This is the handout for the September 7, 2010 Toolkit 6 User Group Webinar.

1. 10/13/2010
Sell Indicators in
Toolkit 6
by Doug Gerlach
ICLUBcentral Inc.
September 2010
Sell Signals in Toolkit 6
• Toolkit 6 never “tells you” what to do.
– Guide to help you with your own decisions.
• Toolkit 6 features help you with sell
analysis:
– Stock Study
– Portfolio Report Card
– Quarterly Trend Analysis
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2. 10/13/2010
2 Reasons to Consider Selling
1. Company has problems that threaten
future success of business.
2. Stock price is overvalued when
compared to likely future prospects.
Spotting Problems in Stock Study
• Company is acting contrary to reasons
that drive your purchase decision:
– EPS and/or Sales falling.
– Profit margins deteriorating.
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3. 10/13/2010
Growth Is Disappearing
Profit Margins Declining
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4. 10/13/2010
Profit Margins Are Falling
Stock Is Overvalued
4 Strikes, You’re Out!
1. Relative Value > 150%
2. Stock in Sell Zone
3. Reward/Risk Ratio < 1:1
4. Total Return < long-term bond or savings
long-
rates
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5. 10/13/2010
Relative Value > 150%
Stock in Sell Zone &
Rwd/Rsk
Rwd/Rsk Ratio < 1:1
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6. 10/13/2010
Low Projected Total Return
Portfolio Report Card
• Offense & Defense approach.
• Red highlighting points out key problem
areas.
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7. 10/13/2010
Portfolio Alerts
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