Meeting Minutes of January 9, 2007

Opening

Lynn Ostrem called the meeting of the Crow River Investment Club to order at 6:33 pm on January 9, 2007. Beth Silverwater attended her second regular meeting as a guest.

Secretary’s Report

The minutes of the December 12, 2006 meeting were approved as posted.

Treasurer’s Report

Craig made a dues deposit totaling $330 and transferred $500 to the brokerage account, leaving an ending bank balance of $24.79.

Craig bought 16 shares of Knight Transportation totaling $286.79 and 10 shares of PetSmart totaling $296.05. Craig sold 38 shares of Biomet for proceeds of $1,568.10. We received $500 in a transfer from the bank account, cash dividends of $4.82, and interest income of $1.24, leaving an ending brokerage account balance of $1,616.26.

Audit Committee

A committee comprised of Craig, Lynn and Kim will audit the club books in February 2007. K-1 Partnership Forms for the 2006 tax year will be prepared at that time.

Nominating Committee Chair

Diane volunteered to be Nominating Committee Chair and will ask for our input about the slate of officers for 2007.

Meeting Agenda

A motion was made and seconded to remove NAIC events from the meeting agenda.

New Stock Presentation

Sheryl gave a new stock presentation on Graco (NYSE: GGG). Graco supplies fluids handling equipment for various commercial and industrial applications. The question was posed as to why she would present a stock with a 7% projected sales growth rate and a 6% projected annual return? To analyze Graco, Sheryl did not use ten-year historical data because she believes it misrepresents where the company is headed. Instead, she used five-year historical data to complete the SSG for Graco. Graco has a highly efficient business model and sports a gross margin that is unmatched by any of its competitors. Sheryl recommends a buy at current valuation levels.

Quarterly Stock Reports

Bed Bath & Beyond is a best of breed-company in the not so favored home furnishings sector. Waning institutional sponsorship, potential market saturation and options compensation charges have all contributed to downward pressure on the stock price. The feeling is that the days of high-octane growth are over. Accordingly, the company has set conservative sales and earnings growth rates of 10% for fiscal 2008. The company will use its substantial cash reserves to buy back $1 billion of its common stock. Marion recommends a hold.

FactSet Research continues to impress with 21% growth in revenues and 24% growth in earnings per share in the first quarter ended November 30, 2006. Revenues from non-US operations increased 28% to $32 million. Client count totaled 1,830 at quarter end, a net increase of 45 clients. Craig recommends a hold based on current valuation.

Walgreen’s opened an unprecedented 143 new stores in the first quarter and is well on its way toward opening 500 new stores in 2007. The growth in generic drug sales and the 60 basis point rise in margins were partly offset by lower margins in the Medicare Par D program and an overall sales shift toward the pharmacy business. Though Walgreen’s earns less money on Medicare Part D prescriptions, it has attracted more seniors to its pharmacies. Walgreen’s is unique in its industry in its ability to take advantage of higher prescription demand through organic store growth. Lynn recommends a buy.

Portfolio Activity

A motion was made and seconded to buy $500 of Knight Transportation and $500 of Walgreen’s.

Education

In lieu of a formal education program Lynn asked for our input on what topics we’d like presented during the 2007 calendar year.

·        Getting the most out of conference calls

·        When should we sell stocks in the club portfolio?

·        Help with judgments on the Stock Selection Guide

Carole will post the club portfolio one week prior to the regular club meeting and members will print their own copies of the PERT. Craig will continue to provide a valuation statement at each regular club meeting.

Assignments for the February meeting:

1. All members are to complete their due diligence for Graco (NYSE: GGG).

2. Members are asked to post Issues and Goals for 2007 to the Crowriver website. Also, members should come with ideas for social events.

3. Quarterly stock reports are due for Commerce Bancorp (Sheryl), Coach (Kim), Hydril (Diane) and Knight Transportation (Josh).

4. Craig will buy $500 of Knight Transportation and $500 of Walgreen’s.

5. Mike will give a new stock presentation on Stryker (NYSE: SYK) in March.

6. Marion and Josh will be absent from the February Annual Meeting but will submit proxies and dues payment prior to the meeting date.

7. And everyone will print the Pert from the Club’s website and bring it to the next meeting.

Adjournment

The meeting was adjourned at 8:45 pm.

Sheryl A Sostarich, Secretary

The Annual meeting of the Crow River Investment Club will be at Lynn’s in St. Michael on February 13, 2007.

Meeting Minutes of February 13, 2007

Opening

Lynn Ostrem called the meeting of the Crow River Investment Club to order at 6:35 pm on February 13, 2007.

Secretary’s Report

The minutes of the January 9, 2007 meeting were approved as posted.

Treasurer’s Report

Craig made a dues deposit totaling $430, leaving an ending bank balance of $454.79.

Craig bought 27 shares of Knight Transportation totaling $485.39 and 10 shares of Walgreen totaling $466.05. We received cash dividends of $10.82 and interest income of $1.52, leaving an ending brokerage account balance of $677.16.

Audit Committee

The Audit committee comprised of Craig, Lynn and Kim met on February 7, 2007. The tax audit for 2006 was completed and K-1 Partnership Forms were mailed.

Annual Meeting

A motion was made and seconded to elect the following Slate of Officers for 2007:
Diane Windingland, President; Lynn Ostrem, Vice President & Education Chair; Sheryl Sostarich, Secretary, and Craig Block, Treasurer. The motion passed unanimously.

A motion was made and seconded to elect Carole Ripplinger as Portfolio Manager and Kim Windingland as Co-Portfolio Manager. The motion passed unanimously.

Sheryl reviewed the Partnership Agreement and recommended no changes for 2007.

There were no unresolved Issues. There was concern that not all members were analyzing stocks using the same investment tools, however, Diane and Kim have installed and are now using their Toolkit software.

A motion was made, seconded, and passed to adopt the following Goals for 2007:

1. Develop a succession plan for officers.

2. Create a Training Manual for new members.

3. Bring all members up to the same level with investment tools.

4. Increase membership to 12.

A motion was made, seconded, and passed to schedule the following Social Events for 2007. Food is a top priority.

1. Crow River Investment Club will host a Manifest Investing seminar on April 26, 2007.

2. Members only pot luck at a club meeting.

3. Summer Barbecue and/or Black Powder Keg Party

New Stock Presentation

No new stock presentations are scheduled until March.

Quarterly Stock Reports

Commerce Bancorp has been challenged along with all banks in this unfavorable interest rate environment. Net interest margin is still slipping and a turnaround does not appear imminent. The bank is once again dealing with corporate governance issues in a suit filed by the Office of the Comptroller of Currency and the Federal Reserve Board and this is a distraction to daily operations. The upside potential appears limited while the downside risk appears high. Sheryl recommends we sell.

Coach reported its strongest holiday quarter ever. Coach has broadened its product line and consumers are buying the new styles. The company is set to launch a proprietary fragrance line. The company has raised its 2007 guidance to 25% net sales growth and 34% earnings per share growth. Kim has chosen judgments as follows: 20% sales growth, 18% EPS growth, high P/E of 30, and low P/E of 16.2. Kim recommends a hold based on current valuation.

Hydril has agreed to a buyout bid from Tenaris SA. Should the deal go through shareholders of Hydril would receive $97 in cash for each share of Hydril they own. Most analysts concur that there won’t be any competing bids for Hydril and have downgraded Hydril based on valuation. Diane recommends we sell. Current price: $95

Portfolio Activity

A motion was made and seconded to sell Commerce Bancorp and Hydril.

Assignments for the March meeting:

1. Mike will give a new stock presentation on Stryker (NYSE: SYK) in March.

2. Members are to bring at least one idea [they plan to implement] for recruiting new members.

3. Quarterly stock reports are due for PetSmart (Sheryl), Lowe’s (Carole), Wal-Mart (Mike) and Knight Transportation (Josh).

4. Craig will sell Commerce Bancorp and Hydril.

Adjournment

The meeting was adjourned at 8:30 pm.

Sheryl A Sostarich, Secretary

The next meeting will be at Lynn’s in St. Michael on March 13, 2007.

Meeting Minutes of March 13, 2007

Opening

Diane Windingland called the meeting of the Crow River Investment Club to order at 6:30 pm on March 13, 2007. Beth Silverwater attended her third regular meeting and can submit an application to join the club. Diane welcomed new guests; namely, Ron Thorson, Traci Jo Lindow, and Dan Vitez.

Secretary’s Report

The minutes of the February 13, 2007 meeting were approved as posted.

Treasurer’s Report

Craig made a dues deposit totaling $230, leaving an ending bank balance of $684.79.

Craig sold 42 shares of Commerce Bancorp for proceeds of $1,423.52 and 10 shares of Hydril for proceeds of $943.12. We received cash dividends of $4.10 and interest income of $1.31, leaving an ending brokerage account balance of $3,049.21.

Unfinished Business

Mark Robertson is working on his presentation for the Manifest Investing seminar in late April. Reservations are slowly coming in.

Each club member will work to recruit new members as follows:

1. Diane will include Crow River Investment Club as part of her signature email. She will submit

    an article and club member photos to a community newspaper.

2. Carole will post membership postcards in area restaurants.

3. Craig suggests a posting on Craig’s list.

4. Lynn has already had several hits by posting our club on meetup.com

5. Marion will hand out membership postcards at the Investors Fair.

6. Sheryl will talk up the Crow River Investment Club to her broker and at AAII events.

7. Kim will present his recruitment speech at Toastmasters meetings.

8. Mike has a contact at work that is interested in our club.

Social Activities

At our May meeting, set a date for a Summer Barbecue to be held at a member’s home.

Club Goals for 2007

Work on an action plan for achieving our four club goals; perhaps assign committees or task groups to meet the third-Thursday of the month or when convenient. It appears we are well on our way to increasing our membership to 12.

New Stock Presentation

Mike gave a comprehensive report on Stryker, with compelling reasons to add Stryker to our portfolio. Stryker sells a broad range of orthopedic devices and has a consistent record of double-digit earnings growth. We looked at the SSG as a group to come up with judgments as follows: 13.5% sales growth, 20% EPS growth, high P/E of 27.7, low P/E of 19.7, and forecast low price of $39.80.

Quarterly Stock Reports

Knight Transportation missed fourth quarter consensus estimates by 2 cents per share. Knight continues to be challenged by high fuel costs and a tight labor market. The company expects its refrigerated unit to be accretive to earnings in 2007. Despite high costs, Knight posted an impressive gross margin of 78.4%. The carrier expects 10% to 15% fleet growth in the medium to long term. Most analysts feel that Knight will struggle absent a major acquisition. Josh has lowered judgments on the SSG for Knight to 14% sales growth, 13% EPS growth, high P/E of 24, low P/E of 11, forecast low price of $9.20. Josh recommends a hold.

Lowe’s sales continued to be pressured by a slowing housing market, tough comparisons to last year’s hurricane recovery, and a significant deflation in lumber and plywood prices. Management is seeing indications that sales trends have bottomed and believes that same-stores sales growth will gradually recover during 2007. In the latest quarter, inventories rose 7.7% while sales declined 3.7%. Carole has lowered judgments on the SSG for Lowe’s to 10.5% sales growth, 9.9% EPS growth, high P/E of 21, and low P/E of 13. Carole recommends a hold.

PetSmart has taken some initiatives that bode well for higher growth in fiscal 2008. The company is exiting the State Line Tack horse business. It will replace the equestrian products square footage with higher margin products and/or pet hotels. Despite high inventory levels, management doesn’t see any need for markdowns. PetSmart opened 82 net new stores in 2006 and is on target to open 100 net new stores in 2007. The company recently purchased 19 stores in Canada with plans for more expansion in Canada. The services business (grooming, training, pet hotels and day camps) grew by 26% in 2006. Many pet hotels are fully booked through the holiday season, alas fido and tomcat will have a hard time finding a room at the inn. Sheryl recommends a buy.

Wal-Mart’s fiscal fourth quarter profit rose 10.7%, or 3 cents better than consensus estimates. That growth was fueled primarily by a 30% rise in international sales, credited to acquisitions in Japan, Brazil, and Central America. Wal-Mart’s net sales for fiscal 2007 climbed 12%; this marks the first year since 2000 that the company’s sales growth hasn’t slowed. Wal-Mart will remodel 325 US stores this year versus 322 last year. First quarter 2008 same-store sales are expected to rise 1% to 3%. Mike has requested that we review the SSG for Wal-Mart as a group.

Portfolio Activity

A motion was made and seconded to add an initial stake in Stryker at $1,500 and Portfolio Recovery Associates at $500, and add another $500 of PetSmart to our current holdings.

Education Session

Lynn presented the topic Getting Everyone on the Same Page. She walked us through the steps to download the club library and showed us how to update the club portfolio using Toolkit. She gave us helpful information for listening to conference calls and showed us a simple way to access Morningstar reports.

New Stock Watcher

Diane Windingland is the new stock watcher for Bed Bath & Beyond. Marion volunteered to be the stock watcher for Stryker.

Assignments for the April meeting:

1. Sheryl will give a new stock presentation on Wells Fargo (NYSE: WFC).

2. Review the SSG for Wal-Mart as a group.

3. Quarterly stock reports are due for Bed Bath & Beyond (Diane), FactSet Research (Craig), and Walgreen (Lynn).

4. Craig will buy $500 of PetSmart, $500 of Portfolio Recovery Associates and $1,500 of Stryker.

5. Lynn will lead the April meeting in Diane’s absence.

6. Proxies, dues, and quarterly stock reports from Diane, Kim and Josh should be submitted prior to the April meeting.

7. Choose a stock watcher for Portfolio Recovery Associates.

8. Lynn’s education segment will begin our study of Sectors and Sector Rotation

Adjournment

The meeting was adjourned at 8:30 pm.

Sheryl A Sostarich, Secretary

The next meeting will be at Lynn’s in St. Michael on April 10, 2007.

Meeting Minutes of April 10, 2007

Opening

Lynn Ostrem called the meeting of the Crow River Investment Club to order at 6:35 pm on April 10, 2007. Ron Thorson and Dan Vitez attended their second regular meeting and submitted applications to join the club.

Secretary’s Report

The minutes of the March 13, 2007 meeting were approved as posted.

Treasurer’s Report

Craig made a dues deposit totaling $440, leaving an ending bank balance of $1,124.79.

Craig bought 11 shares of Portfolio Recovery Associates for $485.12 and 16 shares of PetSmart for $486.47 and 23 shares of Stryker for $1,472.28. We received cash dividends of $7.15 and interest income of $4.60, leaving an ending brokerage account balance of $617.09.

Unfinished Business

Mark Robertson has chosen his topic for the Manifest Investing seminar in late April. Reservations are pouring in and the event is likely to draw a capacity crowd.

Update on recruiting efforts:

1. Diane has published an article with club member photos in a community newspaper.

2. Carole posted membership postcards at Panera Bread in Elk River and they are disappearing as fast as she can tack them up.

3. Lynn has removed our club posting from meetup.com

4. Marion and Kim will hand out membership postcards at the Investors Fair.

Club members were reminded of the Investors Fair to be held on April 27 and 28 at the Earle Brown Heritage Center in Brooklyn Center. The event offers the opportunity to learn NAIC investing philosophy and talk with company representatives at the exhibitors’ gallery. Mark Robertson is the keynote speaker at this year’s event.

Social Activities

At our May meeting, set a date for a Summer Barbecue to be held at a member’s home.

New Stock Presentation

Sheryl gave a comprehensive report on Wells Fargo, with compelling reasons to add Wells Fargo as a core holding. Wells Fargo, with its large mortgage portfolio, is not immune to problems with subprime loans. The bank has tightened its risk management practices and will further diversify its loan portfolio. Though it is not the ideal time to buy financial stocks, when the Federal Reserve (Uncle Ben) is raising interest rates, Sheryl urged us not to shun the financial sector. We agreed with the judgments chosen by Sheryl as follows: 10% sales growth, 11% EPS growth, high P/E of 15.5, low P/E of 12.5, and average five-year low price of $25.70. Sheryl recommends a buy below $35.40.

Quarterly Stock Reports

FactSet Research is so consistent in reporting double-digit sales and earnings gains that we’d be shocked if the company were to report poor results. For the quarter ended February 28, 2007 revenues increased 24% while earnings per share increased by 37%. Revenues from non-US operations increased 30% to $34 million. The company has doubled its quarterly dividend to 12 cents per share and increased its share repurchase program by $100 million. Craig recommends a hold based on current valuation.

Walgreen’s continues to impress with 14.6% growth in revenues and 24.7% growth in earnings in the second quarter ended February 28, 2007. Walgreen’s achieved these results in spite of competitive pressures from Wal-Mart and other merchandisers who are trying to seize market share. Walgreen is on track to reach a maximum store count of 7,000 by the year 2010. Lynn recommends a strong buy.

Portfolio Activity

A motion was made and seconded to take an initial stake in Wells Fargo at $1,000 and Fastenal at $500 and add to our holding in Walgreen at $1,000. We also agreed to sell Bed Bath & Beyond and reduce our holding in Coach by $1,000.

Education Session

Sheryl presented the topic Investing with Exchange Traded Funds. She talked briefly about the advantages and disadvantages of owning exchange traded funds. She provided a handout for building a model portfolio with exchange traded funds.

New Stock Watcher

Diane Windingland is the new stock watcher for Fastenal. Sheryl volunteered to be the stock watcher for Portfolio Recovery Associates.

Assignments for the May meeting:

1. Craig will give a new stock presentation on Infosys Technologies (Nasdaq: INFY).

2. Quarterly stock reports are due for Coach (Kim), Fastenal (Diane), Knight Transportation (Josh), Portfolio Recovery & Wells Fargo (Sheryl) and Stryker (Marion).

3. Craig will buy $1,000 of Wells Fargo, $500 of Fastenal, and $1,000 of Walgreen. Craig will sell Bed Bath & Beyond and reduce our holding in Coach by $1,000.

4. Lynn will meet with Ron Thorson and Dan Vitez for a pre-orientation session.

5. The final interview will be conducted for prospective members, Ron Thorson and Dan Vitez. All members are to review their applications prior to the May meeting.

6. Members are to post July and August dates they are available for a barbecue.

7. Lynn’s education segment will begin our study of Sector Analysis.

Adjournment

The meeting was adjourned at 8:43 pm.

Sheryl A Sostarich, Secretary

The next meeting will be at Lynn’s in St. Michael on May 8, 2007.

Meeting Minutes of May 8, 2007

Opening

Diane Windingland called the meeting of the Crow River Investment Club to order at 6:30 pm on May 8, 2007. Ron Thorson, Dan Vitez and Beth Silverwater attended their third regular meeting and have met the requirements for joining the club. Steve Smith and Eric Chlan attended their first regular meeting as guests.

Special Presentation

Lynn Ostrem was singled-out for her many contributions to the Crow River Investment Club and presented with a MadMoney mug.

Secretary’s Report

The minutes of the April 10, 2007 meeting were approved as posted.

Treasurer’s Report

Craig made a dues deposit totaling $220, leaving an ending bank balance of $1,344.79.

Craig bought 14 shares of Fastenal for $496.39 and 29 shares of Wells Fargo for $999.62 and 21 shares of Walgreen for $973.37. Craig sold 26 shares of Bed Bath & Beyond for proceeds of $1,053.83 and 20 shares of Coach for proceeds of $1,018.83. We received cash dividends of $7.04 and interest income of $1.66, leaving an ending brokerage account balance of $229.07.

 New Business

Lynn met with Ron Thorson, Dan Vitez, and Beth Silverwater for a pre-orientation meeting. Their applications were sent to the current club members for review. We conducted a round table interview of these prospective members.

Ron Thorson indicated that he would like to learn more about technical analysis. He liked the club’s emphasis on education. He didn’t foresee any problem with devoting four hours per month to club assignments and duties.

Dan Vitez is feeling a little overwhelmed being a beginner to investing. He also liked the club’s emphasis on education and would like training on the software. When asked about his attendance at meetings Dan replied. “This is the busy season, he is working 7 days per week as a landscaper, but as he pointed out, he did make the meeting on-time.”

Beth Silverwater is also an active member of another investment club, which is more socially oriented. She feels that the Crow River Investment Club offers a much better learning environment. She does not feel that her other volunteer activities will prevent her from being an active member of the Crow River Investment Club.

Amendment to Partnership Agreement

A motion was made and seconded to change the Automatic Withdrawal clause, effective May 1, 2007, to read:

21. Automatic Withdrawal. Should a partner be delinquent in his or her monthly contributions for a period of 61 days, or miss more than three meetings out of 12 without consent of the majority of the partners, the account will be automatically terminated. The value of the partner’s capital account shall be determined and satisfied as described in Section 19. The motion passed unanimously.

Amendment to Operating Procedures

A motion was made and seconded to change the guidelines for writing and posting quarterly stock reports. The motion passed unanimously.

The stock watchers are to post their quarterly stock reports to the club’s message board prior to the club meeting, no later than valuation day. Guidelines for these reports are as follows:

1. Quarterly reports from the conference call and/ or company press release

2. Changes that have occurred since the last quarterly report

3. Relevant news that may affect our decision on the stock

4. Any indication of where future sales will come from

5. Risks that may affect the future performance of the stock (and ways management will try to control these risks)

6. Summary of the SSG, including any changes you are making, and why.

Stock watchers are to be prepared to discuss any changes since the last report, their SSG and their buy, hold or sell recommendation. Updated SSGs are to be submitted to the Portfolio Manager by the end of the month so PERTs can be prepared. Do not include your recommendation of buy, hold or sell on postings to the message board, but do include your recommendation in quarterly stock reports given to club members.

Social Activities

Our Summer Barbecue will be held on Saturday, August 4 at Carole Ripplinger’s home.

New Stock Presentation

Craig gave a new stock presentation on Infosys Technologies (INFY), a leading provider of business process outsourcing services. Infosys has experienced explosive growth in the past five years. The company has impressive fundamentals with no long-term debt. Risks to the business model include margin compression from the strength of the Indian rupee and competition for skilled workers. We chose judgments as a group as follows: 20% sales growth, 20% EPS growth, high P/E of 30, low P/E of 21, and forecast low price of $31.50.

Quarterly Stock Reports
 

Coach continued its robust 30% growth in revenues and 50% growth in earnings per share in the third quarter of 2007. Coach will add 40 retail stores in North America and 19 stores in Japan. The company is working to raise its brand awareness in China, Korea, and the Middle East. Kim believes that Coach is overvalued and recommends we hold through the seasonally strong fourth quarter.

Fastenal will adjust its strategy by opening fewer stores in 2007. Instead it will hire additional staff, remodel some existing stores, and work to increase its customer base. Piper Jaffray recently upgraded Fastenal to outperform and is impressed with the company’s expansion into Shanghai, China. Diane recommends a hold.

Knight Transportation reported double-digit revenue growth in the first quarter of 2007. This was achieved by fleet expansion, the acquisition of Roads West, and increased revenue per mile. Roads West operated at a lower profit margin than Knight and was slightly less accretive to earnings per share than Knight expected. Knight does believe that additional cost savings are achievable as the integration of Roads West progresses. Josh believes that Knight is fully valued and recommends a hold.

Portfolio Recovery Associates is in the right business at the right time. PRA acquired 26 pools of debt from 15 different sellers during the first quarter. The company collected $67.3 million in defaulted debt in the first quarter, an increase of 15%. Fee for service businesses saw revenue increase 43% to a record $8.5 million from the same period a year ago. Sheryl modified judgments on the SSG as follows: 13% sales growth, 13% EPS growth, high P/E of 19, low P/E of 10.5, forecast low price of $30.50. Sheryl recommends adding to our holding after payment of the special dividend and when the stock resumes trading a more normal volume.

Stryker continues to impress with 12.7% growth in revenues and 65% growth in earnings in the first quarter of 2007. The analysts generally feel that the company will use its excess capital for acquisitions rather than share repurchases. The company is forecasting 20% earnings growth in 2007 despite raising the prices of its orthopedic products sold in Japan. These results can also be achieved despite the delay in FDA approval of its proprietary bone growth compound OP-1. Marion recommends a hold.

Wells Fargo Bancorp continued to outperform with sales and earnings per share growth of 10%. Wells Fargo has the widest net interest margin among the largest bank holding companies. The bank has responded to the credit deterioration in subprime loans by tightening both its underwriting guidelines and terms of its loans. While these actions are likely to reduce the proportion of high-risk business in new originations, overall the unclosed applications pipeline of $57 billion is up $9 billion from the start of the quarter. The company has entered into a definitive agreement to acquire Greater Bay Bancorp, which will increase its customer base in San Francisco. Sheryl recommends a buy.

Portfolio Activity

A motion was made and seconded to buy an additional $300 of Wells Fargo and place a limit order of $50.50 per share (good until canceled) to buy an additional $300 of Portfolio Recovery Associates.

Education Session

Lynn gave an overview of Sector Analysis. She told us about various websites and investing services that tell us which sectors are in favor and which are not. For example, Manifest Investing publishes a dashboard of specialty exchange traded funds. BigCharts.com allows us to compare industries with their respective indexes. Value Line publishes a quarterly Sector Analysis Report. Lynn provided a handout to guide us in our study of sectors.

Assignments due interim the next meeting

Current club members are to cast new member email ballots for Ron Thorson, Dan Vitez and Beth Silverwater by Friday, May 11 at 5:00 pm. Also, current club members are asked to vote whether or not it is acceptable for Beth Silverwater to use Stock Analyst Plus in lieu of Toolkit software.

Assignments for the June meeting:

1. Marion will give a new stock presentation on Aflac (NYSE: AFL).

2. Quarterly stock reports are due for Lowe’s (Carole), PetSmart (Sheryl) and Wal-Mart (Mike).

3. Craig will buy $300 of Wells Fargo and place a limit order of $50.50 per share (good until canceled) to buy $300 of Portfolio Recovery Associates.

4. Members are to review Craig’s stock report for Infosys Technologies.

5. In the education segment, Lynn will explain how Money Flow and Relative Strength indicators can help us buy stocks at the right price.

Adjournment

The meeting was adjourned at 8:30 pm.

Sheryl A Sostarich, Secretary

The next meeting will be at Lynn’s in St. Michael on June 12, 2007.

Meeting Minutes of June 12, 2007

Opening

Diane Windingland called the meeting of the Crow River Investment Club to order at 6:30 pm on June 12, 2007. Steve Smith and Eric Chlan attended their second regular meeting and submitted applications for joining the club. Gerry Falkowski and Hossein Nahvi were welcomed as visitors from the Crosscroft Investment Club.

Special Provisions:

A vote was taken by email after the May 2007 meeting and Ron Thorson, Dan Vitez and Beth Silverwater were all elected as new members of the club. The members also voted to let Beth use Stock Analyst Plus in lieu of Toolkit software. Dan and Beth officially joined this month. Ron will officially join in July 2007 since he was on vacation.

Sheryl Sostarich has tendered her resignation from the Crow River Investment Club. The valuation date for determining her buyout is July 6, 2007. A motion was made and seconded to transfer FactSet Research shares in consideration of the buyout. The motion passed unanimously.

Secretary’s Report

The minutes of the May 8, 2007 meeting were approved as posted.

Treasurer’s Report

Craig made a dues deposit totaling $330 and transferred $1,000 to the brokerage account, leaving an ending bank balance of $674.79.

Craig bought 8 shares of Wells Fargo for $289.75. We received $1,000 in a transfer from the bank account and cash dividends of $4.58, leaving an ending brokerage account balance of $943.90.

Unfinished Business

Social Activities

Our Summer Barbecue will be held on Saturday, August 4 at Carole Ripplinger’s home. This year’s theme is tropical and the menu will be finalized at the July meeting.

Software Data Feeds

The Crow River Investment Club agreed in March to adopt Stock Central as its official data source. The Stock Central data feed cannot be used to update an SSG that was imported using the NAIC data feed. All members who have not done so should upload club libraries using the Stock Central data feed.

Teleconferencing

In May, we voted to change our bylaws so that members were required to attend at least 9 out of 12 meetings or risk being withdrawn.  This month, Lynn made a motion that teleconferencing should be considered an absence unless it's approved by the majority of the club prior to that meeting.  The motion went unopposed.

New Business

New Stock Presentation

Marion gave a new stock presentation on Aflac (AFL), the world’s leading provider of supplemental health and life insurance. Aflac has high brand awareness due to the immense success of the Aflac Duck marketing campaign that was launched in 2000. In addition to direct sales, Aflac will begin selling its products in several commercial banks in Japan. The company was found negligent in underpaying several insurance claims and is taking actions to improve its claims-paying function and win back consumers. We chose judgments as a group as follows: 8% sales growth, 13.5% EPS growth, high P/E of 16.7, low P/E of 14.1, and recent severe market low price of $35.50. The stock is in the hold range.

Quarterly Stock Reports

PetSmart is still reeling from a pet food recall unlike anything the industry has ever experienced. The biggest challenge is that of winning back customers. PetSmart is on target to exit the State Line Tack business by December 1, 2007. Higher margin pet products and/or pet hotels will replace the equine square footage. Sheryl recommends a hold.

Lowe’s continues to be impacted by the slowdown in construction and consumer spending. Lower sales and earnings will weigh on the stock price for the remainder of the year. Carole recommends a hold.

Wal-Mart reported first quarter sales growth of 8.3% and earnings growth of 6.3%. Wal-Mart will reduce its capital expenditures and scale back on store expansion. Several analysts have upgraded the stock to a buy in lieu of these expense controls. Mike modified judgments on the SSG as follows: 10% sales growth, 10% EPS growth, high P/E of 18, low P/E of 12, and forecast low price. Mike recommends a hold.

Portfolio Activity

A motion was made and seconded to buy an additional $500 of Wells Fargo and buy an initial stake of $500 in Infosys Technologies. The limit order to buy 6 shares of Portfolio Recovery Associates at $50.50 per share will remain open.

New Stock Watchers

The following stock watcher assignments are effective immediately: Ron Thorson – Portfolio Recovery Associates, Dan Vitez – PetSmart, and Beth Silverwater – Wells Fargo Corporation.

Education Session

Lynn presented an original Power Point lecture titled Back to the Basics Side 1 of the Stock Selection Guide. Lynn taught us how to do a visual analysis of the SSG to decide is this a quality company? She also taught us how to use a few short-cut keys to quickly navigate the SSG.

Assignments due interim the next meeting

1. Lynn will meet with Eric Chlan and Steve Smith for a pre-orientation session.

2. The second session of the Crow in Training Program will be held on Tuesday, June 26 at 6:30 pm at Lynn’s in St. Michael. All are welcome to attend.

Assignments for the July meeting:

1. Josh will give a new stock presentation on Cognizant Technologies (Nasdaq: CTSH).

2. Quarterly stock reports are due for FactSet (Craig) and Walgreen (Lynn).

3. Craig will buy $500 of Wells Fargo and $500 of Infosys Technologies. The limit order to buy 6 shares of Portfolio Recovery Associates at $50.50 per share will remain open. Craig will transfer sufficient funds from the bank account to cover these transactions.

4. Members are to review Marion’s stock report for Aflac.

5. In the education segment, Lynn will present Back to Basics Side 2 of the Stock Selection Guide.

Adjournment

The meeting was adjourned at 8:30 pm.

Sheryl A Sostarich, Secretary

The next meeting will be at Lynn’s in St. Michael on July 10, 2007.

Meeting Minutes of July 10, 2007

Opening

Diane Windingland called the meeting of the Crow River Investment Club to order at 6:35 pm on July 10, 2007. Steve Smith and Eric Chlan attended their third regular meeting and are eligible to join the club.

Special Provisions:

Sheryl Sostarich rescinded her resignation from the Crow River Investment Club.

Josh Smyser tendered his resignation from the Crow River Investment Club. The valuation date for determining his buyout is August 10, 2007. A motion was made and seconded to transfer FactSet Research shares in consideration of the buyout. The motion passed unanimously.

Secretary’s Report

The minutes of the June 12, 2007 meeting were approved as posted.

Treasurer’s Report

Craig made a dues deposit totaling $450 and transferred $600 to the brokerage account, leaving an ending bank balance of $524.79.

Craig bought 9 shares of Infosys Technologies for $471.17 and 13 shares of Wells Fargo for $475.60. We received $600 in a transfer from the bank account, cash dividends of $38.17 and interest income of $1.94, leaving an ending brokerage account balance of $637.24.

Final Interview Prospective Members

Lynn met with Eric Chlan and Steve Smith for a pre-orientation meeting. Their applications were sent to the current club members for review. We conducted a round table interview of these prospective members.

Steve Smith is a mainframe programmer for Wells Fargo Bancorp. He likes the outdoors and boating. He would like to learn all he can about stock selection and analysis techniques and hopes this will lead to better buy and sell decisions.

Eric Chlan is an electrician, newly married. His wife is a professional photographer, specializing in high school yearbook portraits. Eric likes working with a group of investors and the club’s emphasis on education.

Unfinished Business

Social Activities

Our Summer Barbecue will be held on Saturday, August 4 at Carole Ripplinger’s home. Members may bring a friend or spouse. Members are to bring a food or beverage item and RSVP to Carole Ripplinger as soon as possible.

Manifest Investing Training

The first training session for Manifest Investing will be held on Wednesday, August 1 at Penn Lake Library, 8800 Penn Avenue South in Bloomington from 6:30 to 7:30 pm. Those who wish to attend should pre-register by sending an email to Lynn.

Portfolio Management

The club portfolio has been uploaded using the Stock Central database. Sheryl will review the Portfolio Management Handbook with the portfolio managers and teach those concepts to the rest of the club through club education sessions. The goal is to train all members in using the PERT.

New Business

New Stock Presentation

Josh gave a new stock presentation on Cognizant Technologies, a leading provider of information technology services and a direct competitor to Infosys Technologies. Cognizant is growing at a torrid pace due to the strong demand for outsourcing services. Josh chose judgments as follows: 32% sales growth, 33% EPS growth, high P/E of 34, low P/E of 17.3, and forecast low price of $29.90. The stock is in the hold range.

Quarterly Stock Reports

FactSet Research reported third quarter sales growth of 22% and earnings growth of 36.6%. Subscriptions were up 22% over the past year. Free cash flow increased by 31% partly due to billing clients earlier in the month. FactSet added 42 net clients in the third quarter. Craig recommends a hold due to valuation.

Walgreen reported third quarter sales growth of 12.5% and earnings growth of 21.7%. Walgreen does face competition from CVS, Wal-Mart and Target but is benefiting from the growth in the prescription drug market and from stores located in regional markets. Walgreen completed the acquisition of Take Care Health Systems in May and expects to open 400 in-store healthcare clinics by year-end 2008. Sheryl set the low price at 25% below the 52-week low price and recommends a buy.

Portfolio Activity

A motion was made and seconded to buy an additional $300 of Walgreen, $500 of PetSmart, and $500 of Infosys Technologies. The limit order to buy 6 shares of Portfolio Recovery Associates at $50.50 per share will remain open.

New Stock Watchers

The following stock watcher assignments are effective in August: Ron Thorson – Knight Transportation, Sheryl Sostarich -- Portfolio Recovery Associates, Eric Chlan – Infosys Technologies, and Steve Smith – Walgreen.

Education Session

Lynn presented an original Power Point lecture titled Back to the Basics Side 2 of the Stock Selection Guide. Lynn taught us how to choose judgments on the SSG that are in line with a company’s sustainable growth rate. She shared many of the investing philosophies of Ellis Traub. A handout for Lynn’s presentation will be available on the club website, in the Files Section, under Education Assignments|2007 Education Materials.

Assignments due interim the next meeting

1. Current club members are to cast new member email ballots for Eric Chlan and Steve Smith by Friday, July 13 at 5:00 pm. The results of the voting will be announced Friday after 5:00 pm.

Assignments for the August meeting:

1. Diane will give a new stock presentation on Corporate Executive Board Company (Nasdaq: EXBD).

2. Quarterly stock reports are due for Coach (Kim), Fastenal (Diane), Infosys Technologies (Eric), Knight Transportation (Ron), Portfolio Recovery Associates (Sheryl), Stryker (Marion) and Wells Fargo (Beth).

3. Craig will buy $500 of PetSmart, $500 of Infosys Technologies and $300 of Walgreen. The limit order to buy 6 shares of Portfolio Recovery Associates at $50.50 per share will remain open. Craig will transfer sufficient funds from the bank account to cover these transactions.

4. Members are to review Josh’s stock report for Cognizant Technologies.

5. In the education segment, Lynn will present P/E and PEGs and how to apply them.

Adjournment

The meeting was adjourned at 8:35 pm.

Sheryl A Sostarich, Secretary

The next meeting will be at Lynn’s in St. Michael on August 14, 2007.

Meeting Minutes of August 14, 2007

Opening

Diane Windingland called the meeting of the Crow River Investment Club to order at 6:30 pm on August 14, 2007.

Special Provisions:

A vote was taken by email after the July 2007 meeting and Eric Chlan and Steve Smith were elected as new members of the club.

Secretary’s Report

The minutes of the July 10, 2007 meeting were approved as posted.

Treasurer’s Report

Craig made a dues deposit totaling $420 and a fees deposit of $25 and transferred $800 to the brokerage account, leaving an ending bank balance of $169.79.

Craig bought 9 shares of Infosys Technologies for $467.21 and 15 shares of PetSmart for $491.75 and 6 shares of Walgreen for $269.69. We received $800 in a transfer from the bank account and interest income of $1.54, leaving an ending brokerage account balance of $210.13.

The limit order to buy 6 shares of Portfolio Recovery Associates at $50.50 per share was cancelled after the July 2007 meeting.

Unfinished Business

Member Buyout

Craig will transfer shares of FactSet Research to Josh Smyser’s brokerage account in consideration of Josh’s buyout from the club. Josh will pay any transfer fees.

New Business

Quarterly Stock Report Segment

A motion was made and seconded to eliminate the quarterly stock report segment and expand the open discussion segment of our regular meetings. Stock watchers will post their quarterly stock reports no later than 48 hours before a regular club meeting. A proposal to standardize the quarterly stock report will be voted on at the September meeting. The motion passed unanimously.

New Member Recruiting

We agreed to reopen our regular club meetings to visiting prospective members in October 2007.

New Stock Presentation

Diane gave a new stock presentation on Corporate Executive Board (EXBD), a leading research and consulting organization. The company boasts a client retention rate of 90 percent. The most significant constraint to growth is the slowing economy wherein it is difficult to sign new clients and retain existing clients. Diane chose judgments as follows: 17.5% sales growth, 17.5% EPS growth, high P/E of 26.2, low P/E of 17.5, and forecast low price of $35.90. The stock is in the hold range.

Watchlist Addition

We agreed to add Cognizant Technologies to the Watchlist. We modified the judgments on the SSG as follows: 20% sales growth, 20% EPS growth, high P/E of 30, low P/E of 17, and forecast low price of $35.70. Cognizant Technologies is a direct competitor to Infosys Technologies so we would not buy Cognizant in our portfolio at this time.

Quarterly Stock Reports

Coach shows no signs of slowing down posting 30% revenue growth and 43% earnings per share growth in the fourth quarter of 2007. Coach will open 46 retail stores in North America and 15 to 20 stores in Japan. The market for luxury goods is taking hold, especially in China. Kim recommends a buy.

Fastenal is working to enhance its profitability by hiring outside sales personnel and reducing the rate at which it opens new stores. This proved to be a challenging quarter; fuel costs were up 19% compared to a year ago. Management expects sales growth of 14% for the full year 2007. Diane recommends a hold.

Infosys Technologies continued its torrid growth rate posting 40.6% revenue growth and 43.8% earnings per share growth in the second quarter of 2007. The company signed 35 new clients and raised its contract fees by 1% in the second quarter. The company is performing well despite the strength of the rupee and rising wages for skilled engineers. Eric recommends a buy.

Knight Transportation reported 8.7% revenue growth and flat growth in earnings per share in the second quarter of 2007. Knight grew its fleet by 13% year over year and opened two new brokerage service centers in Indiana and Pennsylvania. The trucking industry has been in a recession since late 2006 and this is constraining growth. Ron modified judgments on the SSG as follows: 9.2% sales growth, 13.2% EPS growth, high P/E of 25, low P/E of 14.1, and forecast low price of $12. Ron believes that Knight is fully valued and recommends a hold.

Portfolio Recovery Associates is in the right business at the right time posting 18.4% revenue growth and 15.9% earnings per share growth in the second quarter of 2007. PRA acquired 58 pools of debt from 27 different sellers during the second quarter. The company is rapidly coming online with its new call center in Jackson, Tennessee. Fee for service businesses saw revenue increase 45% to a record $8.4 million from the same period a year ago. Sheryl recommends a buy.

Stryker continues to impress with 16% growth in revenues and 25% growth in earnings per share in the second quarter of 2007. The company has sold its physiotherapy division to focus on the orthopedic, medical instrument and equipment businesses. Stryker will begin marketing the Cormet Hip Resurfacing System in the third quarter of 2007. Marion recommends a hold.

Wells Fargo Bancorp continued to outperform with 13% revenue growth and 10% earnings per share growth in the second quarter of 2007. Wells Fargo has the highest net interest margin of its peers. The bank has responded to credit deterioration by closing its subprime wholesale business unit and reducing its exposure to Alt-A loans. Wells Fargo typically securitizes the mortgages it originates so it has minimal risk to loan defaults. The bank had no chargeoffs from subprime exposure in the second quarter of 2007. Beth recommends a buy.

Portfolio Activity

A motion was made and seconded to buy an additional $300 of Portfolio Recovery Associates and an additional $300 of Infosys Technologies.

Education Session

Lynn presented an original Power Point lecture on Back to Basics – Section 4 of SSG. Lynn gave us practical information on P/E and PEG ratios to help us in our buy and sell decisions. She also taught us basic and advanced techniques to calculate high and low price on the SSG.

Assignments for the September meeting:

1. Kim will give a new stock presentation on Dril-Quip (NYSE: DRQ).

2. Quarterly stock reports are due for Lowe’s (Carole), PetSmart (Dan) and Wal-Mart (Mike).

3. Craig will buy $300 of Portfolio Recovery Associates and $300 of Infosys Technologies.

4. Craig will transfer shares of FactSet Research in consideration of the buyout for Josh Smyser.

5. Members are to review Diane’s stock report for Corporate Executive Board.

6. In the education segment, Lynn will discuss the method for Preparing the Quarterly Stock Report.

Adjournment

The meeting was adjourned at 8:30 pm.

Sheryl A Sostarich, Secretary

The next meeting will be at Lynn’s in St. Michael on September 11, 2007.

Meeting Minutes of September 11, 2007

Opening

Diane Windingland called the meeting of the Crow River Investment Club to order at 6:30 pm on September 11, 2007.

Secretary’s Report

The minutes of the August 14, 2007 meeting were approved as posted.

Treasurer’s Report

Craig made a dues deposit totaling $470 and a fees deposit of $50. We wrote a check to Lynn Ostrem for $73.45 for the BBQ social. A check for $81.70 was issued to Josh Smyser for the cash portion of his buyout and it’s still outstanding. Craig transferred $400 to the brokerage account, leaving an ending bank balance of $134.64.

Craig bought 6 shares of Infosys Technologies for $278.15 and 6 shares of Portfolio Recovery Associates for $298.91. He transferred 9 shares of FactSet Research to Josh Smyser for the stock portion of his buyout. We received $400 in a transfer from the bank account and dividend income of $10.53, leaving an ending brokerage account balance of $33.60.

Unfinished Business

None

New Business

Portfolio Management Report

Ron Thorson will join the portfolio management team. His first assignment is to read the Portfolio Management Handbook. Kim Windingland will become less active in portfolio management to be able to devote more time to launching his new business venture.

The Toolkit quarterly data screens for PetSmart need to be manually entered to pull in the normalized data. By including extraordinary gains, the earnings figures do not permit a realistic comparison of the data.

Stock Central data files do pull in net interest income for banks. Using net interest income during periods of rising interest rates presents a more realistic, albeit conservative comparison of data.

New Stock Presentation

Kim gave a new stock presentation on Dril-Quip (NYSE: DRQ), a leading manufacturer of offshore drilling and production equipment. The three founding executives own almost one-third of the common shares outstanding. Nearly two-thirds of sales are to the international markets. The industry is in a robust growth phase due to rising oil prices. We chose judgments as a group as follows: 15% sales growth, 15% EPS growth, high P/E of 20.4, low P/E of 11, and forecast low price of $26.10. The stock is in the hold range.

Quarterly Stock Capsules (condensed from the written reports)

PetSmart is rebounding from a pet food recall unlike anything the industry has ever experienced. Sales grew 9.4% while earnings per share rose 40% for the second quarter ending July 29, 2007. Services revenues grew over 19 percent in a year over year comparison. The board of directors has approved a $300 million stock repurchase program. Dan recommends a hold.

Lowe’s reported a better quarter than expected with 5.8% growth in sales and 11.7% growth in earnings per share. Lowe’s continues its aggressive store building campaign. Lowe’s boasts double-digit operating margins, an investment grade debt rating, and a majority ownership in its retail properties. Carole recommends a hold.

Wal-Mart has traded like a tired company for several quarters. Though 8.8% sales growth and 6.3% EPS growth are respectable for a large-cap company, same store sales growth of 1.2% is anemic. Wal-Mart executives continue to look to international markets for faster growth through acquisitions and store openings. Mike recommends a hold. We decided as a group to start searching for a possible replacement candidate for Wal-Mart.

Portfolio Activity

A motion was made and seconded to buy an additional $300 of Portfolio Recovery Associates and an additional $300 of Infosys Technologies.

Education Session

Lynn presented an original Power Point lecture on Preparing the Quarterly Stock Report. Lynn walked us through the steps for preparing a quarterly stock report. She also created a stock watcher’s report template.

Quarterly Stock Report Proposal

A motion was made and seconded to discontinue oral quarterly stock reports at the regular club meetings. Stock watchers are to prepare and post written quarterly stock reports within 48 hours of the meeting at which the report is due. Hard copies of all quarterly stock reports will be filed in a three-ring binder. The motion passed unopposed.

Assignments for the October meeting:

1. Carole will give a new stock presentation on Moody’s Corp (NYSE: MCO).

2. Quarterly stock reports are due for FactSet Research (Craig) and Walgreen’s (Steve).

3. Craig will buy $300 of Portfolio Recovery Associates and $300 of Infosys Technologies.

4. Members are to recommend a replacement stock for Wal-Mart, prior to the next meeting.

5. Stock watchers are to compile a list of industry specific metrics for the stock they are

    following.

6. Members are to review Kim’s stock report for Dril-Quip.

7. In the education segment, Lynn will lead a workshop on completing the Stock Selection
    Guide. The stocks for review will be posted on the club board.

Adjournment

The meeting was adjourned at 8:35 pm.

Sheryl A Sostarich, Secretary

The next meeting will be at Lynn’s in St. Michael on October 9, 2007.

Meeting Minutes of October 9, 2007

Opening

Diane Windingland called the meeting of the Crow River Investment Club to order at 6:30 pm on October 9, 2007. Kelly Thomas, Deantha Menon, Gary & Linda Quernemoen attended their first meeting as guests.

Secretary’s Report

The minutes of the September 11, 2007 meeting were approved as posted.

Treasurer’s Report

Craig made a dues deposit totaling $500. Craig transferred $600 to the brokerage account, leaving an ending bank balance of $34.64.

Craig bought 6 shares of Infosys Technologies for $288.83 and 6 shares of Portfolio Recovery Associates for $302.69. We received $600 in a transfer from the bank account and dividend income of $35.16, leaving an ending brokerage account balance of $77.24.

No Unfinished Business

New Business

We voted to conduct our December meeting as a social event; we will order out for pizzas.

New Stock Presentation

Carole gave an analyst quality new stock presentation for Peabody Energy (NYSE: BTU), the world’s largest private sector coal company. Peabody has double the reserves of its nearest competitor. Peabody is producing coal at maximum capacity, trying to keep up with the increasing demand from China and India. The majority of the company’s coal is sold under long-term contracts ranging from one to 19 years. Carole chose judgments as follows: 15.5% sales growth, 21% EPS growth, high P/E of 22, low P/E of 14, and forecast low price of $27.20. The stock is in the hold range.

Quarterly Stock Capsules (condensed from the written reports)

FactSet Research reported fourth quarter sales growth of 23% and earnings growth of 31%. Subscriptions were up 22% over the past year. Free cash flow increased by 45% partly due to billing clients earlier in the month. FactSet added 39 net clients in the fourth quarter. Craig recommends a hold due to valuation.

Walgreen reported favorable fourth quarter sales growth of 10.3% but an unexpected earnings decline of 3.8%. Selling, operating and administrative expenses rose while reimbursements fell on some popular generic drugs. The integration of Take Care Health Systems is going smoothly and Walgreen continues to add new clinics. Shares of Walgreen plunged 15% on the earnings shortfall. Steve recommends a buy.

Stocks Previously Presented

We agreed that Dril-Quip is overvalued and decided to put it on our Watchlist.

Portfolio Activity

A motion was made and seconded to liquidate our position in Wal-Mart. The motion passed unanimously.

A motion was made and seconded to buy an additional $300 of Coach, $300 of Portfolio Recovery Associates, $400 of Walgreen and an additional $400 of Wells Fargo. The motion passed unanimously.

Education Session

Lynn compiled a list of industry specific metrics that each stock watcher will use to analyze the stock he or she is following. Lynn will post that list to the club website. Lynn led a stock study workshop for General Electric.

Assignments for the November meeting:

1. Lynn will give a new stock presentation on Jack Henry (Nasdaq: JKHY).

2. Quarterly stock reports are due for Coach (Kim), Fastenal (Diane), Infosys Technologies (Eric), Knight Transportation (Ron), Portfolio Recovery Associates (Sheryl), Stryker (Marion) and Wells Fargo (Beth). Quarterly stock reports are to be posted to the message board no later than 2 days before the November meeting.

3. Craig will liquidate our position in Wal-Mart.

4. Craig will buy $300 of Coach, $300 of Portfolio Recovery Associates, $400 of Walgreen and $400 of Wells Fargo.

5. Members are to review Carole’s stock report for Peabody Energy.

6. In the education segment, Lynn will lead a workshop on completing the Stock Selection Guide. The stock for review will be posted on the club board.

Adjournment

The meeting was adjourned at 8:35 pm.

Sheryl A Sostarich, Secretary

The next meeting will be at Lynn’s in St. Michael on November 13, 2007.

Meeting Minutes of November 13, 2007

Opening

Diane Windingland called the meeting of the Crow River Investment Club to order at 6:30 pm on November 13, 2007. Kelly Thomas, Deantha Menon, Gary & Linda Quernemoen attended their second meeting as guests.

Secretary’s Report

The minutes of the October 9, 2007 meeting were approved as posted.

Treasurer’s Report

Craig made a dues deposit totaling $350, leaving an ending bank balance of $384.64.

Craig bought 6 shares of Coach for $280.19 and 5 shares of Portfolio Recovery Associates for $267.45 and 10 shares of Wells Fargo for $374.15 and 10 shares of Walgreen for $397.15. Craig sold 32 shares of Wal-Mart for $1,453.50. We received dividend income of $11.41, leaving an ending brokerage account balance of $223.21.

No Unfinished Business

New Business

We voted to conduct our December meeting as a social event; we will order out for pizzas.

New Stock Presentation

Lynn gave an extensive new stock presentation for Jack Henry & Associates (Nasdaq: JKHY), a leading data processing service provider to financial institutions. Software licensing revenues accounted for two-thirds of total revenue. Jack Henry sports high gross margins ranging from 38% from outsourcing fees to 43% for hardware licensing. Return on equity has exceeded 15% annually and the client base continues to grow. Lynn chose judgments as follows: 11% sales growth, 12% EPS growth, high P/E of 23.3, low P/E of 15.5, and forecast low price of $17.60. The stock is in the hold range.

Quarterly Stock Capsules (condensed from the written reports)

Coach has slowed moderately due to lighter U.S. retail traffic but the company still posted 28% revenue growth and 34% earnings per share growth in the first quarter of fiscal 2008. Sales in Japan rose 17% in constant currency driven by new stores and expansions. The market for luxury goods is growing at a torrid pace --20% per year. The stock has dropped to an attractive valuation due to overall market weakness. Kim recommends a buy.

Fastenal is in a transition phase to enhance its profitability by stepping up its hiring of sales personnel and reducing the rate at which it opens new stores. Sales have slowed slightly from 14.8% to 13.5% compared to a year ago. Management expects sales growth of 13 to 14% for the full year 2007. Diane recommends a hold.

Infosys Technologies is exceeding our growth targets, posting 37% revenue growth and 378% earnings per share growth in the third quarter of 2007. The company signed 48 new clients including Phillips. The company has formed two business units, one focusing on India’s market and the other elsewhere in the world. Eric recommends a buy.

Knight Transportation is not meeting our growth targets. Third quarter revenues grew by 3.2% while earnings per share decreased 22%. Rising fuel costs and lower truck utilization contributed to the poor performance. While the trucking industry is in a severe recession, Knight has actually fared better than its competitors. Lacking any signs of a quick turnaround, Ron recommends we sell.

Portfolio Recovery Associates did not meet our aggressive targets, posting 14% revenue growth and 7% earnings per share growth in the third quarter of 2007. For the first time in two years, the company reported a decline in the average revenue per collector of $142.26 for the first nine months of 2007 compared with $146.03 for all of 2006. Pretax profit is being squeezed by the rapid scale-up of its new call center in Jackson, Tennessee. Sheryl feels it would be a poor decision to sell our position and recommends a hold until the stock forms a base price.

Stryker continues to outperform with 18% growth in revenues and 22% growth in earnings per share in the third quarter of 2007. According to a Bear Stearns analyst, the company has the best-balanced portfolio in the orthopedic space, with 40% of revenue from large joints, 20% spine/trauma and 40% surgical products. Stryker has received FDA approval for its artificial cervical disc program and has begun clinical trials of its mobile knee bearing in Japan. Marion recommends a hold.

Wells Fargo Bancorp failed to meet our targets posting 10% revenue growth and 6% earnings per share growth in the third quarter of 2007. Despite the slippage in net interest margin, Wells Fargo still has the highest net interest margin of its peers. The bank continues to reduce its exposure to Alt-A loans. Wells Fargo will likely have to increase loan loss reserves for mortgage defaults. Beth recommends a hold.

Stocks Previously Presented

We agreed that Peabody Energy isn’t meeting our quality standards and decided to put it on our Watchlist.

Portfolio Activity

A motion was made and seconded to liquidate our positions in Knight Transportation and Fastenal. The motion passed unanimously.

A motion was made and seconded to buy an additional $500 of Coach and $500 of PetSmart. The motion passed unanimously.

Education Session

Lynn led a stock study workshop for Staples.

Assignments for the December meeting:

1. Mike will give a quarterly update report for Abercrombie & Fitch (NYSE: ANF).

2. Quarterly stock reports are due for Lowe’s (Carole) and PetSmart (Dan). Quarterly stock reports are to be posted to the message board no later than 2 days before the December meeting.

3. Craig will liquidate our positions in Knight Transportation and Fastenal.

4. Craig will buy $500 of Coach and $500 of PetSmart.

5. Members are to review Lynn’s stock report for Jack Henry & Associates.

6. We will conduct final interviews for prospective new members, Deantha Menon and Gary Quernemoen.

Adjournment

The meeting was adjourned at 8:35 pm.

Sheryl A Sostarich, Secretary

The next meeting will be at Lynn’s in St. Michael on December 11, 2007. Diane will lead a short business meeting and we will use the remaining time for a club social.

Meeting Minutes of December 11, 2007

Opening

Diane Windingland called the meeting of the Crow River Investment Club to order at 6:30 pm on December 11, 2007. Deantha Menon and Gary Quernemoen attended their third meeting as guests.

Secretary’s Report

The minutes of the November 13, 2007 meeting were approved as posted.

Treasurer’s Report

Craig made a dues deposit totaling $470, leaving an ending bank balance of $854.64.

Craig bought 14 shares of Coach for $500.45 and 19 shares of PetSmart for $491.07. Craig sold 14 shares of Fastenal for proceeds of $560.32 and 59 shares of Knight Transportation for proceeds of $889.24. We received dividend income of $30.01, leaving an ending brokerage account balance of $711.26.

New Member Interviews

Gary Quernemoen helps military veterans regain housing and employment upon their return from foreign assignments. Gary will devote adequate time to learning the tools and NAIC methodology. He is most interested in the manufacturing and healthcare industries.

Deantha Menon holds a master’s degree in special education and works with special needs children in the Wayzata schools. Her strength is her computer skills and she is most interested in the food and medical industries.

Previous New Stock Presentation

Jack Henry & Associates has attractive fundamental characteristics however, at its current valuation, we would be buying a stock with very little margin of safety. We agreed to add Jack Henry to our Watchlist.

Quarterly Stock Capsules (condensed from the written reports)

Abercrombie & Fitch continues to exceed expectations with sales growth of 13% and earnings per share growth of 16% for the third quarter ending October 31, 2007. Management sees major international expansion opportunities for the company in the coming year. The company expects to open a flagship store in Tokyo by late 2008 and will add another major European location. Abercrombie is benefiting from favorable fashion trends and better pricing than its competitors. Mike has chosen judgments on the SSG as follows: 14% sales growth, 15% EPS growth, high P/E of 20.7, low P/E of 10.2, and forecast low price of $50.80. The stock is a buy.

PetSmart is entering the holiday season with adequate inventory levels and with a good mix of products. Sales grew 8% while earnings per share were flat for the third quarter ending October 28, 2007. Services revenues continued to sizzle, growing 23 percent in a year over year comparison. The board of directors has stepped up its stock repurchase program.

Lowe’s reported a dismal third quarter with 3.2% growth in sales and a 6.5% decline in earnings per share. Lowe’s is being hurt by a weak housing market, drought conditions, and a tight credit market. Operating margins declined by 280 basis points as a consequence of higher sales and administrative expenses, depreciation and other fixed cost de-leverage. To stay invested in Lowe’s requires the time and patience of an industry turnaround.

No Portfolio Activity

Education Session

There was no education session in lieu of a social hour.

New Member Election

Current club members are to cast new member email ballots for Deantha Menon and Gary Quernemoen by Friday, December 14 at 5:00 pm.

Assignments for the January meeting:

1. We will analyze Oshkosh Truck Company (NYSE: OSK) as a group.

2. Quarterly stock reports are due for Walgreen’s (Steve) and FactSet Research (Craig). Quarterly stock reports are to be posted to the message board no later than 2 days before the January meeting.

Adjournment

The meeting was adjourned at 7.30 pm.

Sheryl A Sostarich, Secretary

The next meeting will be at Lynn’s in St. Michael on January 8, 2008.