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12th

FEB

BOEING
Investment Strategy
Prepared by: Julie Hubbert, Jeremy Edwards, Charles Pao, Kevin Calvert
Team Echo

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Table of Contents

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Boeing Overview

Why Boeing?

Inflation

Our Investment Strategy

Major Markets, Company Competition, Corporate Citizenship

Sales Trend

Inflation, Investment Alternatives

Expenses, Net Income, Assumptions We Have Made

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Major Markets and Customer Base


Boeing Commercial Planes
12,000 Commercial jetliners worldwide, 75% of global market
Within next 20 years, long-term demand will need 36,770 new planes.
Expansion is estimated at $5.2 trillion

Boeing Defense, Space, and


Security
Provides defense services and equipment to 150 countries

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Company Competition
- Primary

commercial competitor - Airbus

- Joint ventures limit competition in the

defense sector

Lockheed Martin
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Bell Helicopter
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Corporate
Citizenship

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Why Boeing?
Last Five Years

1.Sales Trend is increasing over the past 5 years


2.Sales is expected to be doubled in next 20 years
3.Net Profit has more than tripled since 2009
4.Dividends continue to increase

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Sales Trend - Last Five Years


2009

2010

2011

2012

2013

Sales

$68.28 Billion

$64.31 Billion

$68.74 Billion

$81.70 Billion

$86.62 Billion

Net Profit

$1.34 Billion

$3.31 Billion

$4.01 Billion

$3.90 Billion

$4.58 Billion

Dividend Amount (Year)

$1.68

$1.68

$1.68

$1.76

$1.94

Stock Price (low-high)

$29.05 - $56.56

$54.80 - $74.53

$56.01 - $80.65

$66.82 - $77.83

$72.68 - $144.57

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Inflation

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Currently, the inflation


rate sits at 1.7%

Inflation affects savings


and purchasing power in
a negative way

Projected inflation rate in


the long run is 2%

As inflation increases,
savings and purchasing
power decreases

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Inflation
Effect of Inflation

2000

Spending Value of Money


($)

1500

1000

500

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10

Annual Rate of Inflation (%)


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Investment Alternatives
Foreign
Treasury

Inflation Protected Securities

Directly linked to Consumer Price Index

The larger the inflation, the bigger the payout

Gold

Trading in foreign currency can mean a lot of


volatility

Real

Estate

Commodities

Gold rises as inflation rises

Interest

Currency

Earning Account

Cotton

Raw Materials

Savings
CD

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Investment Alternatives
Contingent on how much risk our parents are willing
to take will determine where they invest the
remaining amount of money that is left over, after
investing in Boeing and accounting for expenses?

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Our Investment Strategy

Invest $250,000 into


Boeing

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Invest $250,000 into


savings

Draw out $25,000 per


year for the next 18 years
(after last 2 years of work)

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Expenses
Total Expenses
$55,873
9%

Income Taxes and Social Security


$23,413

15%
42%

Home Owners Expenses


$18,870
34%

Personal Expenses
$8,520

Automobile
$5,070
Income Taxes and Social Security
Personal Expenses

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Home Owner's Expenses


Automobile

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Savings and Stocks

Stock Dividends

Maintain
$44,217
in Net Income

Social Security
Benefits
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Assumptions We Have Made


Inflation rate is 2%
Boeings stock will grow at 7% (real growth of 5% plus 2% inflation)
Boeing will pay dividends equal to 2.3%
Savings account will draw 1.58%
Social Security benefits at $4000 per month

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Q&A
Let us answer your questions

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12th
FEB

Thanks!
Address

Contact

Follow

Jeremy Edwards
5200 Windhaven Pkwy
Lewisville, TX 75056

903.216.3942
jeremy_edwards@outlook.com
linkedin.com/pezpirate1

twitter.com/teamencore
facebook.com/pezpirate1

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