Investment Proposal

Your Perfect Choice

Brokerage #3

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Thursday, October 17, 2013

Our client would rather lose some money to help his

interests in innovation and social responsibility than gain

money from a company that does not follow his desire

Diversifying our portfolio by investing in companies from different industries that

have a potential to increase their price

Initial Options

1.Alternative energy ETF/Stocks

2.Innovative companies we admire

3.Companies that treat well their workers

4.Companies that are socially responsible


Our objective:

Invest 3000 USD with a risk greater than 10%

We want to be aggressive but smart

Be able to earn a decent amount of money by investing in risky stocks

Willing to help companies that are socially responsible, companies that treat well their workers and

companies that aim to expand the good use of alternative energy.

Place to work Social Responsibility Company we admire Alternative Energy

Cummins Tesla Procter and Gamble ICLN- Diversified because of

countries and types of

alternative energy

Vestas- Wind power

First Solar- Solar panels

Our

choices:


Stocks Bonds Mutual Funds ETF’s Currency Exchange

Stocks are primarily

used over a period of at

least 3 years. They might

be volatile and

unpredictable over a

short period of time,

unless you have reasons

that support your

assertion on why things

might happen.

Not the correct option in

this case. Long term

investment option with

low risk. At present, with

interest changes

changing, this might not

be a good decision. In

bonds you pay the debt

of a company, and you

are not part owner of the

company.

Usually you give your

money to a brokerage

and they have different

options on how to invest

it. They diversify your

portfolio by investing in

several stocks and

industries. By doing this

the risk decreases

because you do not only

depend on one stock’s

performance.

Probably the most

secure way of investing

your money over a short

period of time. At least, it

has become the easiest

to predict so it will be an

option to consider.

An innovative way to

invest your money. At

this point, we do not

have the experience to

play with different

exchange rations and

gain money, so it might

be not secure because

we do not know much

about it.

Options Faced:


Final Investment Choices

Tesla17%

ICLN17%

Vestas8%

First Solar8%

Cummins25%

P&G25%

Tesla ICLN Vestas First Solar Cummins P&G


“Because it is more expensive to screen for socially acceptable investments, they tend to under-perform the broad index funds owning everything. Author and advisor Rick Ferri has good advice: he recommends buying the

whole market and using the extra returns to make a financial contribution to whatever

Earth-friendly cause you believe in.”


Alternative Energy

ICLN

VestasFSLR 50%

25%

25%

ICLN FSLR VWDRY


ICLNiShares Clean Global energy ETF


Supports the environment and foster innovation by providing and getting energy in sustainable ways which do

not affect the environment and its surroundings.

After three years in the index, it has started increasing after falling significantly during the first two years

so it might be the moment to buy

This ETF is our highest risk, but at the same time it introduces a new industry into our portfolio and balances it

geographically.

Why ICNL?


ICLN

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Stock 3Y Chart


Stock Key Data

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ICLN


Vestas - VWDRY


Vestas!"#$$%&'()*

Stock 3Y Chart


• Stock history: VWDRY is one of the few stocks that holds a different pattern than all of the rest of the alternative energy sector. Yes, it plummeted during 2011, but the price of this stock has already started to increase. Their price increased by 367% in the past 52 weeks, and it is about four times larger than its minimum value in the past three years.

• Beta: Once again, as being a single alternative energy stock which depends simply in wind energy, this company is really risky and has a beta of 2.07 which shows their high volatility.

• P/E ratio: Their P/E ratio isn’t stated, but most of the energy stocks stand near 10, and their recent performance proofs that this shouldn’t be an outlier, so if this is how many financial advisors predict, it is another reason to invest in the stock.

Stock Key Data

Vestas


• At present, they are about to expand their production of energy through wind

from wind farms to offshore wind turbines. As seen in the video, giant wind

flaps, a diameter of about 160m (larger than London Eye), will increase their

production significantly. Aside from being a great source, it is vital because in

the middle of the sea the wind is much more constant. The only problem

would be maintenance of the system, but they have developed a way of

accessing them each 27 hours. In this case, workers get intrinsic and extrinsic

motivation, because they really need to love engineering to work in this and

they get paid high wages and they work under the most secure system.

Forecast


First Solar - FSLR


Stock 3Y ChartFSLR

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FSLR

• Stock history: At present, their value is less than a third than their 3 year maximum. Similarly to every alternative energy stock, it plummeted during 2011 but in the start of 2012, if settled down and it established a price of about 30 dollars.

• Beta: According to several sources such as Google and Yahoo, the Beta of FSLR stands in between 1.70 and 1.80. Clearly, it is a risky and volatile choice, and that’s why we are not investing just in this single stock but we have decided to split our money to have a final investment that is balanced, with risky stocks and a secure ETF.

• P/E ratio: With a PE ratio between 10 and 11, it stands really near one of the most stable and large energy entities in the world: Exxon Mobile. This is a neutral factor, it doesn’t impact significantly beneficially or negatively our choice.

Stock Key Data


• First Solar is the only company in the industry of solar energy that uses Cadmium Telluride for their solar panels. This material, aside from being much more environmentally friendly than silicone of the classic solar panel, it works as a better conductor and it is much more effective. Because the use of this product in their process of extracting the energy, they are one of the few alternative energy that compete in price with normal energy producers, one of the main reasons of their success. In the future, as we run out of resources, these will become vital and the price will maintain and become lower that other types of energy, so people will start to get energy from first solar and their price will certainly increase.

Forecast


Comparison!"#$$%&'()*


Evidence & Support• Exchange traded funds that hold alternative energy stocks are among some this year’s top-performing non-leveraged sector ETFs.

• Imagine the potency of an ETF that can offer exposure to alternative energy stocks as well as Chinese and Japanese equities. Investors do not need to imagine that alluring proposition because the iShares Global Clean Energy ETF (ICLN) delivers on all three fronts. Up 27% year-to-date, ICLN has allocations to more than 10 countries,

• Japan, China and the U.S. combine for nearly 55% of ICLN’s

• ICLN is more focused on biofuels, ethanol, geothermal energy, solar and wind energy names. However, in a year where solar ETFs such as the Guggenheim Solar ETF (TAN) are among the best-performing sector ETFs, ICLN has enough solar exposure to have benefited from that industry’s resurgence.

• ‘New Chapter’ “Today marks the beginning of a new chapter in offshore wind, a market segment with significant growth potential,” Marika Fredriksson, Vestas’s chief financial officer, said at a press conference in Tokyo today.

• The pace of offshore wind installations has slowed this year, with the industry struggling to make grid connection in Germany and tap government support in China. Bloomberg New Energy Finance forecasts 1.7 gigawatts of turbines at sea will be installed this year, compared to 1.9 gigawatts in 2012. The market may grow to about 8 gigawatts in 2020.

• The partnership bolsters Vestas’s ability to compete with Siemens AG (SIE) of Germany, the largest manufacturer of offshore turbines by capacity installed last year, said Kasper Larsen, a credit analyst at Danske Bank A/S (DANSKE) in Copenhagen.

• “From a strategic point of view, this JV is becoming more capable of competing with Siemens in the offshore wind turbine market,” Larsen said. “You can now address utilities in a different manner than Vestas was able to do before.”


http://finance.yahoo.com/q?s=icln

http://finance.yahoo.com/q?s=icln

http://finance.yahoo.com/q?s=tan

http://finance.yahoo.com/q?s=tan

http://topics.bloomberg.com/germany/

http://topics.bloomberg.com/germany/

http://topics.bloomberg.com/china/

http://topics.bloomberg.com/china/

http://www.bloomberg.com/quote/SIE:GR

http://www.bloomberg.com/quote/SIE:GR

http://www.bloomberg.com/quote/DANSKE:DC

http://www.bloomberg.com/quote/DANSKE:DC

Cummins INC - CMI

Best Place To Work

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They “design, manufacture, and distribute products. It

also services engines and related technologies, including

fuel systems, controls, air handling, filtration, emission control and electrical power generation system.”

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Build the best engines


Get to know them betterThe new ISV5.0

5.0 l iter V8 diesel engine

Not only professional with a further vision to improve vehicles and

engines, but INNOVATIVE.

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http://www.foxnews.com/leisure/2013/10/07/cummins-new-v8-diesel-detailed/

Cummins INC - CMITestimonials - Employee Reviews

“My time at Cummins was one of the best experiences for me. I worked under a very supportive manager who gave me the tools and resources I needed to do my job. I was not micromanaged. Work life balance was above average. The company is one of the few that really embraces diversity and career development.”

“The culture at Cummins is great. They value putting out the best products available, while also making sure all the workers have a good work/life balance. They stress living healthy and being active outside of work. Everyone I have worked with has been incredibly helpful, and makes sure I either get my questions answered, or points me in the right direction.”

“Working with a dynamic work team.”

“People working together for a common goal. it sounds cliche but it's true.”

(indeed cummins-reviews)

(cumminsworkplace-googleimages)


"Our mission is to motivate employees to act like owners"

Cummins INC - CMI

"They operate across cultures, functions, language barriers and time zones to solve the technical and logistical challenges created by a worldwide customer base."

Cummins value the idea of “Serving and improving the communities in which we live in”, that's why employees have the opportunity of working on community service projects for at least four hours per year.

such as.. tutoring in Greater Indianapolis area

(cummins.com)


" Fairness to all, the company extends benefits coverage to the domestic partners of employees who don't have traditional spouses. Those benefits include complete healthcare coverage, spouse and dependent life insurance, pensions, retiree medical coverage, family leave in accordance with the Family and Medical Leave Act, adoption assistance and relocation assistance."

"Employees may be promoted when their contributions to the company increase. A promotion carries a minimum of a 7% increase in salary."

"The environment becomes more than just about your job; it's about [whether you're] making things better" (Kyle Benning)

"Cummins has made, and continues to make, significant investments in a range of exciting new products and in our distribution system to ensure that we continue to deliver profitable

growth and help our customers succeed."

(marketwired)(computerworld)


Cummins INC - CMI

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Cummins forms part of the Fortune 500 corporation


Beta & P/E

BETA OF 1.74 IS

RISKY

Risky = more revenue

or more loss

!"#$$%&'()*!K.-$$2L+4.40'*

P/E ratio for United Technologies Corp

=

19.46

Beta for United Technologies Corp

=

1.07

P/E low is less risky; trust that the revenue

supports the amount of stocks being bought


Forecast

In 5 months if increasing at same rate

than last year the stock value would be

150

Cummins expects to grow revenues at 2 to 3 times the rate of growth in global GDP

Expects to deliver revenues of $31 billion in 2018

Just

released a

new engine

Revenue will grow faster than the economy of the country

They had a revenues of $17.3 billion in 2012

http://online.wsj.com/article/PR-CO-20130206-906610.html

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Company We Admire

Procter and Gamble


“We will provide branded products and services of superior quality and value that improve the lives of the world’s consumers, now and for generations to come. As a result, consumers will reward us with leadership

sales, profit and value creation, allowing our people, our shareholders and the communities in which we live and

work to prosper.” -P&G

Purpose


Procter and Gamble

They not only work for themselves, but they

work for the audience they produce for.

Environmentally cautious

They take care of employees

Innovative

Why admire this company?


Procter and Gamble

Why P&G: -Environmentally responsible

-Employees love their jobs-Best customer services

-#30 in Forbes list of the most innovative companies-Has purified 5 billion liters of drinking water in Third World countries (USA today)

-Two dozen P&G brands are sold for billions of dollars

“Just like almost every stock in the world, you would have experienced at least one or two 40% to 50% drops in the market value of your Procter & Gamble stock during

your holding period. That is the price of generating wealth through stock ownership. If you can’t handle that, park your money in the bank and be content

with the meager returns that are available.” -Joushua Kennon


Procter and Gamble


ConcernsWant the best people to work for them

Fire employees to replace them with better onesbut...

Used many chemicals in their productsbut...

Chemicals are in the process of being demolished from the company

Locations of the factories are isolated

but...Employee service is incredible, and

time is flexible in work hours


Since the Beta is 0 < ! < 1 it means the company’s stock market will rise and fall as the years go on, making it very volatile.

Beta & P/E


Comparison

Kimberly-Clark CorporationBeta: 0.36P/E: 20.56

Procter & GambleBeta: 0.37P/E:19.34


Procter and GambleProcter and Gamble (P&G) is a world wide known company owning products such as Gillette, Herbal

Essences, Tide, Duracell batteries, CoverGirl makeup, Fabreze, Pampers, Downy paper towels etc.

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The stocks will always rise and fall. P&G sells merchandise to 4.8 billion people who are

unpredictable consumers.

Volatile

Forecast

2 years

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Social Responsibil ity

Tesla


Tesla

One of the few tech innovative car companies in the world.

Want the world to be greener through their electrically manufactured cars

Volatile company to invest in

It is predicted that the stocks will rise over the years since their new model of car (Model X SUV) is going to be released.

“There's a high likelihood that the Model X could prove extremely popular” Jefferies analyst Elaine Kwei noted earlier this year

Kwei wrote in a research note earlier this year. "The current production line could be doubled to 80k-100k units."

What is Tesla?


TeslaAlthough that may be the case, tesla already has begun being green; while other companies are planning to begin or are starting the process of being more ecological. Tesla already have started this process, knows what they need to help continue their success.

“In a research report earlier this year while upgrading Tesla shares to "buy," Deutsche Bank analyst Dan Galves said there could be exceptionally strong demand for the Model X.”

“The electric car company already exceeded its shipment goal by delivering 5,150 instead of 4,500 cars during the second quarter. The company began its first delivery to Europe this week and plans to expand its reach in Asia, particularly China, later this year.”

Investing in Tesla would not only help you, if they flourish, but also help the company and the ecological system. Making Tesla innovative and socially responsible.

“Tesla, by the way, raised over $1 billion during the second quarter by issuing 4.5 million shares of its common stock and $660 million of convertible debt.”


http://files.shareholder.com/downloads/ABEA-4CW8X0/2625404493x0x682962/f9e27702-90ed-4516-a16e-dc720c411089/Q2'13%20Tesla%20Motors%20Shareholder%20Letter.pdf

http://files.shareholder.com/downloads/ABEA-4CW8X0/2625404493x0x682962/f9e27702-90ed-4516-a16e-dc720c411089/Q2'13%20Tesla%20Motors%20Shareholder%20Letter.pdf

Tesla“Quality Control Inspector!(Former Employee),!Fremont, CA – July 12, 2013

Pros: fast paced, extreme physical movement, and great co-workersCons: long hours, unexpected overtimeTesla is a very demanding job. You must always be prepared for the unexpected. You learn how to adapt to changes every day, and managing my work throughout the entire process of building an electric car. We at Tesla work together as one, ONE SHOT! Because that is all we have. Most enjoyable part the intense fast paced work environment that keeps us busy even throughout the day. As being promoted to quality inspector, I had to create an entire work instruction with the director of quality and approval of quality engineers.”

“Team Member body and white!(Former Employee),!Fremont, CA – August 29, 2013

Pros: good pay, sometimes free lunches on mandatory Saturdays and SundaysCons: mandatory 12 hour days, 7 days a week.Very Productive workplace, at times overworking employees with 10-12 hour work days, 7 days a week.”

“Inventory Control Analyst!(Current Employee),!Fremont, CA – September 3, 2012

Pros: Fun place to workCons:: long hours; 6 or 7 days a weekIt's a great place to work but being a "stat up", need to work very long hours (11 to 14). Also 6 to, sometimes, 7 days a week.”

Employee Reviews:


Tesla

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Comparison

Tesla Ford

Beta = 0.85 Beta = 1.4


Forecast

“THE BIG PICTURE: Tesla currently makes one vehicle, the $70,000 Model S sedan. It is developing a crossover, the Model X, which is expected to go on sale next year and will likely cost more. Ultimately, the company wants to make a more affordable electric car _ known as Generation III _ in the $35,000 range, but it hasn't said when that car will go on sale.”

CNBCBy: The Associated Press

“Shares of electric car maker Tesla Motors rose Tuesday (October 15) after investment bank Wedbush upgraded the company's shares and

raised its target price by 33 percent to $240 per share.”

Bloomberg Business week

By: The Associated Press


$3,000


Your

perfect

InvestmentThursday, October 17, 2013

Diversif ied Portfol io

ICLN

VESTAS

FSLR

5 stocks

47 stocks

3 stocks

9 stocks

STOCKS

5 stocks

27 stocks


Brokerage #3


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