Fox Valley Investment Team
STOP AND TARGET CALCULATION


The prices where we prepare to sell a stock for a profit or loss are initially determined by the purchase price as specified in section V.E.3 of the Policy Manual.  We take action when the stock closes beyond either of these prices.


STOP    7% + 1 point

• Multiply the purchase price by 0.93
• Subtract 1 point.
• Round DOWN to the next hundredth.
• If the stock closes 8% above the purchase price, move the stop to the purchase price.
• For a long-term investment, the stop follows the 200-day moving average minus one point when this value rises above the purchase price.

TARGET    14% + 1 point

• Multiply the purchase price by 1.14
• Add 1 point.
• Round UP to the next hundredth.
• For a long-term investment, the target is 80% above the 200-day moving average.

The short-term stop and target are adjusted when a dividend is paid while we own the stock.  They are reduced by the amount of the dividend per share.