@McGill Engineering Investment Group

2013-02-15 Volume 1, Issue 5

Inside this issue

Latest Updates ............... 1 Economy ........................ 2 Technology .................... 3 Technology ..................... 4

Newsletter
Latest Updates
EIG is proud to present our fifth weekly newsletter this week. We would like to thank all our attendees for coming to the banking tour and we hope that it has been an interesting day for you all. Please stay tuned for other events and activities coming up!

Mining ............................ 5 Disclaimer ...................... 6

We would also like to extend a special thanks to our sponsor BMO Capital Markets for supporting the group!

Economy

Market Analysis
Economy
FED focuses on improving employment rate (FT)

Current unemployment rate in US is 7.9% Yellen believes that the weak demand for workers is responsible rather than structural problem FED continues quantitative easing to keep interest rate down

Canadians optimistic about the economy (Conference Board of Canada)

Index of consumer confidence survey Canadian households on short-term financial and employment conditions Index of confidence reached 83 in comparison to 100 in 2002 the highest since June 2011

Carney cautious about global currency war (Financial Post)

Mark Carney believes that the Canadian economy would be damaged by currency manipulations Even though a weaker loonie will boost exports, a rigid level of exchange rate will inhibit the effectiveness of capital and money markets Japan employed policies to decrease the value of Yen by 15% against U.S dollar over the past 3 month in an attempt to boost export

Retirement of penny (The Provincial)

The Royal Canadian Mint stopped distributing pennies last Monday following Flahertys announcement that they cost more than their value Electronic payments are still calculated with cents

Higher taxes and prices slowed sales in U.S. (Financial Post)

70% of U.S. economy consists of consumer spending Consumers responded to the expiration of 2% payroll tax cut at the end of 2012 and tax increase for well-off Americans Auto industry experienced a decline a 0.1% after an increase of 1.2% in December

Technology
Technology

SunPower Corporation makes steep gains over the past week

SunPower Corporation, an integrated solar products and services company which designs, manufactures and delivers solar electric systems is up by approximately 55% over the past week. This gain occurred despite the company posting a fourth-quarter loss last Thursday, as the company executives said the company sees better results in the future as it increases sales of its panels directly to its own projects and to projects being developed by its partners. Thus, things are looking very positive for SunPower, the makers of the most efficient solar panels in the market, as they focus on downstream development.

Zyngas roller coaster ride

Zynga has gained 5 percent over the past week, which saw a rich rally extinguish quickly. Shares of the leading social gaming player soared 29% last week, surprising investors with an adjusted profit when the market was banking on a small deficit. Zyngas shares jumped a further 9 percent on Monday afternoon as speculation about the legalization of online gaming in New Jersey circled the markets. However, revenue and bookings posted year-over-year declines and this is spelling caution for the bulls.

Technology

Technology
The bulls are running away with Netflix
Netflix, Inc. (NASDAQ:NFLX) shares have risen by nearly 100 percent since the start of 2013 on positive earnings numbers and success in original content. Over the past week, this positive sentiment was further amplified as Netflix gained approximately 13 percent. This was due to the fact Netflix broadened its deal with Dreamworks Animation Skg Inc (NASDAQ:DWA) to be the exclusive home of a new computer animated series that will begin streaming by year's end. Furthermore, Netflix has surpassed HBO with more than 33 million streaming subscribers.

Mining

Mining
Wow! What a grim week for the mining sector. On Thursday, mining giant Rio Tinto announced financial results for fiscal year 2013. The company announced record losses of $3Billion, its first full-year loss in is existence. CEO Sam Walsh promised deep spending cuts to get the company back on track. Shares opened down 1% at $57.75.

Rio Tinto isnt the only company facing financial challenges. Canadian gold miner Barrick Gold also announced an equally huge loss for the quarter of $3Billion. Once again, losses were blamed on soaring mining costs. Surprisingly, investors seem to have been expecting worse news. The stock was up 4% in early trading.

Finally, Kinross Gold Corporation announced on Wednesday that it too had suffered $2.99billion losses for the year.

Today I leave you with a video of Brent Cook speaking about risk, honesty and the cut throat Vancouver junior mining scene: http://www.youtube.com/watch? v=gKNhuGLjQdI&feature=player_embedded#! Extremely interesting interview which shows us how renowned geologists and investors do their thing! On Tuesday, Chinas CNOOC cleared the final hurdle for its $15.1 Billion Nexen takeover. The energy company was wating for a decision from the Committee of Foreign in the United States (CFIUS) to approve the deal. CNOOC agreed to open a head office in Calhary in order to get approval from the Canadian Government.

McGill EIG
The McGill Engineering investment Group is a new engineering studentrun club that intends to educate engineering and non engineering students about the capital markets and the finance world as a whole. The club also aims to bridge the gap between theory and practice by organizing various events with people from the industry. In addition, EIG is in the process of building an investment portfolio that will be entirely managed by members of the group. For more info on our future events and activities, like our Facebook page and follow us on Twitter at @EIGNews.

Disclaimer
The information contained in any newsletter does not constitute an offer to sell securities or the solicitation of an offer to buy, or recommendation for investment in, any securities within Canada or any other jurisdiction. The information in any newsletter is not intended as financial advice. Moreover, none of the newsletter is intended as a prospectus within the meaning of the applicable laws of any jurisdiction and none of the newsletter is directed to any person in any country in which the distribution of such research report is unlawful. Any newsletter provides general information only. The information and opinions in each newsletter constitute a judgement as at the date indicated and are subject to change without notice. The information may therefore not be accurate or current. The information and opinions contained in newsletters have been compiled or arrived at from sources believed to be reliable in good faith, but no representation or warranty, express or implied, is made by the @McGill Engineering Investment Group as to their accuracy, completeness or correctness and the @McGill Engineering Investment Group does also not warrant that the information is up to date. Moreover, you should be aware of the fact that investments in undertakings, securities or other financial instruments involve risks. Past results do not guarantee future performance. Please feel free to contact us at vp.comm@mcgilleig.ca for any feedbacks or suggestions regarding our newsletter. In addition, if you would like to opt out from receiving future newsletters, please contact us at the aforementioned email address.

McGill EIG
Primary Business Address McConnell Engineering Building McGill University 3480 University Street Room 7 Montreal, Quebec, Canada H3A 2K6 E-mail: vp.comm@mcgilleig.ca Website: mcgilleig.ca