Investment SIG Thursday June 9 th , 2011 Agenda

1. Investment SIGThursday June 9th , 2011Agenda • Welcome Visitors • Timely Topics • Current Month Special topics • Lazy Portfolio • Shale Gas • On-line info for Share Buy Back & Dividends • Investment Learning Opportunities • Inputs from Attendees on future topics • Inputs from Attendees: Open Discussion • Next Month

2. Welcome to Visitors • Thank you for visiting with us tonight • You’re invited to join the 1960 PC Users Group and attend any or all of the six Special Interest Groups. • The annual dues for you and your spouse to attend the meetings and events is $40/year • See our website: www.1960pcug.orgfor more details and also for copies of prior presentations and resources • We have membership application blanks available tonight.

3. Investment SIGThursday June 9th , 2011Agenda Agenda • Welcome Visitors • Timely Topics • How to beat the Market

4. Timely Topics:How to Beat the Market • Per the WSJ, some newsletter publishers / money managers have devised a simple way to “beat” the S&P, including: • CNBC’s Cramer’s Action Alerts Plus: “My Portfolio is Crushing the Market” • MarketWatch’s The ProActive Investor • How do they do this?

5. Timely TopicsHow to Beat the Market • They simply delete dividends from the performance from the S & P and yet still include it their portfolio’s performance • Cramer showed the S & P return since 2002 at 15.5% vs. his portfolio at 39.2% • If you add dividends back in to the S & P, its return is 38.3% • So Cramer is ahead by 0.9%, but that is before the trading fees for making the required 774 trades annually, before taxes, and before his $299.95 first year, come-on fee. • A simple S &P 500 Index Fund would have netted more than Cramer’s Action Plus Portfolio

6. Investment SIGThursday June 9th , 2011Agenda • Welcome Visitors • Timely Topics • Current Month Special topics • Lazy Portfolio • Shale Gas • On-line info for Share Buy Back & Dividends

7. Current Month Special Topics Al Williams: • LAZY PORTFOLIOS • http://www.marketwatch.com/lazyportfolio • http://www.madmoneymachine.com/ • http://www.madmoneymachine.com/professional-lazy-portfolios/

8. Current Month Special Topics Al Williams: Shale Gas Plays Understanding the basic drilling process Northern Oil & Gas, Inc. • Horizontal Drilling

9. Current Month Special Topics Shale Gas Plays • Understanding the basic drilling process Northern Oil & Gas, Inc. • Horizontal Drilling • Environmental / Regulation Issues: • The industry is regulated by state statutes, not the Federal Safe Water Act • Disclosure of proprietary fracking chemicals has been a concern, but several in the industry now reveal them voluntarily • Both Federal and State regulations today require casings to protect fresh water aquifers from drilling fluids • A new Texas law requires disclosure of all chemicals by 2013 • http://fracfocus.org/ • TransCanada Pipeline was denied permission to restart its Keystone Pipeline from Alberta into Cushing, OK. Unreasonable? They’ve had 11 leaks in past 11 months

10. Current Month Special Topics Shale Gas Plays Economics • What shale gas has done for US Natural Gas Market: World Prices of Natural gas US: $4.00 Europe: $8.00 Asia: $14.00 • Cheniere Energy got approval May 20 to export 2.2 bcf/day of LNG from its Sabine Pass LA plant for 20 years. Its shares jumped 50%. An attractive investment? • Its first income is expected in 2016 • Natural gas price in US surged to 10 month high June 3rd— Usually goes down as winter season ends. What’s going on? Nuclear Maintenance is about one to two months longer than usual this year

11. Current Month Special Topics By Al Williams: For more information: www.OilShaleGas.com www.ShaleOilPlays.com These are blogs that give a lot of specific information about the shale energy industry

12. Current Month Special Topics

13. Current Month Special Topics

14. Current Month Special Topics • On-Line info on share buy back and dividends • TheOnLineInvestor.com (free) • provides specific companies Buy Back Announcements • StandardAndPoors.com (free) • Tracks overall industry trends and gives some specifics • BuyBackLetter.com ($195/year) and ($79/month) • Provides specific recommendations for promised big yields • In the top 9 for Hulbert’s Financial Digest rating service

15. Investment SIGThursday June 9th , 2011Agenda • Welcome Visitors • Timely Topics • Current Month Special topics • Lazy Portfolio • Shale Gas • On-line info for Share Buy Back & Dividends • Investment Learning Opportunities

16. Upcoming Investment Learning Events • June 13th , Monday- The Woodlands Economic Forum (TWEF)-Mitchell Library at 8125 Ashlane Drive (across from YMCA) in the Woodlands -- 10 am to noon : Open discussions on Economic Issues • June 20th, Monday- Woodlands Investment Group(TWIG) meeting-Montgomery County Library at 2101 Lake Robbins Drive. Topic: Members sharing specific security recommendations and exchange market information -- 10 am to noon. • June 21st, Thursday – Fidelity Seminars at the Woodlands Fidelity office at 1701 Lake Robbins Drive: • Fidelity’s Trading Advantage-- -- 10 am to around noon • Bond Investing Beyond Yield- A Deeper Dive – 2:00 pm to around 3 pm • June 27th, Monday- The Woodlands Economic Forum (TWEF)-Mitchell Library at 8125 Ashlane Drive (across from YMCA) -- 10 am to noon : Open discussions on Economic Issues

17. Upcoming Investment Learning Events • July 11th, Monday- Woodlands Investment Group(TWIG) meeting-Montgomery County Library 2101 Lake Robbins Drive. Topic: Members sharing Specific security recommendations -- 10 am to noon. July 14th, Thursday- PCUG’s Investment SIG Meeting CCCCC Room 30, 6823 Cypresswood Drive Topic: How to invest to reduce risk and increase returns—a more sophisticated methodology: By John Hawkins

18. Investment SIGThursday June 9th , 2011Agenda • Welcome Visitors • Timely Topics • Current Month Special topics • Lazy Portfolio • Shale Gas • On-line info for Share Buy Back & Dividends • Investment Learning Opportunities • Inputs from Attendees on future topics

19. Any Preferences for special subjects for Future Meetings? Candidate subjects: American Association of Individual Investors’ Concept of “The Other Stock Market” Hedge Funds My investment approach using funds instead of stocks Technical Analysis as a guide to investing Various Sector Investments How to find and evaluate investment candidates Options Trading (Guest Speaker?) On line sources of investment information Others? I welcome additional suggestions (Not in any order or priority listing) Also it particularly enhances the attractiveness of the meetings when we could find some guest speakers on special topics. If you know a candidate, please let me know.

20. Investment SIGThursday June 9th , 2011Agenda • Welcome Visitors • Timely Topics • Current Month Special topics • Lazy Portfolio • Shale Gas • On-line info for Share Buy Back & Dividends • Investment Learning Opportunities • Inputs from Attendees on future topics • Inputs from Attendees: Open Discussion

21. Investment SIGThursday June 9th , 2011Agenda Agenda • Welcome Visitors • Timely Topics • Current Month Special topics • Shale Gas • Other • Investment Learning Opportunities • Inputs from Attendees on future topics • Inputs from Attendees: Open Discussion • Next Month

22. Next Month On July 14th, our next Investment SIG Meeting, John Hawkins will present information on how he has achieved double digit returns on his portfolio over the last five years. John is the host of The Woodlands Economic Forum that meets normally at the Mitchell Library in the Woodlands on alternate Mondays from 10 am to noon. John uses various strategies and techniques that are practiced by the successful hedge fund managers. These are sometimes simple in principle but require some detailed knowledge and training that is available from industry sources. He presented this information in May 2010 to The Woodlands Investment Group and it was very well received. I think our SIG attendees will find it very interesting and useful

23. That’s all for tonight!