THE GERALD M.

LOEB CHECKLIST

1. Name of the security _________________

2. Current Price _________________

Financial Statement Review

3. Capitalization
a. Bonds and Preferred stock at par _________________
b. Bonds and Preferred at market _________________
c. Common at Market Value _________________
d. Total Market value of all securities _________________
e. Other notes regarding Capitalization
Capitalized Leases, SPE’s etc. _________________

4. Notes on Balance Sheet and Working

Capital
a. Working capital amount _________________
b. Current Ratio _________________

5. Book Value (per share) _________________

6. Profit and Loss (date of last full year) _________________

a. Gross Sales (per share) _________________
b. Operating Earnings _________________
c. Fixed Charges (interest etc) _________________
d. Taxes _________________
e. Net Income (per share) _________________
f. Gross Margin _________________
g. Comment on Earnings Trend _________________
7. Cash Flow
a. Cash Flow (per share) _________________
b. Comment (debt level etc) _________________

8. Average Earnings (per share)

a. Average: Last Reported Five Years _________________
b. Last reported Year _________________
c. Estimated for Current Year _________________
d. Estimated for Next Year _________________

9. Dividends (per share) _________________

a. Average last five years _________________
b. Last reported year _________________
c. Estimated current year _________________
d. Estimated next year _________________

10. General Information

a. Where Traded _________________
b. Average daily volume _________________
c. Price range last five years _________________
d. Price range current year _________________
e. Short Interest _________________
f. Relative strength _________________
g. Insider Transactions _________________
h. Institutional Holdings _________________
i. Pattern of price movement _________________
j. Important dates
i. Earnings release
ii. Ex Dividend dates
iii. Shareholder meetings
iv. Impending Announcements
 Valuations and Trends

11. Price Earnings ratio

a. Five year average ____________
b. Last Year’s range ____________
c. Estimated range current year ____________

12. Dividend Yield ____________

a. Five Year Average ____________
b. Last Year ____________
c. Estimated current year ____________

13. Historical Growth

a. How many years for sales to double ____________
b. How many years for earnings to double ____________
c. How many years for price to double ____________
d. Comment on future trends ____________

Objectives and Risks

14.Ruling Reason for commitment ___________

15. Anticipated Profit

a. Price objective ___________
b. Estimated time to achieve it ___________

16. Risks Assumed ___________

a. Points per share ___________
b. Total Loss at Stop Out price ___________
17. Personal Commitment
a. I will commit $__________
b. This will be ______% of my risk capital
c. I will risk ___ points a potential loss of $__________
d. My price objective is $_____ in ___ months. If I realize
this price I will have a capital gain of $_____ gross.
e. My tax rate is _______ and the potential net profit is $_____
f. This is a percent gain of _____%
g. Annualized this is a _____% after tax rate of return.

18. Revaluation
a. Date of original Purchase ________
b. Price Paid ________
c. S&P 500 on date of purchase ________

19. First revaluation

a. Date ________
b. Price ________
c. S&P Level ________
d. Comment ________
e. Action Taken ________

20. Second Revaluation (same as first)

21. Final Closing

a. Date
b. Price
c. S&P Level
d. Profit or loss
e. Tax $___ Net Profit $_______ Annualized return _______%
f. Comment ________________________________________