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In Attendance: David Brodeur, Todd Fibus, Larry Corse, Mike
Wall, Russ
Douglas, John Brock, Holly Deveny, Tom Saunders, Peter Carnell,
Roger Drury,
Gary Kaupman, Steve Shockley, Randy Wilbur, Ron Kozak.
Guests: Vicki Mills, Andy Sohn
Gary has proxy for Andy Bain.
Tom - Reviewed the valuation statement and monthly E-Trade
Statement. We have $1,557 this evening in cash to spend. Unit
value $12.399.
David B: Asked to see if there was interest in a class at his
house on
the STB Stock Analyst. Steve, Mike and Randy expressed an interest.
The class will be at David B's house on Thursday, Oct 21st. 7:30
PM.
John: Invited everyone to his house after next month's meeting
for
cocktails.
Roger: VP Corner.
Roger discussed the need to have analysts' reports completed
on a regular basis.
Andy doesn't want to have ownership of Watson and has two
stocks already.
Members who currently do not have a stock assigned to them
for regular analysis: Peter, Holly, Russ, David R., Steve, Mike,
and Randy.
Autozone is currently "open" for someone to assume
ownership.
Roger suggested have two analysts for each stock we
hold... a primary and an assistant. One
person can stand in for the other if one is absent from the
meeting. Discussed pros and cons. Some members
seemed to like this idea. However, it may be difficult for
accountability.
Presentations for upcoming meetings:
November: Todd, Gary, Steve (Office Depot)
December: Peter, John
February: Larry
Roger advised that SSG's don't have to be comprehensive. Do
the SSG and don't make it harder
than it needs to be.
Tonight's presentations:
Russ (NCI), Holly (Coke), Randy (Pepsi), Tom (AIG and Avery-
Dennison), David B. (Tyco Int'l.)
Russ: NCI Building Systems.
Manufacture building components/metal buildings.
Commercial, industrial, agricultural.
Materials for building construction, metal coatings.
Concern expressed regarding their debt.
Estimated low price too high.resulting in a 66:1 ratio.
David B. advised if the upside/downside ratio is greater
than 6, there probably is a problem.
(Discussion of NCI.)
Randy: PepsiCo, Inc.
Percent of sales and profit by the following areas:
Soft drinks - 48 % of 1998 sales and 35 % of operating
profit.
Snack Foods - 49 % and 63 %
Tropicana - 3 % and 1 %.
They have a previous history of high debt.
Current price of $33 is in the BUY zone.
Buy up to $37.58.
Holly: Coke
They've had problem internationally.
3 years of problems. Interest in Cadbury, Schweppes, Inca
Cola.
Looking to increase its base in China.
Looking for long-term growth.
Value Line projecting 8% earning growth in revenue
Coke accounts for only 2% of world-wide soft drink
consumption.
Going outside the US for growth.
Current price of $51 is in the BUY zone.barely.
Buy up to $51.67.
Tom: Advised that due to lack of time in this month's meeting,
he
would present his stocks next month.
David B: Disney
Three main sources of revenue.
Broadcasting and Theme Parks/Resorts are doing very well.
Creative Content is the area that is lagging behind.
Consists of films, video, merchandising, stores
stores, Broadway plays.
Tyco Int'l
Has four core businesses: Fire Protection, Flow Control,
Electrical and Electronic Components,
and Disposable and Specialty Products.
Aggressively acquires other companies, consolidates them
with its current/similar holdings, maximizing economies of scale.
Current price of $105 is in the HOLD zone.
Buy up to $71.
Review of "Buys" this evening (these stocks also
represent an
opportunity to increase percent of holdings
by DIG and still maintain a balance of holdings.)
Clayton Homes
Autozone
Diebold
Robert Half
Watson
Larry suggested that for future meetings we should cut off
presentations/discussion of stocks earlier and devote more
time to discussion of purchases/reinvestment (rather than
wait until the meeting is almost over to discuss purchases.)
Motion to buy Coke at $48.00 (limit order).
Discussion. Motion was seconded.
Received 9 votes. Units counted. 60% of units represented.
Motion carried.
Lights down. Music up. Meeting adjourned.
Tom reported that checks were received from everyone.
Minutes respectfully submitted by David Robinson
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