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Executive Summary

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Davies Capital Management,LLC

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Executive Summary

  1. 1. DAVIES CAPITAL MANAGEMENT, LLC Executive Summary EXPANDED Executive Summary (Expanded)Davies Capital Management, LLC, a Florida Limited Liability Company, formed to provide a tradingsyndicate group.
  2. 2. Table of ContentsWhat is a Private Placement Offering? Page 3Business Description Page 4Investment Summary Page 4Financial Projections Page 5Company Background Page 5What Are Options Page 6Calls and Puts Page 7The Lingo Page 8Benefits of Investing Page 9Marketing Page 9Management Member Page 10 2|P a g eThis document and the contents herein are the intellectual property of Davies Capital Management, LLC. Duplication orredistribution of this document or its contents is prohibited without the written consent by Davies Capital Management, LLC. © 2012
  3. 3. What is a Private Placement Offering? The term “private placement” as used in this text refers to the offer and sale of any security of a company or brokerage firm not involving a public offering. Private offerings are not the subject of a registration statement filed with the SEC under the 1933 Act. The private placement memorandum provides an exemption to the SEC Regulations. According to Thompson Financial, over $600 billion was issued in 2007 through the private placement market. Experts in the fieldpredict that number could easily be in excess of $1 trillion today.Does investing in a private placement offering really earn money for the investor? Study the chart belowand you be the judge. 3|P a g eThis document and the contents herein are the intellectual property of Davies Capital Management, LLC. Duplication orredistribution of this document or its contents is prohibited without the written consent by Davies Capital Management, LLC. © 2012
  4. 4. Business Description Davies Capital Management, LLC intends to assemble highly qualified individuals who have a successful track record in online trading to research and recommend the companies that have the highest potential for immediate returns. To achieve our goals, the Company is raising $1,000,000 through its private placement offering with selected private investors who will function as a syndicate group of investors.The stock options we select to trade conform to several requirements that must be met before we willtrade them. We look for good income producing stock options, which generate the company profit on amonthly basis. We then keep a portion of the monthly profits in the trading account, thus increasing ourprofits or returns on investment (ROI) the next month.Website: www.daviescapitalmanagement.comPhone: 225.421.9704Investment SummaryFunding Sought: $1,000,000Incorporated: April 23, 2009 In accordance with the Securities & Exchange Commission regulations, Davies Capital Management, LLC has prepared a private placement offering for the sale of its units for $0.01 a unit with 100,000,000 units available. The offer is ONLY made by prospectus to either accredited or non-accredited private investors. The Company offers a minimum of 1,000,000 shares or $10,000 to each private investor.Revenue from the sale of all units is intended to be used for options trading.With a $1,000,000 investment, and based on the following financial projections, Davies CapitalManagement, LLC could be profitable within the following year. The Company will likely be valued above$9,000,000 within 3 years. 4|P a g eThis document and the contents herein are the intellectual property of Davies Capital Management, LLC. Duplication orredistribution of this document or its contents is prohibited without the written consent by Davies Capital Management, LLC. © 2012
  5. 5. FINANCIAL PROJECTIONS 2012 2013 2014 1,000,000.00 2,400,000 6,552,000Total Income 1,400,000.00 4,152,000 9,008,000USE OF PROCEEDS Items & Description Costs Preparation of Private Placement Memorandum $10,000.00 Commissions $100,000.00 Proceeds for Trading Stocks and Options $890,000.00 Totals $1,000,000Company BackgroundDavies Capital Management, LLC was formed as a Florida Limited Liability Company on April 23, 2009with headquarters located in Baton Rouge, Louisiana.The managing member and president of Davies Capital Management is Scott Davies. Scott has beentrading the stock market using options successfully for several years. During this time Scott hasdeveloped a true passion for the markets which has led him into the field of instructing and teachingvarious individuals how to trade the market using his trading strategies. Because of the successes in histrades, Scott formed Davies Capital Management in 2009 specifically for the purpose of providing andbuilding an investment syndicate group to trade in larger volumes.Today, many investors portfolios include investments such as mutual funds, stocks and bonds. But thevariety of securities available does not end there. Another type of security, called an option, presents aworld of opportunity to sophisticated investors.The power of options lies in their versatility. Options enable the trader to adapt or adjust positionsaccording to any situation that arises. Options can be as speculative or as conservative as desired. Thismeans the trader can do everything from protecting a position from a decline to outright betting on themovement of a market or index. 5|P a g eThis document and the contents herein are the intellectual property of Davies Capital Management, LLC. Duplication orredistribution of this document or its contents is prohibited without the written consent by Davies Capital Management, LLC. © 2012
  6. 6. This versatility, however, does not come without its costs. Options are complex securities and can beextremely risky. This is why, when trading options, a disclaimer like the following is stated:“Options involve risks and are not suitable for everyone. Option trading can be speculative in nature andcarry substantial risk of loss. Only invest with risk capital.”Despite what anyone says, option trading involves risk, especially if the trader doesn’t know what he’sdoing. Because of this, many people suggest steering clear of options.On the other hand, being ignorant of any type of investment places a trader in a weak position. Perhapsthe speculative nature of options doesnt fit the style of a particular trader. No problem – join DaviesCapital Management, LLC as a member and allow the Company to speculate in options on your behalf.What Are Options?An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlyingasset at a specific price on or before a certain date. An option, just like a stock or bond, is a security. It isalso a binding contract with strictly defined terms and properties.Still confused? The idea behind an option is present in many everyday situations. Say, for example,that you discover a house that youd like to purchase. Unfortunately, you wont have the cash to buy itfor another three months. You talk to the owner and negotiate a deal that gives you an option to buythe house in three months for a price of $200,000. The owner agrees, but for this option, you pay a priceof $3,000.Now, consider two theoretical situations that might arise:1. It is discovered that the house is actually the true birthplace of Elvis! As a result, the market value ofthe house skyrockets to $1 million. Because the owner sold you the option, he is obligated to sell youthe house for $200,000. In the end, you stand to make a profit of $797,000 ($1 million - $200,000 -$3,000).2. While touring the house, you discover not only that the walls are full of asbestos, but also that theghost of Henry VII haunts the master bedroom; furthermore, a family of super-intelligent rats have builta fortress in the basement. Though you originally thought you had found the house of your dreams, younow consider it worthless. On the upside, because you bought an option, you are under no obligation togo through with the sale. Of course, you still lose the $3,000 price of the option. 6|P a g eThis document and the contents herein are the intellectual property of Davies Capital Management, LLC. Duplication orredistribution of this document or its contents is prohibited without the written consent by Davies Capital Management, LLC. © 2012
  7. 7. This example demonstrates two very important points. First, when you buy an option, you have a rightbut not an obligation to do something. You can always let the expiration date go by, at which point theoption becomes worthless. If this happens, you lose 100% of your investment, which is the money youused to pay for the option. Second, an option is merely a contract that deals with an underlying asset.For this reason, options are called derivatives, which means an option derives its value from somethingelse. In our example, the house is the underlying asset. Most of the time, the underlying asset is a stockor an index.Calls and PutsThe two types of options are calls and puts:A call gives the holder the right to buy an asset at a certain price within a specific period of time. Callsare similar to having a long position on a stock. Buyers of calls hope that the stock will increasesubstantially before the option expires.A put gives the holder the right to sell an asset at a certain price within a specific period of time. Putsare very similar to having a short position on a stock. Buyers of puts hope that the price of the stock willfall before the option expires.Participants in the Options MarketThere are four types of participants in options markets, depending on the position they take:1. Buyers of calls2. Sellers of calls3. Buyers of puts4. Sellers of putsPeople who buy options are called holders and those who sell options are called writers; furthermore,buyers are said to have long positions, and sellers are said to have short positions.Here is the important distinction between buyers and sellers:-Call holders and put holders (buyers) are not obligated to buy or sell. They have the choice to exercisetheir rights if they choose.-Call writers and put writers (sellers), however, are obligated to buy or sell. This means that a seller maybe required to make good on a promise to buy or sell.Dont worry if this seems confusing - it is. For this reason we are going to look at options from the pointof view of the buyer. Selling options is more complicated and can be even riskier. At this point, it issufficient to understand that there are two sides of an options contract. 7|P a g eThis document and the contents herein are the intellectual property of Davies Capital Management, LLC. Duplication orredistribution of this document or its contents is prohibited without the written consent by Davies Capital Management, LLC. © 2012
  8. 8. The LingoTo trade options, youll have to know the terminology associated with the options market.The price at which an underlying stock can be purchased or sold is called the strike price. This is the pricea stock price must go above (for calls) or go below (for puts) before a position can be exercised for aprofit. All of this must occur before the expiration date.An option that is traded on a national options exchange such as the Chicago Board OptionsExchange (CBOE) is known as a listed option. These have fixed strike prices and expiration dates. Eachlisted option represents 100 shares of company stock (known as a contract).For call options, the option is said to be in-the-money if the share price is above the strike price. A putoption is in-the-money when the share price is below the strike price. The amount by which an option isin-the-money is referred to as intrinsic value.The total cost (the price) of an option is called the premium. This price is determined by factors includingthe stock price, strike price, time remaining until expiration (time value) and volatility. Because of allthese factors, determining the premium of an option is complicated and beyond the scope of thisinformation.Benefits of Investing in Davies Capital Management,LLCIt is the intentions of the Board of Directors of Davies Capital Management, LLC to strive to see thateach investor’s principal investment is returned within a reasonable time period. The Board of Directorsintends to accomplish this by providing its first dividend payment to investors ONLY within the first 2months of Private Placement selling out. The dividends will come from several revenue areas such as: • Dividends (short term side of investment/returns) • Increase in value of membership units (long term side of investment/ returns)When each investor’s principal investment has been returned, then and only then will the Company’smanaging member(s) and directors receive any form of dividend from their shares owned. The Boardfully intends to provide dividend payments monthly to all investors. 8|P a g eThis document and the contents herein are the intellectual property of Davies Capital Management, LLC. Duplication orredistribution of this document or its contents is prohibited without the written consent by Davies Capital Management, LLC. © 2012
  9. 9. MarketingSeminars & WebinarsScott Davies intends to develop a full course to teach people everything they will need to know in orderto be able to trade the market and have the same success he has achieved.This course will start with the basics of the stock market and trading options, using advanced optiontrading strategies, and the countermoves every trader that trades these types of strategies must knowin order to succeed.Scott will also put together an additional course on the Powershare QQQ ETF (Exchange Traded Fund).This course will teach people how just a 10 cent move per day can make 1,000’s of dollars in profits.What exactly the QQQ is, and how to trade it inter-day for a simple 10 cent ($1,000.00 ) move or swingtrade it for even bigger profits.Scott preferred method of teaching the classes is through webinars. This will enable him to keep thecost for the courses lower then if they were held in seminar format at a live location. The webinars willalso allow him to teach in smaller groups. This way he can be assured that every student understandsthe material and has any questions answered.Scott will hold some classes in seminar format each year, but the price for the live seminars will behigher and the venue/ class size will be larger. The seminars will cover the same materials as thewebinars.LecturingScott Davies will lecture on the history of the stock market, why it is better to be a trader vs. anInvestor in the market, and various other relevant market subjects. During the past year, Scott has heldweekly meetings with associates to discuss the market in terms of future prospective trades, currentlyopen trades, and the effects of the U.S and global economies on the market. 9|P a g eThis document and the contents herein are the intellectual property of Davies Capital Management, LLC. Duplication orredistribution of this document or its contents is prohibited without the written consent by Davies Capital Management, LLC. © 2012
  10. 10. ManagementScott Davies, Managing MemberEven with adverse conditions associated with trading in the stock market, Scott Davies has proven hismarketing trading strategies are highly successful, with increases in excess of 80% over the past 12months. Scott has a keen understanding of various methodologies and practices of trading and usesthem daily. He has successfully studied and selected stocks that benefit the Company’s portfolio.Scott Davies established Davies Capital Management, LLC in April of 2009 for the purposes of tradingstock options with various associates supporting and backing his trades. Scott is sought after forguidance and advice concerning his own trading style, which has proven profitable over the years. 10 | P a g eThis document and the contents herein are the intellectual property of Davies Capital Management, LLC. Duplication orredistribution of this document or its contents is prohibited without the written consent by Davies Capital Management, LLC. © 2012

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