In This Issue:
One Year Ago in the Investor Advisory Service
In the March 2011 issue of the Investor Advisory Service we recommended Fabrinet, a maker of optical instruments and industrial lasers and sensors. This midsized company had revenues in 2011 of $743.6 million and had grown earnings per share at an annualized rate of 36.7% since 2009. How have the company and its stock performed in the year since it was recommended?
We introduced contract manufacturer Fabrinet (ticker: FN) to the IAS in March 2011 at a price of $31. Shares have since lost about one-third of their value. Although we naturally prefer to broadcast our winners, rather than our losers, it's interesting to look back at the experience this company has given investors over the past year. Calling Fabrinet's performance "a little bit of everything" doesn't nearly do the stock justice.
We were originally drawn to Fabrinet because of the good growth prospects in its end markets. At the time of selection, about 80% of Fabrinet's revenue came from optical communications, with the remaining 20% coming from a fast-growing business in industrial lasers/sensors. Some of the prominent OEMs in these industries include JDS Uniphase, Finisar, and Coherent. All have interesting growth prospects, but their fortunes tend to see-saw violently, and so go their stock prices. We love growth in the IAS, but we don't much care for cyclicality. As a neutral third-party serving multiple OEMs, Fabrinet seemed poised to grow with whichever players happens to be winning in the marketplace at any given time. ...
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Update on ICLUBcentral Club State Tax Printers
We have released another update to the ICLUBcentral 2011 Club State Tax Printer, with final forms for Wisconsin, Indiana, Maryland, and New York.
Clubs in Wisconsin should take note of special requirements for requesting a waiver from mandatory e-filing requirements. Complete instructions for this are included in the final Club Tax Printer output for affected clubs.
myICLUB.com users can log in to their club website to generate the final returns; Club Accounting 3 users will be promoted to download the update when launching the Tax Printer from the program. Only Pennsylvania remains in draft mode, and we hope to confirm approval with the state very soon!
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Dealing With Poor Attendance in Your Investment Club
by Douglas Gerlach,
President, ICLUBcentral Inc.
"Showing up is 80 percent of life," said filmmaker Woody Allen, and although the percentages may vary, having members show up at your investment club's meeting is definitely key to the club's success. That's why most investment clubs require that each member maintains a minimum attendance level at meetings throughout the year. Miss too many meetings and you could be expelled from the club.
This month, Sam Irwin from the A Touch of Gray investment club in Council Bluffs, Iowa, wrote to ask "How can we avoid not having a quorum for members who, for various reasons, can't make the club's meetings?" Standard club operating documents define a quorum as the number of members and/or percentage of the club's capital accounts that must be in attendance in order for the club to conduct business. At the start of each meeting, the secretary normally takes attendance and validates that a quorum exists and the meeting can continue.
If a quorum doesn't exist, the members who are in attendance cannot take any official actions, such as voting to buy or sell stocks, electing officers or deciding to spend club funds. The attending members can still make the most of their time together and discuss educational topics or review the club's financial statements, but only on an unofficial basis. Of course, it can be a dismal prospect to turn out for a club meeting and find that not enough members are in attendance to effect an official meeting. If your club operating agreements permit, you might consider allowing members to attend meetings by dialing in via a telephone or Internet-enabled conference line and speakerphone. ...
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March 8, 2012
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.
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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:
Mar. 20, 2012: Investment Club Operations Webinar; Going Paperless in Your Investment Club
Doug Gerlach, Speaker
Mar. 24, 2012: BetterInvesting Southeast Florida Chapter Edufest;
Doug Gerlach, Speaker
Apr. 3, 2012: Toolkit 6 User Group Webinar; P/E Ratio Analysis in Toolkit 6
Doug Gerlach, Speaker
Apr. 5, 2012: Retail Investors Conferences; Dividend Analysis for the Growth Stock Investor
The growth stock investing approach taught by BetterInvesting and used in the Toolkit 6 software program focuses on capital appreciation and low P/E valuations as the keys to successful stock investing. But dividends can add to your total returns, and many investors appreciate the additional safety or income provided by dividend yield. Learn about concepts such as yield, the payout ratio, and the importance of not chasing dividends in your stock portfolio.
Doug Gerlach, Speaker
Apr. 17, 2012: Investment Club Operations Webinar; Ask Doug! Open Q&A on Any Investment Club Topic
Doug Gerlach, Speaker
May 1, 2012: Toolkit 6 User Group Webinar; Considering Cash Flow in Toolkit 6
Doug Gerlach, Speaker
May 3, 2012: Retail Investors Conferences; Top Picks in Healthcare Stocks from the "Investor Advisory Service"
With the aging of America, the healthcare industry has been growing faster than the overall economy. In this session, Doug Gerlach, Editor-in-Chief of the award-winning "Investor Advisory Service" newsletter, will discuss some of the publication's top selections in the healthcare field.
Doug Gerlach, Speaker
May 15, 2012: Investment Club Operations Webinar; The Investment Club Top 40: Most Widely Held, Sold, and Bought Stocks in Clubs
Doug Gerlach, Speaker
June 5, 2012: Toolkit 6 User Group Webinar; Live Stock Study using Toolkit 6
Doug Gerlach, Speaker
June 7, 2012: Retail Investors Conferences; Doug Gerlach, Speaker
June 19, 2012: Investment Club Operations Webinar; Handling Investment Club Member Withdrawals
Doug Gerlach, Speaker
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.
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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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