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St Louis Money Spinners Investment Club

St Louis Money Spinners Investment Club. Investing Guidelines. Goals. Learing the art of investing Having fun Creating wealth Not a “get rich quick” scheme. Responsibility . Understand and be committed to SLIC investment philosophy. Commit to active participation in the club.

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St Louis Money Spinners Investment Club

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  1. St Louis Money Spinners Investment Club Investing Guidelines

  2. Goals • Learing the art of investing • Having fun • Creating wealth • Not a “get rich quick” scheme

  3. Responsibility • Understand and be committed to SLIC investment philosophy. • Commit to active participation in the club. • Contribution of time and talent • Serve on operational committees as necessary • Participate in the research and investment activities • Participate in educational activities • Attend meetings • Contribute your monthly investment and yearly administrative fees on time. • Understand that all contributions are RISK capital • Abide by the Partnership Agreement and By-Laws.

  4. Philosophy of the club • Believe in Diversification • Doing Homework • Reinvestment of earnings, dividends and capital gains • Growth Stocks

  5. Criteria for Buying Stocks • 3-Yr. Sales Growth (%) > 20 • 3-Yr. Earnings Growth (%) > 20 • Proj. Long-Term EPS Growth (%) > 15 • Price Chg. - 52 Wks. (%) Range_Per from 50.0 to 100.0 for Industry • Avg. Surprise, Last 4 Qtrs (%) > 0 • 1-Yr. Sales Growth (%) > 3-Yr. Sales Growth (%) • Avg. Daily Trading Volume > 200000 • Average Analyst Rating <= 2 • Price Chg. – YTD (%) > 0

  6. Criteria for Selling Stocks Although no single factor will determine a criteria for selling a stock but the following criteria would be considered • Adverse change in management • Declining profit margin • Deteriorating financial condition • Competition affecting profits • Dependence on a single product • To balance the portfolio or to purchase a better stock • Stock price drops 10%

  7. Diversification Philosophy • In order to lower the risk of portfolio, club will maintain diversity by Industry and company size • No stock should account for more than 20% of the total value of the portfolio • No sector should account for more than 20% of the total value of the portfolio

  8. Scaling In • We do not enter into a position all at once in a single buy • We scale in by buying 50% of the proposed value to be spent on an equity first • Should the stock decline by more than 5% then we buy the remainder of the position

  9. Scaling Out • We do not leave a position all at once in a single sell if we met our profit criteria. • We scale out by selling 50% of the equity should the profit exceed 20%. • Remaining position of the same stock is sold if it decline by more than 15%.

  10. Stocks in our criteria

  11. Stock Analyst • LKQX & RS – Ganesh • NE – Rajesh • HOLX – Elango • CTSH - Raj

  12. Buy Decisions • CTSH • NE • HOLX • LKQX *Subjective to through analysis

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