EFTA01191462.pdf

From: Daniel Sabba To: "Jeffrey E." <[email protected]> Subject: RE: Follow-up stock screen for Twitter-style trade [C] Date: Wed, 11 Feb 2015 22:58:17 +0000 Inlinc-Images: image001.png; image002.png; image003.png; image004.png; image005.png Classification: Confidential You are right. DB's research analyst has had the wrong call so far. But we didn't propose the screen below based on buy ratings, but on whether the name was covered by DB's research analysts... In fact some names have Hold ratings. From: Jeffrey E. [[email protected]] Sent: Wednesday, February 11, 2015 10:49 PM To: Daniel Sabba Subject: Re: Follow-up stock screen forlWitter-style trade [CJ am i missing someting or has DB recommended fcx all the way down to 50 percent of its value. 777 On Wed, Feb 11, 2015 at 6:43 PM, Daniel Sabba < > wrote: Classification: Confidential Jeffrey — is this what you are looking for? Let us know if you would like the past research reports. Daniel Freeport-McMoRan (FCX) DB Target History Date of Report Target Recommendation 1/27/2015 $36.00 Buy 1/25/2015 $36.00 Buy 1/14/2015 $36.00 Buy 1_1/7/2014 $41100 Buy 10/28/2014 $45.00 Buy From: Jeffrey E. [mailto:jeeation@grr om Sent: Wednesday, February 11, 2015 10:13 PM To: Daniel Sabba Subject: Re: Follow-up stock screen for Twitter-style trade [CJ can you tell me what the recoomendation on fcx was in oct nov dec. On Tue, Feb 10, 2015 at 8:32 PM, Daniel Sabba < > wrote: Classification: Confidential Jeffrey, Jay and Vahe from my team put this together to follow-up on lower priced equities for which we can implement the TWTR equity structure in either a listed or OTC structure. To start, we screened the S&P 500 with the following criteria: EFTA01191462  Share Price ($10-$20 range) Market Cap (>$10bn) Covered by DB Research The following 5 names fit the criteria: Company Ticker Price Mkt Cap (bn) Div Yld DB Rating DB Target Ford F $ 15.92 $ 59. CC 3.77% Ho ,d $ 16.OO Bank of America BAC $ 16.35 $ 168.OO 1.25% Buy $ 18.5O Fre e port-McMoRan FCX $ 19.51 $ 2O.OO 6.41% Buy $ 36.OO Fifth Third Bancorp FITB $ 18/9 $ 15.OO 2.77% Hold $ 20.00 Boston Scientific Corp BSX $ 14.45 $ 19.OO - Hold $ 16.00 (Note: Pricing as of close 02/09/2015) As demonstrated below, all 5 names remained in a narrow band for the earlier part of 2014. n the latter months of the year, FCX, BAC and FITB saw a significant increase in implied volatility, most notably Freeport-McMoRan (FCX). 50 12M ATM Call Implied Volatility 45 40 — F 35 — BAC — FCX 30 —FRO 25 BSX 20 15 2AO/2O14 5/10/2014 B/1O/2O14 11/10/2014 As a result of these fluctuations. listed premiums arc now as follows: EFTA01191463  Premium (%) 16.00% - 14.00% - 12.00% - 10.00% - 8.00% - 6.00% - 4.00% - 2.00% - 0.00% BAC FCX FITB BSX V American Call Option Structure Company Price (S h.) Strike Expiry Premium Bid *Premium (%) F $ 15.92 $ ]SAO 1/15/2016 $ 1V2 1143% BAC $ 16.35 $ ll A0 1/15/2016 $ 120 734% FCX $ 3.9.sa $ 27900 1/15/2016 $ 220 14_35% MB $ 1879 $ MOO 1/15/2016 $ 0.87 4.0% USX $ 14.45 $ 15-00 1/151/2016 $ 113 9.20% (Note: Pric ng as of close 02/09/2015) (•Premium (%) Bid/Price (Sh.)) Regards, Daniel This communication may contain confidential and/or privileged information. If you are not the intended recipient (or have received this communication in error) please notify the sender immediately and destroy this communication. Any unauthorized copying, disclosure or distribution of the material in this communication is strictly forbidden. Deutsche Bank does not render legal or tax advice, and the information contained in this communication should not be regarded as such. please note The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of JEE Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by EFTA01191464 return e-mail or by e-mail to [email protected] and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved This communication may contain confidential and/or privileged information. If you are not the intended recipient (or have received this communication in error) please notify the sender immediately and destroy this communication. Any unauthorized copying, disclosure or distribution of the material in this communication is strictly forbidden. Deutsche Bank does not render legal or tax advice, and the information contained in this communication should not be regarded as such. please note The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of JEE Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to jeevacationqqzmail.com and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved This communication may contain confidential and/or privileged information. If you are not the intended recipient (or have received this communication in error) please notify the sender immediately and destroy this communication. Any unauthorized copying, disclosure or distribution of the material in this communication is strictly forbidden. Deutsche Bank does not render legal or tax advice, and the information contained in this communication should not be regarded as such. EFTA01191465