I presented and issued three buy recommendations for the Student Managed Investment Fund (SMIF) with almost $2 million under management. This was a part of my Portfolio Theory and Management course at Chapman University's Argyros School of Business and Economics.

1. Consumer Discretionary
Recommendation
By Mason Littlejohn

2. NYSE: ANF | Current Price: $24.06
52-Week High: $32.83
52-Week Low: $15.42
Market Cap: $1.69 B
Dividend: $0.80 per share

3. Comparable Market Cap

4. Ratios
Quick Ratio: 1.39
Current Ratio: 2.2
LT Debt to Equity: 25.84%
Total Debt to Equity: 25.84%

5. The Bad
Revenue: Declined by 0.6% in 2016-Q4 on a YoY basis.
Revenue Decline: Average rate of 7.9% over the last 3 years.
Revenue Growth: At a compounded annual rate of 0.3% over the last 5 years.
Low Net profit margin: 5.2% in 2016-Q4.
Low Average Net profit margin: 0.8% over the last 3 years.
Low ROIC (Return on Invested Capital) of 3.7%.
Low ROE( return on equity) of 2.7%.

6. Revenue Catalyst & Cost Minimization
International Expansion: Yesterday Franchise agreement
announced with Dubai-based Majid Al Futtaim Fashion bringing
brands to Saudi Arabia, Qatar, Bahrain and Oman.
Currently: 8 Abercrombie stores in Kuwait and United Arab
Emirates.
Operational Cuts: Closed/Closing Stores negatively impacting
Net Income

7. The Good
Operating Profit Margin: 10.8% is 9.2% higher than the 3 year average
operating margin.
Operating Cash Flow: 4.2 times the Net Income
Price to Book Ratio: Multiple of 1.2x vs. Industry Average (Retail-
Apparel-Shoe) of 4.2.
Price to Sales Ratio: 0.5x vs. Industry Average (Retail-Apparel-Shoe) of
0.9.
NEW CEO: Arthur Martinez, chairman of Board former CEO Sears

8. ETF Recommendations

9. VanEck Vectors CEF Municipal Income: XMPT
FUND SUMMARY
Tracks the S-Network Municipal Bond Closed-End Fund IndexSM ("CEFMX Index").
The fund normally invests at least 80% of its total assets in investments the income
from which is exempt from U.S. federal income tax (other than federal alternative
minimum tax).
The CEFMX Index is comprised of shares of U.S.-listed closed-end funds.
Expense Ratio: 0.4%
Annual Holdings Turnover: 6%

10. Current Price: $28.79 | YTD Return: 8.4%

11. iShares MSCI Emerging Markets: EEM
Fund Summary
Tracks MSCI Emerging Markets Index.
The fund generally invests at least 90% of its assets in the securities of its underlying
index and in depositary receipts repping index.
The index is designed to measure equity market performance in the global emerging
markets.
Expense Ratio: 0.69%
Annual Holdings Turnover: 10%

12. Current Price: $32.95 | YTD Return: 6.83%

13. Proposed Allocations
ANF: $8000 | 332 shares - Price: $24.06
XMPT: $15,000 | 520 shares - Price: $28.79
EEM: $20,000 | 605 shares - Price: $32.95