NOTE: To change the image on this slide, select the picture and delete it. Then click the Pictures icon in the placeholder to insert your own image. MEETING #5 – PROPOSALS & VOTING NOVEMBER 6, 2015 ic.stgeorges.bc.ca

Today’s Agenda Goals for Term 2 Reflection on Term 1 Photo Recap Financials and Dividends Item 1 Investing Pitfalls Stock Prices Voting Demo Item 2 Proposal Procedure Proposal Structure and Schedule Item 3 Reminders Item 4

Goals for Term 2  Expanding portfolio  Select and engage in under-valued stocks  Diversification  More member-focused  Club members present more next term  Increased discussion of stocks  Case studies  Financial analysis  Guest speakers, field trips (TBD)  Rewards for active & engaged members

Reflections on Term 1!  What did you learn in Term 1?  What was your favorite meeting of Term 1, and why?  How has Investment Club enriched your Term 1 experience?  What did you think about our guest speakers? Who was the most interesting and useful?  What aspects of the club was the most engaging?  What did you think about the stock contest?  What do you want to see from the club heading into Term 2?

Photo Recap

Investing Pitfalls 1. Letting stock prices fool you 2. Too short of a time horizon 3. Being manipulated by media 4. Choosing cheap bargains over great businesses 5. Buying what you don’t understand Image Here

Stock Prices  Extrinsic vs. Intrinsic value  A company’s real worth is often different from its book price  Overvalue vs. Understated  Hype train vs. understated  P/E ratio Don’t let a single statistic or factor influence your expectations towards a company – analyze it in a holistic approach, try to understand the whole story.  Be wary of the process of “averaging down”  Buying more shares in a company at lower prices than you originally bought them at – this brings the average price you've paid for all your shares down. Sometimes its better to ditch a stock and avoid sunken costs.  NEVER let others’ opinions influence your own before you’ve made a complete evaluation.

Intro to Financials, Dividends  The Trifecta:  Income statement  Balance sheet  Cash flow (You can find these on Google/Yahoo Finance, or Morningstar)  Deeper analysis: Annual Reports  companies’ Investor Relations for a free copy  Secondary source: evaluations done by Odlum Brown, Morningstar, etc.  Dividends  Earning you cash for simply owning a stock  Paid out of a company’s earnings to ensure shareholder loyalty Different management strategies may remove dividend payments all together – to direct all of a company’s earnings into efforts such as expansion.

Stock Proposal Structure  15 min presentation  10 min Q&A + discussion  Written proposal must be submitted by head analyst the week before the presentation  Each member must present & contribute  Be engaging & utilize visuals

Proposal Schedule  Industrials (second meeting after break, Jan. 22)  Real Estate & Health (week after, Jan. 29)  Financials (Feb. 12)  Consumer Retail (Feb. 19)  Technology Media & Telecommunications (Feb. 26)  Natural Resources (Mar. 4) If the team cannot present by the scheduled date, the head analyst must notify the Portfolio Director at least 2 weeks in advance. Analyst Team placements are now out:

Voting Demo vote.heliosvoting.org Powered By

Reminders  If you are not on the team yet:  ic.stgeorges.bc.ca/analyst-teams bottom of the page  Join the Facebook group for your Analyst Team (contact your HA for details)  Those w/out FB will be receiving s from their respective Head Analysts  Field trip to RCI Investment Marine Gateway Project  Go to ic.stgeorges.bc.ca/resources first download link is permission form, fill out and hand back to Mr. Lovell.  Members can contribute to the club via the minutes team – contact Jimmy  Join the stock contest, hand in consent forms!

And Remember… “An investment in knowledge… pays the best interest.” - Benjamin Franklin