Updating Companies

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Updating Companies

• Created by Lynn Ostrem
• Crow River Investment Club
• www.bivio.com/crowriver

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Whats this all About?

• When we originally purchased our stocks, we
• looked for 3 things
• Good strong fundamentals
• Good future growth prospects and
• At what price the stock was attractive

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Why Update?

• To make sure the fundamentals havent changed
• To make sure the stock is growing at the rate we
  intended and
• To determine whether or not the price merits
  adding to our position.

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What do we Monitor and When?
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• Monthly we update the Price
• New Value Line
• we update the Basic Data
• Quarterly we update Sales, Pre-Tax
• Profit, Earnings and Taxes
• Annually we update year-end screen
• Whenever a material event changes our
• numbers stock splits, restatements,
• etc.

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Monthly

• Price
• With our SSG judgments in place, we want to
  update the price to see if it falls within our
  buy range.

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• When do we get the price?
• Friday before the meeting,
• after Market Close (4 p.m. CST)
• Where do we get the price?
• Our Bivio Website
• Any Financial Website
• Automatically from the Internet

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from our Bivio Website
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from www.multexinvestor.com
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from the Internet
Just click and go!
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Where do we put the Price?
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New Value Line
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Quarterly
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Do you see all 4 boxes??
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If not Click on Preferences --
Then on Stock Study --
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Now click on the last option followed by the
OK button
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Now you will see 4 boxes! 1. Make sure the
quarter is correct. 2. Then enter the 4 numbers.
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How do we Line up Quarters?
Lets look on the Value Line
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Last 5 non-bold and non- italicized numbers
when filling out a new SSG.
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To find the correct year- end, use Footnote A on
the Value Line
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Where do we get PTP Taxes?

• Answer The Income Statement
• SEC Filing 10Q from Edgar
• Companys Annual Report
• Multex Investor Website
• Company Press Releases
• Or, the NAIC datafiles (automatically)

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The Income Statement

• The 4 items we need to find on the Income
  Statement are
• Total Net Sales or Revenues
• Income Before Taxes (Pre-Tax Profit)
• Income Taxes
• Diluted Earnings Per Share

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In most cases, we will Round to 1 decimal Sales
767.4 PTP 51.6 Taxes 17.4 Expect EPS (.34)
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Why do we track these items?

• Answer
• These are the fundamentals that will help us
  determine whether or not management is doing a
  good job.
• We need them for the Pert Reportcoming up in our
  next study.

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Annual Update
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Annual Update
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Annual Update
New row for completed year!
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Annual Update

• Every year, we will also do the following
• Review Companys Annual Filings
• Update the SSG
• Review our judgments
• Report on our findings to the club

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Material Events

• A Material Event will change our SSGs. Heres an
  example or two that could cause this
• Stock Split
• Restatement of financials
• Acquisition
• Sale of a division
• Accounting error, or
• FASB accounting change

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Stock Split

• When a stock splits, we get twice as many shares
  but our price is cut in half. We can handle this
  by clicking here

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Stock Split
When the Split Box appears, you simply add the
split information and click OK. It will
automatically split your current and historical
shares, high and low prices and per-share figures.
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Restatements
Double-check annual Figures every so often. If
the numbers are Different, then a re- Statement
has occurred. Re-enter all the data.
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Recap

• Stock Watchers! Every month
• Update prices
• Review the value items on the back of SSG
• Check the news
• Review judgments

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Recap

• Quarterly
• Perform Monthly update
• Check for a new Value Line
• Update Sales, PTP, Taxes EPS
• And listen to conference calls!

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Recap

• Annually
• Update all aspects of the SSG
• Read companys annual report
• Review judgments
• Provide club with a full annual update

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Recap

• And, every now and then, check for restatements
  and new Value Line information.

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Questions??

• Next Month
• We start our series on the PERT Report