October 8, 2011 Quarterly Meeting

Administrative Presentation

President’s Welcome

• Thanks to Scott Kaufmann, Ken Bonham & Lucid Agency for Hosting

• Congratulations to the recently married– Shane Thompson– Michael Barber– Chuck Coolidge

• Individual conversations with all members

Currently Serving Officers

• President – Dan Corey• Vice President – Shane Thompson• Secretary – Justen Leicht• Treasurer – Michael Barber• Portfolio Manager – Mike McDonald• Sergeant-at-Arms – Chuck Coolidge• Technology Officer – Michael Vargas

President’s Welcome (con’t)

• Goals– Clearer understanding of risk– Understand risk tolerance of group– Standardize processes

• Keynote speakers wanted • Bios• Proposed meeting dates (on agenda)• No keynote speaker this meeting; we are

going to focus on the portfolio

Vice-President’s UpdateShane Thompson: Vice President

Contributions

Meeting 1 Meeting 2 Meeting 1 Meeting 2 Meeting 3 Meeting 4 Meeting 1 Meeting 2 Meeting 3 Meeting 4 Meeting 1 Meeting 2 Meeting 3 Meeting 42008 2009 2010 2011

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

1820 Contributions

Treasurer’s Update

• Treasurer: Michael Barber

• 4th Quarter Dues $4,881.68– Investment @ 90% $4,393.51

• TTM $30.92

• WFC $11.52

• IBM $13.50

• RRC $2.60

• SLW $4.23

• TLM Sale $1,886.24

• TMV Sale $1,754.37

• ERX Sale $1,849.53

TOTAL TO STOCK PICK $9,945.82

TOTAL TO MONEY MARKET $488.16

Q4 Income Statement

____________________________________

Buys / Expenditures

Purchased 20 RIMM @ $20.27 ($555.39)

Purchased 62 LULU @ $62.71 ($3,898.01)

Commission of Transactions ($49.95)

SLW Foreign Tax Withheld ($.63)

Sells / Income

Sold 93 TLM @ $20.39 $1,886.24

Sold 103 TMV @ $17.1301 $1,754.37

Sold 49 ERX @ $37.9501 $1,849.52

• TD Ameritrade Money Market$4,998.38

• Comerica Bank$4,772.14

• Total Investments $24,512.11

• Total Assets $34,232.63

Balances

Value of One 1820 Unit

$14.279275

Mike McDonald: Portfolio Manager

Portfolio Update

Long-Term Portfolio Summary

Name Shares Cost Basis Market Value

Percent of

PortfolioReturn

(%)Annual

IRREmerging Markets Bull 3x Shares (EDC) 72 925.87 1,038.96 4.2% 12.2% 161%Silver Wheaton (SLW) 141 2,119.35 4,241.28 17.3% 100.1% 54%Range Resources Corp (RRC) 65 3,118.29 3,898.70 15.9% 25.0% 39%TATA MOTORS LTD ADS (TTM) 74 751.24 1,201.76 4.9% 60.0% 38%International Business Machines Corp (IBM) 18 1,410.92 3,283.02 13.4% 132.7% 36%Ford Motor Company (F) 265 2,008.09 2,832.02 11.6% 41.0% 21%Wells Fargo & Company (WFC) 96 1,545.93 2,355.84 9.6% 52.4% 21%Cognizant Technology Solutions Corp. Cl (CTSH) 31 1,618.27 2,034.22 8.3% 25.7% 17%lululemon athletica Inc (LULU) 62 3,898.01 3,158.28 12.9% -19.0% -94%Research In Motion Ltd (RIMM) 20 555.39 467.20 1.9% -15.9% -78%

17,951.36$ 24,511.28$ 100% 36.5%

Quarterly Performance Highlights (relatively

speaking) IBM

Strong Q2 – Raises 2011 Outlook

RRC Jumps on acquisition

speculation Lowlights

EVERYTHING ELSE

Name Shares

Market Value at 7/23/11

Current Market Value

Return (%)

Annual IRR

Direxion Daily Energy 3X Bull (ERX) 49 4,238.50 1,849.52 -56.4% -270.7%Direxion Daily 20-yr Trs 3X Bear (TMV) 103 3,645.10 1,754.37 -51.9% -249.1%Emerging Markets Bull 3x Shares (EDC) 72 2,721.60 1,038.96 -61.8% -296.9%Silver Wheaton (SLW) 141 5,570.91 4,241.28 -23.9% -114.6%Range Resources Corp (RRC) 65 4,187.95 3,898.70 -6.9% -33.2%TATA MOTORS LTD ADS (TTM) 74 1,673.25 1,201.76 -28.2% -135.3%International Business Machines Corp (IBM) 18 3,333.24 3,283.02 -1.5% -7.2%Ford Motor Company (F) 265 3,527.15 2,832.02 -19.7% -94.7%Wells Fargo & Company (WFC) 96 2,797.44 2,355.84 -15.8% -75.8%Cognizant Technology Solutions Corp. Cl (CTSH) 31 2,286.87 2,034.22 -11.0% -53.1%lululemon athletica Inc (LULU) 62 3,898.01 3,158.28 -19.0% -91.1%Research In Motion Ltd (RIMM) 20 555.39 467.20 -15.9% -76.3%

38,435.41$ 28,115.17$ -26.9% -129.0%

Since our Last Meeting - 7/23/11

Summary of Sales Activity• Sold ERX and TMV

– Decreased global demand has pushed oil prices down– Fed appears intent on keeping interest rates low

Neither scenario is good for ERX or TMV = allocate capital elsewhere

Potential Sell Recommendations• EDC– Exposure to Emerging Markets is good, but maybe

in a different manner

Party Fund• Value $467• Analysis– Down 16% since we bought – outlook for BB not

good.• Takeaway– Hopefully they make some drastic changes or are

acquired by someone else.

PERT Review

• What is it?• How does it work?• What is it telling us?

The PERT is not answer but another thing to consider.

Technology Officer Update

Secretary: Justen Leicht

Secretary of 1820 Update

Sergeant-At-Arms Update

Sergeant at Arms: Chuck Coolidge

Let the Meeting Proceed!