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.

Special Purpose Meeting
Review Updated Bylaws from Chad Lumpkin

• 7:20pm - Start meeting
• Chad paid $200 to gets this reviewed by an attorney

• 7:30pm – Review of bylaws begins. Discussion on Section 7: Forbidden Acts. Determined to keep the section in tact although it may be vague.
• 7:34pm – Struck Section 8, i. “Attend all meetings”. It conflicted with Section 8, ii.
• 7:35pm - Discussion starts on dismissing a member for active, inactive and passive membership status as defined.
• 8:30pm - Group has decided to create two member states: Active and Inactive. An Active member is a current dues paying member who is active in meetings as required. An Inactive member has permission from the President to miss meetings for a specified period of time while maintaining current dues paying status. During this time and Inactive member has no vote, but participation in club activities is still required. Inactive members do not count towards quorum at any meeting. During either Active or Inactive status participation is required as defined by the club. If participation is determined to be egregiously lacking in any state, a member may call a member to vote for termination by a vote of 2/3s majority. At this time the Club may “save” the member from termination also by a vote of 2/3 majority. Going to sub-committee to type up in this new way.
• 8:37pm - Revised Section 14, ii. to clean up the formula for amount of member interest when leaving. Going to sub-committee for more clear definition.
• 8:43pm – Suggested to revise Section 14 to define that the conditions apply to a member who has elected to leave the Club.
• 9:05pm – Discussion starts on Section 17 disaster clause. Decided to strike Section 17 completely.
• 9:10pm - Meeting concludes. Everyone is happy. Thanks to Chad for the Miller Lites.