National Association of
“Investment Education Since 1951”
NAIC NEW YORK
Chapter Hotline: (718) 856-8462
Computer Group Hotline: (212) 533-6972 (INV)
NAIC Web Page: http://www.better-investing.org
CHAPTER NEWS PROVIDING A PATH TO SUCCESSFUL INVEST ING
NY Chapter E-Mail: NYNAIC@better-investing.org
Save This Newsletter Volume 9 Issue 1
for Future Reference September, 1999
NEW YORK CITY by Phyllis Pawlovsky
1999–2000 s a result of much effort over many years, the Securities & Exchange Commission
Where: Fashion Institute of
A the National Association of Investors
Corporation (NAIC) has now achieved
non-profit IRS status. One of the changes is
(S.E.C.) There will also be seminars for
all levels of investors.
Also scheduled for 1999 are Beginner,
Technology (F. I.T.) that the Councils are now called Chapters. Intermediate and Advanced Investment
27th Street at 8th Avenue Elections are over Education classes in New York City, Long
Bldg. A – 8th Floor and I am pleased Island, Staten Island, and Westchester.
to introduce you to For a registration form, you may call the
When: Third Tuesday of month hotline at 718-856-8462 or send an e-mail
your new Executive
What: 6:15 – 7:15 pm Committee. I have to firstname.lastname@example.org or PGP106@cs.com,
Investor Education Seminar been re-elected to a or it may be downloaded from the New York
second term as your Chapter Home Page at http://www.better-
7:30 – 8:45 pm investing. org/regions/new york.html.
Model Club Meeting President. I am
joined by three Vice- To celebrate the New York Chapter’s 10th
Hotline: (718) 856-8462 anniversary, there will be a change in format
Noel (Membership), Yvette Wright (Adminis- of the monthly meetings at F.I.T beginning in
sss INVESTMENT TOPICS tration) and Rosemary Hassett (Education), January, 2000. At each meeting, there will be
1999 as well as Stephen Beer and Joan Ford three concurrent seminars: one for guests,
who continue as Treasurer and Secretary, beginning investors and new members; a
9/21 Double Program: NAIC’s Investor second, a “Club Clinic” for those who need
Advisory Service; Preparing for respectively, and Avi Horwitz, our new
Recording Secretary. help in starting or running a club; and a third,
the October Investors Fair®
focusing on intermediate and advanced
10/19 Using the Internet for Investing: It is with great pride that the NY Chapter investment issues.
Douglas Gerlach announces that Monica Noel, NY Chapter The monthly Computer Group meeting
11/16 When to Sell the Turkeys: Membership Vice-President, is the third (see page 2) just keeps getting better. It is
Panel Discussion, Q & A quarter recipient of the distinguished O’Hara the perfect place to try out your Stock Selec-
12/21 Investing in Timely Industries: Award (for her ten years of dedicated ser- tion Guide judgment and presentation skills
Retailing vice to NAIC). In addition, Monica has been with guidance from caring NAIC teachers.
elected to the NAIC National Board as an
2000 I invite you to support the NY Chapter by
Associate Director. Three NY Chapter offi-
(Meeting format changed, see attending meetings and events, signing up
President’s Message, opposite)
cers, Monica, Stephen Beer, and I, now for an investment education course, or volun-
represent you on NAIC national boards. teering your energy, skills and time. Use your
1/18 Investment Opportunities in
the New Year Our big news for this year is the upcoming imagination – notice what’s missing, volun-
Investors Fair ® on Saturday, October 23, teer to help further investment education in
2/15 Doing the SSG on Toolkit (NAIC New York. Let’s make it happen together.
software) with Advanced Judge-
1999. (See page 4 for the article detailing this
ment (Demonstration /Discussion) exciting event.) In addition to five corporate Remember to check the NY Home Page
presentations and corporate exhibitors, the on NAIC’s Website at http://www.better-
3/21 Studying Stocks with Annual keynote speaker will be Cheryl Scarboro of investing.org/regions/new york.html.
4/18 Making the Most of Value Line DIVISION MEETINGS
5/16 Researching Stocks with the s LONG ISLAND – (718) 527-6954
One-Page Quick Analysis Where: St. James the Just, 858 Roosevelt Avenue, Franklin Square, NY
When: Last Tuesday of month, 7:30 pm
6/20 Mutual Funds vs. Investing in What: Timely investment issues; Model Club meeting with stock presentations.
Individual Equities: Panel
7/18 Using Asset Allocation to Reach s WESTCHESTER – John Wahlers: (914) 748-5887
Your Goal Where: Marymount College, Tarrytown – Library Lecture Hall
When : Monday, October 4 – Screening for Stocks with Value Line
8/15 Beyond the Basics: Red Flags
Thursday, November 18 – Starting and Running an Investment Club
Call for meetings December and forward. All meetings begin at 7:30 pm.
COMPUTER GROUP COMPUTER CORNER
MEETINGS Point. Click. Invest! their own charts on over 5,000 stocks with a
A Joint Venture of NAIC and NYPC variety of technical indicators and time periods.
by Douglas Gerlach
Making the Purchase
nline trading is just the tip of the iceberg –
Where: Microsoft Corp.
825 8th Ave at 49th Street
(At 8th Ave.), 18th Floor
Second Friday of month
O the Internet offers virtually everything you
might need to build and manage a portfolio
of stocks and mutual funds. Whether searching for
Over one hundred discount brokerage firms
now offer online trading via the WorldWide Web.
Commissions for stock trades on the Web typ-
ically range from $7 to $30, and the selection of
potential investments, analyzing data, making the research, market commentary, and other services
6:15 p.m. – 8:15 p.m. purchase, or managing your current portfolio, you available from each firm are widely divergent.
Call the NYPC Hotline: can find tools and sites on the Internet to give you Investors should shop around to find the online
(212) 533-6972; 3-letter code (INV) an extra edge. Even better, much of it is free! broker that best fits their own needs and budget.
for meeting notices and updates. Finding Potential Investments A good starting point when selecting a broker is
Would you like to meet in a congenial, On the Internet, there are virtual communities of Invest-O-Rama!’s directory of brokers on the
informal environment with a group of investors who use message boards to communi- Web (www.investorama.com)
like-minded computerized investors to cate. Many of the participants in these groups Managing a Portfolio
continue your investment education? happily share their best stock tips, and at times Many sites include portfolio-tracking programs.
At most meetings, we will be studying and offer helpful advice about particular strategies Investors enter the names and number of shares
comparing companies in a single industry, and resources. Contrary to popular belief, most of they hold, and can then access instantly-updated
using NAIC computerized investing tools these groups offer honest, intelligent discussions quotes, news, charts, and valuations throughout
and techniques. We will learn to add judg- (although you should always verify any information the day. Yahoo! Finance (quote.yahoo.com), from
ment, based on company history and pro- you receive, online or off, before investing). the leading Web directory Yahoo!, offers a free
jections of future growth of sales and Silicon Investor (www.techstocks.com) is devoted portfolio manager that provides current trade and
earnings. All discussions are applicable to to technology stocks. The Raging Bull (www.raging- volume information for a basket of stocks. In addi-
those who study stocks with or without a bull.com) provides specific message boards for tion, investors can click to access charts, head-
computer. Guest speakers will demon- thousands of stock discussions and the Armchair lines and complete news stories from the past
strate a variety of investment software. Millionaire’s message boards (www.armchairmil- several months, company profiles, earnings esti-
lionaire.com) help beginning investors with a clear, mates, and links to SEC Filings for that company.
1999/2000 Calendar unbiased and sensible approach to investing. Taking a different approach to keeping investors
September 10 – Computer Software up to date is InfoBeat’s free Closing Bell service
October 8 – Vector Vest software Investors can use a number of screening applica-
tions on the WorldWide Web to reduce the uni- (infobeat.com) that sends each day’s closing
demonstration prices for up to two hundred securities to your
November 12 – Toiletries/Cosmetics verse of potential investments. Hoover’s Stock-
Screener (www.stockscreener.com) allows users e-mail address. In addition, the service includes
December 10 – Home Appliance summaries of relevant market-making news sto-
January 14 – Telecom Equipment to search for stocks that meet their criteria.You can
sort the results in any fashion, and links are pro- ries, with links to the full text articles on their web-
February 11 – Educational Services site. Closing Bell also sends alerts during the day.
March 10 – Entertainment vided to research on the site, too. MarketGuide’s
NetScreen (www.marketguide.com) is another An attached file includes price information in a for-
There is no charge and everyone is wel- screening tool with some more advanced options. mat ready to be imported into Quicken or other
come… financial software programs or spreadsheets.
NAIC and New York Personal Computer Acquiring & Analyzing Data Douglas Gerlach, the NY Chapter’s speaker in October
Users Group (NYPC) sponsor these meet- One of the most exciting developments for stock for “Using the Internet for Investing”, is the publisher of
ings. If you are interested in using a com- investors has been the emergence of sites on the Invest-O-Rama! (www.investorama.com), a popular web-
puter to enhance investing, join the NYPC, WorldWide Web that provide fundamental data. site for investors, as well as the author of Investor’s Web
Rapid Research (www.rapidresearch.com) is Guide: Tools and Strategies for Building Your Portfolio
a computer-education resource that benefits and The Complete Idiot’s Guide to Online Investing.
both novices and experienced computer free, and the company reports are quite detailed, He is also editor of Armchair Millionaire (www.armchair-
users. In addition to free Special Interest with five or six years of data available. millionaire.com) and a Director of the NAIC Computer Board.
Group meetings each month, reasonably Many investors have come to depend on the
priced classes are available, ranging from Security and Exchange Commission’s EDGAR
introductory to advanced topics. For more
What is The New York
project to retrieve quarterly 10-Q and annual 10-K Chapter of NAIC
information call (212) 984-0626. filings for public companies. All public companies
are required to make these and certain other filings The New York Chapter is the chartered
electronically, and investors can download the local arm of the National Association of
HANDS-ON Investors Corporation. The organization,
reports from the SEC’s website (www.sec.gov)
COMPUTER COURSES 24 hours after they have been received by the run by volunteers, exists to help club
members or individuals learn about
COMING IN JANUARY Commission. But FreeEDGAR (www.freeedgar.com) investing in common stock.
aims to make it easier and faster for individuals to
The New York Chapter will be sponsor- access EDGAR filings.Their website allows users to This Chapter helps clubs and individual
ing several three-hour hands-on work- search through the company’s real-time database of members learn sound investment prac-
shops on the Investor’s Toolkit 3.0, company filings, and display multiple years or quar- tices with NAIC® educational aids by
ters on a single table. sponsoring investment classes, events,
the NAIC’s official stock evaluation and workshops. Other Chapter activities
software, and Club Accounting on Investors with a more technical approach to the include helping individuals form new
Saturdays and Sundays in Manhattan. market may appreciate the free Java-based clubs and aiding club treasurers in
charting application created by ProphetChart adopting NAIC accounting practices.
Computer users who are interested (www.prophetchart.com). Traders can customize
in obtaining more information should
e-mail Phyllis Pawlovsky at To communicate with NY Chapter Directors or to request information, send an
PGP106@cs.com. e-mail to NYNAIC@ better-investing.org.
2 September, 1999
Educate, Empower, whether sales and earnings have been grow-
ing at a steady rate and whether the pretax
As of July, 1999, Model Club #1, which was
started in 1989, had 37 members, and was
Enrich Yourself... profit is increasing. We want to know if the
company is a leader in its field, a new com-
invested in 18 companies for a total portfo-
lio value of more than $73,000. At the same
the NAIC Way! pany with rapidly increasing market share or
an older more established company that we
time, Model Club #2, which was formed in
1996 to accomodate newer members seek-
You Can Do It! would expect to be growing at a slower pace. ing to join a club, held 20 equities and was
by Doris Schreiber If you think this kind of analysis is only for valued at $60,000.
experts, you’re wrong.You, too, can learn to
Secretary, Model Club #1, The NY Chapter also sponsors a monthly
do it and make intelligent investment decisions.
New York Chapter NAIC Computer Club (jointly with the New York
The NAIC teaches its proprietary stock analy- Personal Computing Club Special Interest
ecome an informed investor using the
B time-tested principles of the National
Association of Investors Corporation
(NAIC). NAIC is a non-profit educational
sis system through lectures, observations and
classes staffed entirely by knowledgeable vol-
unteers and offered throughout the greater
New York area. In addition, everyone is wel-
Group/Investing) where stocks are analyzed
on the computer using a variety of software
and where NAIC principles are put into
action each month through the “Stock to
organization whose sole purpose is to give come to attend Model Club meetings. (Model
you the tools and understanding to invest Study” feature in that month’s Better Invest-
Clubs are real investment clubs where mem- ing magazine, the NAIC’s official monthly
wisely in growth stocks. bers invest together following NAIC principles.) publication. Representatives of computer
There’s no smoke or mirrors to this method, The NY Chapter sponsors two Model Clubs hardware and software companies, such as
nor is it a get-rich quick scheme, either. that meet 7:30 - 9 PM (after the Chapter Microsoft and Intel, make presentations of
NAIC members are long-term investors; in meetings) the third Tuesday of every month their products. It is not necessary to own a
fact, day trading, so popular now, is the exact at FIT in Manhattan (see page 1 of this computer or even to be computer-savvy to
opposite of the NAIC style. By disciplined newsletter for details). Their purpose is to understand and profit by the discussions.
investing, based on sound principles and provide a supportive environment where
practices, and especially, working with your members can learn how to research and The Computer Club, because of the way
peers in an investment club that you may analyze companies and present their find- it is organized, cannot invest real money and
form with friends, co-workers or family, you, ings for review by the club membership. is, therefore, even more of a laboratory for
too, will be successful in learning to invest in The Model Clubs include experienced as well learning to invest without risk However,
common stocks and mutual funds. as newer members; the more experienced accurate records are kept of every would-be
What is this NAIC method? First, NAIC members mentoring newer members.) Model purchase and the Club functions exactly as
teaches us to look at a company’s five-year Club members invest a minimum of $20 per it would if real money, rather then “mock”
history to determine whether it’s a sound month; membership is highly prized and money, were being used.
and fast-growing company. We look to see there is a waiting list for new member places. Fall is a time for new beginnings. If you are
not entirely happy with the state of your in-
vesting knowledge, or if you’d like to expand
!!Youth Investing is Coming to New York!! your horizons, make new friends and have
IMAGINE ... how your life could have been different if as a teenager... people to talk to about investing, start now
by taking advantage of the opportunities the
¯ you had started investing on a regular basis, reinvesting all of your NY Chapter offers. Come to the Chapter
earnings (dividends); meetings, observe or put your name down
¯ you had invested in top quality growth companies and built a well- on the waiting list to join a Model Club.You’ll
balanced, diversified portfolio. be glad you did.
Learn about the NAIC Youth Investing Program. Prevent another generation from
saying “If only I had known!” s Attention Investors
If you would like to participate in the Youth Investing Program in New York, let us NAIC forms, manuals or supplies are
hear from you. We are especially looking for young adults ages 13-17, who are inter- available through the New York Council
ested in or already involved in investing, as well as educators and parents. Please by calling Al Clarke, (718) 525-7563 or you
call Kathleen Harper at 212-750-8931 or e-mail email@example.com. may order direct from NAIC in Madison
Heights, Michigan (248) 583-6242.
or current “hype” about the stock. Joe says 2. Company growth slows as companies
Investing Wisdom this prevents wasting too much time on the mature in their “life cycle.” Based on 20-
he following have been collected by ones that don’t seem to meet minimum plus years of investing experience, Lynch
T the editors and excerpted from I-Club
postings. The I-Club is an online
investment forum exclusively for NAIC
Cy Lynch, Vice President of the Atlanta
Chapter and winner of the 1998 O’Hara
feels comfortable with that 15-20% range
being the top end of what is sustainable
over the long term by exceptional
members. It can be accessed at the NAIC Award, says he “rarely” estimates sales or companies.
website, www.better-investing.com. EPS to grow faster than 15% and never esti- And now a quote from Peter Lynch,
New Jersey Chapter’s Joe Smith suggests mates them to grow faster than 20% because: legendary former manager of Fidelity’s
that, as a quick screening method, investors 1. EPS growth over the last 70-75 years Magellan Fund: Spend at least as much
should look at the current price in the latest has averaged about 10-11%. Thus a time researching a stock as buying a
Value Line edition and if the 5-year fore- company growing at the rate of 15% is refrigerator. We say: Start now doing
casted high price isn’t at least double today’s well above average and one growing at your “homework” the NAIC way!
price, flip the page, regardless of the “story” 20% is exceptional.
September, 1999 3
PERMIT 284 Malverne, NY 11565
PREPAID BULK Box 180
NON PROFIT c/o Jack C. Rodolico
NAIC NY CHAPTER
Periphonics Corporation, Quanex
Fact and Fun-Filled Corporation and Texaco. The Exhibit Invest in Your
Investors Fair ® Hall offers a wonderful opportunity to talk
to the Investor Relations representatives
Coming to NYC from the participating companies. Rewarding!
October 23rd During a buffet lunch, you will hear our
keynote speaker, Cheryl Scarboro from
by Yvette Wright
by Avi Horwitz Director of Volunteers,
the Securities and Exchange Commis- NY Chapter
NY Chapter NAIC Investors Fair ®, sion, a truly knowledgeable and exciting
Co-Chair s members of NAIC and as members
re you looking for a day filled with of local investment clubs, many of
A investor education, company pre-
sentations, workshops, club clinics
and more? SAVE THIS DATE – Saturday,
The afternoon will offer seminars for
every level of investment experience, pre-
sented by special guest lecturers. Check
your Fair brochure for details. There are
us have carved out portions of our
earnings to invest in the stock market. And
surely, if you are adhering to the principles
October 23, 1999 – because The NY of the NAIC, you know and appreciate that
several “one of a kind” workshops that
Chapter Investors Fair ® is coming. even a small investment in the market, can
should not be missed by investment club
result in great rewards in the future.
There will be presentations from our five members, “newbies”, and more experi-
corporate sponsors: AFLAC Inc., Dana enced investors. These sessions will be The same payoff is true of volunteerism.
Corporation, OM Group, Inc., Lucent pre-registered. As there is limited space Your contribution as a volunteer in the
Technologies and Synovus Financial available – REGISTER EARLY. NYC Chapter can have a great impact on
Corp. With such an impressive line-up, the organization’s success. Volunteerism
For a truly affordable price with discounts
this year’s Fair is shaping up to be one for three or more club members, you get can take many forms: members can assist
of the New York Chapter’s most exciting all this and more – Contests, Door Prizes, in mailing newsletters and announcements,
events ever! Each of the five companies Continental Breakfast and a Buffet Lunch. conducting an activity, writing an article for
will present their story for your considera- this publication, or making a suggestion for
tion. NAIC investors tend to hold for the So what should you do to make the most a program. Did you know that there is even
long term and are loyal shareholders. of this wonderful event? Prepare! Be a need for people to retrieve messages
Therefore, many companies are eager to armed with relevant questions to ask the from the chapter’s voice mail system? And,
meet and talk to NAIC investors whom knowledgeable Investor Relations repre- no contribution is considered small – even
they see as a stabilizing influence on sentatives from the 15 companies who an hour can make a big difference.
their stock’s performance. In addition to are sponsoring and exhibiting at the
sponsors, the exhibition hall will show- Investors Fair ®. Take advantage of this Look around you; indeed there is a need
case Ambac Financial Group, Inc., opportunity for investment education for your help. Help us serve the needs of
AMCOL International Corporation, sponsored by your Chapter. our Chapter members. Choose to invest
B/E Aerospace, Inc., Bell Atlantic in NAIC. Volunteer!
Corporation, Diebold Incorporated, Watch for our Investors Fair ® mailing
and remember to register early. For more information, please contact
E’town Corporation, Nokia Group, Yvette Wright at 718-399-2280.
NEW YORK CHAPTER OFFICERS: President: Phyllis Pawlovsky • Vice Presidents: Monica Noel / Membership; Rosemary Hassett / Education; Yvette Wright / Administration
• Treasurer: Stephen W. Beer •. Secretary: Joan Ford • Recording Secretary: Avi Horwitz • Board of Directors: Al Clarke, Bill Dunn, Leotta Boulware, Joe Fisher, Baunita Greer,
Rosemary Hassett, Lillian Heard, Anita Hunter, Jeannine Pemberton, Jack Rodolico, Linda Smalheiser • Associate Directors: Robert Irizarry, Susan Kideckel, Marvin Tallerman
• Heads of Committees: Computer Group; Newsletter / Phyllis Pawlovsky, (212) 744-0249 (PGP106@cs.com); Education / Lillian Heard, 718-723-4360; NAIC Supplies / Albert Clarke;
Media Relations / Anita Hunter (AHunter166@aol.com) • Editorial Staff: Editors / Phyllis Pawlovsky, Anita Hunter. Reporter: Doris Schreiber. Columnist: Avi Horwitz.
4 September, 1999