Diversity Investment Group Minutes of the Meeting

In attendance: David Brodeur, Peter Carnel, Tom Saunders, Andy Bain, Mike
Wall, John Brock, Steve Shockley, Todd Fibus, Larry Corse, Russ Douglas

Visitors: Bruce Strean (2nd visit) and Major Lashinsky.

Minutes were approved for last month.

Tom reviewed the evaluation statement. Cash on hand: $1,400.

David B. discussed scheduling the annual meeting to audit the DIG accounts.
Members who volunteered to help: Tom, David B., John and Andy. The meeting
will be Jan. 20th at 6:30 PM at Tom's house.

Tom discussed attending a financial/investment seminar and asked to see who
would be interested in attending.

David B. suggested everyone leave a tip for our server with the cashier.

David B. advised that Gary has resigned due to a new job, etc. and that his
share in DIG is valued at around $3,500. We will need to pay him off in
February.

David B. discussed having an education meeting….tabled for now.

A motion to reimburse Tom for $40.00 for K-1 software was approved.

Lineup for February presentations: Andy, David R., Mike and Roger.
Larry cannot present for February but can for March.

Peter presented Genuine Parts (GPC). They sell wholesale car parts. 50%
automotive sales, 30% industrial, 16% office products, 4% electrical.
Safety rating of "1"…highest rating.
Stock price is currently down due to:
-problems with auto parts in general
-lack of demand for replacement parts.
-car parts lasting longer.
-not as much need for replacement parts.
-dealerships encouraging/offering incentives for service/original
manufactured parts
Historical Rev growth: 10.1%
Est. Future growth: 8.0%
Historical EPS growth: 7.2%
Est. Future EPS growth: 7.5%
Current price of $23.69 is in the BUY zone. Buy up to 27.68.
David B. advised that under 50% debt to equity ratio is what we currently
look for.

John presented Cardinal Health (CAH). 69% of their income is from
pharmaceutical distribution. They repackage drugs for pharmacies, package
for dosage, etc.
21% of sales is from pharmaceutical services: testing for stability and
storage.
10% is medical and surgical equipment.
-Highlighted by Better Investing. Of 9 in its field, it is the best.
-13% est. future rev. growth.
-16 billion…large cap.
Current price of $48.75 is in the Buy zone. Buy up to $63.03.
3 major brokerage firms are recommending it.
John compared CAH to two competitors…Bindly Western and Stryker.
Surgical. CAH came out ahead.

Andy presented Textron (TXT). They are an aircraft, automotive, industrial
and financial services company.
-33% of revenue from aircraft, 25% automotive, 38% industrial, and 4%
financial.
Current price of $76.69 is a Hold. Buy up to $59.47.
Andy advised that he was going to continue to watch them.

David B. presented Fannie Mae (FNM). They help people buy houses. A
financial firm.
-Prices recently dropped.
-A socially responsible company.
-Pay a 2% a year dividend.
-Current price of $56.00 is in the BUY zone. Buy up to $58.20.
-FNM would be a good way to diversify your portfolio by including a
financial company.

We need to buy Gary out at $3,300…but we don't have to buy him out this
evening.
Cash on hand: $1,400…by Jan 10th we'll have an additional $1,150.
We currently have $2,400 in Diebold and $2,100 in Autozone.

A motion to sell Autozone was seconded. The motion was approved.

A motion to sell Diebold was seconded. The motion was approved.

A motion to invest $3,500 in Cardinal Health was seconded and approved.

Tom reported that he received checks from everyone.

Meeting adjourned.

Minutes respectfully submitted by David Robinson.

Suggestions or comments? Write DIGnet@mindspring.com.

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