Diane Windingland called the meeting of the Crow River Investment Club to order at 6:30 pm on May 13, 2008. Mary Cook, David Samborski, and Gerald Falkowski attended as guests.
Lynn Ostrem, Carole Ripplinger, Craig Block, Marion Marshall, Sheryl Sostarich, Diane Windingland, Kim Windingland, Dan Vitez, Ron Thorson, Beth Silverwater, Eric Chlan, Steve Smith, and Gary Quernemoen were present with payment. Mike Trisler and Deantha Menon were absent with notice but without payment.
The minutes of the April 8, 2008 meeting were approved as posted.
Carole made a dues deposit totaling $470 and transferred $1,500 to the brokerage account, leaving an ending bank balance of $702.02.
Carole bought 8 shares of General Electric for $300.39 and 6 shares of FactSet Research for $323.57 and 7 shares of National Oilwell Varco for $492.05 and 7 shares of Stryker for $470.14. We received $1,500 in a transfer from the bank account and dividend income of $6.08, leaving an ending brokerage account balance of $1,640.88.
Airgas Corporation by Craig. Airgas is a leading distributor of industrial, medical, and specialty gases. The company operates with a fair amount of debt due to its aggressive strategy of growth via acquisitions. Airgas is a dominant player with 38% market share; its next closest competitor, Praxair, with only an 11% market share. Craig chose judgments on the SSG as follows: 15% sales growth, 15% EPS growth, high P/E of 22.3, low P/E of 14.7, and forecast low price of $40.
Apple Corporation by Ron. Apple Corporation is the savviest marketer there is of personal computers and personal communications devices. Apple has a history of beating analysts’ estimates due to being very conservative with its forecasts. Judgments on the SSG of 20% sales growth, 20% EPS growth, high P/E of 49, low P/E of 21 exceed our club guidelines and will need to be adjusted.
Companhia Vale do Rio Doce by Diane. Vale has had a huge surge in price and trades near its 52-week high. Revenues rose 5% while earnings declined 9% in the most recent quarter. The decline in nickel prices squeezed margins as the costs to mine nickel keep accelerating. Diane recommends adding Vale to our Watch List.
Ron advised that our performance is improving with our new portfolio allocation strategy. We are beating the Vanguard S&P 500 index.
Dan is building a Challenge List from which we can choose new stocks to present. Accenture, he noted, has positive metrics.
Quarterly Stock Reports
Quarterly stock reports for Coach (Kim), General Electric (Mike), Infosys Technologies (Eric), National Oilwell Varco (Gary), Portfolio Recovery Associates (Deantha), Stryker (Marion) and Wells Fargo (Beth) were posted to the message board.
After motions were made and seconded, we voted to and add to our positions as follows, $300 in General Electric, $500 in Infosys Technologies and $500 in National Oilwell Varco.
Gerald Falkowski led a group discussion of ways to improve club communications. Gerry is a private consultant and the author of three books on organizational change management.
Assignments for the June meeting:
1. Beth Silverwater will give a new stock presentation on Hansen Natural (Nasdaq: HANS).
2. Mike Trisler will post his new stock presentation for Exxon Mobil (NYSE: XOM).
3. Quarterly stock reports are due for Lowes (Gary). Quarterly stock reports are to be posted to
the message board no later than 2 days before the June meeting.
4. Carole will buy $500 of National Oilwell Varco, $300 of General Electric, and $500 of
5. The Education presentation will be Portfolio Design – A Look at the Tin Cup Strategy
The meeting was adjourned at 8:40 pm.
Sheryl A Sostarich, Secretary
The next meeting will be at Lynn’s in St. Michael on Tuesday, June 10, 2008.