ROY Fund at Sacred Heart Academy

1. ROY Fund at Sacred Heart Academy

2. Sectors • Basic Materials • Consumer Goods • Consumer Services • Financials • Health Care • Industrials • Oil & Gas • Technology • Telecommunications • Utilities

3. Basic Materials Sector • Involved with the discovery, development and processing of raw materials • Includes the mining and refining of metals, chemical producers and forestry products. • Supplies materials for construction, it depends on a strong economy. • Sensitive to supply and demand fluctuations because the price of raw materials, such as gold or other metals, is largely demand driven.

4. Basic Materials Companies • ConocoPhillips • Bway Holding Company • Packaging Corporation of America • Goodyear Tire & Rubber Company • Macquarie Infrastructure Company Trust • World Fuel Services • Sealed Air • Crown Cork & Seal Company • Amerityre

5. Consumer Goods • Appliances • Auto Parts • Beverages- Soft Drinks, Brewers, Wineries • Cigarettes • Cleaning Products • Confectioners • Dairy Products • Electronic Equipment • Farm Products • Food • Home Furnishings • Houseware • Meat Products • Office Supplies • Paper • Personal Products • Photographic Equipment and Supplies • Processed and Packaged Goods • Recreational Goods • Recreational Vehicles • Rubbers and Plastics • Sporting Goods • Textiles • Tobacco • Toys and Games • Trucks and Other Vehicles

6. Consumer Goods Companies • Ford • Tyson Foods • Coca Cola • McCormick • ConAgra Foods • Heineken • Adidas • Hershey • Sony • Campbell's • Dr. Pepper • Cadbury • Hasbro • Mattel • Canon • Coach • L’oreal http://news.morningstar.com/stockReturns/SectorTop100Stocks.html?sector=Consumer_Goods

7. Consumer Services (Cyclicals) • highly related to the state of the economy. • Represent goods and services that are not considered necessities, but luxurious purchases. • During contractions or recessions, people have less disposable income to spend on consumer cyclicals. • When the economy is expanding or booming, the sales of these goods rise as retail and leisure spending increase.

8. Consumer Services (Cyclicals) • Retail    Food & Drug Retailers    General Retailers        Apparel RetailersBroadline Retailers        Home Improvement • Retailers        Specialty Retailers    Media        Broadcasting & • Entertainment        Media Agencies        Publishing • Travel & Leisure        Airlines        Gambling        Hotels        Recreational Services        Restaurants & Bars        Travel & Tourism

9. Consumer Services Companies • NetFlix • Amazon.com • Nordstrom • PetSmart • Tim Hortons • Sodexo • Marriott • Walgreens • CVS Caremark • H and R Block • Staples • Tesco • Walmart • Wynn Resorts http://news.morningstar.com/stockReturns/SectorTop100Stocks.html?sector=Consumer_Services

10. Financials • perform best in low interest rate environments. • generates revenue from mortgages and loans, which gain value as interest rates drop. • when the business cycle is in an upswing, the financial sector benefits from additional investments.  • Improved economic conditions usually lead to more capital projects and increased personal investing. • New projects require financing, which usually leads to a larger number of loans.

11. Financials • Consumer Credit • Insurance • Investment Banks • Major & International Banks • Online Financial Services • Regional & Commercial Banks • Savings & Loan

12. Financial Public Companies • Citigroup • Allianz • Bank of America (Merril Lynch) • HSBC • RBS • J.P Morgan Chase • Morgan Stanley Dean Witter • Goldman Sachs • Wachovia • Wells Fargo • UBS

13. Healthcare • includes hospital management firms, health maintenance organizations (HMOs), biotechnology and a variety of medical products. • defensive because the products and services are essential. • Even during economic downturns, people will still require medical aid and medicine to overcome illness. • Having a consistent demand for goods and services makes this sector less sensitive to business cycle fluctuations.

14. Healthcare Companies • Express Scripts • Cardinal Health • Universal Health • Community Health • Magellan • Aetna • Amerigroup

15. Industrial Goods • Waste Management • Lumber/ Wood Protection • Aerospace Defense • Farm and Construction Machinery • Cement • Metal Manufacturing • Textile Industry • Can prosper during war, farming seasons, construction increases when economy is booming

16. Industrial Companies • Ceradyne • Deere Co. • Waste Management • Innovative Designs • Dixie Group • Boeing • Raytheon • Caterpillar

17. Energy (Oil and Gas) • producing or supplying energy. • involved in the exploration and development of oil or gas reserves, oil and gas drilling, or integrated power firms. • driven by the supply and demand for worldwide energy. • Energy producers will do very well during times of high oil and gas prices, but will earn less when the value of energy drops.

18. Energy (Oil and Gas) • Coal • Westmoreland Coal • Oil & Gas Integrated • Chevron • Exxon • Royal Dutch Petroleum • Shell • Oil and Gas Operations • Avalon Energy • American Energy • Gulfport Energy • Oil Well Services and Equipment • Pacific Energy Partners

19. Technologies • research, development and/or distribution of technologically based goods and services • contains businesses revolving around the manufacturing of electronics, creation of software, computers or products and services relating to information technology • personal computers, stereos and televisions are continually improved and upgraded, offering the latest technology to all users. • Businesses receive information and services from software and database systems, which allow the companies to make strategic business decisions.

20. Tech Companies • Directv • Comcast • Dish • Apple • Dell • HP • Microsoft • SanDisk • Rambus • Texas Instruments • Novell • Adobe Systems

21. Telecommunications • In 2006, estimates placed the telecommunication industry's revenue at $1.2 trillion or just under 3% of the gross world product • companies have used telecommunication to help build global empires • telecommunication has increased the public's ability to access to music and film • Social networks

22. AT & T • Nokia • Motorola • Verizon • Sprint

23. Utilities • Contains companies such as electric, gas and water firms and integrated providers. • Utilities require significant infrastructure, these firms often carry large amounts of debt. • With a high debt load, utilities companies become sensitive to changes in the interest rate. • As interest rates rise or drop, the debt payments will increase or decrease. • The utilities sector performs best when interest rates are falling or remain low.

24. Utilities • Electric • National Grid • Sierra Pacific • Energy East • Natural Gas • Energy West • National Fuel • SEMCO Energy • Water • SW Water Company • Aqua America • CT Water Service

25. Stock Picks at St. Joe’s Last Yr. • John Deere – DE – Telecommunications • Verizon – VZ – Technology • Conoco Phillips - COP – Basic Materials • Ceradyne – CRDN – Industrial Goods • Deere Co. – DE – Industrial Goods • M&T Bank – MTB – Financials • IBM – Technology