Cincinnati Model Investment Club Stock Report

User Guide (Rev. 1/14/2019 v4)

Before making any entries, save the template file using the company ticker and report date. Use the

following format: CinMIC Stock Report xxxx 190108 (where xxxx is the ticker symbol and the date of the

report is January 8, 2019). For each subsequent report, open the previous document, change only the

date, save the document and continue with any new entries. Using this format will automatically put all

saved reports for the same company in date order.

For Value Line and Morningstar reports, use the above naming format. For example, VL xxxx 190118 or

M*xxxx 190118.

Some of the information on the report will not change month to month, or longer, so using the prior

month’s report as a base will save some entry work.

Reports should be distributed to all partners by Sunday evening in preparation for the Saturday

meeting. Late reports do not allow enough time for all partners to review and digest the results

before the meeting. In addition, in most cases the fundamentals in which we are interested will not

change much in the interim 5 days.

All cells in light blue require an entry.

Blank white cells must remain blank.

Cells containing a $ sign require only the actual number (for example, 45.20) if the cell is clicked to the

right of the $. The result will then display as dollars and cents (for example, $45.20).

Cells containing a % sign require only the actual number (for example, 12.5) if the cell is clicked to the

left of the %. The result will then display as a percentage (for example, 12.5%).

To activate a cell, click on the cell. Use the dropdown if one is present. Cells will automatically expand

depending on the amount of information entered into that cell.

In a Date cell, clicking “Today” at the bottom of the calendar popup will automatically fill the cell with

today’s date.

The font used should remain at Calibri 10.

Each numbered item below corresponds to the item number shown in the Stock Report Key. Into each

light blue box on the form, enter the required information as described below.

References made to information obtained from the Stock Selection Guide (SSG) refer to the SSGPlus.

While the information may be obtained from the CoreSSG or Toolkit, the information may not be

labeled the same or in the same area described herein.

Report requirements are:

Interim

The report itself

In pdf format, the SSG, including the Quarterly Growth Trend Data (Quarterly Data tab)

and the Notes, if any

Value Line Company Report and Morningstar report in pdf format, if new since prior

report

Quarterly or Annual

Same as the interim report, plus:

Is the company achieving the revenue and earnings forecasts as shown on the SSG?

What is the company’s guidance for future revenue and earnings (if given)?

Any SSG updates? Explain your reasons for any changes.

Review and summary of reported sales, earnings and other important data.

Significant news about the company.

The Watcher must read and summarize data collected. Just copying and pasting into the report is not

acceptable. Your analysis is important. Keep copying and pasting to a minimum.

This section requires general information about the company obtained from several sources.

1. Report Date. Click on the gray wording “Click or tap to enter a date” for a dropdown calendar or

type in today’s date.

2. Report Type. Select “Interim” if the report is not “Quarter” or “Annual.” Select “Quarter” if this

is the first report after quarterly revenue and earnings data have been updated in the SSG.

Select “Annual” if this is the first report after annual (fourth fiscal quarter) revenue and earnings

data have been updated in the SSG.

3. Ticker. Company ticker symbol.

4. Company. Company name.

5. Watcher. Your name.

6. Business Description. Provide a succinct description of the company’s operation(s). Use your

own words or copy and paste from the company’s website, Yahoo or other website. Enter

enough of a description to fully describe the company’s operations but remain succinct. If more

than a few statements are required, can we really understand the company’s operations? A

description of the operations can also be obtained from the SSG: Hover your cursor over the

blue banner shown on any of three tabs: Analyze Growth and Quality, Valuation and Return,

Quarterly Data. A popup appears giving a company description as well as the Industry and

Sector in which the SSG data categorizes the company:

General Information Section

Note: CinMIC uses Industry and Sector information as shown in the Manifest Investing website.

This information is sometimes different than that shown on the SSG.

7. Stock Selection Guide Zone. Zone (Buy, Hold or Sell) as shown in Section 4.C Zoning on the SSG.

8. Watcher Recommendation. Your recommended action (Buy, Hold or Sell). This may be different

from that indicated on the SSG. If different, explain why in the box provided (#10).

9. How Many Shares. The number of shares you suggest purchasing or selling at the upcoming

meeting. If not suggesting a purchase or sale, enter “N/A.”

10. Explain if Watcher Recommendation differs from the SSG Zone. State your reason(s) for the

difference.

11. & 12. Sector per Manifest Investing. Industry per Manifest Investing. The sector and industry

as shown in the Manifest Investing website.

a. Using your id and password, log in to www.manifestinvesting.com or use the “Sector per

Manifest Investing” link to the Manifest Investing website.

b. Type company name or ticker symbol in the “Symbol or name…” box and click “Go.”

“Sector|Industry” will display at the top of the Equity Analysis Guide (commonly called

the Eagle):

Note: The Manifest Investing Sales Growth Forecast, Quality, PAR and the Sweet Spot

(#s 31-34) also appear on the Eagle.

13. Shares Held, Cost Basis per Share, etc. Copy and paste bivio data here.

a. Using your userid and password, log in to bivio.com or use the bivio Valuation Link

provided.

b. At the top center of the page, if “Accounting” and “Reports” are not in boldface click

“Accounting”; then click “Reports”:

c. Change the date to current date, if needed.

d. Use the default view of “Valuation (NAV)”.

e. Click on the “Generate” box;

f. For your company, highlight columns “Shares Held” through “Percent of Total”

g. Right click.

h. Select “copy.”

i. On the Stock Report form click the “Shares Held” box.

j. Right click.

k. Under “Paste Options”: click the second icon entitled “Merge Table.” This will insert the

copied information onto the form as a new row. It is not necessary, but if you desire to

eliminate the now-blank row above the newly pasted row, place cursor immediately to

the left of the blank row; right click; click on “Delete Rows.”

14. 52-week Price Range. The 52-week high and low share price from yahoo.com, msn.com,

finviz.com or other financial website.

15. Current Price. Share price as of the date of the report.

16. Prior Report Price. Share price as of the date of your report from last month.

17. Is the Share Price Either… Is the share price either 5% lower or 5% higher than that shown in

your prior month’s report? Answer ‘yes’ or ‘no’.

18. Why? If the answer is to #17 is ‘yes,’ give possible reason(s) for the share price change. For

example, sales or earnings exceeded or did not meet analysts’ expectations; company

announced an acquisition or divestiture; change in company management. If the answer is ‘no,’

enter ‘N/A.’

Stock Selection Guide Judgments & Data

This section requires information from the SSG

From the Analyze Growth and Quality tab of your Stock Selection Guide:

19. Revenue Forecast. The sales Forecast (%) from the green bordered box of the Fundamental

Company Data section of the SSG.

20. EPS Forecast. The Earnings Per Share (EPS) Forecast (%) from the green bordered box of

Fundamental Company Data section of the SSG.

21. Projection Starting Point. Use the dropdown to select the Projection Starting Point shown on

the SSG.

From the Valuation and Return tab of the Stock Selection Guide:

22. Average P/E Ratio. Average Price Earnings Ratio shown in the last row of the Section 3 table

“PRICE EARNINGS HISTORY as an indicator of the future.” (25.2).

23. Current P/E Ratio. Current Price Earnings Ratio shown in the last row of the Section 3 table

“PRICE EARNINGS HISTORY as an indicator of the future.” (17.3).

24. Selected High P/E. The Avg. High P/E used in Section 4.A. If this number is different from the last

entry in Column D in the table labeled “PRICE EARNINGS HISTORY as an indicator of the future

(29.8),” explain in # 27.

25. Selected Low P/E. The Avg Low P/E used in Section 4.B.(a). If this number is different from that

shown at the bottom of Column E in table labeled “PRICE EARNINGS HISTORY as an indicator of

the future,” (20.6) explain in # 27.

26. Selected Forecasted Low Price. The Selected Forecasted Low Price as shown in the green

bordered box in 4.B. Low Price-Next 5 Years on the SSG. Explain the reasons for your Selected

Forecasted Low Price in the cell provided (# 27).

27. Explain why you chose these SSG judgments. State the reasons for the judgments made in

items 19-26.

28. Upside/Downside Ratio. The Upside Downside Ratio shown in Section 4.D. UPSIDE DOWNSIDE

RATIO (POTENTIAL GAIN VS. RISK OR LOSS).

29. Compound Annual Return Using Average P/E. This percentage is shown in the SSG Section 5.C.

It is the Annualized Rate of Return shown under Compound Annual Return – Using Forecast

Average P/E. Note: do not use Compound Annual Return – Using Forecast High P/E.

30. Reason for SSG Changes (if any). Outline your changes made to the SSG since your prior report.

Include reasons therefore. If none or a change only in share price, show “N/A”.

Manifest Investing

This section requires information from the Manifest Investing website.

Using your userid and password, log in to manifestinvesting.com or use the Manifest Investing link

provided. Type the company name or ticker symbol in the “Symbol or name…” box and click “Go.” All

information will be shown on this page (the Equity Analysis Guide, or the Eagle):

31. Sales Growth Forecast. Sales Growth Forecast shown under “Expected Income Statement”.

32. Quality. Quality rating shown in dark blue.

33. PAR. PAR % shown.

34. Sweet Spot. Compare the PAR % shown (9.6%) with the % range shown in the “Sweet Spot”

box” (15.2%-20.2%). Answer ‘Yes’ if the PAR % falls within the Sweet Spot range shown. If not,

answer ‘No.’

Other Information & News

This section requires general information about the company that may be obtained from many sources.

Summarize the information obtained from Value Line, Morningstar, etc. Summarize is the key word.

Each partner reading each report cannot be expected to read the entire Value Line report, news

clipping, etc. Copying and pasting segments is permissible but should be kept to a minimum.

35. Value Line Comments. Summarize the important points of the Value Line Industry Report and

the Value Line Company Report.

36. VL Report Date. Date found in the bottom right corner of the Company Value Line report. Click

on gray wording for a dropdown calendar or type in the date.

37. Morningstar Comments. Summarize the important points of the Morningstar Company Report.

38. M* Report Date. Date found on the Morningstar report. Click on gray wording for a dropdown

calendar or type in your date.

39. & 40. Other News. Other Info. There are many sources of news and information on companies

and their industries. Zack’s, Seeking Alpha, Investment Advisory Service and Small Cap Informer

are some sources. Others are shown behind the SSGPlus Research link:

Report on news and information you feel is germane to the company fundamentals. Examples

are:

a. Company future guidance on results

b. Acquisitions/divestitures

c. Legal actions

d. Overall industry changes

e. New product introductions

f. Information obtained from company Investor Days or company participation in industry

forums.

Do not report on “noise”. What data is really important to company fundamentals? For

example, Air Lease (AL), an aircraft leasing company, leasing out one additional airplane is a

non-event. On the other hand, the company updating its earnings guidance would be.

If including analysts’ opinions, keep in mind that for almost any company an analyst can be

found that is recommending a buy and an analyst that is recommending a hold or sell. So do not

rely too heavily on those recommendations.

Stock Watcher Summary

41. Summary. In your own words, summarize the action, if any, we should take on this company.

Explain why. Your analysis and opinion is important here.

Explain why this is a quality company and a good investment for CinMIC.

This section should bring everything together in one place. It need not be long, hitting the high

points.