November 2007 Meeting

Total meeting time: 3 hours

This meeting was a makeup meeting for the earlier regularly scheduled meeting that had only 6 attendees.

• 7:50pm - Start meeting – Discussed Alliance Bernstein Sale
• 8:00pm - Discussed CMG sale and other topics. Decided to form a working committee to review Sell processes and strategies and report back to the group.

• 8:30pm – Decided against selling AB.
• 8:35pm – Began discussion on selling China Mobile
• 8:38pm - Cam declares there are 10 billion Chinese in China
• 8:48pm - Voted to sell China Mobile at opening of market tomorrow. Order has been placed.
• 8:55pm - Discussed processes of bringing up additional sell strategies and contingencies for a sale. It was decided that going forward the additional options and points of discussion for a sell strategy must be brought up prior to the meeting in the agenda.
• 9:00pm – Voted to raise the buy limit for this stock to $750 due to an increase in cash on hand that we are sitting on.
• 9:05pm - Jimmy begins presentation on Portfolio Recovery Associates (NASDAQ:PRAA). They buy debt. There is lots of debt to buy. That’s a good thing. Debt is becoming cheaper for them to buy as subprime issues and things driving the market down are making debt more affordable. Slow growth company. North Carolina-based. Small-cap company. < 600mm market cap.
• 9:08pm - Chad leads discussion on PRAA and consumer debt purchasing. Suggests that consumers are defaulting on debt at a higher rate driving down their ability to collect on this debt they are purchasing.
• 9:14pm - Joey introduces Under Armour, Inc. (NYSE:UA). Picked this because it is in the consumer goods space where we currently aren’t invested. 2.3bn market capitalization. Beginning to move into college athletic contracts. By expanding into college football they will likely increase purchases among the fans of those schools through contracts with the university for exclusive rights for that type of apparel. Growth potential.
• 9:25pm - Chad presents Particle Drilling Technologies (NASDAQ:PDRT). They have a new drilling technology that makes it more efficient to drill through heavy rock. Waiting on field testing to be completed on this technology. Calls it a high risk play. Could become the new drilling standard if it works as planned.
• 9:28pm - Loren presents Google (NASDAQ:GOOG). Cam would like to note that Chad made fun of him for saying that Google would go to $500. It’s now at $648 even after a 100pt fall last week. Mentioned the pending DoubleClick acquisition and the anti-trust issues it represents. New irons in the fire — Android mobile platform; Google still bidding on the 700Mhz mobile spectrum; Open Social and its successes.
• 9:41pm - Cam introduces CMG:B shares for Chipotle Mexican Grill. (NYSE:CMG). B shares have 10x the voting rights of A shares. He anticipates the shares will one day merge and a premium paid for the relinquishing of voting rights on these shares.
• 9:47pm - It’s Chad presenting Internet Brands, Inc. (NASDAQ:INET). Fresh off of an IPO. Internet Brands owns a conglomeration of online sites. Focuses on lead generation and advertising review from these sites. Jimmy discusses concern over the polarization of their portfolio around auto websites. 78% around those types of sites.
• 10:10pm – Roundtable discussion begins.
• 10:14pm – 16 for INET. 27 for GOOG. 17 for UA. 5-6 for remaining. Each stock got a vote.
• 10:15pm - Cam leads roundtable with revolutionary stance on liking Google. Let INET marinate is the suggestion. No defense for Under Armour.
• 10:25pm – There is a tie between INET and UA. Discussion ensues. I make a riveting argument about diversification. Jimmy is of the mind that INET will operate independent of the market because it is obscure. Loren switches his vote to UA.
• 10:27pm - UA is selected 5:3.
• 10:30pm - Start conversation on Jason Mock’s candidacy. Jason talked about the length of the meeting and the differences from his past experience.
• 10:52pm – Jason Mock has been brought into the Club on unanimous vote. Current buy in value is $925.27.
• 10:53pm - We are tabling signing the bylaws until the next meeting. We are also tabling Chad’s presentation on flipping Internet sites.