BetterInvesting’s Online Tools CoreSSG Tutorial Presenter Name Presenter Title BetterInvesting – Presenter Chapter July 27, 2016

Disclaimer The information in this presentation is for educational purposes only and is not intended to be a recommendation to purchase or sell any of the stocks, mutual funds, or other securities that may be referenced. The securities of companies referenced or featured in the seminar materials are for illustrative purposes only and are not to be considered endorsed or recommended for purchase or sale by BetterInvestingTM National Association of Investors Corporation (“BI”). The views expressed are those of the instructors, commentators, guests and participants, as the case may be, and do not necessarily represent those of BetterInvestingTM. Investors should conduct their own review and analysis of any company of interest before making an investment decision. Securities discussed may be held by the instructors in their own personal portfolios or in those of their clients. BI presenters and volunteers are held to a strict code of conduct that precludes benefiting financially from educational presentations or public activities via any BetterInvesting programs, events and/or educational sessions in which they participate. Any violation is strictly prohibited and should be reported to the CEO of BetterInvesting or the Director of Chapter Relations. This presentation may contain images of websites and products or services not endorsed by BetterInvesting. The presenter is not endorsing or promoting the use of these websites, products or services. This session is being recorded for future use.

Today’s Presentation A demonstration of the CoreSSG online app to do the following… Complete an SSG Save an SSG Share an SSG Update an SSG

CoreSSG Quick Start Guide What's New in Tools CoreSSG Quick Start Guide Step-by-step guide to navigating the CoreSSG online app Available on the Help & Information Tab

BetterInvesting Core Membership What's New in Tools BetterInvesting Core Membership Stock Comparison Guide Company Research Self-Paced Classes Online, Web-based Integrated Stock Data 5

CoreSSG, SSGPlus Access This is a screenshot from our member home page. The links to the online tools here are up in the green box in the upper right hand corner Enter a ticker into the box under Stock Selection Guide and click ‘GO’

CoreSSG First view of the tool when you open a company

Graphical display of data Tabular display of data Menu Navigation 1 2 3 4 5 Next, Back buttons SSG Basics Identify various areas of the page. These areas are similar on all CoreSSG pages. Graphical display of data Legend Tabular display of data

Quick Access to Company Information Mouse over company name to get more information about the company Industry Sector Short description FY end date Price date Mouse over company title bar to view pop-up New feature in both Core and Plus

Review Historical Sales Hover over data point to see value Evaluate if a growth company Evaluate if a quality growth company Growth trend line CoreSSG Tutorial

Review Historical Sales Annual data (closed circles) Review Historical Sales Evaluate if a growth company Evaluate if a quality growth company Quarterly data (open circles) Annual data table Quarterly data table

Data removed from graph Outliers Data removed from graph Crossed out data Recalculated growth rate Click on year label on graph to remove year as an ‘outlier’ CoreSSG Tutorial

Show industry average also Peers Show industry average also Click on peers in legend to display peer data on the graph CoreSSG Tutorial

Peers Peers are automatically selected using the following rules: In the same industry as the ‘company under study’ Of the same size category (S, M, L) as the ‘company under study’ Top three as ranked by 10 year EPS growth rate CoreSSG Tutorial

Enter new tickers and then click on ‘Update Study’. Change Peers Enter new tickers and then click on ‘Update Study’. Peer choices are saved with the study. Click on ‘Change Peers’ button to change the peers to your own selection

Review Historical Earnings Per Share Click on ‘Next’ to go to the next step Review Historical Earnings Evaluate if a growth company Evaluate if a quality growth company Steady, consistent earnings growth Outliers, peers work the same on every screen Or click on the tab CoreSSG Tutorial

Review Historical Earnings Per Share Check and compare against peers Evaluate if a growth company Evaluate if a quality growth company Steady, consistent earnings growth Outliers, peers work the same on every screen Review key concepts Check and compare against peers CoreSSG Tutorial

Historical Sales, Earnings, Stock Price Review Hi/low prices for each year A company most suited for analysis using the SSG will demonstrate the concept of ‘up, straight and parallel’ here. 52 week hi/low with current price Earnings CoreSSG Tutorial

Evaluate Management Tabs %Pre-Tax Profit on Sales % Earned on Equity (Return on Equity) Total Debt % Debt to Capital

% Pre-Tax Profit on Sales Mouse over open circle to see quarterly data How much profit is the company making on every dollar of sales? Looking for a pretty steady line. If you see jagged lines, check the scale! Check against peers Outliers work here also – average is recalculated

% Earned on Equity Look to the education panel % of money that the company as a percentage of the worth of the company Looking for a steady line or upward line. If you see jagged lines, check the scale! Ideally look for a company in the mid-teens and above Check against peers and industry average Outliers work here also – average is recalculated

Total Debt Debt presented as a dollar value – in millions of dollars Look for big changes and investigate why they took on debt Compare against competitors to see if they are generally taking on more debt This step is less valuable as compared to %Debt to Capital

Mouse over open circle to see quarterly data % Debt to Capital Mouse over open circle to see quarterly data Debt as a percentage of the total capitalization of the company ‘Rule of thumb’ is want less than 33% but really need to compare against others in the same industry

Fundamental Review Before moving forward to making forecasts: Is this a growth company? Is this a quality company? CoreSSG Tutorial

Research links to research company growth drivers Forecast Sales Research links to research company growth drivers Analyst consensus sales forecast (2 years) Analyst sales forecast (2 years) Forecast sales to establish a baseline for forecasting earnings Reference these when making a forecast: Historical growth Analyst estimate Research into the company including the company website – all available from the research tab Graph expanded by 5 years

Enter the sales forecast number here Forecast Sales Enter the sales forecast number here Forecast sales to establish a baseline for forecasting earnings Reference these when making a forecast: Historical growth Analyst estimate Research into the company including the company website – all available from the research tab Click on ‘Update Study’ to save the forecast

Change your projection start point here Forecast Sales Change your projection start point here Projection line start point can be changed by clicking on the radio button ‘Quarter’ will give you the full 5 year outlook into the future ‘Annual’ is usually more conservative ‘Trend’ can be used for cyclical companies Use Preferences

Projection Start Point Default Use ‘Preferences’ to set your default projection start point Choose and click ‘Save’ CoreSSG Tutorial

Research links to research company growth & other analyst estimates Forecast Earnings Research links to research company growth & other analyst estimates Analyst forecast Analyst consensus EPS forecast (3-5 years) Forecast EPS Reference these when making a forecast: Historical growth Analyst estimate Research into the company including the company website – all available from the research tab

Dotted line represents user forecast Forecast Earnings Dotted line represents user forecast Enter the EPS forecast number here Click on ‘Update Study’ to save the forecast

Projected EPS value is used in High Price calculation Forecast Earnings Projected EPS value is used in High Price calculation

Assess Risk and Reward Tabs Forecast High Price Forecast Low Price Assess Stock Price Determine Potential Gain vs. Loss

Forecast High Price Historical High PE’s Last 5 year average Look for trends – especially trends in more recent years Review the 5 year average Last 5 year average

Forecast High Price Compare to peer P/E’s Peer data available Look for trends – especially trends in more recent years Review the 5 year average Compare to peers Peer data available

Enter the forecast High P/E number here Forecast High Price P/E reference values: 5 Year Average High P/E 5 Year Average P/E Current P/E Enter the forecast High P/E number here Forecasting average high P/E – not ultimate high P/E High price is calculated from High P/E forecast X High EPS forecast Click on ‘Update Study’ to save the forecast High price = High P/E X High EPS

Forecast High Price Double click on P/E reference values to enter them directly into the forecast box. Forecasting average high P/E – not ultimate high P/E High price is calculated from High P/E forecast X High EPS forecast

Forecast Low Price Historical Low PE’s Last 5 year average Look for trends – especially trends in more recent years Review the 5 year average Historical Low PE’s Last 5 year average

Forecast Low Price Compare to peer P/E’s Peer data available Look for trends – especially trends in more recent years Review the 5 year average Compare to peers Compare to peer P/E’s Peer data available

Enter the forecast Low P/E number here Forecast Low Price P/E reference values: 5 Year Average Low P/E 5 Year Average P/E Current P/E Enter the forecast Low P/E number here Forecasting average low P/E – not ultimate low P/E Low price is typically from Low P/E forecast X Low EPS forecast Update low EPS with Last 4 Qtr EPS Low price = Low P/E X Low EPS Click on ‘Update Study’ to save the forecast

Can enter a low stock price directly Forecast Low Price Can enter a low stock price directly Review the recent market low price as a reference Forecasting average low P/E – not ultimate low P/E Low price is typically from Low P/E forecast X Low EPS forecast

Upside reward vs. downside risk Potential Gain vs Loss Upside reward vs. downside risk Typically looking for a 3 to 1 or greater upside/downside ratio.

Price range separated into Buy/Hold/Sell zones Forecast Low Price Calculated High Price Price range separated into Buy/Hold/Sell zones Current Price Calculated Low Price

Determine 5 year potential return Graph of payout ratio Review trends and adjust payout ratio if necessary. Enter payout forecast Click Update Study

Determine 5 year potential return Price appreciation Future Yield Total Return

Yellow message - study not saved Click to save the study Save Study Yellow message - study not saved Click to save the study Click to Save Study Edit study name if necessary Click ‘Save’ to save study

Click ‘Generate PDF’ to create a PDF of the SSG to save or print Print SSG Print SSG Click ‘Generate PDF’ to create a PDF of the SSG to save or print

Share Your SSG – New Options New feature in both Core and Plus

Share Your SSG – New Options Copy of Online Study Export ITK format New feature in both Core and Plus

Online SSG Sharing Recipient receives an email and clicks the link to copy the study to their account

Share Your SSG – Address Book Click to see a list of BI club members Save a list of frequent email recipients

New feature in both Core and Plus Club Member Email List New feature in both Core and Plus

Quick Navigation Added to Core Click Enter a new ticker or select from all saved SSGs

Refresh/update study data Refresh Study Data Refresh/update study data

Refresh Study Data Update Prices Only

Open a Saved Study Enter a new ticker and click on ‘New Study’ Click on the ‘My Studies’ tab Mouse over an existing study and click to open

Online Tools Tutorial Webinars Links to FAQs and Feature Requests Help and Information Online Tools Tutorial Webinars Quick Start Guides Reference Materials Links to FAQs and Feature Requests

Link in Help and Info Tab User Feature Requests http://FEEDBACK.betterinvesting.org Link in Help and Info Tab

FAQ Site for Common Questions http://FAQ.betterinvesting.org Link in Help and Info Tab

Questions or Comments? BetterInvesting Member Services 877-275-6242 Email: Service@BetterInvesting.org