STAGE TWO

     I will leave the full Michaelis Analysis for the companies we have evaluated on the website for the present.  I do this so that each of you have the opportunity to look at where we began, do your own analysis, and determine if our current conclusions are valid.

     How to calculate RealPE.  Real PE has been determined to be superior because it provides a current measure to use in determining whether a stock is under or over valued right now.  As business changes occur it will provide a more timely indicator that something major may be occurring in a company you have decided to invest in.  Brief background on George Michaelis.

     We advocate buy and hold once sound investments that are correctly priced are discovered.  A PE at or below .66 does not in and of itself determine if a stock is a "good" buy.  The qualitative side (Fisher's 15 points) is even more important to your final decision of whether to invest in a company in the first place or your decision that now may be a good time to leave a stock.

     Mycroft is currently performing a Fisher 15 point analysis for Proctor and Gamble.  His goal in providing this analysis is to give us a template to use in evaluating other companies.  We would like volunteers to perform a Fisher 15 point analysis on other companies.  Take each point in turn and begin your evaluation.  Post that to the AMA board and encourage discussion.  DON'T BE SHY.  This is a learning experience for all of us and the only real way to learn is by doing.