1. Are D/FW Companies Up, Straight and Parallel?
Investment Education Workshop
April 20, 2013
Dave Swierenga

2. 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 BetterInvesting™ National Association of Investors Corporation (“BI”) or the National Investors Association, its volunteer advisory board (“NIA”). The views expressed are those of the instructors, commentators, guests and participants, as the case may be, and do not necessarily represent those of BetterInvesting™ or NIA. 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 President of BetterInvesting or the Manager of Volunteer Relations.

3. Up Straight and Parallel
When the sales, pre-tax profit and earnings per share lines
on a Stock Selection Guide are:
Up – increasing year to year
Straight – consistent percentage increases
Parallel – sales, pre-tax profits and earnings per share changing at the same rate

4. Log – scale
Constant 20% increase
Calendar years

5. Up, Straight and Parallel (classic example)

6. D/FW Companies in the S&P 500
Exxon Mobil
AT&T
Fluor Corporation
Kimberly – Clark
J.C. Penney
Texas Instruments
Dean Foods
Southwest Airlines
GameStop
Tenet Healthcare
Dr Pepper Snapple
Comerica
D. R. Horton
Range Resources
Flowserve
Pioneer Natural Resources
Torchmark
Denbury Resources

7. Exxon Mobil (Irving)
Parallel lines, but not consistently up and not straight
2009

8. Kimberley - Clark (Irving)

9. GameStop (Grapevine)
Good pattern,
until 2009

10. D/FW Top 150 Dallas Morning News – top 150 listing A.H. Belo (AHC)
Brinker (EAT)
Six Flags (SIX)
Southwest Airlines (LUV)
Tuesday Morning (TUES)
Many energy companies
Several trading under $5 per share
parent company: Dallas Morning News and WFAA
Interesting Stock Symbols

11. Holly Frontier Corporation (HFC)
An energy company with increasing sales but erratic PPT and EPS

12. Pioneer Natural Resources (PXD)
The SSG for energy companies often look like this

13. AZZ Incorporated (AZZ) (Ft Worth)
Industry: Metal Fabrication
Sells electrical equipment and components for:
Power generation
Transmission and distribution
Industrial markets
Has 34 “hot-dip galvanizing” facilities throughout US
$570M sales in FY2012

14. Alliance Data Systems (ADS) (Plano)
Industry: Information Services
2012 Sales: $3.6 B

15. ATRION Corporation (ATRI) (Allen)
Industry: Medical Instruments and Supplies
Products for:
Cardiovascular
Ophthalmic
Fluid delivery
2012 Sales: $119 M
Founded in 1944
One of Ken Kavula’s “5 Stocks Worth a Second Look”
April 2012 BI Magazine

16. Cash America International, Inc. (CSH) (Ft Worth)
Industry: Credit Services
Provides:
Pawn loans
Short term cash advances
Check cashing services
Other specialty financial services to individuals
2012 sales: $1.8 B
First Cut: Feb 2011

17. First Cash Financial Services, Inc. (FCFS) (Arlington)
Industry: Credit Services
Operates:
Pawn Stores
Cash Advance Stores
Short term cash advances
Check cashing
2012 Sales: $600 M
First Cut: Dec. 2011

18. Fossil (FOSL) (Richardson)
Industry: Retail Special
Global
design,
marketing and
distribution
company that specializes in consumer fashion accessories
2012 Sales: $2.9 B
First cut: Aug 2012

19. Metro PCS (PCS) (Richardson)
Industry: Communication Services
Wireless telecommunications carrier
2012 Sales: $5.1 B

20. Sally Beauty Holdings (SBH) (Denton)
Industry: Special Retail
Distribution and retail of professional beauty supplies
Markets primarily:
North America
South America
Europe
FY 2012 sales: $3.5 B

21. Texas Capital BancShares (TCBI) (Dallas)
Industry: Regional Bank
Provides various banking products and services for Texas:
Commercial businesses
Professionals
Entrepreneurs
2012 Sales: $420 M

22. Tyler Technologies (TYL) (Dallas)
Industry: Software Applications
Integrated
information management solutions
for the public sector
2012 Sales: $363 M

23. View Point Financial Group (VPFG) (Plano)
Industry: Regional Bank
Consumer and business banking services
Real estate and commercial loans
2012 Revenues: $142 M