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Final UPS Team Paper!

Semiconductor industry estimates improved economic

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semiconductor industry, estimates “improved economic conditions to lead to 3% growth in 2012 and forecasts mid-single digit growth in 2013.” Net Advantage sees “higher enterprise spending, improved consumer spending, rising Internet usage, expansion of wireless communication, and the proliferation of semiconductors across a range of electronic products and markets driving chip demand.” Although TXN didn’t perform as well as we hoped for these past couple of months (with a loss off $575,200), the company still has strong financial ratios and the outside environment will lend itself to growth and
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more revenue in the coming years. A competitor of Texas Instruments that we chose to invest in was Intel (INTC), and we were very happy to do so. Intel is the world's largest chipmaker based on revenue and unit shipments, and is well known for its dominant market share in microprocessors for personal computers. The following examples show how the company is very strong and dominates the industry, which were major factors in the process of choosing Intel. Intel is the leader in its industry and has a market capitalization of $139.39 billion. It has accomplished this by extending its leadership in key technologies that have provided competitive advantages, improving efficiency and profitability, which in 2010 was the highest in several years. . Intel's revenues are less variable than its competitors’ because of its competitive position, a fairly stable computing end-market, and the relative size of its revenues. For 2012, S&P Net Advantage forecasts 5.7% revenue growth, to $57.1 billion. In addition, the company provides a high dividend yield of 3%, making it an attractive and profitable stock to own. Another key strength is the company’s annual gross margins that have been in the mid-50% to mid-60% range over the past few years. In recent years, Intel has benefited from its superior operating margins of around 26%, on average, allowing it easily cover its fixed costs and pay off debts. Overall, the company is performing very well, and thus far, it has shown in my portfolio with a $24,000 profit. Another sector our company decided to invest in had been the sports apparel industry. According to the beige book, seeing how retail sales had gradually indicated increase throughout all districts, consumer spending seemed to improve as well. Expectations for the months ahead in terms of the retail industry appear solid. With this, we had determined that this industry would be a worthwhile field to invest in, as we selected retailers Nike and Lululemon. Being a publicly traded clothing, sportswear, and equipment company, Nike is a very stable company to invest in at the moment. In regard to environmental factors to a sports apparel industry, the company holds a massive amount of brand power. Having major sports endorsements, such as LeBron James, many investors find this as a key quality to have in a long-term investment. The quality of the company’s products is above standard for high prices, but the company is known for having a strong customer
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semiconductor industry estimates improved economic...

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