THE 2011 TAX PRINTERS RELEASED! EDITION
05 JANUARY 2012
THIS JUST IN: 2011 TAX PRINTERS RELEASED!
Download Your Copy Today
You read the headline right — 2011 Tax Printers have been released!
Download the version for Club Accounting 3 from the ICLUB.com website, or click the Taxes tab in myICLUB.com to access the online version. CDs will ship later in the month.
Early bird pricing has been extended, so order today today if you want to take advantage of the lowest pricing. And remember — StockCentral members receive the lowest prices on the Club Tax Printer programs! For more information, visit ICLUB.com.
On to more of this week’s headlines…
EARLY BIRD CATCHES WORM – AND SPECIAL PRICING
Order 2011 Federal and State Tax Printers and Save
It’s a brand-new year. No matter how you rang in 2012, you’ve got a whole new, fresh 12 months ahead — and taxes due on the 12 months that just passed by. Yes indeed, tax season is just around the corner.
What is that you just said? You don’t yet have your copy of the No. 1 tax preparation software for investment clubs? There’s no better time than the present – because now through Jan. 31, you can purchase your copy at early bird prices! That’s right — early bird pricing on the Federal and State Tax Printer software has been extended.
The software retails for $89.99 (a fraction of the cost of a professional tax preparation service), and many discounts are available. But act now: Our special early bird pricing ends Jan. 31. Get a jump on tax season and order your Federal and State Tax Printers from ICLUBcentral today!
HAVING TROUBLE MAKING HEADS OR TAILS OF IT?
Jan. 17 Webinar on Preparing Club Taxes Will Light the Way
If just the mere thought of getting the calculator out and organizing all your 2011 paperwork sends chills up and down your spine, and you're looking for top-notch support, there’s great news to be had. ICLUBcentral not only offers the No. 1 tax preparation software for investment clubs, but we’ve also got the support to go right along with it.
Mark your calendar for the special webinar on Preparing Club Taxes scheduled for Jan. 17, 2012, as part of StockCentral’s regular, ongoing free club webinar series. ICLUBcentral's Doug Gerlach will demonstrate how to best use the tax preparation software. After the session, you'll also have the chance to ask questions.
To view a webinar session, all you need is a computer with speakers (or a telephone) and an Internet connection. You don't need a microphone or webcam. Pre-registration is required, and space is limited, so don’t delay! Sign up today.
PROS AND CONS OF PAR
Gerlach Discusses the Projected Average Return
Speaking of webinars, here’s a question from a recent webinar, posted by SC member Jeff Traeger in The Classroom.
“If I recall correctly, you said during the last webinar that you turn off “Enable Projected Average Return” in the preference section. I believe you went on to say that it is not favored by IAS nor yourself.
“Assuming I have remembered this correctly, could you explain the “why” during the next webinar or here at the forum?
“I have always liked PAR as a measure, as I view it as a more conservative measure versus the high P/E used for generating “Total Return.” My feeling is that a stock’s price is more likely to hover around the average PE than at the high PE, and therefore, the average projected return is a more sustainable number.”
The response from StockCentral Founder Doug Gerlach:
“Yes, that is correct. We don't use Projected Average Return in the stock studies presented in the Investor Advisory Service . The thinking on both sides of the debate for and against PAR goes something like this:
“The point of the future high price selection on the SSG is to determine the maximum likely high price the stock will reach if it grows EPS according to your analysis. If you have selected a reasonable future high P/E Ratio and a reasonable EPS growth rate, then your future high price selection should be attainable, and thus the measure of the upside potential of the stock at the current price should be reasonable as well.
“Projected Average Return is calculated by using the share price determined by multiplying the company's projected EPS in five years by the average of your future high and low P/E Ratios. Those who like to look at Projected Average Return take the position that it's more likely that the stock will be selling near its average valuation in five years than at the very high end of the valuation range you establish (or, as you say, "a stock's price is more likely to hover around the average P/E than at the high P/E"). In addition, if the market is in a bear rather than bull cycle in five years, then the valuations of all stocks might be on the lower end of their historical ranges. Thus adherents of PAR see it as a more reasonable measure.
“Those who prefer not to use PAR counter that if you look at the price and valuation histories of the typical stock, in any 52-week period prices do vary considerably (the average price of a stock on the NY Stock Exchange is said to vary 50% in a year), so you likely will have the opportunity to take advantage of the upside potential at any rate, and that's what you should be measuring with your study — the upside potential, not the average potential. If you are conservative in your choice of growth rates and P/E Ratios, then this upside potential doesn't need to be adjusted downward any further. The future high price that you calculate on the SSG is not a "blue sky" figure, but a realistic target that the stock can reach.
“There are nuances in the application of your judgment that come to play in deciding whether you want to consider PAR. If you are very conservative in your selection of future P/E Ratios and EPS growth expectations, then PAR becomes less meaningful and can be a bit warped, providing you with less meaningful information about a stock's possible future performance.”
Want to add your two cents? Head on over to The Classroom!
TODAY'S ENTIRELY RELEVANT QUOTATION
"If anything, taxes for the lower and middle class and maybe even the upper middle class should even probably be cut further. But I think that people at the high end – people like myself — should be paying a lot more in taxes. We have it better than we’ve ever had it.”
— Warren Buffett