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DAVIES CAPITAL MANAGEMENT, LLC




           Executive Summary
                                       EXPANDED




                            Executive Summary (Expanded)




Davies Capital Management, LLC, a Florida Limited Liability Company, formed to provide a trading
syndicate group.
Table of Contents


What is a Private Placement Offering?                                                                      Page 3
Business Description                                                                                       Page 4
Investment Summary                                                                                         Page 4

Financial Projections                                                                                      Page 5

Company Background                                                                                         Page 5

What Are Options                                                                                           Page 6
Calls and Puts                                                                                             Page 7
The Lingo                                                                                                  Page 8
Benefits of Investing                                                                                     Page 9
Marketing                                                                                                 Page 9
Management Member                                                                                         Page 10




                                                                                                                        2|P a g e

This document and the contents herein are the intellectual property of Davies Capital Management, LLC. Duplication or
redistribution of this document or its contents is prohibited without the written consent by Davies Capital Management, LLC. © 2012
What is a Private Placement Offering?
                                             The term “private placement” as used in this text refers to the offer
                                             and sale of any security of a company or brokerage firm not
                                             involving a public offering. Private offerings are not the subject of a
                                             registration statement filed with the SEC under the 1933 Act. The
                                             private placement memorandum provides an exemption to the SEC
                                             Regulations.

                                   According to Thompson Financial, over $600 billion was issued in
                                   2007 through the private placement market. Experts in the field
predict that number could easily be in excess of $1 trillion today.

Does investing in a private placement offering really earn money for the investor? Study the chart below
and you be the judge.




                                                                                                                        3|P a g e

This document and the contents herein are the intellectual property of Davies Capital Management, LLC. Duplication or
redistribution of this document or its contents is prohibited without the written consent by Davies Capital Management, LLC. © 2012
Business Description
                                             Davies Capital Management, LLC intends to assemble highly
                                             qualified individuals who have a successful track record in online
                                             trading to research and recommend the companies that have the
                                             highest potential for immediate returns. To achieve our goals, the
                                             Company is raising $1,000,000 through its private placement
                                             offering with selected private investors who will function as a
                                             syndicate group of investors.

The stock options we select to trade conform to several requirements that must be met before we will
trade them. We look for good income producing stock options, which generate the company profit on a
monthly basis. We then keep a portion of the monthly profits in the trading account, thus increasing our
profits or returns on investment (ROI) the next month.


Website: www.daviescapitalmanagement.com
Phone: 225.421.9704


Investment Summary

Funding Sought: $1,000,000
Incorporated: April 23, 2009

                                                In accordance with the Securities & Exchange Commission
                                                regulations, Davies Capital Management, LLC has prepared a
                                                private placement offering for the sale of its units for $0.01 a unit
                                                with 100,000,000 units available. The offer is ONLY made by
                                                prospectus to either accredited or non-accredited private
                                                investors. The Company offers a minimum of 1,000,000 shares or
                                                $10,000 to each private investor.

Revenue from the sale of all units is intended to be used for options trading.

With a $1,000,000 investment, and based on the following financial projections, Davies Capital
Management, LLC could be profitable within the following year. The Company will likely be valued above
$9,000,000 within 3 years.

                                                                                                                        4|P a g e

This document and the contents herein are the intellectual property of Davies Capital Management, LLC. Duplication or
redistribution of this document or its contents is prohibited without the written consent by Davies Capital Management, LLC. © 2012
FINANCIAL PROJECTIONS
                                             2012                              2013                              2014
                                         1,000,000.00                        2,400,000                         6,552,000

Total Income                             1,400,000.00                        4,152,000                        9,008,000



USE OF PROCEEDS
                                         Items & Description
                                                          Costs
         Preparation of Private Placement Memorandum      $10,000.00
                                             Commissions $100,000.00
                  Proceeds for Trading Stocks and Options $890,000.00
                                                   Totals $1,000,000




Company Background
Davies Capital Management, LLC was formed as a Florida Limited Liability Company on April 23, 2009
with headquarters located in Baton Rouge, Louisiana.

The managing member and president of Davies Capital Management is Scott Davies. Scott has been
trading the stock market using options successfully for several years. During this time Scott has
developed a true passion for the markets which has led him into the field of instructing and teaching
various individuals how to trade the market using his trading strategies. Because of the successes in his
trades, Scott formed Davies Capital Management in 2009 specifically for the purpose of providing and
building an investment syndicate group to trade in larger volumes.

Today, many investors' portfolios include investments such as mutual funds, stocks and bonds. But the
variety of securities available does not end there. Another type of security, called an option, presents a
world of opportunity to sophisticated investors.

The power of options lies in their versatility. Options enable the trader to adapt or adjust positions
according to any situation that arises. Options can be as speculative or as conservative as desired. This
means the trader can do everything from protecting a position from a decline to outright betting on the
movement of a market or index.




                                                                                                                        5|P a g e

This document and the contents herein are the intellectual property of Davies Capital Management, LLC. Duplication or
redistribution of this document or its contents is prohibited without the written consent by Davies Capital Management, LLC. © 2012
This versatility, however, does not come without its costs. Options are complex securities and can be
extremely risky. This is why, when trading options, a disclaimer like the following is stated:

“Options involve risks and are not suitable for everyone. Option trading can be speculative in nature and
carry substantial risk of loss. Only invest with risk capital.”

Despite what anyone says, option trading involves risk, especially if the trader doesn’t know what he’s
doing. Because of this, many people suggest steering clear of options.

On the other hand, being ignorant of any type of investment places a trader in a weak position. Perhaps
the speculative nature of options doesn't fit the style of a particular trader. No problem – join Davies
Capital Management, LLC as a member and allow the Company to speculate in options on your behalf.




What Are Options?
An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying
asset at a specific price on or before a certain date. An option, just like a stock or bond, is a security. It is
also a binding contract with strictly defined terms and properties.

Still confused? The idea behind an option is present in many everyday situations. Say, for example,
that you discover a house that you'd like to purchase. Unfortunately, you won't have the cash to buy it
for another three months. You talk to the owner and negotiate a deal that gives you an option to buy
the house in three months for a price of $200,000. The owner agrees, but for this option, you pay a price
of $3,000.

Now, consider two theoretical situations that might arise:

1. It is discovered that the house is actually the true birthplace of Elvis! As a result, the market value of
the house skyrockets to $1 million. Because the owner sold you the option, he is obligated to sell you
the house for $200,000. In the end, you stand to make a profit of $797,000 ($1 million - $200,000 -
$3,000).

2. While touring the house, you discover not only that the walls are full of asbestos, but also that the
ghost of Henry VII haunts the master bedroom; furthermore, a family of super-intelligent rats have built
a fortress in the basement. Though you originally thought you had found the house of your dreams, you
now consider it worthless. On the upside, because you bought an option, you are under no obligation to
go through with the sale. Of course, you still lose the $3,000 price of the option.

                                                                                                                        6|P a g e

This document and the contents herein are the intellectual property of Davies Capital Management, LLC. Duplication or
redistribution of this document or its contents is prohibited without the written consent by Davies Capital Management, LLC. © 2012
This example demonstrates two very important points. First, when you buy an option, you have a right
but not an obligation to do something. You can always let the expiration date go by, at which point the
option becomes worthless. If this happens, you lose 100% of your investment, which is the money you
used to pay for the option. Second, an option is merely a contract that deals with an underlying asset.
For this reason, options are called derivatives, which means an option derives its value from something
else. In our example, the house is the underlying asset. Most of the time, the underlying asset is a stock
or an index.


Calls and Puts
The two types of options are calls and puts:

A call gives the holder the right to buy an asset at a certain price within a specific period of time. Calls
are similar to having a long position on a stock. Buyers of calls hope that the stock will increase
substantially before the option expires.

A put gives the holder the right to sell an asset at a certain price within a specific period of time. Puts
are very similar to having a short position on a stock. Buyers of puts hope that the price of the stock will
fall before the option expires.

Participants in the Options Market
There are four types of participants in options markets, depending on the position they take:

1. Buyers of calls
2. Sellers of calls
3. Buyers of puts
4. Sellers of puts

People who buy options are called holders and those who sell options are called writers; furthermore,
buyers are said to have long positions, and sellers are said to have short positions.

Here is the important distinction between buyers and sellers:
-Call holders and put holders (buyers) are not obligated to buy or sell. They have the choice to exercise
their rights if they choose.
-Call writers and put writers (sellers), however, are obligated to buy or sell. This means that a seller may
be required to make good on a promise to buy or sell.

Don't worry if this seems confusing - it is. For this reason we are going to look at options from the point
of view of the buyer. Selling options is more complicated and can be even riskier. At this point, it is
sufficient to understand that there are two sides of an options contract.
                                                                                                                        7|P a g e

This document and the contents herein are the intellectual property of Davies Capital Management, LLC. Duplication or
redistribution of this document or its contents is prohibited without the written consent by Davies Capital Management, LLC. © 2012
The Lingo

To trade options, you'll have to know the terminology associated with the options market.

The price at which an underlying stock can be purchased or sold is called the strike price. This is the price
a stock price must go above (for calls) or go below (for puts) before a position can be exercised for a
profit. All of this must occur before the expiration date.

An option that is traded on a national options exchange such as the Chicago Board Options
Exchange (CBOE) is known as a listed option. These have fixed strike prices and expiration dates. Each
listed option represents 100 shares of company stock (known as a contract).

For call options, the option is said to be in-the-money if the share price is above the strike price. A put
option is in-the-money when the share price is below the strike price. The amount by which an option is
in-the-money is referred to as intrinsic value.

The total cost (the price) of an option is called the premium. This price is determined by factors including
the stock price, strike price, time remaining until expiration (time value) and volatility. Because of all
these factors, determining the premium of an option is complicated and beyond the scope of this
information.




Benefits of Investing in Davies Capital Management,
LLC

It is the intentions of the Board of Directors of Davies Capital Management, LLC to strive to see that
each investor’s principal investment is returned within a reasonable time period. The Board of Directors
intends to accomplish this by providing its first dividend payment to investors ONLY within the first 2
months of Private Placement selling out. The dividends will come from several revenue areas such as:

     •    Dividends                                          (short term side of investment/returns)
     •    Increase in value of membership units               (long term side of investment/ returns)


When each investor’s principal investment has been returned, then and only then will the Company’s
managing member(s) and directors receive any form of dividend from their shares owned. The Board
fully intends to provide dividend payments monthly to all investors.

                                                                                                                        8|P a g e

This document and the contents herein are the intellectual property of Davies Capital Management, LLC. Duplication or
redistribution of this document or its contents is prohibited without the written consent by Davies Capital Management, LLC. © 2012
Marketing

Seminars & Webinars

Scott Davies intends to develop a full course to teach people everything they will need to know in order
to be able to trade the market and have the same success he has achieved.


This course will start with the basics of the stock market and trading options, using advanced option
trading strategies, and the countermoves every trader that trades these types of strategies must know
in order to succeed.


Scott will also put together an additional course on the Powershare QQQ ETF (Exchange Traded Fund).
This course will teach people how just a 10 cent move per day can make 1,000’s of dollars in profits.
What exactly the QQQ is, and how to trade it inter-day for a simple 10 cent ($1,000.00 ) move or swing
trade it for even bigger profits.


Scott preferred method of teaching the classes is through webinars. This will enable him to keep the
cost for the courses lower then if they were held in seminar format at a live location. The webinars will
also allow him to teach in smaller groups. This way he can be assured that every student understands
the material and has any questions answered.


Scott will hold some classes in seminar format each year, but the price for the live seminars will be
higher and the venue/ class size will be larger. The seminars will cover the same materials as the
webinars.


Lecturing

Scott Davies will lecture on the history of the stock market, why it is better to be a trader vs. an
Investor in the market, and various other relevant market subjects. During the past year, Scott has held
weekly meetings with associates to discuss the market in terms of future prospective trades, currently
open trades, and the effects of the U.S and global economies on the market.




                                                                                                                        9|P a g e

This document and the contents herein are the intellectual property of Davies Capital Management, LLC. Duplication or
redistribution of this document or its contents is prohibited without the written consent by Davies Capital Management, LLC. © 2012
Management
Scott Davies, Managing Member

Even with adverse conditions associated with trading in the stock market, Scott Davies has proven his
marketing trading strategies are highly successful, with increases in excess of 80% over the past 12
months. Scott has a keen understanding of various methodologies and practices of trading and uses
them daily. He has successfully studied and selected stocks that benefit the Company’s portfolio.

Scott Davies established Davies Capital Management, LLC in April of 2009 for the purposes of trading
stock options with various associates supporting and backing his trades. Scott is sought after for
guidance and advice concerning his own trading style, which has proven profitable over the years.




                                                                                                                      10 | P a g e

This document and the contents herein are the intellectual property of Davies Capital Management, LLC. Duplication or
redistribution of this document or its contents is prohibited without the written consent by Davies Capital Management, LLC. © 2012

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Executive Summary

  • 1. DAVIES CAPITAL MANAGEMENT, LLC Executive Summary EXPANDED Executive Summary (Expanded) Davies Capital Management, LLC, a Florida Limited Liability Company, formed to provide a trading syndicate group.
  • 2. Table of Contents What is a Private Placement Offering? Page 3 Business Description Page 4 Investment Summary Page 4 Financial Projections Page 5 Company Background Page 5 What Are Options Page 6 Calls and Puts Page 7 The Lingo Page 8 Benefits of Investing Page 9 Marketing Page 9 Management Member Page 10 2|P a g e This document and the contents herein are the intellectual property of Davies Capital Management, LLC. Duplication or redistribution of this document or its contents is prohibited without the written consent by Davies Capital Management, LLC. © 2012
  • 3. What is a Private Placement Offering? The term “private placement” as used in this text refers to the offer and sale of any security of a company or brokerage firm not involving a public offering. Private offerings are not the subject of a registration statement filed with the SEC under the 1933 Act. The private placement memorandum provides an exemption to the SEC Regulations. According to Thompson Financial, over $600 billion was issued in 2007 through the private placement market. Experts in the field predict that number could easily be in excess of $1 trillion today. Does investing in a private placement offering really earn money for the investor? Study the chart below and you be the judge. 3|P a g e This document and the contents herein are the intellectual property of Davies Capital Management, LLC. Duplication or redistribution of this document or its contents is prohibited without the written consent by Davies Capital Management, LLC. © 2012
  • 4. Business Description Davies Capital Management, LLC intends to assemble highly qualified individuals who have a successful track record in online trading to research and recommend the companies that have the highest potential for immediate returns. To achieve our goals, the Company is raising $1,000,000 through its private placement offering with selected private investors who will function as a syndicate group of investors. The stock options we select to trade conform to several requirements that must be met before we will trade them. We look for good income producing stock options, which generate the company profit on a monthly basis. We then keep a portion of the monthly profits in the trading account, thus increasing our profits or returns on investment (ROI) the next month. Website: www.daviescapitalmanagement.com Phone: 225.421.9704 Investment Summary Funding Sought: $1,000,000 Incorporated: April 23, 2009 In accordance with the Securities & Exchange Commission regulations, Davies Capital Management, LLC has prepared a private placement offering for the sale of its units for $0.01 a unit with 100,000,000 units available. The offer is ONLY made by prospectus to either accredited or non-accredited private investors. The Company offers a minimum of 1,000,000 shares or $10,000 to each private investor. Revenue from the sale of all units is intended to be used for options trading. With a $1,000,000 investment, and based on the following financial projections, Davies Capital Management, LLC could be profitable within the following year. The Company will likely be valued above $9,000,000 within 3 years. 4|P a g e This document and the contents herein are the intellectual property of Davies Capital Management, LLC. Duplication or redistribution of this document or its contents is prohibited without the written consent by Davies Capital Management, LLC. © 2012
  • 5. FINANCIAL PROJECTIONS 2012 2013 2014 1,000,000.00 2,400,000 6,552,000 Total Income 1,400,000.00 4,152,000 9,008,000 USE OF PROCEEDS Items & Description Costs Preparation of Private Placement Memorandum $10,000.00 Commissions $100,000.00 Proceeds for Trading Stocks and Options $890,000.00 Totals $1,000,000 Company Background Davies Capital Management, LLC was formed as a Florida Limited Liability Company on April 23, 2009 with headquarters located in Baton Rouge, Louisiana. The managing member and president of Davies Capital Management is Scott Davies. Scott has been trading the stock market using options successfully for several years. During this time Scott has developed a true passion for the markets which has led him into the field of instructing and teaching various individuals how to trade the market using his trading strategies. Because of the successes in his trades, Scott formed Davies Capital Management in 2009 specifically for the purpose of providing and building an investment syndicate group to trade in larger volumes. Today, many investors' portfolios include investments such as mutual funds, stocks and bonds. But the variety of securities available does not end there. Another type of security, called an option, presents a world of opportunity to sophisticated investors. The power of options lies in their versatility. Options enable the trader to adapt or adjust positions according to any situation that arises. Options can be as speculative or as conservative as desired. This means the trader can do everything from protecting a position from a decline to outright betting on the movement of a market or index. 5|P a g e This document and the contents herein are the intellectual property of Davies Capital Management, LLC. Duplication or redistribution of this document or its contents is prohibited without the written consent by Davies Capital Management, LLC. © 2012
  • 6. This versatility, however, does not come without its costs. Options are complex securities and can be extremely risky. This is why, when trading options, a disclaimer like the following is stated: “Options involve risks and are not suitable for everyone. Option trading can be speculative in nature and carry substantial risk of loss. Only invest with risk capital.” Despite what anyone says, option trading involves risk, especially if the trader doesn’t know what he’s doing. Because of this, many people suggest steering clear of options. On the other hand, being ignorant of any type of investment places a trader in a weak position. Perhaps the speculative nature of options doesn't fit the style of a particular trader. No problem – join Davies Capital Management, LLC as a member and allow the Company to speculate in options on your behalf. What Are Options? An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specific price on or before a certain date. An option, just like a stock or bond, is a security. It is also a binding contract with strictly defined terms and properties. Still confused? The idea behind an option is present in many everyday situations. Say, for example, that you discover a house that you'd like to purchase. Unfortunately, you won't have the cash to buy it for another three months. You talk to the owner and negotiate a deal that gives you an option to buy the house in three months for a price of $200,000. The owner agrees, but for this option, you pay a price of $3,000. Now, consider two theoretical situations that might arise: 1. It is discovered that the house is actually the true birthplace of Elvis! As a result, the market value of the house skyrockets to $1 million. Because the owner sold you the option, he is obligated to sell you the house for $200,000. In the end, you stand to make a profit of $797,000 ($1 million - $200,000 - $3,000). 2. While touring the house, you discover not only that the walls are full of asbestos, but also that the ghost of Henry VII haunts the master bedroom; furthermore, a family of super-intelligent rats have built a fortress in the basement. Though you originally thought you had found the house of your dreams, you now consider it worthless. On the upside, because you bought an option, you are under no obligation to go through with the sale. Of course, you still lose the $3,000 price of the option. 6|P a g e This document and the contents herein are the intellectual property of Davies Capital Management, LLC. Duplication or redistribution of this document or its contents is prohibited without the written consent by Davies Capital Management, LLC. © 2012
  • 7. This example demonstrates two very important points. First, when you buy an option, you have a right but not an obligation to do something. You can always let the expiration date go by, at which point the option becomes worthless. If this happens, you lose 100% of your investment, which is the money you used to pay for the option. Second, an option is merely a contract that deals with an underlying asset. For this reason, options are called derivatives, which means an option derives its value from something else. In our example, the house is the underlying asset. Most of the time, the underlying asset is a stock or an index. Calls and Puts The two types of options are calls and puts: A call gives the holder the right to buy an asset at a certain price within a specific period of time. Calls are similar to having a long position on a stock. Buyers of calls hope that the stock will increase substantially before the option expires. A put gives the holder the right to sell an asset at a certain price within a specific period of time. Puts are very similar to having a short position on a stock. Buyers of puts hope that the price of the stock will fall before the option expires. Participants in the Options Market There are four types of participants in options markets, depending on the position they take: 1. Buyers of calls 2. Sellers of calls 3. Buyers of puts 4. Sellers of puts People who buy options are called holders and those who sell options are called writers; furthermore, buyers are said to have long positions, and sellers are said to have short positions. Here is the important distinction between buyers and sellers: -Call holders and put holders (buyers) are not obligated to buy or sell. They have the choice to exercise their rights if they choose. -Call writers and put writers (sellers), however, are obligated to buy or sell. This means that a seller may be required to make good on a promise to buy or sell. Don't worry if this seems confusing - it is. For this reason we are going to look at options from the point of view of the buyer. Selling options is more complicated and can be even riskier. At this point, it is sufficient to understand that there are two sides of an options contract. 7|P a g e This document and the contents herein are the intellectual property of Davies Capital Management, LLC. Duplication or redistribution of this document or its contents is prohibited without the written consent by Davies Capital Management, LLC. © 2012
  • 8. The Lingo To trade options, you'll have to know the terminology associated with the options market. The price at which an underlying stock can be purchased or sold is called the strike price. This is the price a stock price must go above (for calls) or go below (for puts) before a position can be exercised for a profit. All of this must occur before the expiration date. An option that is traded on a national options exchange such as the Chicago Board Options Exchange (CBOE) is known as a listed option. These have fixed strike prices and expiration dates. Each listed option represents 100 shares of company stock (known as a contract). For call options, the option is said to be in-the-money if the share price is above the strike price. A put option is in-the-money when the share price is below the strike price. The amount by which an option is in-the-money is referred to as intrinsic value. The total cost (the price) of an option is called the premium. This price is determined by factors including the stock price, strike price, time remaining until expiration (time value) and volatility. Because of all these factors, determining the premium of an option is complicated and beyond the scope of this information. Benefits of Investing in Davies Capital Management, LLC It is the intentions of the Board of Directors of Davies Capital Management, LLC to strive to see that each investor’s principal investment is returned within a reasonable time period. The Board of Directors intends to accomplish this by providing its first dividend payment to investors ONLY within the first 2 months of Private Placement selling out. The dividends will come from several revenue areas such as: • Dividends (short term side of investment/returns) • Increase in value of membership units (long term side of investment/ returns) When each investor’s principal investment has been returned, then and only then will the Company’s managing member(s) and directors receive any form of dividend from their shares owned. The Board fully intends to provide dividend payments monthly to all investors. 8|P a g e This document and the contents herein are the intellectual property of Davies Capital Management, LLC. Duplication or redistribution of this document or its contents is prohibited without the written consent by Davies Capital Management, LLC. © 2012
  • 9. Marketing Seminars & Webinars Scott Davies intends to develop a full course to teach people everything they will need to know in order to be able to trade the market and have the same success he has achieved. This course will start with the basics of the stock market and trading options, using advanced option trading strategies, and the countermoves every trader that trades these types of strategies must know in order to succeed. Scott will also put together an additional course on the Powershare QQQ ETF (Exchange Traded Fund). This course will teach people how just a 10 cent move per day can make 1,000’s of dollars in profits. What exactly the QQQ is, and how to trade it inter-day for a simple 10 cent ($1,000.00 ) move or swing trade it for even bigger profits. Scott preferred method of teaching the classes is through webinars. This will enable him to keep the cost for the courses lower then if they were held in seminar format at a live location. The webinars will also allow him to teach in smaller groups. This way he can be assured that every student understands the material and has any questions answered. Scott will hold some classes in seminar format each year, but the price for the live seminars will be higher and the venue/ class size will be larger. The seminars will cover the same materials as the webinars. Lecturing Scott Davies will lecture on the history of the stock market, why it is better to be a trader vs. an Investor in the market, and various other relevant market subjects. During the past year, Scott has held weekly meetings with associates to discuss the market in terms of future prospective trades, currently open trades, and the effects of the U.S and global economies on the market. 9|P a g e This document and the contents herein are the intellectual property of Davies Capital Management, LLC. Duplication or redistribution of this document or its contents is prohibited without the written consent by Davies Capital Management, LLC. © 2012
  • 10. Management Scott Davies, Managing Member Even with adverse conditions associated with trading in the stock market, Scott Davies has proven his marketing trading strategies are highly successful, with increases in excess of 80% over the past 12 months. Scott has a keen understanding of various methodologies and practices of trading and uses them daily. He has successfully studied and selected stocks that benefit the Company’s portfolio. Scott Davies established Davies Capital Management, LLC in April of 2009 for the purposes of trading stock options with various associates supporting and backing his trades. Scott is sought after for guidance and advice concerning his own trading style, which has proven profitable over the years. 10 | P a g e This document and the contents herein are the intellectual property of Davies Capital Management, LLC. Duplication or redistribution of this document or its contents is prohibited without the written consent by Davies Capital Management, LLC. © 2012