General Meeting 02/15/10

At today’s meeting we did the following:

Checked in on our stock simulation! Remember to CHECK ON IT if you want to win!

How to analyze a stock, i.e. how to read an article and pick out the relevant info

1.) Cisco systems – look at the graph, news/events relating to the company, company profile, how to break down all of the numbers.  Here are a couple of terms to keep in mind while considering a stock:

market capitalization = shares outstanding * price/share

beta = comparason with S&P 500, if a company “has beta”, then you have outperformed the S&P (used in a 3 year period)

EPS = revenues/shares outstanding

EPS growth = long-term projection of the company’s health

Question posed: Should we consider selling some of our stocks that have taken more than a 60% loss?

Answer: Nathalie says that we should weather the storm.  The stocks we own that have underperformed have been around for a while and if there were ever a threat of bankruptcy, she is confident that the government would bail them out.

Lastly, we went through our stocks.  Good news: 20% return on EROC and 30% return on CREE! Whoo!

Come by next week when we will be voting to make more stock purchases!