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
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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.
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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.
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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).
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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.
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Duties Do Not Include:
Include:
• Reporting on stock price change since last
meeting.
• Reporting on stock price change since
first/last purchase.
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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.
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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).
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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
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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
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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
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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.
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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
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For More Information
• ICLUBcentral
www.iclub.com
• Write me
gerlach@iclub.com
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© Copyright 2010. ICLUBcentral Inc.
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