Who's Watching Your Club's Stocks?

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Who's Watching Your Club's Stocks?

  1. 1. Who’s Watching Your Club’s Stocks? © Copyright 2010, Doug Gerlach, ICLUBcentral Inc. Who’s Watching Your Club’s Stocks? by Doug Gerlach ICLUBcentral Inc. July2010 Download this handout from http://slideshare.net/douggerlach Managing a Club Portfolio Watching your club portfolio is vital task! • Catch fundamentally underperforming stocks before they do massive damage to portfolio. • Be prepared with potential sell list when likely new candidate stock is presented. • Know when to sell overvalued stocks. 3 Download this handout from http://slideshare.net/douggerlach Page 1
  2. 2. Who’s Watching Your Club’s Stocks? © Copyright 2010, Doug Gerlach, ICLUBcentral Inc. StockWatchers • Assign each member of club to follow one (or more) stocks. – In large clubs, use team approach – assign two people to follow one stock. • Function as “Specialists” who track individual stocks in club portfolios. • Don’t assign stockwatching duties to original presenters. – Helps eliminate emotional attachments to stocks. 4 Download this handout from http://slideshare.net/douggerlach On the Club Meeting Agenda • “StockWatcher Reports” should be on each meeting agenda. • Keep reporting short and relevant. relevant. • Conclude with action recommendation (buy, sell, hold). 5 Download this handout from http://slideshare.net/douggerlach Page 2
  3. 3. Who’s Watching Your Club’s Stocks? © Copyright 2010, Doug Gerlach, ICLUBcentral Inc. Reporting Timetable • Monthly: At each meeting. Monthly: • Quarterly: After company files Form 10-Q Quarterly: 10- with SEC. • Annual: After company files Form 10-K Annual: 10- with SEC. • As Conditions Warrant: Whenever Warrant: important developments arise. 6 Download this handout from http://slideshare.net/douggerlach Duties Do Not Include: Include: • Reporting on stock price change since last meeting. • Reporting on stock price change since first/last purchase. 7 Download this handout from http://slideshare.net/douggerlach Page 3
  4. 4. Who’s Watching Your Club’s Stocks? © Copyright 2010, Doug Gerlach, ICLUBcentral Inc. Be Methodical • Have consistent approach that club members follow when reporting on stock. • Develop your own procedures over time. • Follow standard BI/Toolkit 6 “When to Sell” criteria. • Use existing StockWatcher forms to start developing your club’s methodology. 8 Download this handout from http://slideshare.net/douggerlach Monthly StockWatcher Duties: • Report on material news about company’s operations. • Report on any changes to underlying fundamentals. • Recommend action to club (Remember: you are the club’s expert for this company). 9 Download this handout from http://slideshare.net/douggerlach Page 4
  5. 5. Who’s Watching Your Club’s Stocks? © Copyright 2010, Doug Gerlach, ICLUBcentral Inc. Monthly StockWatcher Checklist •Sales growth •Earnings per share (EPS) growth •Pre-tax profit margins and growth Pre- •Management's ability and competence •Breaking news •Current valuation •Future outlook •Overall recommendation 10 Download this handout from http://slideshare.net/douggerlach Quarterly StockWatcher Duties In addition to monthly checklist: • Review PERT-A/Quarterly Trend Analysis PERT- Graph – Pay particular attention to declines in pre- pre- tax profit growth • Review Defense & Offense criteria in Toolkit 6 11 Download this handout from http://slideshare.net/douggerlach Page 5
  6. 6. Who’s Watching Your Club’s Stocks? © Copyright 2010, Doug Gerlach, ICLUBcentral Inc. Annual StockWatcher Duties In addition to monthly & quarterly checklists: • Present updated SSG/Toolkit 6 Stock Study 12 Download this handout from http://slideshare.net/douggerlach Club Portfolio Manager • Some clubs assign a “portfolio manager.” • Analyze & report on diversification (by size and sector/industry). • Might collect stock studies & judgment for PERT/Portfolio Review Report. 13 Download this handout from http://slideshare.net/douggerlach Page 6
  7. 7. Who’s Watching Your Club’s Stocks? © Copyright 2010, Doug Gerlach, ICLUBcentral Inc. StockWatcher Forms • Investment Clubs for Dummies: Dummies: http://www.douglasgerlach.com/clubsfordummies/stockwatcher_form.html • Bob Adams’ “Follow Your Stocks” Form: http://bob- http://bob-adams.net/Follow_Your_Stocks.aspx 14 Download this handout from http://slideshare.net/douggerlach For More Information • ICLUBcentral www.iclub.com • Write me gerlach@iclub.com 15 © Copyright 2010. ICLUBcentral Inc. Page 7

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