boeing presentation
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A PowerPoint presentation that accompanies the Boeing investment strategy report.TRANSCRIPT
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FEB12th
BOEING Investment Strategy
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Prepared by: Julie Hubbert, Jeremy Edwards, Charles Pao, Kevin CalvertTeam Echo
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Table of Contents
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1 Boeing OverviewMajor Markets, Company Competition, Corporate Citizenship
2 Why Boeing?Sales Trend
3 InflationInflation, Investment Alternatives
4 Our Investment StrategyExpenses, Net Income, Assumptions We Have Made
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12,000 Commercial jetliners worldwide, 75% of global market
Within next 20 years, long-term demand will need 36,770 new planes. Expansion is estimated at $5.2 trillion
Boeing Commercial Planes
Major Markets and Customer Base
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Boeing Defense, Space, and SecurityProvides defense services and equipment to 150 countries
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- Joint ventures limit competition in the defense sector
- Primary commercial competitor - Airbus
Company Competition
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Lockheed Martin Bell Helicopter
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Corporate Citizenship
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Last Five Years1.Sales Trend is increasing over the past 5 years2.Sales is expected to be doubled in next 20 years3.Net Profit has more than tripled since 20094.Dividends continue to increase
Why Boeing?
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Sales Trend - Last Five Years
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2009 2010 2011 2012 2013
Sales $68.28 Billion $64.31 Billion $68.74 Billion $81.70 Billion $86.62 Billion
Net Profit $1.34 Billion $3.31 Billion $4.01 Billion $3.90 Billion $4.58 Billion
Dividend Amount (Year) $1.68 $1.68 $1.68 $1.76 $1.94
Stock Price (low-high) $29.05 - $56.56 $54.80 - $74.53 $56.01 - $80.65 $66.82 - $77.83 $72.68 - $144.57
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Currently, the inflation rate sits at 1.7%
Inflation Inflation affects savings and purchasing power in a negative way
Projected inflation rate in the long run is 2%
As inflation increases, savings and purchasing power decreases
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0500
1000
1500
2000
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Effect of Inflation
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Inflation
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Spen
ding
Value
of M
oney
($
)
Annual Rate of Inflation (%)
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Investment Alternatives
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Treasury Inflation Protected Securities Directly linked to Consumer Price Index
The larger the inflation, the bigger the payout
Gold Gold rises as inflation rises
Interest Earning Account Savings
CD
Foreign Currency
Trading in foreign currency can mean a lot of volatility
Real Estate
Commodities Cotton
Raw Materials
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Investment Alternatives
Contingent on how much risk our parents are willing to take will determine where they invest the remaining amount of money that is left over, after investing in Boeing and accounting for expenses?
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Invest $250,000 into Boeing
Our Investment Strategy
Invest $250,000 into savings
Draw out $25,000 per year for the next 18 years (after last 2 years of work)
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Total Expenses$55,873
Income Taxes and Social Security$23,413
Home Owners Expenses$18,870
Personal Expenses$8,520
Automobile$5,070
Expenses
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42%
34%
15%
9%
Income Taxes and Social Security Home Owner's ExpensesPersonal Expenses Automobile
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Savings and Stocks Stock Dividends
Social Security Benefits
Maintain $44,217 in Net Income
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Inflation rate is 2%
Boeings stock will grow at 7% (real growth of 5% plus 2% inflation)
Boeing will pay dividends equal to 2.3%
Savings account will draw 1.58%
Social Security benefits at $4000 per month
Assumptions We Have Made
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Q&ALet us answer your questions
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Thanks!
twitter.com/teamencorefacebook.com/pezpirate1
Jeremy Edwards5200 Windhaven PkwyLewisville, TX 75056
903.216.3942 [email protected]/pezpirate1
Address Contact Follow
12thFEB
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