October 8, 2011
Quarterly Meeting
Administrative Presentation
President’s Welcome
• Thanks to Scott Kaufmann, Ken Bonham
& Lucid Agency for Hosting
• Congratulations to the recently married
– Shane Thompson
– Michael Barber
– Chuck Coolidge
• Individual conversations with all
members
Currently Serving Officers
•
•
•
•
•
•
•
President – Dan Corey
Vice President – Shane Thompson
Secretary – Justen Leicht
Treasurer – Michael Barber
Portfolio Manager – Mike McDonald
Sergeant-at-Arms – Chuck Coolidge
Technology Officer – Michael Vargas
President’s Welcome (con’t)
• Goals
– Clearer understanding of risk
– Understand risk tolerance of group
– Standardize processes
•
•
•
•
Keynote speakers wanted
Bios
Proposed meeting dates (on agenda)
No keynote speaker this meeting; we are
going to focus on the portfolio
Vice-President’s Update
Shane Thompson: Vice President
Contributions
1820 Contributions
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$Meeting 1 Meeting 2 Meeting 1 Meeting 2 Meeting 3 Meeting 4 Meeting 1 Meeting 2 Meeting 3 Meeting 4 Meeting 1 Meeting 2 Meeting 3 Meeting 4
2008
2009
2010
2011
Treasurer’s Update
• Treasurer: Michael Barber
Q4 Income Statement
•
4th Quarter Dues
–
$4,881.68
Investment @ 90%
$4,393.51
•
TTM
$30.92
•
WFC
$11.52
•
IBM
$13.50
•
RRC
$2.60
•
SLW
$4.23
•
TLM Sale
$1,886.24
•
TMV Sale
$1,754.37
•
ERX Sale
$1,849.53
____________________________________
TOTAL TO STOCK PICK
$9,945.82
TOTAL TO MONEY MARKET
$488.16
Buys / Expenditures
 Purchased 20 RIMM @ $20.27
($555.39)
 Purchased 62 LULU @ $62.71 ($3,898.01)
 Commission of Transactions ($49.95)
 SLW Foreign Tax Withheld
($.63)
Sells / Income
 Sold 93 TLM @ $20.39
$1,886.24
 Sold 103 TMV @ $17.1301
$1,754.37
 Sold 49 ERX @ $37.9501 $1,849.52
Balances
• TD Ameritrade Money Market
$4,998.38
• Comerica Bank
$4,772.14
• Total Investments
$24,512.11
• Total Assets
$34,232.63
Value of One 1820 Unit
$14.279275
Portfolio Update
Mike McDonald: Portfolio Manager
Long-Term Portfolio Summary
Name
Emerging Markets Bull 3x Shares (EDC)
Silver Wheaton (SLW)
Range Resources Corp (RRC)
TATA MOTORS LTD ADS (TTM)
International Business Machines Corp (IBM)
Ford Motor Company (F)
Wells Fargo & Company (WFC)
Cognizant Technology Solutions Corp. Cl (CTSH)
lululemon athletica Inc (LULU)
Research In Motion Ltd (RIMM)
Shares Cost Basis Market Value
72
925.87
1,038.96
141 2,119.35
4,241.28
65 3,118.29
3,898.70
74
751.24
1,201.76
18 1,410.92
3,283.02
265 2,008.09
2,832.02
96 1,545.93
2,355.84
31 1,618.27
2,034.22
62 3,898.01
3,158.28
20
555.39
467.20
Percent
of
Portfolio
4.2%
17.3%
15.9%
4.9%
13.4%
11.6%
9.6%
8.3%
12.9%
1.9%
$ 17,951.36 $ 24,511.28
100%
Return Annual
(%)
IRR
12.2%
161%
100.1%
54%
25.0%
39%
60.0%
38%
132.7%
36%
41.0%
21%
52.4%
21%
25.7%
17%
-19.0%
-94%
-15.9%
-78%
36.5%
Quarterly Performance

Name
Shares
Direxion Daily Energy 3X Bull (ERX)
49
Direxion Daily 20-yr Trs 3X Bear (TMV)
103
Emerging Markets Bull 3x Shares (EDC)
72
Silver Wheaton (SLW)
141
Range Resources Corp (RRC)
65
TATA MOTORS LTD ADS (TTM)
74
International Business Machines Corp (IBM)
18
Ford Motor Company (F)
265
Wells Fargo & Company (WFC)
96
Cognizant Technology Solutions Corp. Cl (CTSH)
31
lululemon athletica Inc (LULU)
62
Research In Motion Ltd (RIMM)
20
Market
Value at
7/23/11
4,238.50
3,645.10
2,721.60
5,570.91
4,187.95
1,673.25
3,333.24
3,527.15
2,797.44
2,286.87
3,898.01
555.39
Highlights (relatively
speaking)
 IBM
Current
Market Return Annual
Value
(%)
IRR
 Strong Q2 – Raises 2011
1,849.52 -56.4% -270.7%
Outlook
1,754.37 -51.9% -249.1%
1,038.96 -61.8% -296.9%
 RRC
4,241.28 -23.9% -114.6%
 Jumps on acquisition
3,898.70
-6.9% -33.2%
speculation
1,201.76 -28.2% -135.3%
 Lowlights
3,283.02
-1.5% -7.2%
2,832.02 -19.7% -94.7%
 EVERYTHING ELSE
2,355.84 -15.8% -75.8%
2,034.22 -11.0% -53.1%
3,158.28 -19.0% -91.1%
467.20 -15.9% -76.3%
$ 38,435.41 $ 28,115.17
-26.9% -129.0%
Since our Last Meeting - 7/23/11
Summary of Sales Activity
• Sold ERX and TMV
– Decreased global demand has pushed oil prices down
– Fed appears intent on keeping interest rates low
Neither scenario is good for ERX or TMV = allocate capital elsewhere
Potential Sell Recommendations
• EDC
– Exposure to Emerging Markets is good, but maybe
in a different manner
Party Fund
• Value  $467
• Analysis
– Down 16% since we bought – outlook for BB not
good.
• Takeaway
– Hopefully they make some drastic changes or are
acquired by someone else.
PERT Review
• What is it?
• How does it work?
• What is it telling us?
The PERT is not answer but another thing to consider.
Technology Officer Update
Secretary of 1820 Update
Secretary: Justen Leicht
Sergeant-At-Arms Update
Sergeant at Arms: Chuck Coolidge
Let the Meeting Proceed!