JUNE 2016 NEWSLETTER

GREENS VIEW CAPITAL

Activities Update
May, 2016
The club bought 15 shares of Amazon (NASDAQ: AMZN) at $703.2/share under the technology sectors
recommendation, led by David Losson, C18 and Tyler Calnan, C17. Amazon is an electronic
commerce and cloud computing giant based in Seattle, WA.

June, 2016
The club welcomes Mr. Eric Greenwood, the next director of the Babson Center, succeeding Mr. Chip
Manning. Mr. Greenwood will join the Advisory Board and continue to give management team and
membership guidance on the investment world.

For more
information
about Greens
View Capital
(formerly the
Student
Investment
Club), please
contact:

Portfolio Overview
As of 06/30/2016

Greens View
Capital
sic@sewanee.ed
u
931-841-4421
We always
welcome new
members with
interest in the
investing world,
regardless of
their
background or
level of
knowledge.

Year-to-Date Portfolio Performance: SIC vs.

S&P500

JUNE 2016 NEWSLETTER

GREENS VIEW CAPITAL

Faculty
Advisors
Dr. Serkan
Karadas
Dr. Doug Williams
Mr. Eric
Greenwood
Mr. Haynes
Roberts

Executives
CEO
Tran B. Ly

CFOs
Peter Eisenbrandt
Mac McNally
Directors of
Education
June 2016
Dave Kasten
ScottReturn
Gallimore

Portfolio Update
Consumer Staples & Discretionary
UA: Under Armour issued a new 2016 outlook with expectation to recognize an
impairment charge of ~$23mm related to The Sports Authority bankruptcy and
liquidation. Revenue growth in Q2 2016 is expected to be in the high 20s percent range.
HD: Home Depot remains the strongest performer of the portfolio. The company reported
a stronger than expected Q1 2016 result with sales up 9% from Q1 2015.

Finance
BLK: Near term outlook is not promising for Blackrock as it took a hit after Brexit. Fees are
negatively affected by volatile markets and operating expenses continue to rise. Share
price is down 3% in the past year.
JPM: J. P. Morgans near-term outlook depends largely on how politicians in the EU and UK
resolve the financial issues caused by Brexit. A significant amount of JPM income comes
from the UK, and JPM is particularly exposed to the negative effects of the market
volatility domestically and abroad. On a positive note, JPM spent over $1.6bn on stock
buybacks in Q1 2016.
C: Similar to other big banks stocks, Citis shares dropped over 8% following the Brexit
vote. Despite Brexit woes, Citi passed the Feds stress test with ease, proving that there
might still be upside potential.
AIG: Since mid-February lows, AIG has performed well with over 4% share price increases
until late June. The Brexit vote should not have a significant impact in the long term for
AIG as analysts considered AIG undervalued even before the historic vote crushed share
prices. AIG has a significant buyback activity in 2016 and analysts are reacting in a bullish
manner.

Healthcare
CVS: CVSs stock has consistently declined over the past 2 months, which can be
contributed to decreasing analyst sentiment. CVS has recently been expanding their
MinuteClinics within stores similar to Target to reduce wait time for primary care.
XLV: The healthcare ETF has seen an upward trend during the past three months.
Sentiment is positive for the sector as it is considered a strong defensive play to the
Brexit announcement
NVS: Novartis has seen consistent growth over the past 3 months. Novartiss heartfailure drug Entresto has been well accepted by the European heath system. With an
increase in sales, the healthcare sector has become a good bet against overseas
economic turbulence.

Industrials
BA: Boeing share price has recovered nicely since its mid-February lows and is up almost
20% since. The recovery is fueled by stabilizing oil prices and two large deals: A $4bn
deal with a Russian air-freight company and a potential multi-billion-dollar Boeing aircrafts
purchase by an Iranian airlines.
Honeywell: Shares of Honeywell are up over 13% since January 1st and are expected to
grow as the industrial giant is taking advantage of many distinctive growth drivers in a
variety of sectors. Aerospace is one area that is contributing to Honeywells growth as
manufacturers such as Boeing and Airbus are providing millions of dollars in business as
stabilizing oil prices allow them to resume their production.
MMM: 3Ms profits were up 6.3% in Q1 2016 from Q1 2015, affirming that the company
target of 10% earnings growth is realistic. Since 3M has raised dividends for 57 years
without fail, their stock should remain high as it has already grown over 10% since
January.

Technology
(1) One-month
return as of
06/30/2016.
(2) Weighted
return as of

Google: Despite analysts optimism for summer 2016, Alphabet shares are trading over
10% below their February highs as investors fear growth could slow in the coming
months. Citigroup recently warned that slight deceleration in Alphabets growth rate for
search marketing is possible. One silver lining is the merger of Android and Chrome, two
of their popular operating systems. Simplifying operating platforms is a step in the right