CMCnotes

Valuation with Multiples

Advanced Training Session - 2/11/2020

Dan Pickett 0 172 Article rating: No rating

We had good attendance at the 1st "advanced" training session last week where we focused on valuation and using multiples to develop a target price. The slides used have been added to the Training session folder accessible from the Resource Guide page of the website, but are also attached here. I've also attached the spreadsheet used to download historical fundamental and valuation data for comparable companies with Factset FDS codes. You need to use one of the computers in the FAL to use this sheet.

Many attendees had not particiapted in the 1st semester introductory training sessions. You can view the slides used in those sessions from the cmc-uwmadison.org For Members>Resource Guide page by selecting the LINK TO TRAINING SESSION SLIDES. There are also readings you may find helpful at the LINK TO RESEARCH READINGS. 

The club executive board will be sending a survey to better understand whether you found the training session of value. We have additioanl topics planned, but are prepard to pivot to whatever you collectively think will be most useful. If you participated, your response will be greatly appreciated. 

REIT Investing

Additional training opportunities

Dan Pickett 0 168 Article rating: No rating

A recent Wall Street Journal article highlights the strong recent  performance of the real estate investment trust market (link). The article is timely for CMC as members will have the opportunity to learn more about REIT investing during the Spring semester.  

 

First a quick definition from a Barclay’s primer,  REITs 101: An Introduction (available in the Research Readings section of the website):

A Real Estate Investment Trust (REIT) is essentially a corporate entity that owns, operates, acquires, develops, and manages real estate assets. However, REITs are differentiated from other corporate forms by a tax election that eliminates taxes at the corporate level. Most of the company’s taxable income is passed along to investors in the form of dividends; shareholders subsequently pay taxes on those dividends. Conceptually, a REIT can be viewed much like a mutual fund in that it allows investors to pool capital and invest in a larger, more diversified real estate portfolio. Both REITs, and mutual funds, are essentially pass-through vehicles, passing the cash flow from that portfolio to investors. Like a mutual fund, the original REIT structure created in the 1960s was a passive investment vehicle; it prohibited the operation and management of properties by the REIT itself. Over the years, however, legislative and tax code changes have enabled REITs to become actively managed, fully integrated operating companies.

 

Given member interest, Tim Pire, the Director of UW AREIT program agreed to give a talk on REIT investing as one of our training sessions this semester and mentor students interested in pitching REIT ideas to the club. A graduate of UW’s highly regarded Real Estate Program, Mr. Pire has extensive experience as a REIT analyst and portfolio manager. Look for more information about this session and in the meantime, if you are interested in learning more about REITs, check out the REIT primer here.

 

Hawk Center Info Session - Dec. 11

Investing Opportunities for Undergraduates

Dan Pickett 0 308 Article rating: No rating

Are you interested in investing but don't know where to start? Learn more about investment programs for undergraduates at an info session hosted by the Hawk Center for Investment Analysis.

When: Wednesday, December 11th 4:30-5:30

Where: 1295 Grainger Hall

Complimentary pizza and soda will be served.

RSVP to cara.scadden@wisc.edu

 

CMC Speaker - Brian Hellmer

Careers and the future of investment research

Dan Pickett 0 392 Article rating: No rating

Brian Hellmer, Managing Director of Public Equities for the State of Wisconsin Investment Board, which manages the state of Wisconsin’s $110B pension fund, recently met with a group of CMC members to discuss the changing nature of the investment industry and the future for investment research. Before taking his position with SWIB, Brian was the Director of the Hawk Center for Investment Analysis at UW and a co-advisor to the Capital Management Club. The slides Brian used are attached and you can watch a recording of the session here.

 

CMC Speaker - Betsi Hill

Credit research opportunities and the Applied Security Analysis Program

Dan Pickett 0 414 Article rating: No rating

Betsi Hill, Co Director of the Hawk Center for Investment Analysis and former buy-side and sell-side credit analyst recently met with a group of CMC members to talk about her career, the credit research role, and credit-related job opportunities for undergraduates. Betsi also described the Hawk Center's Applied Security Analysis Program and the benefits to participating students from its advanced training. The slides Betsi used are attached and you can watch a recording of the session here.

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