Are D/FW Companies Up, Straight and Parallel? Investment Education Workshop April 20, 2013 Dave Swierenga

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Up Straight and Parallel When the sales, pre-tax profit and earnings per share lines on a Stock Selection Guide are: Up – increasing year to year Straight – consistent percentage increases Parallel – sales, pre-tax profits and earnings per share changing at the same rate

Log – scale Constant 20% increase Calendar years

Up, Straight and Parallel (classic example)

D/FW Companies in the S&P 500 Exxon Mobil AT&T Fluor Corporation Kimberly – Clark J.C. Penney Texas Instruments Dean Foods Southwest Airlines GameStop Tenet Healthcare Dr Pepper Snapple Comerica D. R. Horton Range Resources Flowserve Pioneer Natural Resources Torchmark Denbury Resources

Exxon Mobil (Irving) Parallel lines, but not consistently up and not straight 2009

Kimberley - Clark (Irving)

GameStop (Grapevine) Good pattern, until 2009

D/FW Top 150 Dallas Morning News – top 150 listing A.H. Belo (AHC) Brinker (EAT) Six Flags (SIX) Southwest Airlines (LUV) Tuesday Morning (TUES) Many energy companies Several trading under $5 per share parent company: Dallas Morning News and WFAA Interesting Stock Symbols

Holly Frontier Corporation (HFC) An energy company with increasing sales but erratic PPT and EPS

Pioneer Natural Resources (PXD) The SSG for energy companies often look like this

AZZ Incorporated (AZZ) (Ft Worth) Industry: Metal Fabrication Sells electrical equipment and components for: Power generation Transmission and distribution Industrial markets Has 34 “hot-dip galvanizing” facilities throughout US $570M sales in FY2012

Alliance Data Systems (ADS) (Plano) Industry: Information Services 2012 Sales: $3.6 B

ATRION Corporation (ATRI) (Allen) Industry: Medical Instruments and Supplies Products for: Cardiovascular Ophthalmic Fluid delivery 2012 Sales: $119 M Founded in 1944 One of Ken Kavula’s “5 Stocks Worth a Second Look” April 2012 BI Magazine

Cash America International, Inc. (CSH) (Ft Worth) Industry: Credit Services Provides: Pawn loans Short term cash advances Check cashing services Other specialty financial services to individuals 2012 sales: $1.8 B First Cut: Feb 2011

First Cash Financial Services, Inc. (FCFS) (Arlington) Industry: Credit Services Operates: Pawn Stores Cash Advance Stores Short term cash advances Check cashing 2012 Sales: $600 M First Cut: Dec. 2011

Fossil (FOSL) (Richardson) Industry: Retail Special Global design, marketing and distribution company that specializes in consumer fashion accessories 2012 Sales: $2.9 B First cut: Aug 2012

Metro PCS (PCS) (Richardson) Industry: Communication Services Wireless telecommunications carrier 2012 Sales: $5.1 B

Sally Beauty Holdings (SBH) (Denton) Industry: Special Retail Distribution and retail of professional beauty supplies Markets primarily: North America South America Europe FY 2012 sales: $3.5 B

Texas Capital BancShares (TCBI) (Dallas) Industry: Regional Bank Provides various banking products and services for Texas: Commercial businesses Professionals Entrepreneurs 2012 Sales: $420 M

Tyler Technologies (TYL) (Dallas) Industry: Software Applications Integrated information management solutions for the public sector 2012 Sales: $363 M

View Point Financial Group (VPFG) (Plano) Industry: Regional Bank Consumer and business banking services Real estate and commercial loans 2012 Revenues: $142 M