Diversity Investment Group Minutes of the Meeting

In Attendance: Mike Wall, Todd Fibus, Brian Alexander, John Brock, Steve
Shockley, Andy Bain, Holly Deveny, Tom Saunders, David Robinson, David
Brodeur, Roger Drury, Randy Wilbur, David Jones, Larry Corse, Peter Carnell.

Not in Attendance: Russ Douglas and Ron Kozak.

David B. discussed duties. Officer positions are open for election in
February. Does not prefer to be president next year. Proposed that
everyone in the club have duties to help keep the club running.

Added a “portfolio director” position too. This info is also on the
website.

We have a guest: Reny Luden…(guest of Tom). Works at Emory, native of
Switzerland.

Larry sent the meeting mins around.

Treasurer report:
Checks missing: Russ Douglas

Aug valuation: No splits.
$1,452 to spend tonight.
Unit value: 22 35
Added 20 shares of Microsoft.
Unit value up 6 ½ %.

David B. talked about the Invest-o-rama SSG file/site. There is a new site
too. Pls see the DIG website.

Roger:
Who is presenting tonight? Steve, David B., Andy

Next month?
Mike, Tom, Andy.

November?
Volunteers: John, David R.,

Upcoming analyst reports that are due:
Sept 14…David J. and Larry
Oct: FNM and many others!

Steve Shockley reviewed our portfolio holdings for diversification/balance.
Our heaviest holdings:
Health Care/Drug/Pharm.: 16%
Computer Software: 22%, etc.
Health Care/(Med. Supplies) 23%.

Goal is to find stocks that would help even out our portfolio and reduce any
major fluctuations.
Containers (metal and glass) high on the list for “least relevance” to our
portfolio.
Oil, Natural Gas, Electric Cos., and Metals Mining also high on the list.

Review of the DIG board:
BUYS:
BAC, FNM, MAR, MSFT, HNI, KRB(MBNA), LU, PZZA, TXT

HOLDS:
ADBE, ADP, CAH, RHI, TECH, AA, CSL, DELL, CSCO, UNH, CMH

David B. reviewed Lucent with an SSG.
18% growth estimated.
Estimated low price: $35.79.
Current price of $44.74 is in the BUY zone. Buy up to $48.81.
Compared them to competitors/Industry average. LU does better than
competitors in several areas particularly with Operating Efficiency. Moving
more towards high tech/cutting edge approach.
Peter advised they are trimming off their holdings that are hurting them.
Reviewed their historical “flow ratio”.

The Flow Ratio is the Current Assets minus Cash divided by Current
Liabilities minus Short Term Debt.
How you are financing your assets:

Current Assets – Cash
Flow Ratio = Current Liabilities – Short Term Debt

Andy presented Textron (TXT).
Market Cap: 8 ½ billion.
Aircraft, Automotive and Industrial.
Business jets. Aircraft backlog is huge.
They bought Gulfstream. Cessna aircraft. Bell Helicopters.
Estimated Low price: $34.30.
Current price of $59. Is a BUY. Buy up to $59.47.
Forecasted high price: $135 to $160 (VL).

Motion to sell Gillette was seconded.
(The motion did not carry.)

Motion to buy Microsoft $1,400. (Discussion.) Several suggestions were
floated/discussed. Sell part of Adobe or Techne? (Discussion.)

(Tonight we collected $1,135.)

Motion carried to buy $1,400 of Microsoft.

Motion to sell $2,000 of Adobe and reinvest proceeds in Bank of America
carried.

Meeting adjourned.

Suggestions or comments? Write DIGnet@mindspring.com.

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