Student’s name: Trần Lâm Quỳnh

Class: English 4

1, Hunter Defensive Systems: 5, 000$

a) Opportunities and Chances:
This is undiniablely monopolistic market and counter-cyclicality. While the
fortunes of most economic sectors rise and fall with the commercial business cycle,
defensestocks are the biggest exception to this pattern which is one reason why
defense outperformed other sectors in the dismal economy of the last decade.
Politicians usually defer plans to cut military spending. So while other sectors are
faltering, defense stocks thrive.

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Student’s name: Trần Lâm Quỳnh
Class: English 4

Unlike in other economic sectors, most of the surprises in the defense

business are on the upside. This is a very different situation from what prevails in

the rest of the economy, where investors are constantly being surprised by
developments like product recalls and trading losses. Despite all the secrecy in the
defense business, it is often easier to see where results are headed for big military
contractors than for companies in other sectors. The commercial marketplace is a
very dynamic environment where all sorts of things can happen unexpectedly, both
good and bad. That's less true in defense. Right now, China and Europe are slowing
down and the possibility of another Middle East war looms as Israel prepares to
attack Iran's nuclear complex. If Israel strikes, that will probably lead to Iranian
missile launches, action in the Strait of Hormuz, spiking oil prices and other
developments that depress the shares of most commercial companies. But not
defense shares.

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Student’s name: Trần Lâm Quỳnh
Class: English 4

"Waning demand" doesn't mean the same thing in defense that it does in
autos or housing, because weapons production is a long-cycle business in which the
full impact of government decisions often takes the better part of a decade to play
out. For instance, the sequestration provisions of last year's Budget Control Act
target budget authority, which typically takes years to spend. Even if the sector is
headed into a prolonged downturn, whi ch isn't likely, such periods have produced
windfalls for investors in the past as key players merged.

b) Difficulties:
 Some investors predict that defense spending may heat down in the
next few years due to friendly global relationship trend.
 May break the law and involve with illegal business if not understand
fully.
c) Conclusion:
If you understand the political rhythms of the defense sector and how the
biggest players have insulated their businesses against the dangers of a downturn,

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Student’s name: Trần Lâm Quỳnh
Class: English 4

their shares still look pretty appealing going forward. Moreover, the commercial
marketplace is a very dynamic environment where all sorts of things can happen
unexpectedly, both good and bad. That's less true in defense. That’s why I put half
of my money into this stock.

2, Xercon Pharmaceutical: 3, 000$

a) Opportunities and Chances:
Populations age in countries all over the world, so the health services
industry is set for growth on an impressive scale. With an aging population and
rapid advances in biotechnology, the health industry is sure to thrive in the years and
decades ahead. The healthcare sector is quite broad. Even a person with no investing
experience can think of some specific area of the health industry, such as hospital
conglomerates, institutional services, insurance companies, drug manufacturers,
biomedical companies, or medical instrument makers. Also, when many industries
are doing poorly due to negative economic conditions, the health industry can still
perform relatively well because people still need to see the doctor and buy their
drugs, regardless of economic conditions. For this reason the healthcare sector is
considered a "defensive sector".

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Student’s name: Trần Lâm Quỳnh
Class: English 4

Biotechnology companies will play a vital role in the future development of

medicines that could help patients survive what are currently fatal diseases and
improve the quality of life of people suffering from debilitating conditions. While
normal pharmaceutical companies produce drugs on a chemical basis, biotech
companies use live organisms such as bacteria or enzymes to manufacture their
products. In addition, extended knowledge of human DNA has allowed biotech
companies to target specific diseases with much more precision than conventional
pharmaceutical companies. According to Pictet’s reasearch, the total revenue of
listed biotech companies has risen sevenfold between 2000 and 2016, from just over
$ 20 billion to almost $ 140 billion.

Source: Global Market Insights report

b) Difficulties:
Beside those notable success, it also faces some hurdle:
 Alongside ample capital and expertise, you will also need high-quality
laboratories to safely and efficiently manufacture generic copies and
compete with a successful product after it has gone off-patent. It leads
to high cost and others problem relating to researching process.
 The business model for these large-cap biotechs are not that
sustainable because they were dependent on one particular drug in
most cases or one particular franchise.
c) Conclusion:

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Student’s name: Trần Lâm Quỳnh
Class: English 4

Since health matters to all of us, I believe such businesses will be among the
most attractive long-term investments in the global equity market. Just as we cannot
afford to ignore our own health, investors should not overlook the opportunities
presented by the boom in healthy living. That’s why I consider and decide to invest
3, 000 $ in this stock.

3, Zapp games: 2, 000$

a) Opportunities and Chances:
Gaming is now the world’s favorite form of entertainment, as the gaming
industry generated more revenue last year than TV, movies, and music did. While
other forms of entertainment are experiencing declines – TV revenue fell by 8% last
year – the gaming sector’s sales are increasing at an annual rate of 10.7%. Some of
the greatest growth is coming from relatively new markets, like China, where game
sales are climbing 14% per year according to Newzoo forecast for gaming revenue,
Statista forcast for TV and global box ofice revenue, IFPI actual data for global
digital music revenue. According to the industry-tracking firm NPD Group,
revenues for the gaming industry were up 59 per cent year-over-year, from $690
million in January 2017 to $1.096 billion in the same month last year.

Source: Newzoo
Student’s name: Trần Lâm Quỳnh
Class: English 4

Gaming has even evolved beyond a participant activity and develop in

different foudation: PC, consoles, mobile-phone and VR. Recent years, esport
become popular and international. It has attracted many gamers and awaited
annually.

The companies developing games are not the only opportunities for investors
to participate in the popularity of gaming. They can also invest in the companies that
make gaming devices. One of the best-known brands in the gaming sector,
Nintendo, straddles both worlds. It has created some of the world’s top-selling game
franchises, such as Mario, the Legend of Zelda and Pokémon. Nintendo also builds
and markets the devices that games can be played on. It introduced a new level of
interactive gaming with its revolutionary Wii, and it recently had another major
breakthrough with the Switch, which brings console-quality gaming to a mobile
device.

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Student’s name: Trần Lâm Quỳnh
Class: English 4

b) Diffuculties:
 Fail catching up in terms of technology and digital effect with other gaming
company.
 In order to create a game which make people feel worth to buy needs
interesting plot and incredible graphics.This could take several years and the
result may not meet expectation.
c) Conclusion:
The future of gaming looks bright, with augmented and virtual reality gaming
experience likely to grow significantly from their current penetration among early
adopters. There's never been a better time to consider investing in video game
stocks. By owning one of the larger video game companies, investors have the
broadest exposure to all the trends impacting the growth of the industry, and that's
likely a smart place to focus. From those reason, I belive in Zapp game and put the
rest of my money in.

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Student’s name: Trần Lâm Quỳnh
Class: English 4

SUMMARY INVESTMENT PORTFOLIO

INVESTMENT PORTFOLIO

20%

Hunter Defensive Systems

Xercon Pharmaceutical
Zapp games
50%

30%