To: ABC Wealth Management advisors
From: Tyler Boyce
Subject: Advising clients on new investments
Date: 2/18/2011
Word Count 1202
Summary:
The year of 2011 has great expectations for gains in the market. Being one of the top firms in the
country we plan to take full advantage of these possible gains. Our analyst and head advisors have spent
weeks finding different investments that are expected to bring huge gains. This memo goes into detail
about these investments and why you should recommended these to clients.
Apple
First off a proven winner for recent quarters is Apple, ticker symbol AAPL. Apple has simply changed the
way we live on a day to day basis. There overall idea to simplify technology is loved but much of the
public.
Since Apple went public in 1999 at 75 dollars it has soared to $370 a share. It will continue to grow.
Introducing new products such as the IPAD which is practically a held hand computer and the I-phone,
this is changing carriers from ATT to Version, the nation’s biggest 4G network.
With the recent withdraw of Apple’s CEO Steve Jobs the stock has decreased 4.5%. Don’t be afraid
though Apple’s CEO is not with the company. Apple is much bigger that just its CEO. Now is a perfect
time to tell your clients to buy as you may never see Apple bellow $350 a share ever again.
Ford
Another stock to look at recommending to your clients is Ford, ticker symbol F. Although the auto
industry has not been looking to hot lately, Ford was the only company not to receive a multi-million
dollar bail out from the government. While other competitors such as Chevrolet and Chrysler did, and
are still not on their feet. Ford was even able to produce minor gains in the last quarter of 2009. This is
considered a miracle considering most of the auto industry was facing bankruptcy.
Ford recently announced a new line of hybrid cars that have huge popularity around the world. With the
economy starting to pick back up we should see an increase in auto sales as well. Ford makes about
2000 to 3000 dollars off of ever car sold and about double this on trucks and SUVs.
The auto industry hasn’t picked up yet but it is a matter of time before it does. Our analysts say that
when the auto industry picks up Ford is expected be at the top and predicted double within the next
three quarters. This stock has tremendous potential and has been proven in the past to be successful.
This should be one of the top stocks you recommend to your clients.
Alcoa
A stock that our analysts have picked to have huge potential this year is Alcoa, ticker symbol AA. Alcoa is
a producer of raw goods. They specialize in copper and aluminum.
In previous recessions the first sector to pick up when the market starts to turn up is raw goods. Alcoa is
a huge producer of raw goods in the Western hemisphere. They produce about 30% of its copper and
aluminum. Raw materials are also used in every major construction project. In 2011 the nation is
expected to pick up in the development of housing and infrastructure.
Alcoa also has a contract with the government to supply the nation’s armed forces with supplies used to
build weapons for war. Obama announced on January 3rd that he does not have plans to withdraw
troops from the Middle East. He actually plans to send around 300,000 troops to Egypt to take care of
the civil uprising that is going on, and plans to keep them there for at least a year.
Alcoa really has no way it could lose they are used in just about everything and with this year being
expected to have huge growth, Alcoa is a really good investment for short term gains.
Teva
Teva is a company that produces generic drugs. Their ticker symbol is the same as their name TEVA.
Teva is one of the main leaders in this field.
Research shows that competitors like Mylan and Watson patents are about to run out on certain drugs.
Teva has already started manufacturing these drugs, and when the patent runs out the have plans to
enter these drugs into the market. On the other hand Teva’s patents aren’t scheduled to run out till ten
years from now.
Teva is also announcing the launch of their new drug that helps treat all forms of cancer. This drug has
huge hype behind it and is expected to bring major profits to Teva. For each pill sold Teva earns 20
dollars profit. This drug is new to the market and no one else has anything close to it. They will have
patents behind it lasting for 20 to 25 years from now. This allows for profits to be stable for the
company for the next 25 to 30 years.
Teva recently announced its quarter earnings. They produced 31 billion dollars in net income. This is
unheard of in the generic drug sector. The CEO of the company is predicting that will produce record
breaking profits this year as well. Now is a great time to buy this stock for clients and it is looked at as a
long term investment.
First Republic Bank
First Republic Bank is a bank based in central Florida, their ticker symbol is FRC. They specialize in
investing client’s money and primarily deal with the nation’s wealthiest individuals. They have offices
along the East coast all the way up to New Jersey.
With Obama’s recent bill to place a tax cut on the nation’s richest individuals who earn 1,000,000 dollars
or more a year. This leaves room for them to invest the extra money they will have. First Republic is
expected to receive most of this business.
With California recent filing for bankruptcy many of the wealthiest individuals are leaving and moving to
Florida. This also adds to the business Republic Bank will be receiving.
The bank is in great financial standing and didn’t have any part in the recent corruption that went on
and didn’t receive any bail out money from the government. Bernanke the nation’s federal chairman has
stated that he is determined to keep to the banking industry from seeing anymore troubled times.
Their last year earnings were up 55% which is great compared to its competitors who were down 12%.
They are expected to grow to a 15% increase in the first quarter of this year. This is a great buy both for
the long term or short term.
Conclusion
These investments have been looked at by our top analyst. They are predicted to have great gains and
specified within each description it states whether it should be invested for the long term or short term.
These investments create a great diversified portfolio, covering almost every sector in the market. You
are not required to have your clients purchase these stocks, you are your own advisor and you must do
your own research. It is greatly encouraged though and you are almost guaranteed to meet and
exceeded your client’s expectations of you. I hope you all do well this year.