omni-channel capacities and digital business amid an evolving and challenging retail landscape. Although their revenue growth is likely to decelerate from their 2020 revenue boom, Target’s stock should continue to rise in the coming years. Their strategy to grow their owned brands, open more small-stores, and remodel current stores capitalizes on trends for millennial shoppers. In addition, the company is likely to absorb many of their former competitors’ customers, as more and more retailers file for bankruptcy. The class voted to buy 250 shares of TGT at an executed price of $155 and sell 100 shares of Booking Holdings, funding the difference by selling shares of SPY.
Brian Rubenstein ’21 pitched ThermoFisher Scientific (NYSE: TMO) on October 26th, 2020. ThermoFisher, the leading Life Sciences Tools & Services supplier globally, gives the portfolio risk-averse exposure to the drug development and manufacturing space. The company has a proven track record of retaining high market share through strategic business segmentation into Lab Products & Services, Life Sciences, Analytical Instruments and Specialty Diagnostics. With the broadest and most diversified product offerings, ThermoFisher has established themselves as a one-stop-shop for all thing’s laboratory supply. The company should continue to see dominance through viable growth strategies in their LPS and Analytical Instruments business segments coupled with the recent rapid rebound in the clinical trials pipeline and private investment capital to the industry. The class voted to buy 100 shares of TMO at an executed price of $475 and sell all remaining shares of the XHI and XBI healthcare ETFs.
We want to welcome you and wish you the best of luck this year!
Samantha Camden ’20 pitched Cisco Systems (NASDAQ: CSCO) on February 24th, 2020. Cisco, which has dominated the market for internet protocol-based networking equipment, makes security devices, internet conferencing systems and other networking equipment for businesses and government agencies. The company has successfully identified and innovated in key secular growth areas in the upcoming 4-5 years, including 5G & Wi-Fi 6, security solutions, and networking for data and applications in multi-cloud environments. As part of Cisco’s capital allocation strategy, the company intends to return a minimum of 50% of its free cash flow annually to shareholders through cash dividends and repurchases of common stock. In its most recent quarterly filing, Cisco delivered on business transition goal, generating 72% of software revenues from subscriptions. The class voted to buy 900 shares of CSCO and sell 190 shares of the XLK.