2003 Minutes of the Meetings
JANUARY 14, 2003
The meeting was called to order at 6:30 p.m. Present were Lynn Ostrem, Traci Lindow,
Tim Hetland, Marion Marshall, John Koehler, Mike Trisler, Jan Page, Carole Ripplinger, and Terry Schultz. Chris and Craig Block arrived later. Also present were three quests:
Jackie Simmons, Susan Owens and Jean Papin. This was Terry’s first meeting!
1. The Secretary’s Report was approved as posted.
2. The Club Agent’s Report: Starting balance was $23.55. We received a dividend
of $1.00 from Jakk, $1.89 from KRB, and $.75 from WMT. Ending balance
3 The Treasurer’s Report: Starting balance was $27.05. A check to Chris Block
for paper $17.03. Dues deposit $330. Ending balance of $340.02
4 Member Roster: Each member received an updated roster.
5 Club Standing: Portfolio on 12/31/02 down 28.5, 1/10/03 down 22.2. Compared with the Dow down 15.01, S&P 500 down 22.10, and Nasdaq down 31.5.
6. Review of Portfolio Stock Reports:
a) FactSet Buy
b) Jakks Pacific Buy
c) Lowes Buy
d) MBNA Hold
e) Cardinal Health Buy
f) Copart Hold
g) Wal-Mart Buy
7. Portfolio Manager/Watch List Manager reports: John presented all stocks on the Pert
and Trend reports. Pie graphs show we are heavily weighted on large cap stocks.
8. New Stock Presentation: None.
9. Stocks Previously Presented: First we reviewed Brinker, updated by Lynn. John up-
dated Cheesecake Factory. The two companies were then compared. By a vote of 8
to 3, Brinker was declared a buy. Due to our excess of large cap holdings, Brinker
was placed back on the Watch List. Cake by a vote of 6 to 5 also was returned to the
Watch List. Second, Marion updated Mentor Corporation. By a vote of 11 to 0, it
was declared a buy.
10. President Call for motion to buy or sell securities: By a vote of 6 to 5, $700 of
Mentor Stock will be purchased by the Club Agent. The total amount of $700
to include the $6.95 Broker fee.
11. New Stock Watchers: Terry to watch Mentor and Mike to watch Wal-Mart.
12. Old Business: Terry Schultz is now a member by a majority vote. Welcome to the
Club! The Audit Committee of Craig, Lynn and Traci will meet when the financial
information is available. The Stock Watch Dilemma will be discussed after break.
13. New Business: Banking fees will increase $.30 due to greater than 10 checks per
month. Does cash count as an item? Lynn will discuss with bank.
14. 14. The Watch List Dilemma: Lynn reviewed our options for the watch list.
The criteria was approved, for now, by a vote of 11 to 0.
15. Education: Discussion of proposals and form committees.
Stock Related Proposals:
A) Stock Watcher Books: a sample was presented.
B) Industry / Stock Study Format: criteria was presented for review.
C) OPS and NAIC Affiliation: All but two members have OPS. The other two are planning to upgrade. We need to determine next month if we will remain an NAIC club.
The following Non-Stock-Related items were recommended for review at the annual meeting:
A) Mid-month Online Board Meetings
B) 2003 Education Program
C) 2003 Club Goals
D) Social and Educational Events
E) Review Club Resolution clause
A) Review of Partnership Agreement and Operating Manual, Marion and Carole.
B) New Member Application / Interview Questions, Tim and Traci
C) Coordinate Nominations for the election of officers and Appointees, Jan.
Next meeting: February 11, 2003 - 6:30 p.m. Lynn’s house
Review of assignments from all segments of the meeting
a) Tim to purchase $700 of Mentor including trading costs, after transfer of funds.
b) Use the Message Board to give your input on Stock Watcher Books, Industry / Stock Study Format or any other annual meeting topic.
c) Review the annual meeting handout and be prepared to vote.
d) Think about goals and social events
Meeting adjourned at 8:37 p.m.
February 11, 2003
The meeting was called to order at 6:35 p.m. Present were Lynn Ostrem, Tim Hetland, Marion Marshall, John Koehler, Mike Trisler, Carole Ripplinger, and Terry Schultz. Craig and Chris
Block arrived later. Absent with payment and notice were Traci Lindow, and absent with
payment without notice, Jan Page. Lynn, the Vice President, presided over the meeting for the absent Traci. A special agenda was used for this annual meeting.
1. Lynn gave an overview of the current club status and commitment.
2. The Secretary's Report was approved as posted.
3. The Club Agent's Report: Starting balance was $27.19. $700.00 was transferred from our
bank account. $675.05 purchased 17 Mentor shares. A $0.25 dividend from Lowes and
$0.15 dividend from Cardinal gave us an ending balance of $52.54.
4. The Treasurer's Report: Starting balance was $340.02. The dues deposit $440.00.
$700.00 was transferred to the broker account, leaving us a balance of $80.02.
On February 1, 2003 an audit of the books was done, mailed to the IRS on February
5, 2003. We will owe Lynn $2.86 in postage at a future date.
5. The Slate of Officers was presented: President: Tim Hetland, Vice President Lynn Ostrem,
Secretary Marion Marshall, Treasurer Craig Block, and Club Agent Tim Hetland. Since each
office had only one candidate, the slate was approved by a vote of 9 to 0. President Elect, Tim
appointed John Koehler to be Portfolio Manager, and Terry Schultz to be Watch List Manager.
6. The Club Resolution Clause was reviewed by Lynn. The minutes of the meeting will be posted
on our website the Friday after the meeting. There is no penalty to leave the Club. We have
three candidates on the waiting list.
7. OPS & NAIC Club Status: Tim and Craig do not have OPS, but plan to by May 1,2003.
By a vote of 9 to 0, we voted to drop NAIC Club membership. Each member must join as
an individual. The Partnership Agreement and By-Laws will be amended to reflect this change.
NAIC has a trial period of 18 months.
8. The Partnership & Procedure Manual: Updated by Carole and Marion, was passed 9 to 0
as posted. An E-Mail proxy directed to the person voting that proxy, was declared valid. A
written one may also be used.
9. Goals for 2003:
a) 15 Stocks on the Watch List.
b) 12 Stocks in the Portfolio, mid-cap emphasis.
c) 2-3 Industry Stock Studies, plus individual stock studies.
d) Everyone comfortable applying judgments on the SSG.
e) Members to get consistent with Stock Watch follow up.
The members felt the last two the most important.
10. Social Events for 2003:
a) All members to attend the Investor's Fair on April 25 & 26, 2003.
b) September BBQ/Bonfire the Saturday weekend after Labor Day.
c) Hors d'oeuvres and Cocktails at the Christmas meeting, members only.
11. Mid-Month Board Meeting: Next Tuesday, February 18, 2003 at 7.00 p.m. sign in
on the Club website. The Chat Room will allow dialog between Club members.
Next meeting we will review its effectiveness as a communication tool.
12. Stock Watcher's Book: By a vote of 9 to 0, the Stock Watcher's Book was accepted.
Lynn will purchase 12 books at $0.99. Tabs and divider sheets will be donated by Lynn.
Carole will help Lynn assemble them in time for the next meeting.
13. Education Program for 2003: For the months of March, April, May and June we will
concentrate on financial statements, portfolio and Watch List holdings. Segments will
be one half parliamentary and one half Toolkit and education. Each segment will be 30 minutes.
Times may be interchanged if needed. For the months of July through December a vote of the
members will determine topics. Accepted by a vote of 9 to 0.
14. New Member Application & Final Interview Update: Traci & Tim updated these forms.
Traci's form had much of the old questions rearranged. Tim did not present his. The two
will reconfer and post their final form on the Club's message board prior to the next meeting.
15. Industry and Stock Study Format for 2003: Three Industry Stock Studies and voluntary
individual stock studies was decided upon. Terry will present a stock in March, John in
April, and Lynn in May. Next month's education meeting will concentrate on stock
reports, John's Portfolio Report, and the portfolio itself.
16. Stock Reports: a) FactSet Buy, b) Lowes Buy, c) MBNA Hold, d) Jakks Pacific Buy,
e) Cardinal Health No Report, f) Copart Buy, g) Mentor Hold, h) Wal-Mart Hold.
17. Portfolio Manager's Report: The top performer was Mentor, followed by FactSet, Lowes,
Wal-Mart, and MBNA. Jakks Pacific the poorest performer. We hold 51% Small Cap,
and 49% Large Cap Stocks. We need to concentrate on purchasing Mid Cap Stocks.
18. Watch List Manager's Report: Harley Davidson and Kohls are the two top performers.
Shaw and Mobile Mini, the poorest performers. The Cheesecake Factory is a Mid Cap,
and Johnson & Johnson a Large Cap, both doing well.
19. Stock Purchase: After much discussion, Lowes won by a vote of 6 to 3. 10 Shares will be
purchased, after a $400.00 transfer of money.
20. Review of Assignments: a) Tim will purchase 10 Shares of Lowes after money transfer,
b) Lynn and Craig will transfer information on the Treasurer's Office, c) Evaluation of the
Mid-Monthly Board Meeting of February 18, 2003, d) Lynn and Carole to assemble the
Stock Watcher's Books, e) Tim and Traci to post their New Member Application & Final
Interview Update on the website, f) Craig to update Harley Davidson, g) Tim will post a note
on website after trade, h) Terry to present a stock of his choice, I) John & Terry to transfer
information on the Watch Manager's Job, j) EVERY MEMBER TO BE PRESENT AT WEBSITE
ON FEBRUARY 18, 2003 AT 7;00 P.M. FOR THE MID-MONTH BOARD MEETING.
The meeting was adjourned at 8:35.
March 11, 2003
The meeting was called to order by Tim at 6:30 p.m. Present were Lynn Ostrem, Tim Hetland, Marion Marshall, Jan Page, Craig Block, John Koehler, Mike Trisler, Carole Ripplinger, and Terry Schultz. Chris Block absent with proxy and payment to Craig Block. Traci Lindow arrived later. We had two guests present—Brendan Stern and Tim Huebsch. Welcome!
1. The Secretary’s Report was corrected as posted. Lynn donated only the divider
sheets for the Stock Watcher’s Book, not the tabs
2. Lynn was reimbursed $29.86 for postage, binders, and tabs. Extra tabs, binders and
divider sheets are available for use as stocks are added to the portfolio.
3. The Club Agent’s Report: Starting balance was $52.54. $400.00 was transferred
from our bank account. $349.95 purchased 10 shares of Lowes at $34.30 per share.
The new balance is $102.59.
4.. The Treasurer’s Report: Starting balance was $80.02. Dues deposit $385.00.
$400.00 was transferred to the broker account, leaving us a balance of $65.02.
5. Stock Reports: a) FactSet Hold, b) Jakks Pacific Hold, c) Lowes Buy, d) MBNA
Hold, e) Cardinal Health Buy, f) Copart Sell, g) Wal-Mart Buy, h) Mentor Buy.
6. Portfolio Manager’s Report: The top performers are Wal-Mart and Lowes. Our
Portfolio consists of 50% small and 50% large cap stocks.
7. Watch List Manager’s Report: The top performers were Walgreens and Johnson &
Johnson, both in the buy range.
7. Harley Davidson was updated by Craig. It was decided to keep this stock on the
8. A discussion was held on our Copart stock. By a vote of 9 to 0, we voted to sell
9. Lynn reviewed the reasons for MBNA’s slump. The required 12 month credit card
loss reserve of $130.00 Million is the biggest factor. By a vote of 9 to 0, we will
keep MBNA on Hold.
10. Mobile Mini, a Watch List stock has two law suits filed against the company.
A jury trial voted against Mini. The lawsuit is being appealed. It will remain on
The Watch List for now.
11. Stock Purchase: By a vote of 7 to 4, Wal-Mart will be this month’s purchase.
$400.00 will be transferred. We will also have money from the Copart sale.
Tim to purchase 10 shares at market price of $48.50 or less.
12. John to update Cheesecake Factory for next month.
13. Traci will purchase 20 # paper at Sam’s Club and have available next month.
14. Terry gave a report on Sysco. He recommended a Buy.
15. Old Business: a) The Mid-Monthly board meeting was deemed beneficial. It was
decided to meet at 7:30 p.m. the Tuesday before our meeting on the website chat
room (April 1) and Tim will have an agenda prepared in advance. b) The Investors Fair is coming the last weekend in April. Everyone committed to attend at the annual meeting. c) The New Member Application and Final Interview was put on hold to the next meeting. d) The Stock Watcher’s Books were handed out to the members following portfolio stocks. We will discuss the contents to be included, next month.
16. New Business: None.
17. Education Segment: Lynn presented “The Income Statement”. The Balance
Sheet and The Cash Flow Statement are the next two topics. Lynn then compared
FactSet to Mentor’s consolidated statements of income.
18. Lynn recommended dropping Shaw Group from the Watch List. It was
too complicated a stock to keep. All agreed to drop this stock.
19. Review of Assignments: a) Tim to sell Copart. b) Tim to purchase 10 shares of
Wal-Mart at market price of $48.50 or less, after transfer of $400.00. c) Tim to
provide an agenda prior to the April 1 mid-month board meeting at 7:30 p.m.
d) John to update Cheesecake Factory. e) Traci to purchase computer paper. f)
Craig to sign forms at Highland Bank as the new treasurer, g) Carole to
present a stock of her choice, h) Complete the review of New Member Application
and Final Interview, i) Discuss items to be placed in the Stock Watcher’s Book,
j) Complete our portfolio Weed & Feed, k) Review Sysco stock presentation.
20. Next meeting April 8, 2003 at Lynn’s home at 6:30 p.m.
The meeting adjourned at 8:32 p.m.
Minutes of April 8, 2003
The meeting was called to order by Lynn at 6:37 p.m. Present were Lynn Ostrem, Marion Marshall, Craig Block, John Koehler, Terry Schultz, Traci Lindow, Mike Trisler,Carole Ripplinger, and Chris Block. Tim Huebsch was a guest, and Diane Pietro and Patrick Johnson audited the meeting. Welcome!
1. Letters of resignation were accepted from Tim Hetland and Jan Page.
a) The new Lowes Stock Watcher is Carole Ripplinger.
b) Officer positions have been shifted to President Lynn, Temporary Vice President John, Secretary Marion, Treasurer and Club Agent Craig, Portfolio & Watch List Manager Terry.
c) John will present the education segments until June. July to December Education
and Stocks presented every other month. Education segments will be by different
members. All were in favor of this plan.
2. The Secretary’s Report was accepted as posted.
3. The Club Agent’s Report: Starting balance was $102.59. $400.00 was transferred
from our bank account to Firstrade. 15 shares of Copart were sold, netting us $98.94 after the trading fee. 10 shares of Wal-Mart were purchased for $475.45 ($46.85 each) The FactSet dividend of $1.00 and MBNA dividend of $2.16 gave us an ending balance of $129.24.
4. The Treasurer’s Report: Starting balance was $65.02. Dues deposit was $385.00.
$400.00 was transferred to the brokerage account. $29.86 to Lynn for misc. expenses, giving us an ending balance of $20.16.
5. Members signed new brokerage forms, Craig and Lynn signed new bank account
forms, Terry signed the Partnership Agreement, and Tim Huebsch signed the New
6. Lincare Holdings Stock presented by Carole Ripplinger
7. Sysco Corporation reviewed by Terry Schultz. By a vote of 5 to 4 the stock will be placed on the Watch List.
8. The Stock Watcher’s recommendations: CAH Buy, FDS Buy, JAKK Hold or Sell, KRB Sell, but keep on the Watch List, Lowes No Report, MNTR Buy and WMT Hold.
9. The Portfolio Manager’s Report: Lowes is the top performer.
10. The Watch List Manager’s Report: Kohl’s and Cheesecake Factory the best performers. Terry recommended that Mobile Mini be removed from the Watch List.
All members agreed.
11. Lynn compared Brinker and Cake, after John reviewed Cheesecake Factory. Both are in the Buy zone. The 10 and 5 year figures were compared. Each stock has ad-
vantages. John recommended a Buy for Cake. No decision was reached. Both remain on the Watch List.
12. A proposal was made to Sell Jakks Pacific and MBNA. The sales would cover
member withdrawal payoffs. All agreed to this proposal.
13. Unfinished Business: a) Final approval was given on the New Member Application
And Final Interview Questions. b) Traci Jo was reimbursed $19.00 for copy paper purchased. c) Mid-month managers meetings will include telephone calls for now.
Misinterpretations can occur otherwise. Lunch meetings are a possibility.
14. New Business: Morgan Stanley Seminar invitations were handed out.
15. NAIC Investors Fair Program was handed out. Checks for $30.00 were given to
Craig who will register Club Members as a whole for the April 25 & 26 dates.
The itinerary was discussed. All members attending will meet at 8.00 a.m. in the lobby of Earle Brown Center on Saturday.
16. Education Segment: An Industry Discussion followed. Four industry sectors were
chosen from a field of ten as most important. Financial Services diversified will be the first industry study. Lynn and Chris will be the first Team Leaders. Lynn will
upload the information on the website in the next few days. Members will review
the information before the May meeting and be ready for the discussion.
17. Review of Assignments: a) Craig to sell MBNA and Jakks Pacific, b) everyone to
review Lincare Holdings, c) Tim Huebsch to meet with Lynn for pre-orientation information, d) Craig to figure payoff for Jan Page and Tim Hetland based
on May 9, 2003 valuation, e) Craig to write checks to Jan & Tim, f) Lynn
to upload New Member Application on website, g ) New Officer positions to
start at May’s meeting, h) Members to read the Industry Study in the Members
Only section on website.
l8. Next meeting May l3, 2003 at Lynn’s home at 6:30 p.m.
The meeting adjourned at 8:35p.m.
Minutes of May 13, 2003
The meeting was called to order by Lynn at 6:40. Present were Lynn Ostrem, Marion
Marshall, Craig Block, John Koehler, Terry Schultz, Carole Ripplinger, Chris Block, and
Mike Trisler arrived late. Tim Huebsch was a guest. Welcome!
$900.00 was transferred from the brokerage account. $19.00 to Traci for copy paper,
giving us an ending balance of $1211.16. Checks were cut for Tim Hetland of $558.75
and Jan Page of $588.18, both dated May 9, 2003.
to bank. MBNA shares were sold, netting us $413.69 after fees. Jakks Pacific shares
were sold , netting us $384.25 after fees. Dividends from MBNA, WMT, CAH, and
MNTR totaled $4.79. The ending balance $29.81.
5. Lincare Holdings reviewed by Carole. By a vote of 6 to 1, the stock will
be added to the Watch List.
6. The Stock Watcher’s recommendations: CAH No Report, FDS Buy, MNTR Buy,
WMT Hold, LOW Buy.
7. The Portfolio Manager’s Report: CAH, MNTR, LOW, and FDS are all in the Buy range.
8. Open Discussion on Stocks. By a vote of 7 to 0, CAH will be sold to cover Traci”s
withdrawal payoff. John will paid out of cash.
9. Unfinished Business: None
10. New Business: Tim Huebsch had his final interview. Members to send their
vote via E-Mail on Tim’s club membership to Lynn by 5:00 P.M. Friday
May 16, 2003.
11. Partnership Agreement Addendum: Lynn suggested an addendum be added to the
Partnership Agreement to cover property returned to the club by departing members.
All legal requirements will be honored. It was decided to wait until the annual
meeting to act on this suggestion..
12. Investor’s Fair: All who attended agreed it was time well spent. We are looking
forward to next year’s fair.
13. Education Segment: Chris led the discussion on the Diversified Financial Services
Industry. The Team Leaders’ Choices were then discussed. Members chose the
companies they wish to study. Tim Huebsch -PMI Group, Marion-MGIC Investments, Carole
Concord EFS under Diversified Financial Services. Mike- Fannie Mae, Craig- Freddie
Mac, Terry-Capital One, Lynn-MBNA, John-Countrywide Financial, and Chris-Ameri-
Credit Corp under Consumer Finance Companies. Stock reports should be brief and SSG
judgements, results and recommendations be available to each member.
14. The Balance Sheet was presented by John Koehler. Three key areas were presented.
Assets, Liabilities, and Shareholders Equity. Lowes balance sheet was used as the
example. Next month’s topic will be The Cash Flow Statement. Great job, John!
15. Review of Assignments: a) Craig to send Jan Page’s check in the A.M. mail,
b) Craig to sell CAH to pay off Traci, c) Terry to place Lincare Holdings on the
Watch List, d) Everyone to vote for Tim Huebsch’s membership, e) John to present
The Cash Flow Statement on June 10 f) Stock reports and SSGS| completed for the
next meeting, g) new member recommendations.
16. Next meeting June 10, 2003 at Lynn’s house at 6:30 P.M.
The meeting adjourned at 8:20 P.M.
Minutes of June 10, 2003
The meeting was called to order by Lynn at 6:35. Present were Lynn Ostrem, John Koehler,
Marion Marshall, Craig Block, Terry Schultz, Carole Ripplinger, Chris Block, Mike
Trisler and Tim Huebsch. This is Tim’s first meeting. Welcome. Sadly, this is John’s last
meeting. We will miss you, but wish you well in your pursuit of an MBA.
1. Tim Huebsch signed the Partnership Agreement. He received the required votes to join
2. Checks will be collected later in the meeting.
3. The Secretary’s Report was accepted as posted.
4. The Treasurer’s Report: Starting balance was $1211.16. Dues deposit was
$250.00. Jan Page received a check for $588.18 and Tim Hetland received
$558.75 for their buyouts. Ending balance of $314.23.
5. The Club Agent’s Report: Starting balance was $29.81. CAH stock sold for
$340.13. Lowe’s dividend of $.50, giving us an ending balance of $370.44.
6. The Portfolio Manager’s Report: Mentor and Lowe’s are in the buy range.
Harley Davidson and Cheesecake Factory on the Watch List are in the Buy
7. The Stock Watcher’s recommendations: MNTR-Buy, FDS-Hold, LOW-
8. Open Discussion on Stocks: There are no funds for stock purchase.
An emphasis on mid cap stocks when we do purchase, is needed.
9. New Business: None.
10. NAIC Happenings: Quiet for the Summer.
11. Stock Presentations: Americredit-Pass, Concord EFS- Wait, Countrywide-
Hold, Capital One- Hold, Fannie Mae- Pass, Freddie Mac-Hold, MBNA-
Buy, MGIC- Pass, PMI Hold. We will download PMI, Concord and MBNA reports from the Web and vote on these 3 next meeting. Carole to report on First Data.
12. Checks collected with additional amounts to cover payoffs for John and Traci.
13. Education Presentation: The Cash Flow Statement was presented by John using
the LOWE’s Annual Report for his examples. He recommended www.investorwords.com
for additional information.
14. Review of Assignments: (a) All members be prepared to vote on PMI, Concord,
and MBNA. (b) Carole to report on First Data. (c) Craig to cut checks for John
and Traci. (d) Lynn to tie up the education segments on financials with an Annual Report worksheet.
15. Next meeting July 8, 2003 at Lynn’s home at 6:30 P.M.
16. The meeting adjourned at 8:25. We then had a farewell party for John.
Minutes of July 8, 2003
The meeting was called to order by Lynn at 6:31. Present were Lynn Ostrem, Marion Marshall,
Terry Schultz, Carole Ripplinger, Mike Trisler and Tim Huebsch. Chris and Craig Block arrived later.
$334.30. Traci’s pay off check was $739.17. Dues deposit totaled $475.00. New member fee deposit $25.00. Transfer of funds from broker was $370.44, giving us an ending balance of $111.20.
4. Carole reported on 1st Data/ Concord EFS. Under investigation by the Justice Department, and the S.S.G. price out of the Buy range, we will revisit this stock at a later time.
review by the Justice Department. Based on Value Line’s review, PMI will be placed on
the Watch List and reviewed in 90 days (Oct). MBNA reviewed by Lynn.
and Harley Davidson are in the Buy range on the Watch List.
Stock Study: Everyone to check the powerpoint presentation on the Club’s
Education website for Finding Quality Companies. Pick two stocks that you believe are worth studying based on good S.S.G’s and Value Lines review. Bring them to the next meeting, but send your datafile to Lynn, in advance, by August 8th.
Education Segment: Lynn used Bob Adam’s Spreadsheet form for Analyzing Mentor’s
Annual Report. Members voted to require this form for our stock watcher’s book.
board in the next two weeks. Deadline of July 25, 2003.
14. Review of Assignments: a) Bring two favorable stocks to study for next meeting, b)
Stock Watchers Books to be updated with the Companies Annual Report based on
Bob Adam’s Spreadsheet, c) Post education topics favored on the message board
by July 25th..
16. The meeting was adjourned at 8:15 P.M.
Minutes of August 12, 2003
The meeting was called to order by Lynn at 6:30 P.M. Present were Lynn Ostrem, Marion
Marshall, Craig Block, Carole Ripplinger, Mike Trisler and Tim Huebsch arrived later. Chris
Block and Terry Schultz were absent with notice, proxy and payment.
year. We presently have $171 in bivio bucks, enough for almost three free years.
Traci Jo’s withdrawal check was $739.17, giving us an ending balance of $391.20.
MNT and LOW are on the Buy list. The stocks on the Watch List were also reviewed-
Walgreen, Johnson & Johnson, Harley-Davidson, Brinker all on the Buy list. PMI and Lincare
not reviewed as they were recent presentations. Cheesecake, Kohl’s, MBNA and Sysco were
also reviewed. By a majority vote CAH was placed back on the Watch List. Lynn will
summarize the findings and add them to the Secretary’s Report
including the $6.95 trading fee. By a majority vote, Low stock will be purchased for $330.00
including the $6.95 trading fee.
The Club will pay for the meat. The pot-luck additions are Craig-Chips and Dip, Tim-Dessert,
Mike-Potato Salad, Carole- Baked Beans, Chris- Soft Drinks, & Terry-Appetizers.
Carole will be the Secretary during Marion’s two month absence.
Tim will be the Vice President and Education Coordinator until February’s
elections, by a majority vote.
to sell a stock next month. Education on S.S.G’s also requested.
Priority Healthcare, Craig-Aflac & Sunguard, Tim- CDW Computer. Time didn’t permit an lengthy discussion.
our stock study program, nor the direction of our education program. Lynn & Tim will meet and
decide our educational program. Lynn will present ACS, Terry to present GNTX or
Priority Healthcare, and Tim CDW if his exams allow the time to prepare.
transfer funds from the bank account to brokerage , c) Craig to purchase CAH and LOW for
$330.00 each including brokerage fee, d) Carole to take minutes for the Sept. & Oct. meetings,
e) Lynn to present power point presentation on when to sell a stock & present ACS, f) Tim & Lynn to direct education program, g) Tim to present CDW if prepared, h) Terry to present the
stock of his choice.
15. The meeting was adjourned at 8:45 P.M.
This is an addendum to the August, 2003 Minutes. We reviewed our portfolio and watch list stocks and modified (or not) the following items:
Leave as is, since it’s meeting our objectives.
Estimated sales and earnings are 18% and 18%
Estimated P/Es are 30 and 20.7; with a low price of $19.90
Original sales and EPS estimates from Tim were 20% and 18%.
We lowered them to meet VL’s stat array, which is 15.4% and 17.4%
The P/Es was lowered to 27 and 17.6; with a low price of $32.60
I believe we left the judgments where they were at 11.4% and 14.8%.
The P/Es used were the 5-year average at 26.7 & 10.9; with a low price of $12.80
We lowered our estimates from 15% and 15% to 12% and 13% for sales and earnings.
This is in line with guidance from the company and VL, due to slowing growth.
P/Es were dropped to 27 and 15, and we used the 5-year average low price of $37.10
Since Brinker is running only slightly under our expectations, we left the estimated sales and earning as is, at 14.5% and 15% respectively. We used the 5-year average P/Es of 22.2 and 12.5. The low price was $20.60.
Since VL’s stat array is higher than our 20% and 20% estimates, we left them alone.
P/Es were left at 30 and 19.3; with a low price of $19.90.
We lowered expectations to the VL stat array figures of 9.8% for sales and 13.6% for EPS.
The P/Es are 30 and 18; with a low price of $29.90.
Johnson & Johnson:
We lowered our estimates in line with the VL stat array – to 9% and 10% respectively.
P/Es are 27 and 18.8; with a low price of $35.70.
The VL stat array comes in higher than our 20% and 20%, so we left them as is.
P/Es remain at 30 and 20; with a low price of $37.40.
Since this is a new issue, we didn’t review it.
Sales and earnings estimates are 17% and 17%
P/Es are the 10 year average of 24.1 and 12.2; with a low price of $21.30.
The March quarter showed the first uptick on the Pert, and the pre-press release of the Q2 results should be the second. We waited to review this until after earnings are reported. No changes were made in the already ultra conservative judgments of 13% and 13%, 16.8 and 12.4; $13.00.
Sysco’s numbers were close to the VL stat array so we didn’t modify. Debt is 37%. It was noted that debt was at 37% of capital.
Big discussion on this stock. VL says it’s slowing. We lowered estimates to 12% and 12%.
P/Es remain at 30 and 18; with a low price of $22.10.
This stock was added back to the portfolio, then our second initial purchase was made. Our numbers at the time of this purchase were estimates of 15% and 15%, in line with management’s recent guidance of high-teen estimates. P/Es were 25 and 14; with a low price of $36.80.
Since the 2002 final numbers finally came through for OPS, most of these SSGs required us to make manual changes to the estimated low EPS for the low price. They were still showing the 2001 EPS figures. Make a note of this on your own SSGs.
Minutes Sept 9, 2003
1. The meeting was called to order by Lynn at 6:33 P.M. Present were Lynn Ostrem, Craig Block, Carole Ripplinger, Mike Trisler, Terry Schultz. Absent with notice and payment were Marion Marshall and Tim Huebsch. Tim did call in and did part of the meeting via telecom.
Chris Block, emailed his resignation, effective immediately to all club members. Lynn read the letter to the club, in case anyone had not received the notice. We had 3 guests: Cheryl Selinsky, a new potential member; Deb and Sue from the Moneta Investment Club who ask to sit in and see how other clubs work.
2. Secretary’s report was accepted as posted.
3. Treasurer’s/Club Agent report: Bank Broker
Beginning Balance $391.20 $3.68
dues collected $320.00
wire transfer ($670.00) $670.00
Balance $41.20 $70.68
5 shares Cardinal Health CAH
Purchase* 6 shares Lowes LOW
Lynn submitted a receipt $24.36 for the meat at
our annual BBQ, which was held September 6th.
Reimbusement was approved, and to be issued upon request.
4. Portfolio Manager to Call for Stock reports:
New presentations were: Affilated Computer
Systems, by Lynn Ostrem
CDW Corp, by Terry Schultz.
Copies of presentation with documentation were handed out to each member for review at next meeting.
Stock watcher reports: FDS Factst Research
LOW Lowes $51.93 HOLD
MNTR Mentor $24.43 BUY
WMT Walmart $58.59 HOLD
CAH Cardinal Health $56.36 BUY
Cardinal Health was aquired last month, the new stock watcher assigned is Marion.
Watch List report, showed (4) stocks in the BUY
PMI Group $35.30 Buy Below $35.50
JNJ Johnson & Johnson $50.50 Buy Below $52.40
HDI Harley Davidson $48.75 Buy Below $53.00
LNCR Lincare Holdings $35.19 Buy Below $39.40
No securities purchases/sells were discussed. We voted to save member’s monthly
cover Chris Block’s buy-out.
7. Non-Stock Related Business, Education:
Lynn did a Power Point presentation on "When to
Sell" which will be posted on the web, under Education for
Tim, our education program coordinator was out
of town. We discussed what future education topics we would
him to educate us on. Only one idea seemed to surface.
1. A detailed hands-on tutorial about how, where
and why we get and change the numbers on the back side
of the SSG.
2. Put any ideas on the message board for future consideration.
3. Run a current SSG on FactSet next meeting as a group, detailing numbers as we go along.
8. New Business: We received a renewal notice for the Club Membership in the NAIC. Previously we had voted not to renew it at the next renewal. We voted again to not renew it. Lynn reminded all of us that each member must be an individual member in NAIC. This is a requirement in our by-laws.
Each stock watcher should print out the annual
letter to shareholders, in which they summarize what they plan to
accomplish in the next year. These should be kept in the stock watchers binder and reviewed to see how our companies have accomplished their goals.
9. Review of Assignments:
For all members:
Submit education ideas on message board.
Update stock watcher binders with annual shareholders letters if missing, review them, see if management follows through on their promises.
Review stock presentations and be prepared to ask questions.
Monthly stock presentations:
February Annual Meeting
Next Meeting Oct 14th, Lynn’s House 6:30 P M
9. Adjourn: 8:10
Minutes October 14, 2003
1. Call Meeting to Order:
The meeting was called to order by Lynn at 6:40
Present, with payment were Lynn Ostrem, Carole Ripplinger, Marion Marshall, & Tim Huebsch
Craig Block arrived at 6:50 Absent with notice and but no payment were Mike Trisler.
Cheryl Selinsky, a new potential member, attended her second meeting and submitted her membership application into the club.
Special Orders: Terry Schultz resignation, effective immediately was read by Lynn. Since Terry was our Portfolio Manager, Lynn will resumed this duty until our February meeting for election of new officers. Tim will oversee Mentor as stockwatcher.
2. Secretary’s report : Accepted as posted.
3. Treasurer’s/Club Agent report:
4. Portfolio Manager to Call for Stock reports:
Review of previously reported stocks:
Tim reviewed Johnson & Johnson
Lynn updated Affiliated Com Sv and it was added to our buy list.
CDW was reviewed and dropped from the watch list, as no interest.
Stock watcher reports:
FDS Factst Research $45.10 HOLD
LOW Lowes $58.04 HOLD
MNTR Mentor HOLD
WMT Walmart Absent
CAH Cardinal Health BUY
Watch List report, showed (6) stocks in the BUY range:
PMI PMI Group $34.92 Buy Below $35.50
JNJ Johnson & Johnson $49.24 Buy Below $52.40
KSS Kohl’sCorp $52.65 Buy Below $62.90
LNCR Lincare Holdings $37.26 Buy Below $39.40
ACS Affiliated Com Sv $50.15 Buy Below $54.00
EAT Brinker Intl $33.30 Buy Below $36.40
5/6. Securities purchases/sells: After discussion, a motion made and passed to purchase $400.00 including trading fee of ACS. Lynn will be ACS stock watcher.
6. Open Discussion on Stocks: Stock transfer to departing members. Chris Block will receive his buyout in stock transfer. Voted/passed to transfer 5 shares of LOW and 4 shares of FDS. The small remaining difference will be issued by check.
Terry Schultz buyout, which will have his valuation date next month, would like Mentor stock shares. This will be finalize next meeting.
7. Non-Stock Related Business, Education:
Tim, presented a short education segment on using Pert A, which was found on the BITS September 2003 issue. Cardinal Health was used as an example. Lynn did a review of Factset Research using the Joe Smith’s 4 strike Strategy.
8. New Business: none
9. Review of Assignments:
For all members:
Stockwatchers: recommendations on buy/hold/sell.
Review: Johnson & Johnson update.
In BI magazine, read article on OrthoFix; consult Valueline and complete SSG on your own.
Bring completed SSG to the next meeting.
We will compare and review everyones assumptions as a lesson on filling out SSG’s.
Mike Trisler: stock presentation for Novemeber
Craig Block: Purchase new securities and transfer stock for Chris Block’s buy-out.
Lynn: stockwatcher for ACS
Tim: stock watcher for Mentor, and review any news on PMI
Next Meeting Nov 11th, Lynn’s House 6:30 P M
9. Adjourn: 8:30
November 11, 2003
Beginning Balance $271.20
Dues Deposit $140.00
Mike’s Deposit $30.00
Transfer to Broker $400.00
Buy-out check to Chris $62.89
Buy-out check to Terry $12.00
Transfer from Broker $121.63
Ending Balance $87.94
Chris received 4 Low and 3 FDS Shares and Terry 17 MNTR Shares in addition
to a check.
Beginning Balance $71.88
Bank Transfer $400.00
Purchased 7 ACS Shares $357.30
Dividends $7.83 ( WMT $1.80, CAH $.15, LOW $.78
Bank check to cover Chris ck $121.63
Ending Balance $0.78
Mike presented Apollo Group, Inc. It will be added to our Watch List.
Tim reviewed Johnson & Johnson. It will be added to our Watch List.
Tim reviewed PMI. It will be removed from the Watch List.
Stock Watcher’s Reports:
ACS Buy, CAH Buy, FDS Hold, LOW Hold—Watcher recommended Buy,
MNTR Buy—Watcher recommended Hold, WMT Hold.
Watch List Report:
Brinker, Kohl’s and Lincare are in the Buy Range. Lynn to update Brinker and Craig to update Kohl’s for next month.
NAIC Member Status: Individual Memberships are necessary as Club voted not to join as a Club. Craig is only one who needs to renew.
Cheryl had her final interview. Please vote on her membership by this Friday,
the 14th via e-mail to Lynn.
The NAIC SSG 102 was recommended for anyone available this Sat. the 15th.
reviewed. No interest was found for this stock . Help for reaching judgments can be found on Yahoo, Quicken, Press releases, Value Line, and the Company’s Web-Site, to name a few. It is obvious that we need practice in reaching SSG judgments.
Carole to present the December Stock Presentation.
Lynn to update Brinker.
Craig to update Kohls.
Everyone to complete the SSG for Costco, the December BI Stock to Study
Everyone to vote on Cheryl’s Club Membership
Everyone to bring snacks for the next meeting.
December 09, 2003
Bank Beginning Balance $87.94
Dues Deposit $220.00
Party Check to Lynn $34.36
Ending Balance $273.58
Broker Beginning Balance $0.78
Ending Balance $0.78
Carole presented First Data Corp. It will be reviewed next meeting.
Lynn reviewed Apollo Group, Inc. Compared to industry companies,
Corinthian Colleges has the edge on health-care education.
After reviewing the Education Segment, Corinthian Colleges will be
placed on the Watch List, and Apollo will be dropped. The stock is too popular.
Lynn reviewed Brinker. We will keep on the Watch List.
No report on Kohls as Craig was absent.
Stock Watcher’s Reports:
ACS-Buy, CAH-Buy, FDS- No Report, Low-Hold, MNTR-Sell, WMT-No
Watch List Report:
Johnson & Johnson is a Buy, but having Procrit clinical trial problems.
The trials have been suspended. Lincare is a Buy, but Medicare to revise
reimbursement rates. Brinker and Harley Davidson are a Buy. Lynn reviewed Kohls, and there are too many problem for now. We’re dropping from list.
All 17 Mentor shares will be sold due to declining fundamentals.
Kohls will be removed from the Watch List.
Brinker Stock to be a new purchase- $350.00 including the trading fee.
ACS Stock to be added to the portfolio--$350.00 including the fee.
NAIC Member Status: All Club Members belong to NAIC.
New Business: None
NAIC Calendar of Events—Everyone should attend, if possible. Classes
are reviewed in BI.
Lynn passed out the Toolkit Criteria to help us with SSG Judgments.
Costco, the December Stock to Study, was reviewed. .It was decided
that it was not a viable purchase.
Everyone to complete the SSG on Yankee Candle, the January Stock to Study.
Craig to present the January Stock Presentation .
Carole to place First Data Report & SSG on line to be reviewed next month.
Carole to update Lincare.
Craig to sell all Mentor Stock, Buy $350.00 of Brinker & $350.00 of ACS Stock
including the broker fee for each.
Everyone to be prepared to discuss Yankee Candle next month and have an SSG.
Should Corinthian Colleges be a future purchase? Please have an opinion.
10. Meeting adjourned at 9:00 P.M.
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