November 19, 2013 Mr. Gary Brown Lone Star College-Montgomery Suite A220-G 3200 College Park Drive Conroe, TX 77384-4500 Dear Mr. Brown, After an in-depth analysis of Italy’s economy, government, demographics, and geography I have come to the conclusion that it is an ideal country for investment. The pages following are a report covering the research I have completed on Italy. This report shows that Italy is a country on the rise—a perfect target for investment. The last page shows a virtual stock investment in PRESX, the ticker symbol for European Stock, in which the virtual money has grown over the past three months. My expectation is that you will understand how your investment of $100,000 will increase much faster through this stock than by merely investing it at Woodforest Bank. As you know, your Woodforest Bank IRA account only provides a return rate of 0.15%. The investment in Italy has grown to $108,815.63 over the course of only two months. Just imagine how much it will grow in one year! Thank you for your time, and I can assure you that your investment will not be in vain. If you have any questions you are welcome to send me an e-mail at [email protected]. Sincerely, Sarah Gauteson Financial Research Analyst II FirstSouthwest
November 19, 2013 Mr. Gary Brown Lone Star College-Montgomery Suite A220-G 3200 College Park Drive Conroe, TX 77384-4500 Dear Mr. Brown,
After an in-depth analysis of Italy’s economy, government, demographics, and geography I have come to the conclusion that it is an ideal country for investment. The pages following are a report covering the research I have completed on Italy. This report shows that Italy is a country on the rise—a perfect target for investment.
The last page shows a virtual stock investment in PRESX, the ticker symbol for European Stock, in which the virtual money has grown over the past three months. My expectation is that you will understand how your investment of $100,000 will increase much faster through this stock than by merely investing it at Woodforest Bank. As you know, your Woodforest Bank IRA account only provides a return rate of 0.15%. The investment in Italy has grown to $108,815.63 over the course of only two months. Just imagine how much it will grow in one year!
Thank you for your time, and I can assure you that your investment will not be in vain. If you have any questions you are welcome to send me an e-mail at [email protected]. Sincerely, Sarah Gauteson Financial Research Analyst II FirstSouthwest
barite, asbestos, pumice, fluorspar, feldspar, pyrite (sulfur), natural gas and crude oil reserves,
fish, arable land.
Land use: Arable land-22.57%
Permanent crops-8.37% Other-69.07%
Climate: The climate type is chiefly Mediterranean, but it has a humid continental climate type in the far north as a result of
orographic precipitation.
Although the above data focuses mainly on the geographic factual evidence, this information
shows how Italy is an ideal country for investment. Italy’s mild climate and its diverse landforms attract many tourists each year. This
in turn increases Italy’s revenue, making it a lucrative country for purchasing stock.
Also, Italy’s variety of natural resources and amount of arable land enlarges the base through
which Italy investors may grow their funds.
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People and Society
Ethnic Groups
Italian
Religions
Christian: 80%
Agnostics and Atheists: 20%
Muslims in small numbers
Languages
Italian (official)
German
French
Slovene
Urbanization
Urban population: 68%
Rate of urbanization: 0.5%
4
“Not only for the well-known attractions of the country, but also because returns on
investment are excellent, investors have realized the huge potential of [Italy].”
-International Property World
Demographics
Population: 61,482,297
Population Growth Rate: 0.34%
TFR (Total Fertility Rate): 1.41
Net Migration Rate: 4.47 migrant(s)/1,000 population
Life Expectancy at Birth:
Male- 79.32 years
Female- 84.73 years
IMR (Infant Mortality Rate): 3.33 deaths/1,000 live births
Median Age: 44.2 years
Literacy Rate: 99%
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People and Society continued…
Population Pyramid:
5
Italy’s Population Pyramid indicates its success as a society. When the majority of a country’s
populace resides in the ages of the working class, that nation is more productive. Here, the table
shows that Italy’s male and female population is mainly between the ages of 30 and 70.
GDP (PPP): $1.863 trillion (2012 est.) GDP real growth rate: -‐2.4% (2012 est.) GDP per capita: $30,600 (2012 est.) GDP composition by sector: Agriculture: 2% Industry: 24.2% Services: 73.8% (2012 est.) Unemployment rate: 10.6% (2012 est.) Public debt of GDP: 127% of GDP (2012 est.) Industries: Tourism, machinery, iron and steel, chemicals, food processing, textiles, motor vehicles, clothing, footwear, ceramics Labor force by occupation: Agriculture: 3.9% Industry: 28.3% Services: 67.8% (2011) {Majority of population is employed in the tertiary sector.}
6
Economy Imports and Exports
Exports ($): $478.9 billion (2012 est.) Exports-‐commodities: engineering products, textiles and clothing, production machinery, motor vehicles, transport equipment, chemicals, food, beverages, tobacco, minerals, and nonferrous metals. Exports-‐partners: Germany 12.8%, France 11.3%, US 6.6%, Switzerland 5.8%, UK 5%, Spain 4.8% (2012) Imports ($): $453.5 billion (2012 est.) country comparison to the world: 13 $524 billion (2011 est.) Imports-‐commodities: engineering products, chemicals, transport equipment, energy products, minerals and nonferrous metals, textiles and clothing; food, beverages, and tobacco. Imports-‐partners: Germany 15.7%, France 8.9%, China 7%, Netherlands 5.8%, Spain 4.8%, Belgium 4.1% (2012)
Military Expenditures: 1.8% of GDP (2005 est.)
First World
Rostow’s Stages of Economic Development: Stage 5
Perhaps the economy data shows most
powerfully the security of
investing in Italy. A good example
is the imports and exports. As
shown in the figures, Italy
exports more that it imports, a clear sign of prosperity. Additionally, the bulk of labor is
PRESX Investment Original Investment: $100,000 Number of PRESX shares: 5,310.67 [9/6 closing price: 18.83] Profit from PRESX for 2 months: $8,815.63 Potential Profit from Woodforest for 1 year: $150.00
Top Ten Holdings
Anheuser-‐Busch InBev
Banco Bilbao Vizcaya Argentaria
Bankinter Cie Financiere Richemont
Gas Natural SDG GlaxoSmithKline
Intesa Sanpaolo
Mediaset Espana Comunicacion Nestle
Royal Dutch Shell
Sector Diversification Assets
Financials 25.9%
Consumer Discretionary 21.6%
Industrials & Business Services 15.6%
Health Care 8.5% Information Technology 6.9%
Consumer Staples 6.3% Utilities 5.3%
Energy 3.7% Telecommunication Services 3.6%
Materials 1.9%
Regional Exposure
Europe 98.0%
North America 1.2%
Country Exposure United Kingdom 17.1%
Spain 16.0%
Switzerland 15.1% France 14.0%
Germany 11.3% Italy 9.0%
Sweden 6.1%
Belgium 5.0% Denmark 1.5%
Austria 1.4%
Italy, combined with several other prominent European countries, comprises the stock PRESX. The stock relies on only the strongest of companies to provide its income, thus increasing the chance for a beneficial investment. As shown through the previous information, and most obviously, by the mock PRESX stock investment, Italy is indeed an ideal country for investing.
