Sys report 05/08

Here is an example of a monthly report (May 2008, Cookson Group), sent to all members  as part ofthe Systematic investment method

 This is a supporting document that is shown here by way of example and needs to be read  with  the Systematic investment method

Systematic GROWTH Portfolio Monthly Report

May 2008

Proposed Share

• The share proposed for this month is Cookson Group
• This share has come top of the revised[1] GROWTH systematic portfolio run on 06/05/2008

What you need to do next

• Review this share, by looking at recent news, its sector, results, fundamentals, key dates technical analysis, charts, products, prospects/outlook, risk/rewards, portfolio fit etc.
• If you agree with the purchase, you do not need to do anything. Else, you need to email ALL members by 13/05/2008 to reject the proposed share.
• Recall that it has been filtered as top of the GROWTH systematic screener this month.

How it works

• This share will be automatically purchased on 14/05/2008 unless 5 members[2] or more vote against the purchase.
• The dealing team will buy the share on the designated date or at earliest convenience after that (unless the share gets 5 negative votes).
• The amount to be invested[3] is
  • £2000 if up to 2 members have rejected the proposed share,
  • £1500 if 3 members have rejected the proposed share,
  • £1000 if 4 members have rejected the share, 
  • £0 if 5 members or more have rejected the proposed share
• This systematic portfolio has a maximum of six shares.

Variables used in stock screening and short-listing[4]

Methodology: Select top deciles and based on top market deciles.

Validation:

• Shareholder funds >0
• Profit (pretax) >0
• Total cash >0
• Average profit growth 1 year >0
• Both EPS forecast next year and Y+1 >0