------!-----!-----!-------------------------------!-------------------------------!----!----!--------------------------!--------------------- INTRODUCTION TO HAPPY INVESTOR'Stm PERSONAL PORTFOLIO ORGANIZER The Happy Investorstm Personal Portfolio Organizer (HIPPOtm) supports your investment decision making with accurate, timely reports on your securities. It provides the basics -- current prices, earnings, and dividend yields -- but also has many unique features that make it a powerful tool for the serious investor. HIPPOtm acts as your faithful and experienced clerk, so you'll be glad you hired our HIPPO! HIPPO'S BASIC FEATURES Like other good portfolio tracking systems, HIPPOtm reports: ==> Ticker symbols, names, dividend yields, and security types ==> The latest price and its percentage change ==> Total cost, number of shares, and value of each security ==> The date, number of shares, and value of each purchase ==> A summary giving your portfolio's total value, including cash, and the value and total cost of your securities alone HIPPO'S UNUSUAL ADVANCED FEATURES Experienced investors will find HIPPO's special features useful to maximize profits and minimize taxes; novices will find them increasingly valuable as they develop their investment skills. ==> A comparison of each security's price with its short, medium, and long-term average levels ==> Each purchase's value to cost ratio, and a similar ratio for a market index, showing its change in the same period, helping you learn from both successes and mistakes. ==> Coding long-term purchases to help you minimize your taxes ==> Coding to warn you of purchases becoming long-term shortly, so you remember to take action needed to reduce your taxes ==> Reporting alphabetically by type and name, or by name alone ==> Location codes, so you know who's holding your certificates ==> Calculation of brokers' commissions given their discounts ==> Automatic crediting of dividends to cash on their ex-dates ==> Cross totals by type of security (as a percentage of total value) to help you control your portfolio's diversification ==> Cross totals by certificate location to limit your risk should a broker go broke USING YOUR DEMO PACKAGE Licensees of the full HIPPOtm package will receive a clear, printed manual, which will make everything easier still, but these few pages are really all an experienced computer user and investor needs to get started. Have fun! SYSTEM OVERVIEW To use Happy Investorstm Personal Portfolio Organizer (HIPPOtm), you enter information into four programs. HIPinit In the full system, you use this program first to create your portfolio files and to enter a portfolio heading. In this free demo system, you can only select a sorting option. HIPinit also sets your cash balance and daily cash increment. HIPsecur This friendly program enters securities you own or want to watch, records purchases, and enters sales. (The demonstration version is limited to four securities and eight purchases, enough for the small investor, who can't afford $90 for HIPPOtm, to use happily until he grows.) HIPedit When you need to enter stock dividends or splits, or to edit purchase or security records, use this program. HIPprice Run this quick and easy program to enter current prices of securities and values of market indices, and to enter dividends, ex-dividend dates, and earnings per share. HIPreprt then uses the price file created by HIPprice to update your portfolio, and prepares your printed portfolio report. USING THE HIPPOtm SYSTEM Each HIPPOtm program is simple to use. It prompts you for information straightforwardly and shows you how to enter the data. And while its clarity discourages mistakes, HIPPOtm makes them easy to fix when they do occur. Happy Investor'stm Personal Portfolio Organizer almost always displays in parentheses() an appropriate response that you can chose simply by pressing RETURN. We call it "the default." To exit any HIPPOtm program, or to go back to correct an erroneous entry, press BACKSPACE, CTRL/H, or DELETE. These keys back you up successively through previous prompts. Note, as you enter securities into your portfolio, that type codes B, N, T, and $ must be reserved for bonds, notes, tax- exempt bonds, and cash equivalents, since their prices, unlike other securities', are quoted as percentages of face value. The HIPPOtm system compares the performance of each purchase you make with the performance of a selected market index during the same period. For this feature to work, you must enter the value of your chosen comparison index on the date of each purchase. You can do this in HIPsecur at the time you enter the purchase, or later using HIPedir. Because it can be any index, HIPPOtm calls it *INDX; most investors use the Value Line Composite Average or the Dow-Jones Industrial Average. Because Happy Man Corporation does not make its money selling people securities prices, we have built into HIPprice a quick, easy way to create a new price file each day before you run HIPreprt. Since you can enter closing quotes as fast as he speaks, your broker will welcome the chance to spend a minute with you each day. If you prefer not to use his free services, you can use the afternoon paper or a private quote service, or get your price file from a timesharing service by modem. HIPreprt, run after HIPprice, uses the price file to update your portfolio files while it prints a detailed report. Your portfolio report will look like the illustration below. Because so much useful information is presented, it may appear cluttered at first. Any confusion will soon pass as you become familiar with the report and grow to appreciate the power it gives you. Remember that it isn't hard to master, just new. Each security or market index in your portfolio has one main line of information, which we have emphasized below: %Div Tkr %EPS Price Day Shrt Med Long Security Name ToVal T Cst Shares Ex-Date PurDate L Shares Value @ V/C Mrkt PurDate L Shares Value @ V/C Mrkt 4.8 NTR 18.7 6.625 +1.1 +0.4 +5.1 +8.6 Nutri/System 6 s 5 900 21jun84 05jul84 400 2650 M 1.13 1.07 09aug84 500 3313 M 1.06 0.98 %Div Dividend yield, the indicated annual dividend as a percen tage of the price. Update the dividend figure, whenever it changes, with HIPprice. Tkr Ticker symbol, entered with HIPsecur when you created the new security record. Ticker symbols can be changed, but not in the demonstration package. %EPS Earnings yield. This is the last 12 months' earnings per share as a percentage of the price -- the reciprocal of the price/earnings (P/E) ratio. The earnings yield expression makes it easier to compare securities and interest rates than the P/E ratio does. Update earnings, when they change, with HIPprice. Price Current price of the security. You can update your prices daily with HIPprice, easily and quickly. Day The percentage change in price since the previous report. Shrt,Med,Lng Percentage change in price versus short, medium, and long-term moving averages. These take time to develop a history. The manual explains how to give them a head start. Security Name The name of the security, as you entered it in HIPsecur. In the full package, names can be changed. ToVal The total value of your holdings of this security at the current price, in thousands of dollars. T Type of security, such as S for stocks and B for bonds. The type code is entered for new securities through HIPsecur and can be changed later with HIPedit. Cst Total cost of your holdings in thousands of dollars. Shares The total number of shares you own of a stock, or the total face value of your bonds. Ex-Date The date on which the shares begin trading without the dividend. Prices can move sharply on the ex-dividend date. Directly below each security listing, all of your purchases appear in two columns. We have emphasized one column below. %Div Tkr %EPS Price Day Shrt Med Long Security Name ToVal T Cst Shares ExDate PurDate L Shares Value @ V/C Mrkt PurDate L Shares Value @ V/C Mrkt 4.8 NTR 18.7 6.625 +1.1 +0.4 +5.1 +8.6 Nutri/System 6 s 5 900 21jun84 05jul84 400 2650 M 1.13 1.07 09aug84 500 3313 M 1.06 0.98 PurDate Date of the purchase. L Long-term code: this space is blank until six weeks before a purchase becomes long-term, when an asterisk (*) appears. After the purchase is long-term, the asterisk changes to an L. The asterisk code will alert you in case you want to wait for more favorable tax treatment before selling at a gain, or to sell the shares while you can still take a short-term loss. This little memory-jogger can pay for HIPPOtm quickly! Shares The number of shares purchased. This will usually be a whole number but, if you are in a dividend reinvestment plan or a mutual fund, you can enter decimal fractions. Value The purchase's value at the security's current price. @ Location code: your made up, one-letter code for the location of your stock certificates. (The "M" shown might stand for Merrill Lynch.) V/C Value/Cost ratio: the current value of the purchase divided by its cost. It shows how you've done -- higher is better. .cp 2 Mrkt Market index ratio: the current value of *INDX divided by its value on the purchase date. Thus you can compare the performance of your purchase, indicated by the Value/Cost ratio, above, to the market's performance during the same period. This unique feature helps you learn faster from your experience. You'll soon see how clear our programs are without the documen tation. They'll be better yet with the full HIPPO's brief, well organized, printed manual. Become a happier investor today -- order Happy Investor'stm Personal Portfolio Organizer! Notes: Our 8-bit version requires the CP/M-80 or TurboDOS operating systems running on the Z80 processor (the most common one), and 64K of memory. Our 16-bit version requires the PCDOS or MSDOS operating systems running on the 8088 or 8086 processors (the most common ones), and 128K of memory. Except for unusual disk formats requiring special effort, we ship within one week of receiving your check and order form. You'll be happy, dealing with Happy Man Corporation! .cw 14 ORDER FORM ====================================================================== Product Refundable Shipping Total Price_____ Handling Check_____ Happy Investor's Personal Portfolio Organizer diskette (HIPPOTM) $ 82 $ 8 $ 90 (We are required by the State to collect sales tax, 7.9% of the total amount on Washington State orders and deliveries. $7.11 sales tax on the software brings the total value to $97.11.) Please send your check to: Happy Man Corporation 119 Aloha Street Seattle, WA 98109-3799 HIPPOTM is personalized, so if you are giving it to an investor you love, please be sure to provide his or her name, the way he'd like to see it. We will ship the package to you unless you request otherwise, but we do need the recipient's address too. Person(s) Ordering HIPPOTM Recipient(s) of Gift Name _____________________________ ____________________________ Street ___________________________ ____________________________ City, ST _________________________ ____________________________ Zip Code _________________________ ____________________________ Phone ____________________________ ____________________________ Please be sure to provide all of the information below, so we will know what you need. Computer Make (eg., IBM, Philips, AT&T, Osborne) _______________ Computer Model (eg., XT, 2012, 6300, Vixen) ____________________ Microprocessor if known (eg., Z80, 8088) _______________________ Disk Format (eg., 5.25" 360K, 8" CP/M) _________________________ Operating System (eg., CP/M-80, MSDOS, PCDOS) __________________ Except for unusual disk formats requiring special effort, we ship less than a week after receiving your check and order form. You can know you'll be happy dealing with Happy Man Corporation!