Investment SIG Thursday June 9 th , 2011 Agenda

Welcome Visitors Timely Topics Current Month Special topics

Lazy Portfolio Shale Gas On-line info for Share Buy Back & Dividends

Investment Learning Opportunities Inputs from Attendees on future topics Inputs from Attendees: Open Discussion Next Month

Thank you for visiting with us tonight

You’re invited to join the 1960 PC Users Group and attend any or all of the six Special Interest Groups.

The annual dues for you and your spouse to attend the meetings and events is $40/year

See our website: www.1960pcug.org for more details and also for copies of prior presentations and resources

We have membership application blanks available tonight.

Agenda Welcome Visitors Timely Topics

How to beat the Market

Per the WSJ, some newsletter publishers / money managers have devised a simple way to “beat” the S&P, including: CNBC’s Cramer’s Action Alerts Plus: “My Portfolio is

Crushing the Market” MarketWatch’s The ProActive Investor

How do they do this?

They simply delete dividends from the performance from the S & P and yet still include it their portfolio’s performance

Cramer showed the S & P return since 2002 at 15.5% vs. his portfolio at 39.2%

If you add dividends back in to the S & P, its return is 38.3%

So Cramer is ahead by 0.9%, but that is before the trading fees for making the required 774 trades annually, before taxes, and before his $299.95 first year, come-on fee.

A simple S &P 500 Index Fund would have netted more than Cramer’s Action Plus Portfolio

Welcome Visitors Timely Topics Current Month Special topics

Lazy Portfolio Shale Gas On-line info for Share Buy Back & Dividends

Al Williams:

LAZY PORTFOLIOShttp://www.marketwatch.com/lazyportfolio

http://www.madmoneymachine.com/

http://www.madmoneymachine.com/professional-lazy-portfolios/

Al Williams:Shale Gas Plays

Understanding the basic drilling process

Northern Oil & Gas, Inc. • Horizontal Drilling

Shale Gas Plays Understanding the basic drilling process Northern Oil & Gas, Inc. • Horizontal Drilling

Environmental / Regulation Issues: The industry is regulated by state statutes, not the Federal

Safe Water Act

Disclosure of proprietary fracking chemicals has been a concern, but several in the industry now reveal them voluntarily

Both Federal and State regulations today require casings to protect fresh water aquifers from drilling fluids

A new Texas law requires disclosure of all chemicals by 2013 http://fracfocus.org/

TransCanada Pipeline was denied permission to restart its Keystone Pipeline from Alberta into Cushing, OK.

Unreasonable? They’ve had 11 leaks in past 11 months

Shale Gas Plays

Economics What shale gas has done for US Natural Gas Market:

World Prices of Natural gasUS: $4.00Europe: $8.00Asia: $14.00

Cheniere Energy got approval May 20 to export 2.2 bcf/day of LNG from its Sabine Pass LA plant for 20 years. Its shares jumped 50%. An attractive investment?

Its first income is expected in 2016

Natural gas price in US surged to 10 month high June 3rd— Usually goes down as winter season ends. What’s going on?

Nuclear Maintenance is about one to two months longer than usual this year

By Al Williams:

For more information:

www.OilShaleGas.com

www.ShaleOilPlays.com

These are blogs that give a lot of specific information about the shale energy industry

By Al Williams

OIL & GAS SHALE PLAY RESOURCES

www.chk.com Chesapeake Energy Web Sitego to Quick Links

go to Education Library

animationsvideospublicationsfact sheets

www.oilshalegas.com

www.shaleoilplays.com

www.HartEnergy.comreports and directories for purchase

By Al Williams

ONSHORE SHALE PLAYS -- from JIM CRAMER

6-3-11

BAKKEN SHALENorth Dakota & Wyoming

HES HESS

EOGEOG RESOURCES

CLR CONTINENTAL RESOURCESWLL WHITING PETROLEUM

EAGLE FORD SHALE South Texas

EOGEOG RESOURCES

HK PETROHAWK

PXDPIONEER NATURAL RESOURCES

PERMIAN BASINWest Texas & Southeast New Mexico

EOGEOG RESOURCES

HK PETROHAWK

PXDPIONEER NATURAL RESOURCES

SD SANDRIDGE

source:www.cnbc.com/id/43268393

On-Line info on share buy back and dividends TheOnLineInvestor.com (free) ▪ provides specific companies Buy Back Announcements

StandardAndPoors.com (free)▪ Tracks overall industry trends and gives some specifics

BuyBackLetter.com ($195/year) and ($79/month)▪ Provides specific recommendations for promised big

yields▪ In the top 9 for Hulbert’s Financial Digest rating service

Welcome Visitors Timely Topics Current Month Special topics

Lazy Portfolio Shale Gas On-line info for Share Buy Back & Dividends

Investment Learning Opportunities

June 13th , Monday- The Woodlands Economic Forum (TWEF)-Mitchell Library at 8125 Ashlane Drive (across from YMCA) in the Woodlands

-- 10 am to noon : Open discussions on Economic Issues June 20th, Monday- Woodlands Investment Group (TWIG) meeting-Montgomery

County Library at 2101 Lake Robbins Drive. Topic: Members sharing specific security recommendations and exchange market information

-- 10 am to noon.

June 21st, Thursday – Fidelity Seminars at the Woodlands Fidelity office at 1701 Lake Robbins Drive: Fidelity’s Trading Advantage-- -- 10 am to around noon Bond Investing Beyond Yield- A Deeper Dive – 2:00 pm to around 3 pm

June 27th , Monday- The Woodlands Economic Forum (TWEF)-Mitchell Library at 8125 Ashlane Drive (across from YMCA)

-- 10 am to noon : Open discussions on Economic Issues

July 11th, Monday- Woodlands Investment Group (TWIG) meeting-Montgomery County Library 2101 Lake Robbins Drive. Topic: Members sharing Specific security recommendations

-- 10 am to noon.

July 14th, Thursday- PCUG’s Investment SIG Meeting CCCCC Room 30, 6823 Cypresswood DriveTopic: How to invest to reduce risk and

increase returns—a more sophisticated methodology: By John Hawkins

Welcome Visitors Timely Topics Current Month Special topics

Lazy Portfolio Shale Gas On-line info for Share Buy Back & Dividends

Investment Learning Opportunities Inputs from Attendees on future topics

Candidate subjects: American Association of Individual Investors’ Concept of “The Other Stock Market” Hedge Funds

My investment approach using funds instead of stocksTechnical Analysis as a guide to investingVarious Sector InvestmentsHow to find and evaluate investment candidatesOptions Trading (Guest Speaker?)On line sources of investment informationOthers? I welcome additional suggestions

(Not in any order or priority listing)

Also it particularly enhances the attractiveness of the meetings when we could find some guest speakers on special topics. If you know a candidate, please let me know.

Welcome Visitors Timely Topics Current Month Special topics

Lazy Portfolio Shale Gas On-line info for Share Buy Back & Dividends

Investment Learning Opportunities Inputs from Attendees on future topics Inputs from Attendees: Open Discussion

Agenda Welcome Visitors Timely Topics Current Month Special topics

Shale Gas Other

Investment Learning Opportunities Inputs from Attendees on future topics Inputs from Attendees: Open Discussion Next Month

On July 14th, our next Investment SIG Meeting, John Hawkins will present information on how he has achieved double digit returns on his portfolio over the last five years.

John is the host of The Woodlands Economic Forum that meets normally at the Mitchell Library in the Woodlands on alternate Mondays from 10 am to noon.

John uses various strategies and techniques that are practiced by the successful hedge fund managers. These are sometimes simple in principle but require some detailed knowledge and training that is available from industry sources.

He presented this information in May 2010 to The Woodlands Investment Group and it was very well received. I think our SIG attendees will find it very interesting and useful

That’s all for tonight!