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Guests: Brian Alexander, Cindy Wilkins, Holly Shell.
Absent: Holly Deveny, Randy Wilbur, Andy Bain
Proxies:
Holly, given to Roger
Randy, given to David B.
Andy, given to David B,
Educational moments: John and Steve shared a couple of items.
Minutes were approved from last month.
Tom reviewed the evaluation statement.
Brian Alexander presented Sony for consideration for membership.
Sony is well diversified but currently not very profitable.
Currently in process of buying Internet companies.
Holdings include 50% electronics, 30% games, 20% other.
Current price of $99 is a hold. Buy up to $71.32.
Other competitors are doing a better job of revenues.
Brian was approved for membership.
David B, discussed having an educational class on ratios at
his house.
June 22nd…Thursday at 7:30 PM.
Please copy the income statement and balance sheet for your company
for one
year. Bring to share with everyone.
VP Corner: Roger.
Presentations for this evening: Peter, Larry, Steve, John.
For July: Russ, Mike David J.
Steve gave a presentation evaluating our DIG portfolio.
Evaluation included analysis of individual stocks as a percent
of total
portfolio, Value Line industries as a percent of total portfolio,
an
analysis using Money.com's diversification tool and a review/breakdown
of
stocks by capitalization.
John presented Fleetwood Enterprises. They make motor coaches,
RV's, etc.
Demographics for RV's are good.
V/L has a 6% estimated revenue growth for Fleetwood.
Debt to equity is high…around 50%.
Current price of $17 is a buy.
Buy up to $24.93.
Clayton Homes by comparison is not very diversified.
75% of income is manufactured housing.
Almost three times more profitable that Fleetwood.
Clayton is also a buy right now.
Current price of $9 is a buy.
Buy up to $13.49.
Peter presented Pappa John's Pizza.
Fastest growing chain. Limited menu items.
Focus is on take out and delivery. Operate commissaries.
Surveyed best overall in several categories among all pizza competitors.
Price recently dropped due to price of cheese going up. (40%
of their
costs.)
Historic revenue growth: 43.6%.
Historic EPS growth: 38.8%
Estimated future revenue growth: 15%.
Est. future EPS growth: 15%.
Current price of $24.06 is a buy.
Buy up to $28.62.
Heavily involved in stock repurchase.
Debt to equity now at 39%.
"Buys" for this evening: Cardinal Health, Clayton
Homes, Fannie Mae,
Gillette, WPI.
Consideration also mentioned for Microsoft and Pappa Johns.
Motion to sell Techne did not carry.
Motion to spend half of available funds on Pappa John's did not carry.
Motion to put all of the money into WPI (Watson Pharmaceuticals) carried.
Larry advised that he was having a Pride Bash on June 24th.
Email is
forthcoming.
Meeting adjourned.
Minutes respectfully submitted by David Robinson
Suggestions or comments? Write DIGnet@mindspring.com.
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Atlanta, Georgia, USA | DIGnet@mindspring.com