Watch List for Clubs or Individuals Sensible Method to Stay in the Market When you are looking to buy a stock, it’s helpful to have a few stocks “in reserve” that you’ve been studying and monitoring. You may never buy them all, but a good Watch List is essential for good portfolio management. Sandra F. Barlow BIVA Board Director

Disclaimer The information in this presentation is for educational purposes only and is not intended to be a recommendation to purchase or sell any of the stocks, mutual funds, or other securities that may be referenced. The securities of companies referenced or featured in the seminar materials are for illustrative purposes only and are not to be considered endorsed or recommended for purchase or sale by BetterInvesting™ National Association of Investors Corporation (“BI”) or the BetterInvesting Volunteer Advisory Board, its volunteer advisory board (“BIVAB”). The views expressed are those of the instructors, commentators, guests and participants, as the case may be, and do not necessarily represent those of BetterInvesting™ or BIVAB. Investors should conduct their own review and analysis of any company of interest before making an investment decision. Securities discussed may be held by the instructors in their own personal portfolios or in those of their clients. BI presenters and volunteers are held to a strict code of conduct that precludes benefiting financially from educational presentations or public activities via any BetterInvesting programs, events and/or educational sessions in which they participate. Any violation is strictly prohibited and should be reported to the President of BetterInvesting or the Manager of Volunteer Relations. Headquarters

Watch List We own stocks Sometimes we sell a stock Should it take months to buy another? Keep an up-to-date Watch List Our club owns stocks in our portfolio. When it’s necessary to sell a stock, we can take months to study stocks to buy. If we keep a Watch List of possible stocks to consider, we can make timely decisions and stay fully invested.

Finding Stocks to Study BetterInvesting’s Stock to Study, BI’s 100 Index, Webinars, BI Chat Lists, Phil Keating’s screens Value Line’s Model Portfolios and Highlighted Stocks Barron’s Other publications, various Web sources, various screening procedures TV personalities I think we all like to hear about good stocks. BI has a lot of resources to help us find interesting stocks: BI Magazine’s Stock to Study BI’s List of the Top 100 stocks that BI members hold BI’s popular Webinars (500-600 people attend!) Phil Keating’s screens using BI criteria Value Line has four Model Portfolios that are worth checking out and also sometimes Value Line Highlights a particular stock. Barron’s is a premier publication with good leads. I’m sure you have your favorite publications, various Web sources and screening procedures. And…. Of course….. Some of the TV financial personalities offer tips and market news.

Value Line’s Model Portfolios Portfolio 1 – Stocks with above average year-ahead price potential Portfolio 2 – Stocks for income and potential price appreciation Portfolio 3 – Stocks with long-term price growth potential Portfolio 4 – Stocks with high dividend yield Value Line’s four Model Portfolios are worth studying. Portfolio I lists stocks they believe have good short-term (one year) potential for price growth. Portfolio II has stocks that are of interest to those of us who are looking for income stocks with price appreciation potential. Portfolio III is the one that many BI investors monitor because we like stocks with long-term price growth potential. Portfolio IV has stocks with above average dividend yield.

Live or recorded stock studies On the BI Web site you can sign up for the Webinars and also access archived Webinars if you wish.

Serious Watching! Set up a portfolio for stocks to watch in Toolkit Must complete a Stock Selection Guide for each stock Follow stocks in PERT and Review Set up a “Watch List” portfolio in Toolkit. Be sure the Watch List portfolio is diversified. That way, if your club sells a retail store stock or perhaps a pharmaceutical, it can be replaced by a stock in that sector. You can set up many portfolios in Toolkit if you wish. The best way to watch a stock seriously is to monitor it in Toolkit’s portfolio function. You must complete a Stock Selection Guide for each stock you put in a portfolio. Then you can follow those watch stocks in PERT and Review. The Portfolio Evaluation Review Technique (PERT) let’s you monitor the fundamentals of a company.

In Toolkit, go into Library To set up a portfolio in Toolkit: While in Toolkit, click on the little green box LIBRARY.

>Select Portfolio< New Key a name for your Watch List Down below >Add< Choose stock (one) When finished, click >Library< This pop-up has three parts: Top is a “table of contents” the SSGs you’ve completed.. In the middle are the portfolios. Click on >new< and give your watch list a name. I’ve found it helpful to put the year, such as Watch 2005. Then you choose a stock you want to include in the watch list and press >add< You can only add one stock at a time. You might want to start with 4-8 stocks to watch in one portfolio. Now click on Library and you can then get into the portfolio.

Click on Portfolio/PERT and Peruse Overview, then Reports After you are out of >Library<, click on >Portfolio/PERT< and an Overview comes up. Click on Reports and it’s in the reports that you’ll see the fundamental data you’re looking for. PERT is the best synopsis of a company’s fundamentals. Once you learn how to read and interpret the PERT Report, you’ll find invaluable information about the stocks you are following.

Watch 2009: PERT (Must complete an SSG) A drop down box lets you choose which Reports you want to view. Here we see the Watch 2009 PERT Report.

Choose Report: PERT or Trend This is the Trend Report and we quickly see there are three “buy” stocks. We all know that when the SSG says BUY, it really means “consider buying.” The fundamentals of the stock suggest that the price is a fair market price for a wise investor. We’ll do more research before we actually buy.

If indicators are positive…… Re-do Stock Selection Guide Check Value Line or other outside source Decide if it’s right for your allocation If the indicators are positive, you’ll want to re-do and update the SSG for that stock. Remember, this stock may have been in your Watch List for 6 months or a year or more. You’ll definitely want to study it again and probably make a few changes. I think before most of us buy a stock, we check with an outside resource. Then we look at our present stock portfolio. Will the stock we’re thinking about buying help us achieve a well-balanced portfolio?

Another Type of Watch List Your own brokerage Various Web sites Yahoo Finance We can create other Watch Lists that are a little less cumbersome. Most of the brokerage houses allow clients to set up a Watch List. Sometimes you can set your “buy” or “sell” criteria and get an instant message or some indicator that you may want to take some action. You may have your own favorite Web site for setting up a Watch List.

Example: Yahoo Finance Must establish a password in Yahoo Free Establish a “sign in” code Entire club can use same password to access a mutual Watch List A club can establish a password and each member can use that identity. Such as, the Women of Money Investment Club can have an identity of WOM with a password of lotsofmoney .

Example for Yahoo Sign in as WiseWomen (example) Password might be dollarsandsense That will give everyone who uses that code access to the Watch List You can establish a “sign in” as WiseWomen” . Your

Yahoo! Finance After you register with Yahoo and establish a password, you can set up portfolios.

Choose format you like….. As you set up your watch list portfolio in Yahoo, you’ll have some decisions to make. You can do some experimenting and see your preference. I use >Track your current holdings<.

Basic and Advanced Features More decisions to make as you set up your portfolio. Again, experiment to see what is most useful to you. There’s always a learning curve when you do something new. This is a good project for a rainy Sunday afternoon!

A Watch List Can Keep You One Step Ahead PLAN

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