4/5/2011                                      by Doug Gerlach                           President, ICLUBcentral Inc.      ...
4/5/2011}   Maintain optimal levels of risk and reward.}   Sell stocks of companies with declining    fundamentals.    ◦ P...
4/5/2011}   PERT-A Worksheet (a.k.a. Quarterly Trend    Analysis).}   Intended to help see small trends in company    perf...
4/5/2011}        Offense & Defense strategies are foundation         of portfolio tools.}        Portfolio Overview & Aler...
4/5/2011}   “Rule of 5” -- 1 out of 5 stocks will    underperform your expectations.}   Occasionally due to unpredictable ...
4/5/2011}   Always update data and prices before    evaluating portfolio:    ◦ Click Update Data and Update Prices from Ho...
4/5/2011Double-click portfolio to display Overview                                                13Click Alerts button fr...
4/5/2011}   Choose “Trailing 12 Mos.” data (see trend).}   Highlight stock & click “Check Trends” to    launch Quarterly T...
4/5/2011}   Click “Thresholds” to change alert values.}   Click “Challenge” to launch Challenger.}   Mark “Sell” or “Hold”...
4/5/2011}   Set Challenge Parameters:                                19                                20                 ...
4/5/2011                     21    Email me atgerlach@iclub.com.                               11
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Go Offense! Go Defense! Portfolio Management in Toolkit 6

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A presentation on the portfolio management tools included in Toolkit 6, the world's most popular software for fundamental stock analysis. Learn how to spot problems in your stock portfolio before they become disasters and make better sell decisions. Presented by Doug Gerlach, President of ICLUBcentral Inc., makers of Toolkit 6.

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Go Offense! Go Defense! Portfolio Management in Toolkit 6

  1. 1. 4/5/2011 by Doug Gerlach President, ICLUBcentral Inc. April 2011} This presentation was given April 5, 2011 as part of the Toolkit 6 User Group Webinar. ◦ Free monthly webinar presented by Doug Gerlach of ICLUBcentral for all Toolkit 6 users. ◦ For information, visit: http://www.iclub.com/clubs/webinar_information.asp} View archived video of this presentation at: http://www.iclub.com/webinars/webinar_tk6.asp 1
  2. 2. 4/5/2011} Maintain optimal levels of risk and reward.} Sell stocks of companies with declining fundamentals. ◦ Protect portfolio from damage done by poorly performing companies.} Sell stocks that are overvalued or that don’t provide necessary returns. ◦ Pro-actively remove companies with limited upside.} The Portfolio Evaluation Review Technique (PERT) Report: key tool provided by BetterInvesting to track portfolio fundamentals. ◦ a.k.a. “Portfolio Review Report” in Toolkit 6.} Enhanced in Toolkit with shading, colored alerts. 2
  3. 3. 4/5/2011} PERT-A Worksheet (a.k.a. Quarterly Trend Analysis).} Intended to help see small trends in company performance before they become big problems. 3
  4. 4. 4/5/2011} Offense & Defense strategies are foundation of portfolio tools.} Portfolio Overview & Alerts replace PERT-A Worksheet and PERT Report.} Allow you to focus on 2 critical tasks: 1. Sell fundamentally underperforming stocks. 2. Sell overvalued stocks. } Reports still available for more detail & analysis. 4
  5. 5. 4/5/2011} “Rule of 5” -- 1 out of 5 stocks will underperform your expectations.} Occasionally due to unpredictable circumstances.} More often due to fundamental problems.} Defense is protecting portfolio from damage from that 1 in 5 stock with fundamental problems. 9} Offense is proactively improving performance of your portfolio by replacing fine but overpriced companies.} Relates strictly to stocks price.} Overvalued stocks can no longer produce desirable return in future. 10 5
  6. 6. 4/5/2011} Always update data and prices before evaluating portfolio: ◦ Click Update Data and Update Prices from Home Page. ◦ Or update each company manually. 11} Items highlighted in red require attention.} Double-click to begin working with a portfolio. 12 6
  7. 7. 4/5/2011Double-click portfolio to display Overview 13Click Alerts button from Overview to display. 14 7
  8. 8. 4/5/2011} Choose “Trailing 12 Mos.” data (see trend).} Highlight stock & click “Check Trends” to launch Quarterly Trends Graph.} Mark “Sell” or “Hold” as appropriate. 15} Compare: ◦ % change for Sales, PTP, and EPS. ◦ More analysis if growth doesnt meet expectations.} Analyze: ◦ Determine if marked trends exist. ◦ Refine list of sale candidates.} Decide: ◦ Use online research to determine reasons for failure. ◦ Sell ASAP stocks with low prospects for strong, steady growth. 16 8
  9. 9. 4/5/2011} Click “Thresholds” to change alert values.} Click “Challenge” to launch Challenger.} Mark “Sell” or “Hold” as appropriate. 17} Check Risk and Reward: ◦ Select companies whose RV, Rwd/Rsk Ratio, and TR indicate they are overpriced.} Reevaluate: ◦ Review SSG for each, making sure that EPS growth and forecast high PEs are reasonable.} Challenge: ◦ Replace companies whose return and risk remain unsatisfactory with companies of equal/better quality & better potential returns. 18 9
  10. 10. 4/5/2011} Set Challenge Parameters: 19 20 10
  11. 11. 4/5/2011 21 Email me atgerlach@iclub.com. 11

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