College of Business Administration’s Student Investment Fund (SIF) program, launched in the Fall 2010 semester based on the $250,000 investment fund allocated to the CBA by the UEI,
is now ACCEPTING APPLICATIONS from students to participate as
Interns and Security Analysts
General Requirements
• Student is a business major student at CBA while participating in the SIF program
• Student will become a member of IIS (Institutional Investment Society) or FMA (Financial Management Association)
• Student will need to commit two semesters and register 2 credit hours in each semesters for FIN 199 (Special Problem in Finance) or MBA299A (Special Problem in Finance) for a total of 4 credit hours.
For Interns
• Student will register 1 credit hour for FIN 199 (Special Problem in Finance).
• Students who successfully complete the internship will be given priorities to join the Investment Committee (IC). After becoming IC members, students need to commit another two semesters first as Security Analysts and then Portfolio Managers. Students will need to register 1 credit hour in the 2nd semester and 2 credit hours in the 3rd semester for FIN 199.
For Security Analysts
• Student has taken FIN 101 (Business Finance) and received a grade of B or above
• Student is currently enrolled in one of the following finance classes at CSUS: FIN 134, FIN 135, FIN 136, MBA 220, MBA 222, and MBA 223.
Benefits:
• Gain real investment experience by managing a portfolio worth more than $250,000
• Network and collaborate with finance industry professionals
• Attend industry conferences and professional presentations
• Numerous opportunities to enhance leadership, presentation and investment skills
• Receive 4 units of upper division GE requirements
Student Expectations:
• Motivated to work independently and in groups
• Excellent writing and oral communication skills, and the ability to utilize in-depth research expertise and synthesize large quantities of information
• Committed to investing the time necessary to succeed in the fast paced field of investment
If you are interested, please submit your resume, transcripts and a letter of interest (including your goals for the program, why you are a good candidate and your career objectives) to Dr. Moore, Tahoe 2117, e-mail: djmphd@csus.edu
FOR SEMESTERS APPLICATION DEADLINE MANDATORY MEETINGS
SPRING 2013 – FALL 2013 January 30, 2013 Mondays 2:15 – 4:15 p.m.
Tuesday, January 29, 2013
Friday, January 18, 2013
Short Essay on White Collar Crime
A man named Gordon Gekko once said, “The point ladies and gentlemen, that greed, for the lack of a better word, is good.” Though Wallstreet is a fictional movie about insider trading, it is relative to the insurmountable illegal profit taking has been the creed of many corporate executives. In the book Infectious Greed, by Frank Partnoy, we explore many attempts of governmental agencies including the Securities Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to regulate and enforce the abuses of banks, blue chips, and institutions. Due to strategic ambiguity which these commissions would intentionally not regulate, precedence was set for future illicit activity. The easy answer to why this continued through the late 80’s into the late 90’s would be to assume lack of criminal prosecution, but the real answer to the nonexistent monitoring and regulation of key individuals was the considerable amount of conflict of interest.
Credit default swaps, collateralized debt obligations, and derivatives were as difficult to regulate as to pronounce. Congress, as illustrated in chapter 6 made numerous bill proposals to regulate the markets. Lead by Congressman Jim Leach, he battled with Mark Brickell, the President of the International Swaps and Derivatives Association (ISDA). There were many heated discussions with Brickell who complained that the 900 page bill written by Leach and his staff would impose on suitability and create standards for swaps (Partnoy, 152). Though Congress made a stand against the ISDA and their lobbyists, the government did not prevail which ended up with delegating a group made up of industry executives that would self-monitor the derivative companies. This is where our first conflict of interest can be seen with Gerald Corrigan, a Goldman Sachs employee was named the co-chairman of the self-monitoring group. By electing someone who previously held a political position in New York, as well as worked for an investment bank, there should have been an immediate concern. Government regulation was ineffective as a way to prevent abuse through the proposals of bills. The extraordinary efforts of manipulation and discretization of those who were against the ISDA would not be successful in their efforts, including our own Congress.
Security analysts or stock analysts are put in place to make recommendations on companies stocks which typically are followed religiously by the everyday investor. Their business is to conduct due diligence on particular industries and specific companies with utmost fiduciary responsibility. Chapter 9 states that the mid 1990’s were the start of the IPO frenzy, internet bubble fiasco. Security analysts were recommending every tech IPO at a buy rating, and it was for good reason because three-quarters of IPO’s increased during 1999. Analyst’s including Henry Blodget, Mary Meeker, and Jack Grubman became famous stock pickers because of their recommendations on these IPO’s, Blodget most famously for predicting that Amazon would double to $400 (Partnoy, 276). Investors who made fortunes would soon see the evaporation of easy profits in the tech bubble burst of 2002. This was caused directly from the security analyst making buy recommendations of these stocks which were drastically overvalued. Bankers and corporate executives pushed their analysts to make buy recommendations because it would appreciate their stock prices. Investors were easily persuaded by these “Oracles” of Wall Street, and once again another conflict of interest.
Before investors feared the corruption of security analysts, there was the fear of accounting malpractice and the cooking of the books. Investors seeking to mitigate risk more effectively after the technology bubble burst, were eager to invest in what they thought was the world’s greatest company. This company was known as Enron. With chapter 10 giving it the appropriate name of the time as “The World’s Greatest Company,” we can only expect to read about the “greatest” scams of all time. Enron was making generous profits from its derivatives trading desk (its only legitimate and profitable business) as well as its use of Special Purpose Entities. These uses of tricky accounting principles performed by Enron’s auditor, Arthur Anderson, were considered legal at the time, but would not be considered ethical and moral today. The illegal activity that came unaccounted and unaudited by Arthur Anderson was their prudency reserves and their forward curves. Anderson failed to audit when Enron was intentionally misstating their volatility and current valuations of their trading positions. Also failure in catching Enron when they made changes in their day to day forward curves which would hide profits up to $20 million dollars in a single trading period (Partnoy, 328). The accounting misappropriation as seen in the 1980’s with Andy Krieger at Banker’s Trust had reemerged with the accounting fraud with Arthur Anderson. Accounting firms, like security analyst, and lawyers have a fiduciary responsibility to represent their clients. In this specific case, it is to show the investors that this company is following the Generally Accepted Accounting Principles (GAAP). In this case, Anderson was paid frivolously to keep the SEC off of Enron’s back and reports say that they were even caught shredding important accounting documents in the midst of the scandal.
Although external and internal controls were set in place to prevent the abuse of the many banks, large cap companies, and institutions, there was little stopping these white collared criminals from achieving incredible amounts of wealth. Even in the case of private law-suits on executives that knowingly committed securities fraud, the punishment was typically a fine that was substantially lowered through appeal and a slap on the wrist which would occur as a suspension from the derivatives market for a short period of time. In each of the cases provided there were some case of conflict of interest that should and could have been prevented. Although there is not necessarily a common theme that relates all situations together, we can assume that with proper judgment during appointing heads of regulation as well as maintaining the fiduciary responsibilities of management and employees is critical to eliminating most problems. As for the need for regulation may be necessary in special cases, the market should be free to work efficiently.
Credit default swaps, collateralized debt obligations, and derivatives were as difficult to regulate as to pronounce. Congress, as illustrated in chapter 6 made numerous bill proposals to regulate the markets. Lead by Congressman Jim Leach, he battled with Mark Brickell, the President of the International Swaps and Derivatives Association (ISDA). There were many heated discussions with Brickell who complained that the 900 page bill written by Leach and his staff would impose on suitability and create standards for swaps (Partnoy, 152). Though Congress made a stand against the ISDA and their lobbyists, the government did not prevail which ended up with delegating a group made up of industry executives that would self-monitor the derivative companies. This is where our first conflict of interest can be seen with Gerald Corrigan, a Goldman Sachs employee was named the co-chairman of the self-monitoring group. By electing someone who previously held a political position in New York, as well as worked for an investment bank, there should have been an immediate concern. Government regulation was ineffective as a way to prevent abuse through the proposals of bills. The extraordinary efforts of manipulation and discretization of those who were against the ISDA would not be successful in their efforts, including our own Congress.
Security analysts or stock analysts are put in place to make recommendations on companies stocks which typically are followed religiously by the everyday investor. Their business is to conduct due diligence on particular industries and specific companies with utmost fiduciary responsibility. Chapter 9 states that the mid 1990’s were the start of the IPO frenzy, internet bubble fiasco. Security analysts were recommending every tech IPO at a buy rating, and it was for good reason because three-quarters of IPO’s increased during 1999. Analyst’s including Henry Blodget, Mary Meeker, and Jack Grubman became famous stock pickers because of their recommendations on these IPO’s, Blodget most famously for predicting that Amazon would double to $400 (Partnoy, 276). Investors who made fortunes would soon see the evaporation of easy profits in the tech bubble burst of 2002. This was caused directly from the security analyst making buy recommendations of these stocks which were drastically overvalued. Bankers and corporate executives pushed their analysts to make buy recommendations because it would appreciate their stock prices. Investors were easily persuaded by these “Oracles” of Wall Street, and once again another conflict of interest.
Before investors feared the corruption of security analysts, there was the fear of accounting malpractice and the cooking of the books. Investors seeking to mitigate risk more effectively after the technology bubble burst, were eager to invest in what they thought was the world’s greatest company. This company was known as Enron. With chapter 10 giving it the appropriate name of the time as “The World’s Greatest Company,” we can only expect to read about the “greatest” scams of all time. Enron was making generous profits from its derivatives trading desk (its only legitimate and profitable business) as well as its use of Special Purpose Entities. These uses of tricky accounting principles performed by Enron’s auditor, Arthur Anderson, were considered legal at the time, but would not be considered ethical and moral today. The illegal activity that came unaccounted and unaudited by Arthur Anderson was their prudency reserves and their forward curves. Anderson failed to audit when Enron was intentionally misstating their volatility and current valuations of their trading positions. Also failure in catching Enron when they made changes in their day to day forward curves which would hide profits up to $20 million dollars in a single trading period (Partnoy, 328). The accounting misappropriation as seen in the 1980’s with Andy Krieger at Banker’s Trust had reemerged with the accounting fraud with Arthur Anderson. Accounting firms, like security analyst, and lawyers have a fiduciary responsibility to represent their clients. In this specific case, it is to show the investors that this company is following the Generally Accepted Accounting Principles (GAAP). In this case, Anderson was paid frivolously to keep the SEC off of Enron’s back and reports say that they were even caught shredding important accounting documents in the midst of the scandal.
Although external and internal controls were set in place to prevent the abuse of the many banks, large cap companies, and institutions, there was little stopping these white collared criminals from achieving incredible amounts of wealth. Even in the case of private law-suits on executives that knowingly committed securities fraud, the punishment was typically a fine that was substantially lowered through appeal and a slap on the wrist which would occur as a suspension from the derivatives market for a short period of time. In each of the cases provided there were some case of conflict of interest that should and could have been prevented. Although there is not necessarily a common theme that relates all situations together, we can assume that with proper judgment during appointing heads of regulation as well as maintaining the fiduciary responsibilities of management and employees is critical to eliminating most problems. As for the need for regulation may be necessary in special cases, the market should be free to work efficiently.
Tuesday, January 15, 2013
Bullish Report on Responsys "MKTG" Proves Correct
Attached is the analysis my teammates put together for the CFA Research Challenge in early December 2012.
https://docs.google.com/file/d/0B8Uo5UtVXY9hUVJtVlhhYm9nVUU/edit
Wednesday, June 13, 2012
Volunteering
Since most of my days are sitting on the couch thinking about what my next move is while not quite making that move, I've decided I will spend my time volunteering for a good cause. Searching for a good organization and cause, I came across the Sacramento Food Bank.
Founded in 1976 by Father Daniel Madigan in Oak Park in the basement of the church, he was tired of watching families and children go hungry on the streets of Sacramento.
Not everyone is given the luxury of a home and a warm meal every night, so its time that I start giving back to the community that has helped raise me.
Looking forward to the upcoming volunteer orientation on June 20th and working with the Sacramento Food Bank during my hunt for a full time position.
Founded in 1976 by Father Daniel Madigan in Oak Park in the basement of the church, he was tired of watching families and children go hungry on the streets of Sacramento.
Not everyone is given the luxury of a home and a warm meal every night, so its time that I start giving back to the community that has helped raise me.
Looking forward to the upcoming volunteer orientation on June 20th and working with the Sacramento Food Bank during my hunt for a full time position.
Thursday, May 10, 2012
Voodoo and Interviews
This one goes out to all of the new graduates at Cal State Sacramento! Okay, and I guess this applies to other graduates at other universities as well, but anyways... Go Hornets! Get ready to put your stingers up!
We are now reaching the point of freedom. We started with our GE courses in witchcraft and wizardry to finally completing those core classes that hopefully will teach us something in the real world. Sorry if I offended you Harry Potter and Twilight fans. (If there real to you, more power to you)
Speaking of fantasy and fiction, go see the Hunger Games if you have not yet seen it, one of my favorite movies this year!
Its time to figure out what we want to do and hopefully land that dream job that we all have been waiting for. Or hell, maybe you just want to go backpack Europe for the next 3 months.
If your jumping straight into the workforce, remember that competition is fierce and you are extremely outnumbered with applicants. But just like Katniss Everdeen, there is a small chance to win!
Talking to my finance colleagues, there seems to be a unsettling feeling in all of our stomachs when we talk to each other about what we will be doing post college. Besides one or two people in our circles, there have been no job offers as of yet and the interviews we have landed have been as shakier than grandpa before his hip replacement.
My best advice I can give you is to work on you interviewing skills. A resume is a resume, and it will always be just a resume. It is the bridge to the employer, and once you get through the screening process, its time to turn on your charm and practice your behavioral and technical questions until you have them memorized and personalized as your ABC's.
The joke that has been going around is that if you talk about any interviews you may have lined up or are waiting to hear back from, you must not say anything to anyone about it because it is bad luck and voodoo and the Interview God's will humble you without a job!
Unafraid of talking about interviews, I am currently on my second interview with one company, and third interview with another. Hoping to receive an offer, my game plan is to continually try to differentiate myself from any of other candidates that may have been interviewed.
For some tips on how to differentiate yourself from the rest of the pack, my blog Hunt on the Hunt gives you some ideas.
Also check out my blog about the Hardest Interview Question that I have come across in all of my interviews.
Also before your interviews, remember a few things:
1. What sets you apart now is not what school you attended, but how well you will fit into this company's organization. They are most likely to want to know what type of person you are and what skills you have can relate directly to the position.
2. Research the company's ins and outs. Know who the key management team is, what they produce, who are their clients or customers, and determine how you can add value.
3. Bring copies of your resume
4. If you have any relevant work that you are proud of, AND IS ERROR FREE, bring it.
5. Dress Professionally
6. And finally relax, smile, and have fun!
We are now reaching the point of freedom. We started with our GE courses in witchcraft and wizardry to finally completing those core classes that hopefully will teach us something in the real world. Sorry if I offended you Harry Potter and Twilight fans. (If there real to you, more power to you)
Speaking of fantasy and fiction, go see the Hunger Games if you have not yet seen it, one of my favorite movies this year!
Its time to figure out what we want to do and hopefully land that dream job that we all have been waiting for. Or hell, maybe you just want to go backpack Europe for the next 3 months.
If your jumping straight into the workforce, remember that competition is fierce and you are extremely outnumbered with applicants. But just like Katniss Everdeen, there is a small chance to win!
Talking to my finance colleagues, there seems to be a unsettling feeling in all of our stomachs when we talk to each other about what we will be doing post college. Besides one or two people in our circles, there have been no job offers as of yet and the interviews we have landed have been as shakier than grandpa before his hip replacement.
My best advice I can give you is to work on you interviewing skills. A resume is a resume, and it will always be just a resume. It is the bridge to the employer, and once you get through the screening process, its time to turn on your charm and practice your behavioral and technical questions until you have them memorized and personalized as your ABC's.
The joke that has been going around is that if you talk about any interviews you may have lined up or are waiting to hear back from, you must not say anything to anyone about it because it is bad luck and voodoo and the Interview God's will humble you without a job!
Unafraid of talking about interviews, I am currently on my second interview with one company, and third interview with another. Hoping to receive an offer, my game plan is to continually try to differentiate myself from any of other candidates that may have been interviewed.
For some tips on how to differentiate yourself from the rest of the pack, my blog Hunt on the Hunt gives you some ideas.
Also check out my blog about the Hardest Interview Question that I have come across in all of my interviews.
Also before your interviews, remember a few things:
1. What sets you apart now is not what school you attended, but how well you will fit into this company's organization. They are most likely to want to know what type of person you are and what skills you have can relate directly to the position.
2. Research the company's ins and outs. Know who the key management team is, what they produce, who are their clients or customers, and determine how you can add value.
3. Bring copies of your resume
4. If you have any relevant work that you are proud of, AND IS ERROR FREE, bring it.
5. Dress Professionally
6. And finally relax, smile, and have fun!
Wednesday, May 9, 2012
Facebook Shmacebook
With valuations from 75-100 billion and stock price ranges somewhere from $28-35 per share, this company will be the biggest internet IPO of our time. My time referring to me being a "very" late 80's baby who was more worried playing on my PlayStation 2 consul landing crazy jumps on ATV Off road Fury and Tony Hawk's latest release.
From the little experience I have as an investor and a finance student, I've been taught that bubbles are created by over speculation of a company that causes the stock price to rise dramatically.
If my speculations are correct, assuming history repeats itself, Morgan Stanley and all of the other underwriters for $FB will so surprised when they see that they miss-price the stock and it ends its first day at, my estimate: $75.
Sound crazy with a potential valuation of over $200 billion at this price? Yes, It's a little crazy but I think it is also very likely. Look at LinkedIn trading at a multiple of 800+ earnings.
According to efficient market hypothesis in all forms; weak, semi, and strong form, information will become or is already available. This should be reflected in the stock price, but then there is "The Greater Fool Theory," that states that buying of securities at an overvalued price is acceptable, because there will always be a greater fool who is willing to buy that security at a higher price.
So, we will wait until next week when Facebook hits the market to see if my hypothesis will come true.
From the little experience I have as an investor and a finance student, I've been taught that bubbles are created by over speculation of a company that causes the stock price to rise dramatically.
If my speculations are correct, assuming history repeats itself, Morgan Stanley and all of the other underwriters for $FB will so surprised when they see that they miss-price the stock and it ends its first day at, my estimate: $75.
Sound crazy with a potential valuation of over $200 billion at this price? Yes, It's a little crazy but I think it is also very likely. Look at LinkedIn trading at a multiple of 800+ earnings.
According to efficient market hypothesis in all forms; weak, semi, and strong form, information will become or is already available. This should be reflected in the stock price, but then there is "The Greater Fool Theory," that states that buying of securities at an overvalued price is acceptable, because there will always be a greater fool who is willing to buy that security at a higher price.
So, we will wait until next week when Facebook hits the market to see if my hypothesis will come true.
Thursday, May 3, 2012
The Ultimate M&A LinkedIn is Overlooking
LinkedIn released Q1 earnings today, posting revenue growth of 101%, contributing to the 7th straight quarter YOY growth over 100%. The company is growing its membership rapidly and the subscription and advertisement revenue segments seem to be growing well past analyst estimates. The company just released that they will acquire SlideShare for $119 million which will help professionals be more effective and productive with the content they create.
Acquisitions have been the headliners in the first quarter for large tech and social media companies including the Zuckerberg giant $FB most notable acquisition of Instagram for a easy $1 billion. But still LinkedIn may be missing something that could transform it to a Goliath that trumps all professional social networking sites that will be sure to put upcoming apps such as BranchOut on Facebook to shame.
Citrix offers web conferencing products including GoToMeeting, GoToConference, and GoToTraining. They specialize in cost savings for companies looking to get everything out of your business meetings while only sacrificing a physical handshake. With an acquisition or merger with Citrix, there would be strong synergies. Combining the largest online networking site with the leader in web conferencing is like butter and bread.
Some other forms of applications to add to LinkedIn that would help the company become a destination for networking is the integration of instant messaging and interviewing software to allow recruiters to interact with their potential candidates through a central location with a strong community.
I am unsure if LinkedIn is currently looking into this with research and development or are searching for a potential buy out. From speaking to many professionals and interacting on online forums, the most desirable new addition to LinkedIn is an instant messaging application. The fear of this is that it will negatively effect the companies reputation as strictly professional as IM has always been used for social purposes for the most part.
As for now we wait and see as the tech industry tends to change direction daily.
Acquisitions have been the headliners in the first quarter for large tech and social media companies including the Zuckerberg giant $FB most notable acquisition of Instagram for a easy $1 billion. But still LinkedIn may be missing something that could transform it to a Goliath that trumps all professional social networking sites that will be sure to put upcoming apps such as BranchOut on Facebook to shame.
Citrix offers web conferencing products including GoToMeeting, GoToConference, and GoToTraining. They specialize in cost savings for companies looking to get everything out of your business meetings while only sacrificing a physical handshake. With an acquisition or merger with Citrix, there would be strong synergies. Combining the largest online networking site with the leader in web conferencing is like butter and bread.
Some other forms of applications to add to LinkedIn that would help the company become a destination for networking is the integration of instant messaging and interviewing software to allow recruiters to interact with their potential candidates through a central location with a strong community.
I am unsure if LinkedIn is currently looking into this with research and development or are searching for a potential buy out. From speaking to many professionals and interacting on online forums, the most desirable new addition to LinkedIn is an instant messaging application. The fear of this is that it will negatively effect the companies reputation as strictly professional as IM has always been used for social purposes for the most part.
As for now we wait and see as the tech industry tends to change direction daily.
Subscribe to:
Posts (Atom)