Broker 1

BROKER 1
By: Domenico Peñaloza, Karen Wong, Pedro Sanchez, and Gisella Silva

Sunday, October 27, 13

Don’t start with the money.

Start with the purpose.


SOCIALLY RESPONSIBLE INVESTING
STOCK 1:

KELLOGG’S

STOCK 2:

Great place to

Alternative

work & values

GENERAL
ELECTRICS

Energy

its employees

STOCK 3:
Innovative products
that make our lives
better and does
social good


TESLA
MOTORS

STOCK 4:
A company you
admire and
respect

CISCO
SYSTEMS

Kellogg’s (K)


World’s leading multinational
cereal company


Donated one billion breakfasts and snacks to hunger relief efforts
globally by the year 2016.


Kellogg’s has contributed with $40
million in cash and $120 million in
Kellogg products to charitable groups
all around the globe.

Schools

Electricity


•Recycable cereal boxes

•In 2012, Kellogg's entered into an agreement with Red Group’s

RedCycle program that enables all soft plastics to be placed in recycle
bins at Coles supermarkets.

“Whatever success I have had in
business has been a result of my
good fortune in selecting employees
who could do their jobs better than I
could have done them myself.” W.K. Kellogg


fosters a safe work culture for
their employees and support their health with their beneﬁts
programs as well as promoting a balance between work
and personal life.


FAMILY


WORK

"We encourage workplace ﬂexibility and support
our working parents, believing you don't have to
sacriﬁce one for the other.”
John Bryant, President & CEO of Kelloggs


Kellogg Company Honored as One
of the "Working Mother 100 Best
Companies 2013"

Paid
maternity


Paternity
leave

Flexible work
arrangements

Lactation
rooms

Town hall
meetings


Surveys

•Refreshing and communicating to employees the
company’s Vision and Purpose

•Providing employees with work/life effectiveness
approaches and solutions.


• Kellogg’s does not always comply that work-balance
lifestyle

• Unpredictable schedules with more work hours

without prior notice, making it difﬁcult to make plans
ahead of time during the weekends

• Changing positions


Volume:(235,026
Average(volume
423,971'
520wk(High:($67
520wk(Low:($51.
('
P/E(RaCo:'
Es.mates'for'20
16.09'
Beta: 0.51
Es.mates'for'20
$60.21 per share
14.94'
* All data was
Es.mates'for'20
collected at market
closure time
13.85'
(
Beta:('0.51'
Volume: 235,026
Average volume:
423,971
52-wk High: $67.98
52-wk Low: $51.36

P/E Ratio:
Estimates for 2013:
16.09
Estimates for 2014:
14.94
Estimates for 2015:
13.85


'

General Electric (GEN)


WHO ARE THEY?
Innovative. Environmentally friendly. Diversiﬁed. Technology.
Financial services.

Energy.

Infrastructure.

Consumer & Industrial.


Capital Finance.

Alternative Energy

Wind turbines in Turkey

Reducing the use of coal in
China.

Solar transportation

Making airplanes more energy
efﬁcient

GE Systems Stock Analysis

P/E Ratio:
Estimate for 2013: 14.88

$24.25 per
share

Beta: 1.04

* All data was collected at market closure time

Gain/Loss
• Increase
• Estimated to continue growing
• Worth more three years from today


General Electric P/E
• Decrease over the next three years
• It is better to invest now
• It’s estimated to grow towards 2014
• An increase in stock provides much
more proﬁt.


Beta
• Current beta 1.04
• Stable Stock
• Not must risk, rather smart risk-taking
• Low volatility
• Not much loss if market goes down

Forecast
• Estimated to increase in the next three years
• 1.63 – 2.06 (Dec ’13 – Dec ’16)
• Increase means its worth more in the future
• Below average in comparison to industry
• Time to get money invested is reasonable

Tesla Motors (TSLA)


How is Tesla Motors Innovative and
Socially Responsible?
INNOVATIVE:
• Electric Cars
• Lithium-Ion Battery usage in cars
• Pricing

SOCIALLY RESPONSIBLE:
• Safety concerns
• Encouraging efﬁciency in batteries

Tesla Motors (TSLA)

TESLA’S HISTORY
Founded in
2003

Went IPO
in 2010

Vision: turning all
vehicles into
electric powered
vehicles

Tesla Motors (TSLA)

Socially
Responsible
development in
batteries

Made the most
efﬁcient electric
sedan, with a
range of 265
miles on average.

Going from a
high-wealth
market into a...

TESLA’S FUTURE
medium-wealth
market by
introducing a new
car model at
around: $30,000

Further pushing
the evolution of
lithium-ion
batteries

Tesla Motors (TSLA)

PROS

CONS

Encourage innovation
outside of just their company

• Their current impact is not

•

BUT

•

Socially responsible
company with a focus on
helping the environment AND
the consumer

CONS


as powerful as it can be

they are working on it :)

Tesla Systems Stock Analysis

Data provided by NASDAQ and Zack’s Investment Research

Volume: 8,311,086

P/E Ratio:

Average Volume:
11,082,162


52 Week High: $194.50


52 Week Low: $26.86


$181.68 per
share

Beta: 0.99


Why invest?

Cisco Systems (CSCO)


WHO ARE THEY?
A leading American multinational corporation that
designs, manufactures, and sells networking
equipment
1984: Cisco Systems, Inc. is founded by Leonard Bosack
and Sandra Lerner
1990: The company goes public


HONESTY
RESPECT
INTEGRITY
TRANSPARENCY

“Any success that is not
achieved ethically is no
success at all.”


$
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$

Our people

Environment

Society

OUR PEOPLE
Over 70,000
employees
Receive compensation
rewards for demonstrating
innovation, collaboration,
creativity, and proﬁtability

inclusion in the
workplace = products and
services accessible to
people with disabilities.

highly connected
workplaces, health
and wellness programs, and professional
development opportunities

Allows employees to care
for their health, wellness,
and to ﬁnd the balance
between work and life,
professional and personal
commitments

ENVIRONMENT
Building
environmental
sustainability
into each
business
function and
process

Leading by example

Transparency

Creating awareness

Cisco Webex and Cisco Uniﬁed
Meeting place supported 23.4 million
people hours of meetings

Reduced air
travel
emissions by
1/3

SOCIETY
Focuses their social investments on education,
healthcare, economic empowerment, and
critical human needs


Believes in extending a communities abilities,
skills, conﬁdence, and power by aiding them
with cash, expertise, and technology.

Cisco Systems Stock Analysis

Volume: 27,773,822

P/E Ratio:

Average Volume:
34,313,415


52 Week High: $26.49


52 Week Low: $16.68

Beta: 1.38


$23.23 per
share

PRO’S
•Still the industry
leader

•CEP John

CON’S
•Competition
•Management

Chambers


Why invest?

S
U
C
C
E
S
S
F
U

I
N

HONESTY
R

s
p
e
c
t

E
G
I
N Socially R esponsible
N
I ENVIRONMENTAL FRIENDLY
O
H
T
V
I
TRANSPARENCY Y
C
T
I
A
V
GREAT WORK PL ACE

Ethi al

E


It’s everything put
together.


It’s


13 shares

4 shares


31 shares

31 shares

Amount of shares bought
Tesla
Cisco General
Kellogg’s
Motors Systems Electric
Share Price

181.4

23.24

24.25

60.18

Quantity of
Shares

4

31

31

13

Final
Amount
Spent on
Shares

725.6

720.44

751.75

782.34

Total = 2980.13

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