Investment Analysis Luxury Goods

First Flight

Harley

Marine Max

Tiffany’s Toyota

Why this Industry?

In this troubling economy, this industry will flourish.

The upper class will always have money to spend.

Let’s analyze leading luxury firms so we can invest smart and join them.

Volume: measured by sales revenue• Toyota is biggest by far.• They also have the highest

Net Income at $17 billion.

• This volume gives Toyota several strengths:– Money to buy competitors– Develop new technology– Economies of scale– Promote– Success makes borrowing

easy

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Toyota Harley Tiffany's First Flight MarineMax

$262

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Growth: Measured By Sales Increase

Toyota• Even though Toyota grew only 47%

compared to First Flight Inc.’s 200%, Toyota’s dollar amount growth from 05 to 07 was close to 85 Billion dollars.

• We think that the last three years for Toyota reflect it’s future success because of the niche product they provide in Hybrid Technology.

• This growth and continued success is an indication of Toyota’s superior management prowess.

• This growth means they will continue to enjoy the benefits of their volume long into the future.

Bill

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Toyota Harley Tiffany's First Flight Marine Max0

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47%

200%

Toyota Harley Tiffany's First Flight Marine Max0

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83B

illio

nGrowth From 05-07

Growth From 05-07

Value: Measured By P/E Ratio

High P/E ratio: The company is expected to make strong profits in the future so the high price is justified.

Low P/E ratio:The company is expected to not prosper and so it is cheap toown but still probably not a good buy.

If other investors are right. If other investors are wrong• High P/E ratio

The price is higher than justified by the company’s earnings potential. The stock is not worth the price.

• Low P/E ratio: Other investors are not acting on

rational investment analysis. A Strong company is cheap and represents a buying opportunity.

Toyota Harley Tiffany's First Flight Marine Max0

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• P/E ratio is the price of the stock to the earnings per share ratio – the price to buy one Dollar of the company’s earnings

OverpricedValue

A bit scary

Toyota is The Best!

Size! Growth! Value!