Recommendation Buy AMZN AAPL EMC ORCL Sell VZ

Recommendation: Buy AMZN, AAPL, EMC, ORCL Sell VZ Green&Gold Fund

Sell Verizon VZ – Verizon Bought as a cash alternative Up ~$10/share Sell following i. Phone announcement

Current secular shifts in IT Federal Chief Information Officer sees cloud computing as an IT solution to the cost inefficiencies of the nation’s IT infrastructure. Mandated that agencies of the federal government institute a "cloud first" IT procurement policy Looking to reduce the number of federal data centers by 40% by 2015. The goal is to shift $20 B of the $80 B/year federal IT budget to cloud solutions. From Business Week Right now, the cloud is small: It represented about 5 percent of the $1. 5 trillion in corporate information technology spending last year, …. Cloud is real and is profoundly changing how companies buy computer technology There's a saying in the technology industry: People tend to overestimate what will happen two years from now and underestimate what will happen in 10. Well, the next 10 years have arrived.

How Do We Play "IT"? Virtualization / Storage EMC/VMware Cloud computing / Saa. S- Amazon & Oracle Mobility Apple

AAPL: Enterprise • CIO’s are adopting tablets – This is Apple’s inroad to enterprise • Next generation of corporate IT professionals in America use Apple • Amazon: Disruptive Technology & Web Services • • EMC : More data will be created in the next two years than in history to date – IDC • Oracle

Apple Company Profile • Business profile: Apple designs, manufactures, and markets personal computers, computing and mobile communication devices, related software, and networking solutions. • International vs. domestic: With $24. 5 billion in revenue for 2010, the Americas is the largest geographic section. Europe comes in second with $18. 7 billion for the same time period. The Europe and Asia/Pacific markets have 43% and 89% avg 2 year growth respectively as Apple enters new markets. • Management quality: Excellent. Jobs, the COO and CFO have been managing the company since the late 1990 s. Part of executive compensation is aligned with shareholder interests.

Investment Information Prev Close: 339. 25 1 y Target Est: 52 wk 199. 25 Range: 364. 9 Avg Vol 19, 790, 730 (3 m): Market Cap: 311 billion P/E (ttm): 18. 87 EPS (ttm): 5. 3 Div & Yield: none Forward 12. 9 P/E:

Investment Thesis • Catalysts: 1. Tablet- Deltoitte expects companies to purchase 10 million tablet devices in 2011 (APPL has 75% market share of tablets). • Tablet has been tested or deplowed at 80% of Fortune 100 companies. Medtronic has given 5, 000 i. Pads to sales reps and SAP has bought 3, 500 for company use. • Industry tracker i. Suppli predicts Apple will ship 43. 7 million i. Pads this year and 63. 3 million in 2012. 2. Next generation of IT professionals- as more young people become familiar with apple computers, they will request these computers in the workforce. Macs have less viruses, spam, crashes and need for upgrade compared to PC

SWOT Analysis Strengths Brand Image i. Phone and i. Pad run on same operating system Desktop/notebooks steadily increase revenue i. Tunes is largest music distributor in world Product release cycle Product Design and Utility Opportunities Mac App Store Loyal customer base Apple TV Weaknesses Computer-Software Chief steps down A projected 50% of revenue will come from i. Phone line by 2012 Not shareholder-friendly, sits on cash instead of giving a dividend. Very controlling over products. Threats Steve Jobs’ Health Competition introducing similar products Over-priced products Google

Amazon (AMZN) Profile: Amazon is an online retailer that offers a wide range of products. They also offer web services for start-up companies. International vs. domestic: Revenue for North America hit $18. 7 billion in 2010. All other geographic areas reached $15. 5 billion. Average 2 -yr growth was 35. 62% and 31. 68% respectively.

Amazon Web Services AWS contributed to $500 million in revenue in 2010 Expected to bring in $2. 5 billion in revenue by 2014. With companies who have their own hardware assets, servers might reach a max utilization of 25%. Since AWS only charges for what a company uses, utilization is close to 100% Using AWS, a company will save security, upgrade, and personnel costs.

Prev Close: 165. 53 1 y Target Est: 52 wk 191. 6 Range: 105. 8 Avg Vol 19, 790, 73 (3 m): 0 Market 74. 69 billi Cap: on P/E (ttm): 65. 46 EPS (ttm): 5. 3 Div & none Yield: Forward 12. 9 P/E: Amazon

Amazon SWOT Analysis Strengths Brand Image Low-costs since company does not own retail stores. Superior customer service/ loyal customers Allowing 3 rd-parties sellers on amazon. com Last quarter saw record sales of $13 billion 130 million active users (amazon. com) Opportunities Android App Store Bought LOVEFi. LM (Europe’s Netflix) Weaknesses Computer-Software Chief steps down Outsources delivery Most of revenue from AWS has to be reinvested into hardware. Threats Evolution of media to digital formats Online sales tax Increase in gas prices

Valuations Valuation is relative AAPL vs HP - Are you willing to pay for growth?

Portfolio Placement / Recommendation Sector : Technology Industry Group: Software Current Holdings: GOOG, ADBE Target Sector Allocation: 15 Current Sector Allocation: Remaining Allocation: