WALL STREET CHRONICLE

NOVEMBER 2013

Presidents Corner
Matt Brennan, President - Curtin Wall Street Club As 2013 draws to a close and exam preparation begins to take centre stage, the Curtin Wall Street Club (WSC) wishes to reminisce on the year that was. Our marquee event from semester one was Management Consultant Jake Hammers illuminating foreign exchange trading workshop which packed out the trading room and set the tone for the rest of the year. Semester 2 really was a symphony of epiphanies, where bright ideas coagulated flawlessly with effort to produce stunning results. It was Albert Einstein who said genius is 99% perspiration and 1% inspiration, and without the immense amount of sweat (effort), our marquee events for semester 2 including The Analyst Bootcamp the Meet the Expert Series and the debate against the debating society would not have been possible. A special thanks to all our guest speakers who did a superb job in educating and entertaining our members Jake Hammer (Oyster Consulting), Anthony Ravi (PwC), Felix Hudson (PwC), Matt Masters (KPMG), Sarah Grove (PwC),

Scott Shuttleworth (GE Capital) and Adam Richardson (Woodside Petroleum). Enormous gratitude is extended to the members of the Brand Development & Promotions team for doing such a terrific job with marketing and adding value to the Curtin WSC brand, The Wall Street Chronicle Publication team who have set the benchmark for quality under the stewardship of our newly appointed Editor Tim Wong, our Director of Photography Scott Price whose photographs always manage to tell the story of the night, our Vice President Jardee Kininmonth, our Club Secretary Matthew Kinna, our Treasurer Jon Scholtz, Dan Lines who continues to run insightful workshops on campus using the Bloomberg Terminals, Curtin and Curtin Business School for providing the Trading Room as our headquarters and assistance throughout the year, and the Guild who have endorsed the Curtin Wall Street Club as an official Guild club. Finally, a huge thanks to all members of the Curtin WSC. For those reading about the Curtin WSC for the first time membership is free through filling out the form on the Curtin Wall Street Club Facebook page and even after you graduate, you can still be part of the growing network that is the Curtin WSC. Our goal is to be the premier economics, finance, accounting and management club on campus with our ultimate mission being to make you a better graduate. The Curtin WSC strives to achieve our mission through creating the events you talk about long after they occur; an intellectual hub where like-minded students can discuss business and finance and gain direct access to unique opportunities which will shape your career for years to come. Lets work together to make 2014 even better!
Rate Watch: RBA Attempts to help Australian economy find its Mojo

In This Issue
Presidents Corner Australias Growing Gender Pay Imbalance Currency Swap: The lucrative world of foreign exchange The US Debt Ceiling The LIBOR Scandal The Commodity that Calls for Attention 1 2 3 4 4 5

6 7 7 8 9 9 10

How to Network Meet the Experts: Adam Richardson The Rumour Mill The Analyst Bootcamp Curtin Wall Street Club Debate News and Editorial

Disclaimer: Wall Street Chronicle is a student run publication, not a licensed financial adviser. The opinions and recommendations published in the Wall Street Chronicle are not intended to influence you in making financial decisions and should not be taken as such.

Wall Street Chronicle Issue 3 November 2013

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Featured Articles

Australia's Growing Gender Pay Imbalance

Storm Crow, Wall Street Club Member Australia prides itself on the post World War II liberation of women and their integration into the workforce. Despite this, there is a continuing pay imbalance between the men and women that currently sits at an all time high. In 2009, Australia was sitting at a 14.9 percent pay imbalance; Now in 2013, only four years later, the gap has grown to major heights of 17.5 percent with no signs of improving. If a male worker was to earn $60,000 a year, a common graduate marketing student salary, then a female worker would be paid on average $10,500 less, or an equivalent of $49,500. In 2009, The National Centre for Social and Economic Modelling measured a major negative impact on Australias macro economy due to a growing gender pay imbalance. The study was measured under the Melbourne Institute, which estimated a $93 billion cost to the economy meaning the income which was not being provided to females was reducing potential spending across Australia. The Melbourne Institute also measured the outcome of women earning an equal salary to that of a man, and in this situation, it was found that an additional $56 billion or 5.1 per cent [could be added] to annual GDP. The gender pay imbalance in Australia is, without a doubt ,becoming an increasingly sophisticated issue underpinned by many causes and effects. This issue affects more than those working in lower skilled sectors as it remains relevant to those in senior positions in mining, financial, and professional sectors. In 2013, figures provided by the Workers Gender Equality Agency (WGEA) indicate that men were paid on average 31.4 per cent more (refer to table 1) than their female counterparts in the Financial and Insurance Services. Similarly, women in professional, scientific and technical services, were earning 30.1 per cent less than their male counterparts. Why is this? It could possibly be due to managers experiencing unconscious or stereotyped role segregation when allocating positions. Female positions are allocated with their traditional mother roles in mind and so this results in less demanding work with a smaller salary. Moreover it is interesting that female dominated occupations still see men earning more than women. For example the ABS recognises Wall Street Chronicle Issue 3 November 2013
Table 1: Gender pay gap by industry, May 2012 May 2013 (Source: Workplace Gender Equality Agency)

women earning a weekly median wage of $999 compared to men who earn $1150, in fields such as nursing and child care. Leadership or management positions are also a great indication of the widening gender pay imbalance. Results from the ABS (Australian Bureau of Statistics) indicate a 21.8 percent difference between male and female pay in this category. See table 2 below for a full breakdown of the unfair discrepancy between male and female earnings.

Table 2: Mean weekly earnings in main job (full -time), and gender pay gap, by occupation of main job (Source: Workplace Gender Equality Agency)

Traditionally, these role have been dominated by males so there are high barriers to new entry for females. With the ABS identifying three percent representation for women in these roles, the fight or gender equality in the workforce evidently still continues. In a bid to recognise how much harder females are continuing to work to achieve their equal rights and their salaries, September 3rd has been labelled Equal Pay Day. This day represents Australias inequality in the workplace, as a woman currently earns 77 cents for every dollar a man earns. The day marks sixty-four days after the end of the financial year and only then, after fourteen months in comparison to a traditional twelve month year for a man, can a woman say she has earned a salary to that of a man. No longer will the women of Australia be taken advantage of and no longer should they have to accept wage exploitation from companies. With Foreign Affairs Minister Julie Bishop recently commenting that women [simply] cant have it all, there is little hope left for the driven and inspiring women of Australia. Remember folks - it was only in 1902 that women were granted recognition to vote and we have definitely come a long way. But have we come far enough?

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Featured Articles

Currency Swap: The lucrative world of foreign exchange

Matt Brennan, President - Curtin Wall Street Club Being just shy of 62, Alasdair Taylor-Newman, or Al as he is known by his friends, is someone a lot of people look up to in life. But it is his intricate knowledge of the foreign exchange (forex) market, combined with his ability to profit regularly that makes him the oracle of the forex world. Al speaks with a Morgan Freeman-esque narrative tone, and at social functions he is often like the quarterback, with everyone huddled around him transfixed as he holds the floor on anything from table tennis, to Gyroscopes latest album, and of course, the foreign exchange market. It is almost too easy to set up an account. Al uses the trading platform forex.com/au, where after providing basic proof of identification documentation to authenticate the process, investors are one step closer to the world of forex. Unlike share trading, where brokerage provides an initial hurdle before trades can become in the money, forex has no fees. The only entry cost lies in the bid/ask spread, where if an investor wishes to enter the market immediately, they must set their order, their bid, above the current quoted price of the currency they wish to buy. To illustrate this, Ill use the fourth most traded currency pair, the AUD/US. A currency pairing refers to the fact that in order for an investor to buy one currency, they must simultaneously sell another. When this article was written, $1 AUD could be exchanged for $1.0583 US dollars, but at the time, if the investor was looking to enter immediately, they could only acquire $1.0567 US dollars with their Australian Dollar. This 0.16c bid/ask spread may seem insignificant, but most trading platforms require a minimum order of $10,000, which from the example, equates to a $16 price differential the investor has to make up before the trade is profitable. The bid/ask spread is only exacerbated when exotic pairings are traded such as the US Dollar/Vietnamese Dong combination, and this is due to low volumes of trade and a greater distortion in perceived value of the Vietnamese Dong by investors. Some investors may be slightly worried since they do not have a spare $10,000 to complete the transaction. This fact stands out like a Goth at a Wiggles concert, and is the area which leads to the primary trap of foreign currency trading: Leverage. Foreign currency trading platforms vary, but most will allow up to 200 times leverage on a common currency Wall Street Chronicle Issue 3 November 2013

pairing. This level of leverage allows the investor to reach the minimum investment requirement of $10,000 with just a $50 note, or alternatively, with a $10,000 or greater investment, allows them to achieve 200 times the profit of someone with no leverage. Or 200 times the loss. Al remorsefully recounts that he made the rookie mistake of leveraging at 200 times when he first started currency trading. Fortunately for Al, he was wise enough to set an appropriate stop loss, which allowed him to lick his wounds and try again. Al carries many financial battle scars from forex trading, although his victories greatly outweigh his losses. He gleefully regaled the time he made $200 between his walk from the Curtin Tavern, to the Bankwest ATM and back again. Although a hefty amount of the profits were consumed that night, this was only one of many success stories from Al. Heres one Al was particularly proud of, I was in the 402 labs and gold was on a hot streak I saw some momentum and jumped on the trend and the beauty of forex.com/au is that it allows you to trade on unrealised profits, which enabled me to use the profits from the first trade to make a second trade, and so on until I had three simultaneous trades all pushing in the same direction, I made over $1,000 that afternoon. Foreign exchange is not limited to currencies; Al explains that he even exploits trends in soybeans, wheat and corn. I use the Dow Jones Newswire which sorts upcoming announcements into degree of impact, which I then combine with my fundamental analysis on the commodities. This approach is reflective of Als broader strategy: I do not base my decisions solely on when one line crosses another; I like to think that it was my reasoning which got the trade home. This reasoning is backed by his continual acing of exams which have set him on the path to becoming a fully-fledged financial broker, as well as the 78% he achieved in his derivatives unit at Curtin, one of the most feared amongst economics and finance students alike, being indicative of his university results. The foreign exchange market is deep and liquid, with data announced recently from the US Central Bank suggesting more than $4 Trillion US is traded daily. In 2012, the Australian share market (ASX) had an average of around $59 Billion AUD* traded daily (this figure is for domestic trades only, but these comprise the vast majority of all trades). Regardless of size differential, profits can be made when the market moves in any direction, even when the market is stagnant, which allows investors to even profit on an entitys or indeed an entire countrys fiscal collapse. Profits can also be made from the poor decisions and naivety of investors who are misfortunate enough to jump on a trend too late or sell a stock or currency way too early, allowing exit/entrance for another investor. In the share market, if the trading conditions were likened to chess, there is a healthy balance of experts and beginners who beat each other on a regular basis. However, be wary in forex trading, as there are very few novices, the speed of the game is so much faster, the stakes and potential gains are so much higher (especially with excessive leverage) and the opponents are akin to Russian chess champions whom will checkmate the rookie quicker than you can say Gorbachev. Page 3

Featured Articles

The US Debt Ceiling

The world financial models are based on the stability of the USD and US economy. Some fierce political debates inside both the American governmental bodies left us hanging for about 16 days. As analysts predicted, a default was very unlikely to happen, for the abovementioned reasons. As many of us would imagine, Greeces financial management model isnt a good one to follow.

The immediate impacts of the shutdown on the world markets were minor. In fact, the S&P500 gained a few percentage Hadrien Bostnavaron, Wall Street points during the shutdown despite an increase in the volatility index. Club Member This year was off to a flying start, until the government partially shut down for 16 days. The ongoing bickering within US Congress threatened the ability of the country to pay its bills on time; This included, servicing debt obligations and day -to-day running expenses. An agreement was finally reached on 17th October between the two major political parties, raising the debt ceiling and pushing back the deadline to early February. For some time, institutions were scared that the USA would default on their obligations. A payment default from the US would have left an unprecedented impact on the global economy and the US credit rating. The actual impacts of the shutdown might not be seen until the long to medium term, the extent of which is anyones guess. Some economists have predicted that the recent government shutdown will put a dent in US economic growth in Q4. As for the long run impact of the US government shutdown, the world is waiting on the further progress of the government to deal with their debt. For now, the provisory budget has swept the issue under the carpet until next time.

The LIBOR Scandal

It doesnt stop with a single bank. Days after Barclays was fined, the Serious Fraud Office in the UK announced that they had opened up an investigation into the manipulation of the LIBOR. The investigation has spread to at least ten different countries in two different continents. More than 16 banks have been named in the investigations and various court cases. It begs the question - is there really anything we can do to stop them?

Michael Frigger, Wall Street Club In September this year, various US and UK authorities Member announced that the worlds largest broker of interest rate Ever heard of the Illuminati or Rothschild? These are both swaps, ICAP, was fined $87 million for its role in manipulating secret societies believed to be the controllers of the world by the benchmark interest rate. However, this time, former some internet folk, often the tin foil hat kind. Forget them both. employees of the $2.5 billion company face criminal charges. Want to know who really controls the worlds money and its The DOJ has charged 3 brokers with conspiracy to commit wire fraud and two counts of wire fraud. Each faces a money? Join one of the big banks and become its CEO. maximum penalty of 30 years. For the three that have been Over the last few years, there have been a series of fraudulent caught, how many will remain free? activities connected to the London Interbank Offered Rate (LIBOR). For those who are unaware of what the LIBOR is, it The Financial Times published an article last year in which a is basically an interest rate set by the British Bankers former trader stated that LIBOR manipulation has been Association (BBA) at which banks borrow from other banks in common since 1991. Only 20 years later have we started to large quantities. It is the worlds most widely used benchmark uncover the mischief that the banks have been getting up to. It for short-term interest rates and currently underpins upwards of really makes you wonder what type of extravagant schemes the $500 trillion in derivatives. Yes, trillion. Knowing that banks banks are pulling off now which we will discover again in have the ability to manipulate this much money for their own another 20 years. personal benefit becomes a bit daunting now, doesnt it? It would seem the golden rule still applies - the man with the Recently in 2012, Barclays Bank was fined a mere $200 gold makes the rules. million, out of their massive $9.86 billion 2012 profit, in relation to the attempted manipulation of the LIBOR rate by the Commodities Futures Trading Commission. Even though they were only fined for the attempted manipulation, Barclays officially agreed that the manipulation of the submissions affected the fixed rate on some occasions. Was anyone charged? You guessed it, nope. The CEO simply resigned and went on with his life.

Wall Street Chronicle Issue 3 November 2013

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Featured Articles

The Commodity that Calls for Attention

When considering iron ore, Chairman of Fortescue Metals Group (FMG) and billionaire Andrew Forrest subsequently comes to mind. In September 2012, the company publically found itself in debt negotiations with key creditors, and with its future looking uncertain, its share price hit a record low of $2.80 per share. But with Forrest's charisma and strong reputation the company recovered and its share price was reestablished at $5 per share shortly six months later. When Fortescue Metals is doing well you know the iron ore market is on an upward trend. Mount Gibson Iron Ore (MGX) has reported record growth this quarter, also showing a sign of more positive things to come. Its cash and term deposits increased to $420 million and September quarter sales were relatively strong. Mount Gibson has made an excellent start to the 2014 financial year, achieving our second best ever quarterly sales result, said Chief Executive Officer Jim Beyer. With these strong performance indicators, Mount Gibson looks stable and very likely to grow. Atlas Iron (AGO) also produced optimistic quarterly results with a healthy EBITDA and strong customer demand for 2014 contracts. According to Managing Director Ken Brinsden, The continued strong iron ore price coupled with a focus on cost control and expanded production has enabled Atlas to maintain cash on hand at $378 million. With a 16% increase in its share price over the last month the company could be one to look out for in the future. On a global scale, China is the backbone when it comes to iron ore. Patersons Securities Robert Brierly speculated that the iron ore price will moderate towards the end of the year and therefore doesnt expect the price to drop off the cliff too soon. He believes China is moving into a slower growth phase; however its need for steel will remain fixed. At the end of the day, iron ore is just as important as any other commodity. With the leading companies performing well however, iron ore looks strong and positive, making it a commodity to look out for in the next few years.

Max Vining, Wall Street Club Member Whilst it is hard to choose a stock that will effectively make you money, it is even harder to find the right commodity that will generate a healthy return or possibly even double your money. Enter iron ore. Iron ore is an essential variable in the mining equation and without it, WA would be a lot poorer. Where is my proof? According to the Financial Review Iron ore is the single largest export earner for WA and contributes around 20% of revenue to the WA state budget. Many consider iron ore to be the essential indicator for growth; being a key ingredient for the production of steel. It can also be suggested that in terms of the building and construction industry, iron ore plays an important role. If eight years ago you had placed a substantial amount of money on this important commodity you would currently be found sipping champagne in Hawaii basking in a considerable amount of wealth. Why is this? Between February 2006 and March 2008 the spot price of iron ore more than tripled, increasing from $65.2 per tonne to $197.12 per tonne. Even now the current spot price is still a rich $133 per tonne, just 16% lower than its 12 month high of $158 per tonne reached in February this year.

About the Curtin Wall Street Club

The Curtin Wall Street Club (WSC) is the premier economics, finance, accounting and management club on Curtin's Bentley Campus. It was launched in April 2012 with Commsec's Chief Economist, Craig James as our inaugural guest speaker. The WSC harnesses Curtin's state of the art trading room facility which now has 16 Bloomberg (the exact software used on Wall Street) Terminals. The Curtin Wall Street Club aims to produce excellent all-round graduates, providing students, both alumni and present, with the opportunity to foster professional skills through our events and publications. Curtin WSC continues to gain visibility in industry as it attracts and contributes to the development of an outstanding network of future business leaders.

Wall Street Chronicle Issue 3 November 2013

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Featured Articles

Rate Watch: RBA Attempts to help Australian economy find its Mojo

the Labor government has torn the Australian economy to shreds like a boa constrictor swallowing a chainsaw. Meanwhile Tony Abbots stagnated approach in handling this mess may lead some people to believe that he is in fact a statue. Fortunately for the Australian community, the RBA have been on the sidelines doing some swift damage control, lowering interest rates to their lowest level since their establishment in 1959. But there may come a time when this approach is no longer effective. The RBA has been given a hammer and whilst they hit the monetary policy nail on the head every time, the Australian economy has a few screws loose and a hammer wont be particularly useful if economic morale continues to sag. Thats the downside; however the upside of the RBA flexing the interest rate to 2.5 percent is quite extraordinary. Existing wealth from savings accounts and term deposits now provide such meagre returns due to the low interest rate that there is now the avenue for those pessimistic about Australias growth to invest in property with low borrowing rates and/or chase yield stocks. For those optimistic about the future there is now the option of pursuing long growth plays on a plethora of stocks that are near or at their 5 year low. Additionally, price competition, particularly in the airline and retail space, has seen companies desperately undercutting each other in a bid to satisfy consumers; just look at Scoot, the latest low-cost player in the airline industry. Whilst this hurts company margins, the benefit to consumers is incredible, and after all, we are all consumers.

Matt Brennan, President - Curtin Wall Street Club For some people, there is the same amount of interest in the RBAs (Reserve Bank of Australia) interest rate decision as there are prawns in prawn crackers. Others though deem the first Tuesday in November to be the second last interest rate decision of the year, as opposed to the day of the Melbourne Cup. Wherever you may sit on this spectrum, the degree of influence RBA chairman Glenn Stevens and his band of merry men and women have on altering the purchasing decisions of Australian consumers has not been seen since the infomercials first appeared for the ShamWow! Interest rates are not controlled by the government in power; rather the RBA is a totally separate body whose main purpose in life is to keep the inflation rate between a two to three percent band. This ensures that the government in power does not self-medicate its way out of political mediocrity by using interest rates as a tool to garner votes pre-election (thats what tax cut promises are for.) It is in achieving the right balance, which the RBA has determined to be between two to three percent, that is deemed the healthiest level of inflation, as ultimately inflation is an excellent way of taking the pulse of an economy in a stable geo-political environment. Whilst not as damaging as Zimbabwes hyper-inflation (recall the issuance of a 100trillion note in 2009), Japans deflationary (negative inflation) environment caused by a lack of domestic economic activity could prove to be a snapshot of the Australian economy in 20 years time; as Australias ageing population combined with an expected increase in life expectancy will vacuum funds out of the economy, and as individuals will work less and be thriftier as their wealth has to last, on average, a few decades after retirement. The collective noun for a group of owls is called a parliament, oddly enough; these birds of prey give two hoots more about Australias economy than those bestowed with the title of public servants. Resembling neither a party nor a democracy,

Wall Street Chronicle Issue 3 November 2013

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Careers

How To Network
Timothy Wong, Editor - Wall Street Chronicle Its not what you know, but who you know. Thats the common catch phrase of networking. Networking is the process of connecting with other people to exchange ideas and opportunities. People commonly ask me how to network. The truth is, there isnt a set way to network as it is more of an art than a science. You might be surprised to know that you already have a network of family and friends. These are people that you can call on for advice or information. At the same time you are a point of contact for friends and family to seek help and advice. Professional networks work in a very similar way, but unlike personal networks, the interaction is kept at a professional level. There are some simple rules and protocols that you should adhere to if you would like to make new contacts.

1.

Active listening: Practice listening to what the person is actually saying and show it by participating in the conversation. You could participate by asking relevant questions, or perhaps paraphrasing what the other person said. People enjoy talking about themselves. Strike while the iron is hot: Remember to follow up with your new contacts within 1 -3 days. You could send them an email and/or add them on LinkedIn. In case youre wondering what your message should say, there is not a strict recipe; You could recap one or two points of the conversation that you both connected with. Remember that networking is not just a one off exercise to find a job. Genuine networkers have an interest in meeting and keeping in touch with people. In the long term. Networkers also take it a step further and act as connectors, that is, they opening introduce their contacts to their other professional connections if they can see an opportunity to benefit others.

2.

3.

With practice, you should become more confident and proficient at networking. Networking is an important skill to have throughout your professional career. Good luck and happy networking!

Meet the Experts: Adam Richardson

Adam Richardson, a star Curtin Business School Alumni who currently works as a Commercial Analyst at Woodside Petroleum shared his thoughts on his transition from studying and teaching at Curtin Business School to working in the private sector. Adam completed his Bachelor of Commerce (Economics and Management) at Curtin in 2009. He then pursued further study, receiving his Masters of Finance at 21 years of age. Adam has taught and lectured many units in the School of Economics and Finance, until in 2011 when Adam applied for graduate employment opportunities in Perth. The presentation began with a crash course of the Oil and Gas industry, to set the scene. More often than not, graduates who move into industry immediately after academia find themselves in a whole new world. They face challenges with being immersed in a world driven by much wealth, politics and opportunity. The attendees were grateful that Adam was able to share his insights working in the oil and gas industry, the challenges faced by graduates and students, and the development opportunities. Adam candidly shared his views on how a commerce and business degree aligns with the needs of industry. Interestingly, there is a difference between what industry and academia consider to be Finance and Economics. What academia refers to as Accounting is commonly referred to as Finance in industry and Finance in academia is referred to as Economics in industry. The audience appreciated Adams passion for the oil and gas industry and Curtin Business School students. As Adam put it, Curtin Business School is a special place that he enjoys volunteering his time and efforts.

Wall Street Chronicle Issue 3 November 2013

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Rumour Mill

The Rumour Mill

Brayden Kennedy, Wall Street Club Member

Whats Hot?
OzForex: Having just listed on the ASX in October, those who have not heard of its god-like exchange rates must give it a look. OzForex offers extremely competitive rates that clearly rein superior over the banks. If you plan on going overseas or need to transfer funds to gang warlords for a recent drug deal, then head to http://www.ozforex.com.au Google: The worlds largest search engine cracked the $1000USD price after reporting and 36% jump in third -quarter reported earnings. The website which has replaced human intelligence. I dont know, just Google it - has generated concern regarding its recent fall in average ad prices. However a 26% increase in the paid-clicks helped to offset this fall. Peppermint Grove: a recent report from RP Data which listed the cheapest and most expensive locations in Australia has confirmed for us that those living in Peppermint Grove do so on the most expensive land in Australia. The suburb topped the list with a median house price of $3,869,724, beating Sydneys most expensive suburb by nearly $700,000.

Whats Not?
USA: We all love our fair share of American idiocy. It was well and truly on display over recent weeks when the government was forced to shut down after a deal could not be reached to raise the debt ceiling. It has raised the concerns of some over the largely Americanized state of the global economy. It even led our friends in China to call for a de -Americanization of the world economy. After all China is just looking out for the interests of everyone arent they? Leighton Holdings: Nothing soothes the sole like a good corporate corruption story, especially when it involves paying bribes to win contracts. Even though Leighton has told the media its directors have at all times executed their duties with the appropriate care and diligence, company documents supporting the contrary have surfaced. With three key executives stepping down, it will be a nervous wait to see whether the Feds will be knocking on their doors. Gina Rinehart: Many would have thought that richest lady in the land, would succeed in winning her very public legal fight with her children. However it is true, Gina is backing away from the legal fight and folding to the demands of her children to remove her as trustee. Now comes the battle of appointing a new trustee. Will it be someone who coincidently has the same view as Mrs. Rinehart herself?

Disclaimer: Curtin Wall Street Chapter (CWSC) provides general information, not individually targeted personalised advice. Advice from CWSC does not take into account any investors particular investment objectives, financial situation and personal needs. Investors should assess for themselves whether the advice is appropriate to their individual investment objectives, financial situation and particular needs before making any investment decision on the basis of such general advice. Investors should make their own assessment of the advice or seek the assistance of a professional adviser.

Stock Review - CarSales.com

$10.81
Ticker: CRZ Sector: Software & Services Return on equity: 60.38% Dividend Yield (gross): 3% Franking: 100% Revenue growth 1 year: 15.5% Net profit after tax FY2013: $83.5 million EPS FY13: $0.35 Forecast EPS FY14: $0.41 PE ratio: 23.1

Having just come off the back of reporting its 2013 earnings, CarSales.com represents excellent value for a long term growth stock. Its strategy in recent years of accumulating cash on the balance sheet for future investment has proved fruitful this year. An $88 million investment in Webmotors, Brazils number one automotive classifieds site, and also a $13 million investment in iCar Asia which holds the number one and two car portals in Thailand, Malaysia and Indonesia are paying off. Both investments are seeing increased growth, with iCar Asia generating 33% growth in Indonesia and 10% growth in Malaysia. Another highlight for CarSales.com is its envious cash flow. The company increased its net cash flow from operations by 22% and its FCF by 29%. With a FCF yield of 3.6% for a company with growth prospects like CarSales.com, this represents a perfect time to buy.

Wall Street Chronicle Issue 3 November 2013

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News and Events

The Analyst Bootcamp

Matt Brennan, President - Curtin Wall Street Club The Analyst Bootcamp is the brainchild of the Curtin Wall Street Club and Pricewaterhouse Coopers (PwC) Consultant Anthony Ravi, designed to give students insight into financial modelling. Anthony graduated from CBS in 2010 with a Bachelor of Commerce (BCom) Honours majoring in Economics and Finance. Motivated by his own experiences as a student and while seeking employment, he believes it can take more than a degree to stand out after graduation. Over time the job market competitive, Anthony said. has become extremely

The students who took part in Analyst Bootcamp gained: Exposure to a real world scenario Opportunities to meet people currently working in the industry New skills in financial modelling, presenting, research and time management A certificate from Curtin Business School.

Employers want people with experience and saying that you were involved in something like the Analyst Bootcamp (and learning some jargon and inside tips and lingo along the way) can really help in interviews, he said. It can enable graduates to have more meaningful conversations with their interviewers. The program attracted 20 business students who were split into four separate groups and were given a mock case to deal with. Each group was given a comprehensive information pack prepared by Anthony, and were required to act as consultants and provide a takeover offer to a board of directors. What makes it even more relevant to industry is that the mock case students were given was also occurring in real time whilst the Analyst Bootcamp was progressing. Informative presentations were also delivered to the students in the lead up, which provided key insights into how to elevate a PowerPoint presentation from good to great. This helped the participants when they presented their arguments to four Directors from PwC, who were acting as the fictional executive directors of the board.

Curtin Wall Street Club Debate

Matt Brennan, President - Curtin Wall Street Club The debate against the Curtin Debate Club was a highly anticipated event which promised high calibre arguments, professionalism and free pizza. The event delivered on all of its promises and more as students from both clubs addressed the following question: Should higher education in Australia be free? The adjudicators on the day were Michael Lamb from the Department of Education; Sam Cavallaro, the President of Left Action; and the President of Curtin Unity, Liam ONeil. The Curtin Wall Street Club argued the many reasons why Wall Street Chronicle Issue 3 November 2013

higher education should not be free in Australia. A very convincing argument in relation to Australias current skill shortage and academic surplus was delivered by Jon Sholtz, Matt Brennan and Matthew Kinna. In addition, the heavy tax burdens which would fall upon the middle class of Australia if this policy were to be implemented were discussed. With the audience vote split right down the middle, the judges had a tough decision ahead of them. Alas, whilst the Curtin WSC debaters were quite gallant in their arguments, the winning team was the Curtin Debate Club. A congratulations is in order as their team delivered a great set of arguments for free higher education in Australia. This ties the debating score between the two clubs at 1-1. The event concluded with both teams and the audience heading down to the Tav to enjoy some free pizza and a few beers. We look forward to the next debate!

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News and Events

Meet the Experts: Part 1

Matt Brennan, President - Curtin Wall Street Club The Curtin Wall Street Club gave students the opportunity to learn from three recently graduated and very talented students who discussed their journey into the professional community. Each of our guest speakers gave relevant insights and the rare opportunity for our members to ask the questions that all students really want to know. With their unique perspectives and being fresh out of university life, each presenter was able to connect with the audience and deliver tangible advice that will help participants take the next step in their careers.

About the speakers: Sarah Grove (PwC) International Executive Services (IES): Sarah is a Law Commerce graduate with extensive accounting and professional service experience. Sarah has previously worked a year in London in a key finance role. Matt Masters (KPMG), International Executive Services (IES): Matt is an Accounting & Finance graduate specialising in Fringe Benefits Tax. Matt has worked over four years in the accounting industry and had yet to turn 22 when this presentation was delivered. Scott Shuttleworth (GE Capital) Credit Risk Analyst: Scott is completing his Masters in Quantitative Finance and is an important member of the GE Capital team. Scott is particularly interested in Foreign Exchange trading.

From the Editor

Timothy Wong What a year! I hope you have enjoyed reading this edition of the Wall Street Club Chronicle. We had a lot of fun organising this years events and look forward to building on our foundations in 2014. I would like to thank Matt Brennan, the 2014 Curtin Wall Street Club president for his great leadership and our volunteer team for all of their help year. Thanks must also go to Kenny Wong for his help editing this newsletter. The events held by the Curtin Wall Street Club simply do not happen on their own; It is the product of hard work by our committee members. Wall Street Chronicle Issue 3 November 2013

I have really enjoyed meeting and working with the Curtin Wall Street Club Chapter. What really makes this group special is the level of energy enthusiasm and drive shown by our team of volunteers. We are always on the lookout for talented volunteers to join the team. If you enjoy working in a team and making a difference within the Curtin Business School community, please shoot Matt Brennan an email at matthew.brennan@student.curtin.edu.au. If you are on Facebook, why not join us at: www.facebook.com/wallstreetclubcurtin See you in 2014 and all the best with your exams.

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