In This Issue:
Projecting Profit Margins in Toolkit 6's Revenue-Based EPS Estimates Tool
In last week's Toolkit 6 User Group Webinar, Doug Gerlach discussed how to use the Revenue-Based EPS Estimates tool in the program. (You may view the archives of the webinar if you missed it.)
Known in BetterInvesting parlance as the Preferred Procedure, this approach to estimating earnings per share growth is a streamlined approach similar to that used by professional stock analysts in constructing their models of a company's future fundamental approach.
Using a limited set of variables, the Revenue-Based EPS Estimator lets you calculate future earnings based on sales, expenses, taxes, and shares outstanding (and, in rare cases, the amount of preferred dividends to be paid). Of these, sales growth for mature growth companies (of the type best-suited for Toolkit 6's approach) tends to be very consistent and relatively straightforward to project into the future. Taxes also generally don't fluctuate too greatly, and trends in an increase or decrease in the number of shares outstanding can be observed relatively easily. This allows you to judge whether a company is issuing additional shares or buying back shares regularly.
This leaves the matter of a company's future expenses. We tackle this figure from the opposite direction, though, considering what the company's likely pre-tax profit margin may be in the future, and thus deriving the amount of total expenses the company would incur at the selected level of pre-tax profits. ...
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Updated Portfolio Review Report on myICLUB.com
by Doug Gerlach,
President, ICLUBcentral Inc.
We've made some changes to the Portfolio Review Report on our myICLUB.com website. This report should now be more useful than ever to clubs that are interested in sensible portfolio management techniques for their stock holdings.
The Portfolio Review Report is a variant of the BetterInvesting PERT Report and has been used by individual investors and investment clubs for decades to manage their stock portfolios. The report is one of the key portfolio management tools offered in Toolkit 6 as well.
A year or two ago, we released a version of this report on our myICLUB.com investment club operations and accounting website. In that report, we used the Take Stock estimates of growth to calculate various judgment values. Since Take Stock is so stringent, however, the results for many companies currently being held by clubs were difficult to interpret.
As a result, we have just released an update to the Portfolio Review Report on myICLUB.com. We are now using analysts' consensus estimates for next 12 months' EPS and the five-year EPS growth rate, and the rest of the proxy judgment figures are calculated from there. (Of course, those proxy judgment values may be different from your own assessment of a stock's likely results.) ...
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New, Free E-mail Newsletter from the Investor Advisory Service
Following on the heels of releasing a new website for our Investor Advisory Service stock newsletter, we are pleased to announce that we have also launched a new resource for investors who are interested in making better quality and growth stock selections for their portfolio. IAS Insights is a new, free e-mail newsletter published each month, with tips, educational articles, recommended books and websites, and updates on past IAS picks.
This newsletter is free, whether or not you're an IAS subscriber! Current subscribers won't receive this new e-mail newsletter automatically, so you're invited to sign up directly as well.
To join the list, just sign up on the new Investor Advisory Service website with your name and e-mail address, and watch your e-mail inbox for helpful advice and updates from the award-winning IAS.
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July 14, 2011
We're ICLUBcentral Inc.
We develop high-quality software products and web services for individual fundamental investors, and powerful accounting tools used by the majority of US investment clubs.
Address:
711 W. 13 Mile Rd
Madison Heights, MI 48071
ICLUB Links:
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Events Calendar:
First Tuesday of each Month: Toolkit 6 User Group led by Doug Gerlach, ICLUBcentral Inc.
Third Tuesday of each Month: New Investment Club Orientation led by Doug Gerlach, ICLUBcentral Inc.
Doug Gerlach will also be speaking at the following events:
July 19, 2011: Investment Club Operations Webinar; Anyone Can Be a Club Treasurer! How to Manage the Club's Books in under One Hour a Month
Doug Gerlach, Speaker
Aug. 2, 2011: Toolkit 6 User Group Webinar; Doug Gerlach, Speaker
Aug. 4, 2011: Retail Investors Conferences; Importing, Exporting, and E-mailing Stock Studies
Doug Gerlach, Speaker
Aug. 16, 2011: Investment Club Operations Webinar; What's on Your Club's Watch List?
Doug Gerlach, Speaker
Sept. 6, 2011: Toolkit 6 User Group Webinar;Toolkit 6: The Basics
Doug Gerlach, Speaker
Sept. 8, 2011: Retail Investors Conferences; Doug Gerlach, Speaker
Sept. 15-18, 2011: BetterInvesting National Convention; Cincinnati, Ohio
Doug Gerlach, Speaker
ICLUBcentral, Exhibiting
Nov. 4-5, 2011: Puget Sound BetterInvesting Chapter Education Conference; Mercer Island, WA
Doug Gerlach, Speaker
Nov. 10-12, 2011: AAII Investor Conference; Las Vegas, Nevada
Doug Gerlach, Speaker
ICLUBcentral, Exhibiting
Submit Your Event!
Like 7-Eleven, we're not always doing business, but we're always open — go to the ICLUB Store and outfit yourself with the simple, yet powerful tools and services that smart investors have been using to grow their portfolios since 1989.
Got a Problem?
Support is here to help. You can reach them M-F, 9:30 AM-6:00 PM at 877-33-ICLUB (877-334-2582), or use the e-mail web form at ICLUB Support. |
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