Minutes Inaugural Meeting 8 March 2010

Present: James Taylor, Vic Minchin, Steve Tiley
Apologies: Karen Green, Grant Lindsay, Geoff Annear
Meeting opened 17:15
Item 1 JT and VM gave a brief commentary covering the reasons for creating the club.
Item 2 JT suggested the club create a fictional portfolio for the purpose of measuring performance and quality of research.
Item 3 JT Discussed TLS ( Telstra) the first value stock. 31% discount to intrinsic value, 14.29% gross dividend yield, dominant market position, very profitable by any measure, excellent balance sheet, dividend payout too high, threat and opportunity from National Broadband Network (NBN). At current price, very good yield, minimal downside, significant up side.
Item 4 JT discussed (Miclyn Express Offshore) ( An IPO) supply of shipping to the Oil and Gas Industry. IPO, foundation shareholder ( Macquarie) retaining interst in new entity, hugely profitable, experienced management, diversified ( markets, sectors, internationally) selling at ave PE of 9.25. Competitors ( Mermaid Marine) selling at 13.5 PE, which are arguably a poorer investments.
Item 5 ST inquired about assessment form used by JT. JT advised it was prepared from various sources. JT advised it take approx 10 Minutes to complete using Morningstar data or 30 minutes from an annual report.
Item 5 ST suggested MEO Australia be put on the watch list
Item 6 JT tabled a list of financial ratios received from a sorce which lists stocks by gross yield, net debt/equity, TSR, premium and discount
Item 7 Fictional investment decisions.

Balance at Bank $100,000
Buy TLS 3413 @ $2.93 Cost $10,111.09
Subscribe for 2,400 Myclyn Express Offshore.
Balance at Bank TBA.
Interest rate on Bank account 6%
Meeting closed 18:15