Diversity Investment Group Minutes of the Meeting

In attendance: David Brodeur, Roger Drury, Andy Bain, Tom Saunders, John Brock, Steve Shockley, Holly Deveny, David Jones, Larry Corse, Mike Wall, Peter Carnell, David Robinson.

Absent: Russ Douglas, Todd Fibus, Ron Kozak, Randy Wilbur.

Guests: Brian Alexander (3rd meeting).

The minutes were approved for last month.

Total value of DIG now at $50, 994.77.

Tom advised we have $1,300 to spend this evening.

David B. discussed having a class at his house on Ratio Analysis. Thursday, May 18th. 7:30 PM. Let David B. or Andy know if you need spreadsheets. Manufacturing companies are easier to do. Make copies of your work. Do analysis for ratios for 2 different balance sheets.

Please be sure to tip our server (Joyce).
Please make sure you pay for your meal before the cash register closes.

Roger/VP Corner.
Tonight's presentations: Holly, Mike
June's presentations: Peter, Larry, Steve.

David B. reviewed the DIG board.
Buys tonight: CMH, Gillette, Marriott, FNM.
Borderline: CAH, WPI.

(Todd had given David B. his proxy.)

David B. reviewed the V/L for Gillette. (We need a new SSG on Gillette so we can review current numbers.)

All members took turns verbally "voting" for/discussing purchases for
tonight.

There was significant interest in MBNA (KRB), the financial company that Randy presented last month. Still in the BUY zone.

Holly presented Microsoft (MSFT). 20% estimated revenue growth (which she had ratcheted back). Earnings estimated at 15% (also conservative). Big question is what is going to happen to MSFT. Nobody knows…might split up. Even with split may also do very well.
Current price of $69.25 is in the BUY. BUY up to $75.00. A more realistic/conservative price might be $65.00.

Mike presented the OM Group, Inc. (OMG). They make fuel cells for cars, etc. Eventually these cells will be replacing gasoline.
Historic rev growth: 19%. Est. Future rev. growth: 15%. Historic EPS: 16.2%. Estimated EPS growth: 16%. Current price of $45.18 is a BUY. Buy up to $45.22. Concern with their large debt of 85.9% in 1999 due to their purchase of a smelting plant in Scandinavia (Finland).

Mike also presented AHOLD (AHOLD). An international food retailer. More than 4,000 grocery stores worldwide. Est. future rev. Growth: 10%. Est. future EPS growth: 9%. Current price of $22.57 is a BUY. Buy up to $23.92. Mike compared AHOLD to Safeway.

Discussion to sell Fannie Mae and use the money to buy MBNA, the company that Randy presented last month. Much interest in doing this. A vote to do this did not carry.

Motion to hold our money until next month carried.

Tonight we collected $1,310 per Tom.

No check(s) received from: Russ.

Meeting adjourned.

Minutes respectfully submitted by David Robinson

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