1. Preparing SSG Using ToolKit 4.0 Features By Felicia Ware-Joyner

2. Historical Growth Rate Change Double click on side 1 SSG –This brings up the Visual Analysis Graph Click the Historical Growth Rate Change Button –This brings up the Historical Growth Rate Change Graph

5. Analysts’ EPS Growth Rate Page 134

7. Preferred Procedure Page 134-138 Completely Optional (for Advanced Users Only)

9. Section 2 Evaluating Management Page 139 - 141

10. Evaluating Management Front page –Good track record of growth and earnings –If not do not go further Can Management Sustain the Growth? –If not, then stock is selling at a low price for good reason –It is not a high quality, great value stock The worse a company performs, the better a value it will appear to be.

11. Profit Margins Review % Pre-tax Profit on Sales –Stable over 10 years? –Last 5 years? –Compare to Industry Averages Value Line Survey or www.marketguide.comwww.marketguide.com Serious Down Trends

12. Pre-Tax Profit Margin Graph Page 140 - 141

14. Section 3 Price-Earnings History Page 142 - 145

15. Price-Earning History Eliminate Outliers –Average High and Low P/E High P/E will be radically inflated by one or more years of abnormally low earnings per share

16. Upside Down Side Ratio 4D Back Side SSG

17. Question What is our Target Upside/Downside Ratio?

18. Forecast Low Price

19. Average Low P/E

20. Recent Severe Market Low

21. Price Dividend Will Support

22. UPS Historical Prices

23. Relative Value The relationship between the Current P/E and the Average P/E Calculated –(Current P/E) divided by (Average P/E) Expressed as a percentage Desired Range –85% to 110%

24. Check List Update Prices Data –Place your Name in the Prepare space –Note the last full year & month fiscal year ends

25. Check List SSG Front Front Side SSG –Note Insider/Institution High insider is good Institutional Ownership over 50% is bad –Recent Quarter Figures –Visual Analysis

26. Check List – Visual Analysis Historical Growth Est. Sales Growth Est. EPS Growth Preferred Procedure (optional)

27. Check List – SSG Back 2 Evaluating Management –UP UP or UP Even or Up Down –Remove Outliers 3 Price-Earnings History –Remove Outliers –Note payment of dividends

28. SSG Back 4 Evaluating Risk and Reward –Defaults of High & Low Price (comes from figures on front) –Select Potential Low Forecast Low – Growth Average Low – Cyclical companies Recent Sever Market Low – turnaround/volatile companies Price Dividend will support

29. Check List – 4C and 4D 4C Zoning –Buy, Hold, Sell 4D Up-Side Down-Side Ratio –3:1 desired

30. Check List – Relative Value 4E Price Target –Potential price appreciation over next 5 years Relative Value –Relationship between current P/E and the Average P/E –Guidelines 85% to 110%

31. Check List – Projected Relative Value Based on estimated earnings for next 12 months Guidelines 80-100%

32. Check List – 5-Year Potential Total Return –Price Appreciation & Dividend Yield –Want average gain to be at least 15% More mature companies will return less Small growth companies will return more