ICLUB Insider |
March 7, 2005 |
THE LATEST NEWS ON
NAIC SOFTWARE BUILT BY ICLUBCENTRAL INC.
Summary
Calling all Investing Support subscribers! An update to
NAIC Investor's Toolkit 5 is now available. Among the many new
features and enhancements available in NAIC Investor's
Toolkit version 5.0.1 are:
- No longer generates run-time errors during certain
operations or if bad data has been entered
- Properly exports *.SSG and *.ITK datafiles
- Does not flag companies with locked data as needing
an update
- Properly updates PMG graph to use future earnings
when selected in Options
- Allows you to select a default printer if you have
multiple or networked printers
- Does not place a temp file on the desktop for certain
users
- And much more!
If you already have a valid subscription to NAIC Investing
Software Support and Maintenance Agreement -- or, as we like
to call it, Investing Support -- you should have received a
special email with quick and simple instructions for
downloading the update.
If you're not currently an Investing Support subscriber,
as well as updates to any other NAIC investment software
program made by ICLUBcentral Inc. In addition, Investing
Support subscribers also receive the Complete Roster of
Quality Companies, a monthly list of top-rated stock ideas
for your portfolio; monthly Investment Comments from the
Investor Advisory Service; and access to ICLUBcentral's
customer support to resolve any issues you might experience
with your software.
This update is only available to users of NAIC Investor's
Toolkit 5. If you use NAIC Investor's Toolkit 4, you
must purchase an upgrade to version 5 in order to take
advantage of the powerful new features included in this
edition. A special upgrade price is available for a limited
time; visit the NAIC Investor's Toolkit 5 pages on ICLUB.com
for more information.
To learn more about NAIC Investor's Toolkit 5, NAIC's
official software for completing the Stock Selection Guide and other NAIC tools, please visit http://www.iclub.com/tk5/.
To subscribe to the NAIC Investing Software Support and
Maintenance Agreement program, please visit http://www.iclub.com/isupport.
April 15th is just around the corner, but your club still has
time to prepare its 2004 tax returns! Remember, the IRS requires
*all* investment clubs to file a Form 1065 information return
each and every year, and does not consider valid any elections
your club may have made in the past. Your investment club must
provide each member with a Schedule K-1, as well, outlining the
member's income, expenses, gains and losses incurred in the club.
Many states require investment clubs to file a similar return as
well.
Fortunately, the NAIC Club Tax Printers are available to help
club treasurers quickly prepare the required filings for the IRS
(as well as for eight states). There are three separate editions
of the Tax Printer that are available:
The NAIC Club Federal Tax Printer for NOCA (NAIC Online Club
Accounting) is the easiest way to prepare your club's taxes. If your club uses NOCA for its club accounting and
operations, the Federal Club Tax Printer can be no further away
than a click on the Taxes tab in the program. No downloading is
required, and your club members can have their tax information
available quickly and easily. Click the Taxes tab in your NOCA
site to purchase the NOCA Federal Tax Printer.
The NAIC Club Federal Tax Printer for NCA (NAIC Club Accounting)
is a Windows program that works with the desktop version of NAIC
Club Accounting (or with an exported data file from NOCA). You
can purchase the program on CD-ROM, or for even quicker access
(and to save on shipping charges!) you can purchase the program
and immediately download it from the ICLUB.com web site.
The NAIC Club State Tax Printer is
a Windows program that works both with the desktop version of
NAIC Club Accounting and an exported data file from your NOCA
club web site. You can purchase the State Tax Printer
program on CD-ROM or download it from the ICLUB.com web site.
Don't forget that NAIC members get a $20 discount off the regular
price, but only if you enter a valid NAIC member number and see
the discount applied at the time of purchase!
If you haven't ordered your 2004 Club Tax Printers yet,
there's still time! Just visit http://www.iclub.com/taxes.
The PERT (Portfolio Evaluation Review Technique) Report is one of
the key tools in NAIC's portfolio management process. This form
allows you to compare a company's recent results to your long-
term projections for a company, and shine a spotlight on
potential problem areas affecting the companies that you own.
NAIC Investor's Toolkit 5 helps you to interpret the PERT Report
by highlighting recent results that may indicate trouble spots.
For instance, if a company's recently reported quarterly EPS or
PTP results are below your EPS estimates on the SSG, those
figures are shaded in pink on the PERT Report. The same goes for
any recent Sales figures that are below your long-term
projections. These are signs that a company may not be living up
to your expectations.
The right side of the PERT Report is a guideline for assessing
the fundamentals -- to see where a stock you own currently stands
in terms of the potential reward you might reasonably expect from
that stock. Here you can look at the current Price and
[Projected] P/E, the [Projected] Relative Value, the P/E as a
percent of Growth Rate, the Upside/Downside Ratio, and the
Compounded Annual Rate of Return (same as "Total Return") to see
the potential that the stock has at the moment.
(This is a good place to mention the columns labeled "CUR P/E"
and "RV" (Relative Value). Although these figures are labeled as
they are, they are actually Projected P/E and Projected Relative
Value, respectively. Both are calculated using one year (12
months) projected earnings rather than trailing 12 month's
earnings.)
Investor's Toolkit 5 also highlights in yellow any of the problematic value
assessments on the right side of the PERT Report. If the Relative
Value is too high or too low, or the Upside/Downside Ratio or
Compounded Annual Rate of Return aren't meeting your objectives,
those items are flagged to alert you that further investigation
may be necessary. In the Price column, if a price is more than
one week old, the date will appear in red.
When looking at the right side part of the PERT, remember: The
worse a company performs, the better a value it will appear! If
the Sales, Earnings, and Pre-tax Profits have declined
significantly and the cause is long-term in nature, the stock may
not actually be the bargain that it may appear to be on the PERT
analysis. If a company's growth rate is slowing, its P/E Ratio is
likely to decline, and the stock may seem at first glance to be
selling at a bargain P/E compared to its past record. But this
stock may never achieve the growth rates necessary to support its
historical P/E Ratios, and you must factor this into your
analysis.
NAIC Investor's Toolkit 5 also includes a feature that allows you
to tweak the results of the PERT Report to provide you with more
finely-tuned projections. The P/E Ratio and Relative Value on the
PERT Report use projected EPS from the next 12 months, and
Toolkit 5 determines this value based on the long-term growth
rate you choose in Section 1 of the SSG. However, the program
also gives you the option to enter your own estimated EPS to
override the calculated values. This allows you to enter the EPS
projections for the next 12 months that analysts have made for
the company, for instance. Since analysts are typically more
accurate in the short-term than in the long-term, these estimates
can be useful in assessing the risk and reward you may see in the
near-term if you continue to own a stock.
In order to change the estimated EPS in Column E of the PERT
Report, you must first enable the feature in Toolkit 5's
Preferences screen. Select Options > Preferences from the Toolkit
5 menu, then click the General tab and click "Enable Advanced
PERT Estimates".
Then return to your portfolio and click on the Portfolio/PERT
button on the Main Toolbar, and select a Portfolio. Click Open to
display the PERT Report.
Then, select Options > Enter Estimated EPS from the Toolkit 5
menu. The "Override Calculated Estimates for EPS" screen will
appear with a list of companies in the portfolio. Highlight a
company, and at "Type Est." select "User" to place your estimate
in the PERT. (You can later select "Calculated" to restore the
"Est. EPS" calculated by the Toolkit.)
Enter the new one-year estimated EPS from analysts in the space
provided. Although not required, you should
also enter the date and source of your estimated EPS for future
reference.
Click the Close button, and you'll see the original values in
Column E struck out and your new EPS estimates appear. The
figures in the P/E Ratio and Relative Value columns have now been
recalculated using this new EPS estimate.
One final reminder: the PERT Report is an aid to sound decision-
making, not as a mechanical decision-maker. When you find
companies that appear to be performing below your expectations,
the next step is to look at that company in the Portfolio Trend
Report to give you the additional information you need to
determine whether to sell or continue holding that stock.
For more information on NAIC Investor's Toolkit 5, please visit
http://www.iclub.com/tk5/.
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© Copyright 2005 ICLUBcentral Inc. All rights reserved.
ICLUBcentral is licensed to use the investing methodologies
and trademarked forms of the National Association of
Investors Corp. (NAIC), a national nonprofit organization
dedicated to investor education. NAIC assumes no liability
or obligations with respect to the investment education
information or other content presented in the ICLUB Insider.
For more information on NAIC, please visit http://www.better-investing.org.
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