Ken K. wrote:
> 
> I'm trying to put together a SSG evaluation check list for our club to
> use to get  our members to look at the key points of an SSG for possible
> purchase or even sell. Most of our members just learned how to complete
> an SSG, and I think this would be a great traing tool. Does someone have
> one drafted up that I could use? Any ideas that I could use to start my
> check list I would also appreciate.
> 
>                 Thanks,
> 
>                 Ken K.       [EMAIL PROTECTED]

There is an excellent One Page Quick Analysis at
http://www.geocities.com/WallStreet/Exchange/1004/quick_one.htm
>From [EMAIL PROTECTED] Thu Jun 11 11:50:10 1998
Received: from eclipse.qis.net ([EMAIL PROTECTED] [207.114.40.20])
        by ss5a.better-investing.org (8.8.8/8.8.5) with ESMTP id LAA17266
        for <[EMAIL PROTECTED]>; Thu, 11 Jun 1998 11:50:05 -0400 (EDT)
Received: from Marc (pm2-151.qis.net [209.150.96.151])
        by eclipse.qis.net (8.8.8/8.8.8) with SMTP id LAA22454
        for <[EMAIL PROTECTED]>; Thu, 11 Jun 1998 11:43:27 -0400 (EDT)
Message-ID: <[EMAIL PROTECTED]>
Date: Thu, 11 Jun 1998 11:48:23 -0700
From: Marc Meisler <[EMAIL PROTECTED]>
Reply-To: [EMAIL PROTECTED]
X-Mailer: Mozilla 3.01 (Win95; I; 16bit)
MIME-Version: 1.0
To: [EMAIL PROTECTED]
Subject: Waterhouse and DRP's
References: <[EMAIL PROTECTED]>
Content-Type: text/plain; charset=us-ascii
Content-Transfer-Encoding: 7bit
Sender: [EMAIL PROTECTED]
X-Listprocessor-Version: 8.2.06 -- ListProc(tm) by CREN

Regarding the discussion of Waterhouse and reinvesting of dividends, if
I understand correctly, they will reinvest any dividends, however, if
you want to add money to the account each month such as by dollar cost
averaging, you would have to pay a commission each month.  So for
example if you wanted to put in $50/month, $12 of that (almost 25%)
would go to commissions.
I am new at this (I don't even have any accounts open yet.  I'm still
researching brokers and stocks), but does this mean that any DRP's
should be done directly with the company instead of the broker?  If so,
how would one do this with an IRA?

Thanks,

Marc Meisler
[EMAIL PROTECTED]
>From [EMAIL PROTECTED] Thu Jun 11 11:50:10 1998
Received: from anvil.gatech.edu ([EMAIL PROTECTED] [130.207.165.41])
        by ss5a.better-investing.org (8.8.8/8.8.5) with ESMTP id LAA17267
        for <[EMAIL PROTECTED]>; Thu, 11 Jun 1998 11:50:06 -0400 (EDT)
Received: from daiken.gatech.edu ([130.207.137.167])
        by anvil.gatech.edu (8.8.5/8.8.5) with SMTP id LAA11201
        for <[EMAIL PROTECTED]>; Thu, 11 Jun 1998 11:47:16 -0400 (EDT)
Message-Id: <[EMAIL PROTECTED]>
X-Sender: [EMAIL PROTECTED]
X-Mailer: QUALCOMM Windows Eudora Pro Version 3.0.5 (32)
Date: Thu, 11 Jun 1998 11:47:49 -0400
To: [EMAIL PROTECTED]
From: Dottie Aiken <[EMAIL PROTECTED]>
Subject: Adding to your portfolio
In-Reply-To: <[EMAIL PROTECTED]>
Mime-Version: 1.0
Content-Type: text/enriched; charset="us-ascii"
Reply-To: [EMAIL PROTECTED]
Sender: [EMAIL PROTECTED]
X-Listprocessor-Version: 8.2.06 -- ListProc(tm) by CREN

As a newbie in a club, a recent decision by our club surprised and raised
my eyebrows. The decision was to add to our holdings in Home Depot.
Perhaps someone may explain the rationale others go through when addng to
an existing portfolio. Is there a evaluation form any club uses before
adding to their current holdings?


The SSG presented showed: (1)the stock was <underline>not</underline> in
the "buy" range, (2) did <underline>not</underline> have an U/D ratio of
3:1, and (3) had an RV of greater that 110%. The rationale was that (1)
we would be dollar cost averaging down to a number in the buy range, (2)
the company had posted great earnings, and (3) the future looks bright. I
asked if this was not an emotional decision instead of a rational one.


My questions are:

1. When you dollar cost average, after initially looking at the
fundamentals and agreeing it's a great company, do you then ignore the
other items on the SSG?

2. Do you keep preparing SSG after SSG and make your decision based on
the latest OR do you go keep the original and it's assumptions, and make
alterations to it as additional info. is added?

3. If we use Diebold as an example, those who purchased at $40+/- and now
see it where it is, would assume it's a great buy. But is it really, and
how do you evaluate whether to average down?


I know these are basic questions, but it seems as if we're always
preparing SSGs, using different assumptions (which are judgments, at
best) and changing our mind. And, some clubs just add to their holdings
consistently once they've decided it's a good company. Confusing and not
following NAIC principles to my way of thinking...


Thanks for your help.


Dottie Aiken


Reply via email to