Team D

Brent, Nancy, & Laura

Nike • Nike ranks 136 in the Fortune 500 – previously 153.• Nike designs, develops, markets, and sells high quality

footwear, apparel, equipment, and accessory products. • They sell their products in over 170 countries in the

world. • Sales are through retail stores, Nike –owned retail

stores and internet sales, and a mix of independent distributors and licensees.

• Almost all of their products are produced by independent contractors outside the United States.

Nike Fun Facts • The creator of the Nike Swoosh was a Portland State

graphic design student named Carolyn Davidson. She was only paid $35 for the design.

• Nike has never been in the red.• The name Nike comes from the Greek goddess of victory.• Nike has teamed up with Apple to create Nike Plus, a

system that allows runners to sync their Nike shoes to their iPod Nanos to get updates on speed, track, and distance. This system will also calculate how many calories runners are burning.

Nike Profitability

3 Months Ended 3 Months EndedNike August 31, 2009 August 31, 2008 2009 2008 2007 2006 2005Revenues 100% 100% 100% 100% 100% 100% 100%Cost of Revenues 54% 53% 55% 55% 56% 56% 55%SG&A 32% 34% 32% 32% 31% 30% 31%Other 3% 4% 5% 3% 4% 5% 5%Net Income 11% 9% 8% 10% 9% 9% 9%Change in Sales -12% 3% 14% 9% 9%

Adobe• Adobe Systems ranks 601 in the fortune 500 –

previously 651• Adobe is the second- largest desktop software

company in the world, and leading provider of graphic design, publishing, and imaging software for Web and print production.

• The company creates and sells award-winning software solutions for Web and graphic designers, professional publishers, document-intensive organizations, business users, and consumers

Adobe Fun Facts • Adobe’s Initial Public Offering was on August 20, 1986 at

a split-adjusted share price of $.17.• The name came from Adobe Creek in Los Altos,

California, which ran behind the house of one of the founders.

• As of January 16, 2009, they employed 7,335 people, approximately 43% of whom are located outside the United States.

• The most common job at ADOBE is Sr. Computer Scientist Software Development, which pays an average of $165,947 annually.

Adobe Profitability

9 Months Ended 9 Months EndedAdobe August 28, 2009 August 29, 2009 2008 2007 2006 2005 2004Revenue 100% 100% 100% 100% 100% 100% 100%Cost of Revenue 10% 10% 10% 11% 11% 6% 6%

R&D 20% 19% 18% 19% 21% 19% 19%

Sales and Marketing 33% 31% 30% 31% 34% 30% 31%

General and Administrative 10% 10% 9% 9% 9% 8% 8%

Other Items 8% 7% 7% 7% 5% 6% 8%Net Income 19% 23% 24% 23% 20% 31% 27%

Change in sales -18% 13% 23% 31% 18%

Caterpillar• CAT ranks at number 44 in the Fortune 500 –

previously 50.• Caterpillar is the world’s largest manufacturer of

heavy construction and mining equipment.• Their products are used in a number of different

industries such as construction, mining, agriculture, and logging.

• The company is organized into three main areas: machinery, engines and financial products.

Caterpillar Fun Facts• In 1981 to 1983, the worldwide recession cost

Caterpillar the equivalent of $1 million a day and forced it to dramatically reduce employment. At the beginning of 1983, Caterpillar announced its first annual loss in earnings in half a century.

• The company hasn’t reported a quarterly loss since 1992. The rate of growth however, has decreased due to the drop off in infrastructure projects everywhere.

Caterpillar Profitability

9 Months Ended 9 Months EndedCAT September 30, 2009 September 30, 2008 2008 2007 2006 2005 2004Revenue 100% 100% 100% 100% 100% 100% 100%CGS 74% 74% 75% 73% 71% 73% 74%SG&A 11% 8% 9% 8% 9% 9% 10%Other 13% 11% 10% 11% 11% 10% 9%Net Income 3% 8% 7% 8% 9% 8% 7%Change in sales -36% 14% 8% 14% 20%

Initial Allocation

60%20%20%

Trade 1: 10/19/09

20% 20%60%0% 50% 50%

Trade 2: 11/05/09

50% 50%0%33% 33% 34%

Accounting Results Q3: FY2009 / FY2008

ADBE

-30.00%

-20.00%

-10.00%

0.00%

10.00%

20.00%

30.00%

Profit Margin % change in sales Net Stock Return

Accounting Results Q3: FY2009 / FY2008

CAT

-50.00%

-40.00%

-30.00%

-20.00%

-10.00%

0.00%

10.00%

Profit Margin % change in sales Net Stock Return

Accounting Results Q1: FY2010 / FY2009

NKE

-15.00%

-10.00%

-5.00%

0.00%

5.00%

10.00%

15.00%

Profit Margin % change in sales Net Stock Return

Actual Results

Overall Results

$90,000

$95,000

$100,000

$105,000

$110,000

$115,000

9/23

/2009

9/30

/2009

10/7/

2009

10/14

/200

9

10/21

/200

9

10/28

/200

9

11/4/

2009

11/11

/200

9

11/18

/200

9

11/25

/200

9

12/2/

2009

12/9/

2009

Scenarios33% Allocation with no trades

Even Allocation compared to Actual Allocation

-4.00%-3.00%-2.00%-1.00%0.00%1.00%2.00%3.00%4.00%

9/24

/09

10/1/

09

10/8/

09

10/15

/09

10/22

/09

10/29

/09

11/5/

09

11/12

/09

11/19

/09

11/26

/09

12/3/

09

12/10

/09

Actual

Even

$187,812

$108,646

$64,002

Scenarios

Best Case

Actual Results

Worse Case

Recommendations

Yahoo Finance Analysts Recommend:

• ADBE buy and hold• CAT hold• NKE strong buy and

hold