RE: MAXWELL: Revised Proposal
Ghislaine,
Based on our discussion and your need to raise some cash these are the names we would recommend selling, as well as our rationale.
Conocophillips: Did well in a strong oil price environmentbut only growing at 3-4% per year vs. peers in the IllII space growing at 8%. They have a FCF deficit so if we get a pull back on oil they will have issues and thus pull back on capex spending because they are so focused on dividend as large shareholder base depends on it. Take profits now, high conviction sell.
Verizon — Has done relatively well recently on a total return basis (YTD), but there is a secular shift in the wireless business and margins are coming down and the stock isn't that cheap. Take profits, high conviction sell.
Illinois Tool Works — Relatively expensive and while it's been a great growth story we think the growth story will be decelerating from here and the stock trades at a 3x higher multiple than usual. Less high conviction, but still a sell here.
In order to not have any tax impact we would need to sell the majority of your positions that currently have a loss. They are below. Note BHP, Apache and Lukoil are the only names below that UBS still rates as a Buy/Overweight. That said, if oil prices are toppish here then both Apache and Lukoil (despite the Russian discount) may be challenged moving forward. Given the unrealized losses in them, it's driving our decision to help you raise as much cash as possible without significant tax consequence.
| 1. | |
|---|---|
| 2. | Staples |
| 3. | Target |
| 4. | Geron |
| 5. | Apache |
| 6. | BNP |
| 7. | Kirin |
| 8. | HSBC |
| 9. | BOC HK |
| 10. | Tesco |
| 11. | BHP |
| 12. | Lukoil |
| 13. | Alstom |
Total Proceeds Raised from sales (approx.): $821K
Total Gains from sales (approx.): $70K
Total Losses from sales (approx): $71K
Net loss: $1K (All of the above pricing subject to market variability)
CONFIDENTIAL
UBSTERRAMAR00000496
EFTA00236200
Thanks,
Lyle & Scott
UPS Financial Services, Inc., its affiliates and its employees do not provide tax or legal adobe. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with thepromotion, marketing or recommendation by anyone unaffiliated with UPS FinancialServices, Inc. ofany of the matters addressed herein or for the purpose olavoicling U.S. tax-related penalties. Attorneys in the UPS Financial Services Attorney Network are independent and unaffiliated with UPSFinancialServices Inc. This material is not intended or mitten to be used, and cannot be used or relied upon, by any taxpayer for the purpose 01(0 avoidingpenalties under the Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any transaction or tax-related matter(s).
CONFIDENTIAL
UBSTERRAMAR00000497
EFTA00236201
This looks like a plan..lets execute Lets keep twitter and BHP and BHP we can always sell later in the year for the loss if needed.. Best G
THE TERRAMAR PROJECT
FACEBOOK
TWITTER
G+
PINTEREST
INSTAGRAM
PLEDGE
THE DAILY CATCH
Will do
Hope you are well.
Scott L. Stackman
Managing Director - Investments
Private Wealth Advisor
The image is not a chart. The key information in the image includes:
- UBS Private Wealth Management
- Managing Director - Investments
- Private Wealth Advisor
The image also contains obscured text and graphical elements that appear to be a bar chart, but the labels and data are not legible. The text "Pleage be advised that this e-mail is nol an official transaction cenfirmation The official confirmation of this transaction will be sent to von via regular mail" is also present, indicating a communication regarding a transaction.
Pleage be advised that this e-mail is nol an official transaction cenfirmation The official confirmation of this transaction will be sent to von via regular mail.