Old Hills Investment Club
Aug 9, 2000Attending:
Dale, Tony, Bill, Brian, Terry, John, Jim, Chez and Tim Z; also, a cameo appearance from Al.
Minutes:
Bill opened the meeting at 8:20. Reports were passed out and reviewed. Bill explained some new features on the NAV report which included near term and long term historical data on stocks held. Discussion ensued regarding the proper procedure for selling stocks in the portfolio. The discussion evolved over two points; who can recommend the sale of stocks, and what guidelines should be used to propose a sale. The general consensus was that any member can recommend a sale at any time during the meeting. The proposal to sell should be based on a combination of factors – including the overall performance of the stock compared to the general market and the specific market sector the stock is in, and an analysis of whether the underlying fundamentals (market penetration, competitive position, new products, deterioration of products or services, technological advantages or disadvantages, management changes, and financial strength) of the stock have now made the stock less desirable from the initial decision to buy it. The individual who initially suggested we purchase the stock is expected to follow the stocks performance and report any significant changes, positive or negative.NAV
was set at $15.3728, current member shares amount to 4,254.023, club value is $65,623.84$2,700.00 to invest. Stocks proposed: Jim S – GM(General Motors), Dale – WCOM(World Comm), Brian – JDSU (JDS Uniphase) and PUMA(Puma Technologies). With a solid McSherry bloc, JDSU received 9 votes and GM 5 votes. It was decided to use all the money to buy JDSU and carry over GM to the final voting in the Sept meeting. A discussion followed on whether to buy SDLI in lieu of JDSU. SDLI is being purchased by JDSU at a ratio of 3.8 shares of JDSU for each share of SDLI. Buying SDLI ($367.00/sh) would result in approximately an 18% saving on resultant JDSU shares after the takeover. Fears of the deal falling through resulted in a decision to directly purchase JDSU. 22 shares of JDSU were purchased at $120.3125/sh + $14.95 fee or $2,661.83.
NEXT MEETING
: WEDNESDAY, SEPTEMBER 13, 2000 AT 8:00 PM
MONTHLY INVESTMENTS AUGUST 2000
|
PIN # |
PIN # |
PIN # |
PIN # |
||||
|
2300 |
$ 100.00 |
9600 |
$ 100.00 |
CATS |
$ 200.00 |
1428 |
$ 100.00 |
|
3310 |
$ 0.00 |
5220 |
$ 100.00 |
5618 |
$ 100.00 |
2699 |
$ 0.00 |
|
1786 |
$ 200.00 |
BMAC |
$ 100.00 |
0354 |
$ 200.00 |
1515 |
$ 100.00 |
|
MRK1 |
$ 100.00 |
X101 |
$ 100.00 |
0000 |
$ 100.00 |
9478 |
$ 100.00 |
|
1012 |
$ 300.00 |
0323 |
$ 100.00 |
7702 |
$ 100.00 |
3484 |
$ 300.00 |
|
Total |
$2,500.00 |