Online Journal for the Moose Pond Investors Club

Sysco Corporation

Sysco Corporation, the food wholesaler–not the manufacturer of computer routers, is another solid buy candidate. SYY is a high quality growth company.

SYY made the Forbes’ 2004 list of the 26 best managed companies in America. Value Line gives SYY its highest ratings for both financial Strength (A++) and earnings persistence (100). SYY is a large company with annual sales of more then $8 billion.

The first call consensus EPS five-year growth rate is 15%. The SSG above uses a more conservative EPS growth rate of 11.9%. Using this lower rate, projected average return over five years is 11.3% and the total return (assuming sale at a high PE) is 14.5%. The upside downside ratio is 3.7.

This would be a particularly good stock for our portfolio since it is in an industry that we don’t hold.

Medtronic, Inc.

Medtronic, Inc. (MDT)
SSG and PERT A (09-24-2004)
Google Stocks
Company Website

Medtronic is one of two stocks to consider buying during the month of October. (The other is Health Management Associates.)

Health Management Assoc.

Health Management Associates (HCA)
SSG and PERT A (09-24-2004)
Google Stocks
Company Website

Health Management Associates is one of two stocks to consider buying during the month of October. (The other is Medtronic.)

Report for August 2004

Unit Value is $11.846
Internal Rate of Return (IRR):
2.33% year-to-date and 6.09% since Oct 2000
Summary Report | 
PERT  | 
Trend Report  | 
Offense Report  | 
Defense Report

The portfolio has the following weighted averages: total return of 20.7%, projected average return (PAR) of 15.8%, upside / downside ratio of 4.5 to 1 and a relative value of 93.2. These are all good averages. The portfolio is almost fully invested in stocks with only 5% cash.

This month we purchased initial positions in Amgen and Bed, Bath and Beyond. We also purchased additional shares in UTStarcom and Commerce Bank Corp.

All of the club’s transactions have been loaded into NAIC’s Portfolio Record Keeper (v.5). The program calculates internal rates of return accurately and also generates a number of useful reports. See the Appraisal Report and the Performance Report for this month.

PERT Report

What is the Portfoilio Evaluation and Review Technique (PERT) Report? (Here is a recent PERT report for Moose Pond Investors.) The following description is borrowed from the NAIC Toolkit manual.

“The PERT report is the first defensive weapon in your portfolio management arsenal. This report deals with two main issues. The foremost is the trend in the companies’ performance; of lesser importance is a current value assessment of the stocks. A third item—of interest, but of least importance—is the stock’s dividend and yield. That information is found in the first and third column of the report, on either side of the company’s name.

“Columns 5 through 8 represent the heart of the PERT Report. They reveal, respectively, the percentage difference in quarterly earnings per share, quarterly pre-tax profits, quarterly sales, and the trailing 12-months’ earnings per share over the same figures for a year ago.

“While quarterly changes are not, in themselves, important enough to warrant taking some immediate action, they are significant alert signals to detect the possible onset of longer-term trends.”

The Moose Pond Investors

Welcome to the weblog for Moose Pond Investors. We are an on-line investment club made up of friends and family located in the states of California, Florida, Maine, Minnesota, New Jersey, Ohio and Virginia.  This weblog is an extension of our on-line investment club.   It contains information about the stocks in our portfolio and ideas for new stocks to buy. Feel free to provide comments to the postings.

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