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Shareware Version QUANT IX Portfolio Evaluator, version 2.10 Revised Documentation February 1990 21 pages QUANT IX SOFTWARE 5900 N. Port Washington Road Suite 142 A Milwaukee, WI 53217 U.S.A. (414) 961-1991 / (800) 247-6354 Online BBS (414) 961-2592 (1) Dear Investor: This documentation covers the shareware issue of QUANT IX PORTFOLIO EVALUATOR version 2.10. Since version 2.10 is no longer in production, the instructions provided are designed for users with systems compatible with our current QUANT IX version 3.1b (released February 1989). These requirements are: [] a hard-disk system, [] DOS version 3.1 or greater, [] and a minimum of 640K RAM To register this shareware version ($25), or to obtain a full-featured copy of the current version 3.1b (just $89), please use the provided order form, or call our sales department at (800) 247-6354. It should be noted that version 3.1b is a vast improvement over this limited shareware version of QUANT IX, offering both portfolio management as well as powerful stock analysis. As such, QUANT IX provides comprehensive features at a very affordable price of just $89. Here's what you get should you decide to purchase version 3.1b: Total Portfolio Management: [] Track purchases, market values, gains/losses, etc. [] Monitor commissions and fees [] Maintain sold positions for tax purposes [] Record purchases on a lot-by-lot basis [] Manage single or multiple portfolios [] Measure performance [] Can automatically price assets via CompuServe or Warner [] Cross reference securities Powerful Security Valuation Techniques [] 5 security valuation models that identify undervalued stocks [] Fundamental ratio analysis [] Diversification analysis [] "What-If" scenario testing [] Portfolio and security risk assessments And More: [] Built-in communications software [] Generate 13 information-rich reports [] Reference manual with step-by-step tutorial [] Menu driven with online help [] Not copy protected [] Free, unlimited support to registered users [] Free online bulletin board system (414) 961-2592 [] Ability to set screen colors [] Compatible with both 80 column and 132 column printers [] Export data to most spreadsheet programs QUANT IX's portfolio management benefits allow you to track and monitor assets such as: stocks, bonds, funds, government issues, etc. You're able to maintain the records you would expect, such as purchases, sales, gains & losses, & others. Add in the capability of automatically pricing your investments through either CompuServe or Warner, and you create a fully- automated portfolio manager which can dramatically improve the management of your investment portfolio(s). (2) QUANT IX's security analysis benefits include the powerful combination of stock valuation techniques with fundamental ratio analysis. Armed with QUANT IX and your PC, you'll possess many of the same techniques the pros on Wall Street use to discover undervalued stocks. Not only can you analyze stocks you currently own, but you can EVEN perform "what-if" analysis on stocks prior to purchase. Having the ability to identify underpriced stocks prior to purchase can help you make better decisions (and that's the idea right?). Provided are some recent product review reprints. If you take the time to review them, you'll quickly understand why the independent reviewers across America continue to be impressed with and consider QUANT IX version 3.1b a superior value. PRODUCT REVIEWS: ----------------- Watching and Buying Stocks by Computer Keeping track of your investments can take a pile of paperwork. How long ago did you sell that Kodak stock? If you take a profit on Pactel, what's the annualized return? Personal computers can help with all this and more. ....One of the best values is QUANT IX Portfolio Evaluator ($89), from QUANT IX SOFTWARE in Milwaukee. QUANT IX records transactions, gains and losses, and all necessary tax records. To identify bargains, the program also employs five valuation models. Fortune Magazine, December 4, 1989 "(C) 1989 The Time Inc. Magazine Company. All Rights Reserved." -------- Shopping for Investment Software? Price Doesn't Always Determine Value Because the cost of commercial investment software ranges form $50 to $1,900, smart shoppers look for the program that provides maximum value for minimum price. Even if money is no object, price is not the best guide for determining which program best suits your needs. Why, for example, pay for expensive bells and whistles that you won't use? .... ....QUANT IX Portfolio Evaluator ($89) is proof that top-quality software need not be expensive. QUANT IX is actually two programs in one because it includes portfolio management and record keeping functions in addition to a stock analysis capability. Unlike most investment software, QUANT IX stresses fundamental analysis. It provides individuals with many of the same tools professional money managers use to monitor and evaluate stocks. Two forms of fundamental analysis are featured on QUANT IX. The first is quantitative analysis in which stocks can be valued using five models. Peter Willms of QUANT IX SOFTWARE explains, "the program itself does not issue buy and sell signals, but it can assist you in weeding out those companies that merit a further look and those that should be avoided." More conventional fundamental analysis is also possible using such widely followed yardsticks as price/earnings ratio, cash flow, and book value. "we've constructed a sort of artificial intelligence function into QUANT IX permitting "what-if" testing both for individual securities and for the entire portfolio using variables such as inflation and interest rates." Reprinted with permission from Online Today, August 1989 ______ (3) Track Investments with QUANT IX QUANT IX is a new breed of investment software that offers not only portfolio management, but also stock analysis in an inexpensive package. Note that I said portfolio management. That includes tracking your money market funds, tax-exempt bonds, corporate bonds, and U.S. Government securities. Anyone who has an interest in computerizing any of these type of investments, as well as stocks, should look into QUANT IX. The number of features can be overwhelming at first; but since you can pick and choose the functions you need and not use the others, more is better. The heart of the program is, of course, your portfolio. QUANT IX can handle multiple portfolios. You enter security information in an easy-to-use, fill-in-the-blanks fashion. Data can be retrieved via modem from CompuServe (with the executive option) or from Warner Computer Systems, both of which charge a fee for access to their services. The standard amount of information is included: symbol, name of the asset, CUSIP number, type of security (a code for cash, common stocks, mutual funds, etc.) and class (industry code). Information that can be updated from Warner or Compuserve includes market price, current dividend per share or interest rate,earnings per share, and the Beta factor (a measure of volatility). So far the data it stores is standard for any stock management program. But in addition to the above, QUANT IX also can track six additional variables for use in stock analysis: projected dividend, projected earnings, estimated growth dividend, trailing P/E ratio, book value per share, and cash flow per share. Of course all this information is useless if it cannot be tabulated in a manageable report. QUANT IX offers a total of 13 different reports: five portfolio management reports, seven security analysis reports and one audit report. I'll summarize the three categories. The Portfolio Management reports summarize your investments and help show how diversified the portfolio is (or isn't). The analysis report contains the meat of the information such as quantity of shares, unit cost, market price, unrealized gain/loss, etc. The Security Analysis reports are the key to QUANT IX's unique analysis features. Based on different analysis models that the experts use, you can see exactly how well a security is doing in light of others in its class or the market as a whole. The variables alert you to conditions that indicate an asset is significantly under- or overpriced. Finally, the audit report is a basic listing of user-definable data for each asset. The program requires 640K of RAM, DOS 3.1 or higher, and a hard-disk. Any type of display will do. The manual recommends that no memory resident programs be installed, probably because of the tight memory requirements; considering all the functions QUANT IX can perform, I guess that is a small concession. QUANT IX SOFTWARE offers unlimited free telephone support (not toll- free). I had the opportunity to call customer service. My call was answered on the third ring. I had a problem of an error message popping up at random times, but customer service was quick to respond and even made follow-up calls to be sure everything was OK. I have had less comforting experiences with software packages costing 10 times as much. QUANT IX SOFTWARE also runs a bulletin board service. As I stated earlier, anyone interested in serious investment software should give QUANT IX a look. Reprinted with permission from PCM -------- (4) Try QUANT IX for Analyzing Stocks "Dear Judi & Frank:" I bought Winning on Wall Street software (at a closeout price) for analysis of stocks. It's good, but not as good as I'd like. What would you suggest?" - Trader in Columbia, S.C. Dear Sport: Our all-time favorite for a stock investor's best buy is QUANT IX, which is worth 10 times its price of $89. QUANT IX is old and well- designed. It keeps the portfolio information you need for personal and tax records. If your computer has a modem, it can copy securities data over a phone line from CompuServe [and Warner]. QUANT IX also has built-in routines for computing sophisticated risk assessment for individual stocks or entire portfolios. We don't mean the kind of lightweight predictors found in many so-called portfolio evaluation programs. The QUANT IX valuation models come close to matching what's used by many Wall Street firms' research offices." Computer Report --------- To obtain all the benefits QUANT IX version 3.1b provides call toll free 1-(800)-247-6354, or mail the provided form. We accept Mastercard, Visa, personal check and C.O.D. You'll receive a full featured copy of QUANT IX plus a detailed bound reference manual. Thank you for your consideration, and BETTER INVESTING - QUANT IX SOFTWARE (5) QUANT IX Portfolio Evaluator version 3.1b - Registration/Order Form For the fastest service, call 1-800-247-6354 (8 am - 4 pm CST) or mail this form to QUANT IX SOFTWARE, 5900 N. Port Washington, Suite 142 A, Milwaukee, WI 53217 [] Enclosed is my payment of $25 for the shareware version of QUANT IX Portfolio Evaluator, 2.10. I understand that this fee will be credited in full to the purchase price of version 3.1b should I decide to obtain this version. With this $25 credit, my charge for version 3.1b is just an additional $70 (which includes s/h). Further, this $25 registration fee will also ensure that I am kept up-to-date as new versions are released, as well as qualify me for discounts on future products, etc. Instead, please send: _____ Full Featured copies of QUANT IX Portfolio Evaluator, ver. 3.1b at $89 each (plus $6 s/h). I understand that I will receive a complete, full-featured copy of the program, including a bound reference manual. After returning my registration card, I will be entitled to FREE UNLIMITED SUPPORT should I require it. I also will be entitled to at least a 50% discount off the retail price of any future versions of QUANT IX Portfolio Evaluator. My operating system meets the requirements of: [] 640k RAM [] DOS version 3.1 or greater [] Hard Disk Please provide QUANT IX in: [] 5.25" format [] 3.50" format Name: _________________________________________________________ Address: ______________________________________________________ City: _____________________________ State ________ ZIP ________ Telephone: ____________________________________________________ Method of payment: [] Check, enclosed & payable to QUANT IX SOFTWARE [] Master Card / Visa card number: ________________________________________________ expiration date: _______________ authorized signature: ________________________________________ BBS from which you downloaded this shareware version of QUANT IX: _________________________________________________________________ (6) Instructions & Important Notes ============================== QUANT IX Portfolio Evaluator, shareware version 2.10. The purpose of QUANT IX Portfolio Evaluator is to increase the efficiency of your investment decision making process. QUANT IX improves this process by: - Implementing generally accepted fundamental and quantitative analysis methods to identify a security's projected value; - Compiling important investment data for portfolio management as well as stock analysis; - Analyzing, organizing, and classifying financial data to identify potential investment risks and returns; - Allowing faster and more relevant investment decisions; - Enabling the user to test hypothetical investment situations by performing "what-if" tests on securities and portfolios. You are granted A LIMITED license to make copies for trial by others on a private, non-commercial basis. This does not include distribution: 1). In connection with any other product or service; 2). For general use within a company or institution; 3). For any consideration or 'disk fee'; 4). Distribution in any modified form. DISCLAIMER ----------- QUANT IX SOFTWARE, Inc. makes no warranties as to the contents of this manual and specifically disclaims any implied warranties of merchantability or fitness for any particular purpose. In no event shall QUANT IX SOFTWARE, Inc. be liable for any loss of profit or any other commercial damage, including but not limited to special, incidental, consequential, and/or other damages. This statement shall be construed, interpreted, and governed by the laws of the state of Wisconsin. Further, it is understood that the investment models used within QUANT IX are generally accepted and have been used in both the academic and professional investment communities. As is the case of all models, the projected prices and rates of returns generated by the program should be viewed as estimates and are not meant to be exact projections. (7) Introduction ============ This printed documentation is a greatly abbreviated version of the actual reference manual that is available to purchasers of QUANT IX. It's sole purpose is to demonstrate how QUANT IX Portfolio Evaluator generally works, while discussing SOME of the features of the program. By purchasing the current version of QUANT IX, you'll receive a bound reference manual, thus doing away with these loose-leaf instructions. Included in this widely praised documentation are thorough, concise discussions covering: * QUANT IX's report output, * Valuation Theory, including models with references, * Fundamental Ratio Analysis, * A more thorough step-by-step tutorial, * Downloading procedures with CompuServe and Warner, * The data sources for QUANT IX's variables, * The command lines for QUANT IX's expert mode, * Error messages, and * The file structures for all data files used in QUANT IX. This information is necessary if you wish to export QUANT IX data to other application programs. Install Procedure ================= To successfully install QUANT IX, please consider this critical point. The boot source for your computer must contain the following two files: 1) a configuration file named "config.sys" 2) an operating system file named "ansi.sys". Provided are two sets of instructions. The first is for those users who wish to configure the root directory of their hard disk. The second set describes an optional method of creating a boot-source diskette which will then be used each time you use QUANT IX. Configuring the root directory of the hard disk =============================================== First check if the two files "config.sys" and "ansi.sys" currently reside in your root directory. Go to the root directory and use the DOS command "DIR". For example, to see if config.sys is already there: at the C:\prompt, enter: "DIR CONFIG.SYS" <CR> if present, the screen will show the file name. If not, the screen will respond "file not found." Please repeat this DIR command to see if ansi.sys is there: at the C:\ prompt, enter "DIR ANSI.SYS". <CR> If you have found that the boot source for your computer already uses a config.sys file, please use the DOS command "TYPE" to verify the contents of this file: at the C:\ prompt, enter "TYPE CONFIG.SYS". <CR> (8) It should include the following three lines (although it may include other lines for different programs you use): FILES=12 BUFFERS=16 DEVICE=ANSI.SYS If you find this file needs to be edited, use any text editor that produces plain text (ASCII) output. When editing this file, the files and the buffers can be set to any value greater that 12 and 16 respectively. If you do not use a config.sys file, we have provided a copy of "CONFIG.SYS" with this shareware version. Copy this sample "CONFIG.SYS" file to the root directory of your hard disk. The second file necessary for successful installation is "ANSI.SYS". If ansi.sys is not already present in the root directory of your hard disk, use your original DOS diskette and copy it to the root directory. Now, reboot your system with the two files in place. Creating a Boot Source Diskette =============================== Another option for configuring the boot source is to obtain a blank disk and label it "QPE BOOT DISK". Insert this disk into the A: drive. From the C: prompt, enter "Format A:/S <CR>. You will be formatting and copying the operating system to the disk. Now copy the CONFIG.SYS file provided with this shareware version and then the ANSI.SYS file supplied on your original DOS diskette to this new QPE BOOT DISK. This will become the boot source prior to each time you use QUANT IX. Now, reboot your system with these two files in place. Creating a QPE sub-directory ============================ Now we suggest you create and log into a sub-directory for this shareware version of QUANT IX. The sub-directory is recommended to isolate the programs and for data back-up. At the C:\ prompt, enter: md qpe21 <CR> then, at the C:\, enter: cd qpe21 <CR> Now you need to copy the shareware files you downloaded into this sub- directory. If you downloaded the files to a floppy disk, then insert this disk into the A: drive and enter: copy A:*.* c:\qpe21 <CR> If you downloaded the files to your hard disk, then copy the files from where they are currently located to the QPE21 subdirectory. Verify that the following files are in your new QPE21 subdirectory. PORTDATA PORTDATA.DBF COPYDATA.BAT CONFIG.SYS QPE.EXE QPE.OV1 QPE.OV2 PORTDISC.TXT PORTDISC.DBF PORTSTRU.DBF PORTSRCH.DBF PORTLIST.DBF PORTCONS.DBF MASTPORT.DBF MASTPORT.NDX TESTPORT.DBF TESTPORT.NDX (9) Tutorial for the Menu (novice) Mode : General Discussion ==================================== This tutorial is a greatly abbreviated version of the bound reference manual available to owners of QUANT IX version 3.1b. It's purpose is to demonstrate SOME of the features of this shareware version. When instructed, please refer to the help screens available. This provides a brief description of those features not covered in these instructions. QUANT IX Portfolio Evaluator is a comprehensive investment software program that offers both portfolio management and powerful stock analysis. The user has the flexibility of solely using QUANT IX as a portfolio manager, as a stock analyzer, or as a powerful combination of both. If you decide to only utilize QUANT IX in one capacity, but later decide to combine both, just return to the data fields omitted and enter the necessary variables. This shareware version of QUANT IX includes both a sample master portfolio and a sample individual portfolio. Keep in mind that because this is a shareware version, all features of QUANT IX will not be discussed. However, by reviewing the help screens throughout the program, you should get a solid grasp of what QUANT IX offers, hopefully to the point that you will want to order our most recent version 3.1b. QUANT IX can be operated in either menu mode or expert (command line). The menu mode is menu driven and helps you learn the corresponding command lines (please observe the command line portion of the screen, top middle, after making a menu selection). QUANT IX also offers help screens throughout the program. QUANT IX always begins with the master portfolio as the current portfolio. The master portfolio acts as a library which stores the information used by individual portfolios such as current market price, dividends, earnings, etc. Data entry is done in a "fill in the blanks" method. All fields which accept data are in reverse video. Use CAPITAL case with field entries. When you come to "Waiting", use the ENTER key to continue. *** One final, important note: prior to using this tutorial, please be certain to set your printer is on-line and set to compressed print. --------------- As mentioned at the outset of this file, this shareware version of QUANT IX is no longer in production. However, we do now offer the current version 3.1b ($89). As you use this shareware version, please keep in mind some aspects are no longer useful due to changes beyond our control, i.e., changes made into law by the Financial Accounting Standards Board which has rendered obsolete the cash flow model. However, version 3.1b carries improvements to overcome these changes, including the ability to automatically retrieve information through either CompuServe or Warner; sending reports to the screen for quick portfolio appraisal; additional portfolio management reports that track commissions & fees and sold positions for tax purposes; a new per share report for fundamental analysis which replaces the obsolete cash flow report; and many other changes which improve QUANT IX. In essence, if you find this shareware version to be useful, you'll surely find version 3.1b to be a worthwhile, affordable investment software program that improves the management and analysis of your investment portfolio(s). Furthermore, by purchasing our most recent version, you are assured of being notified as further improvements are made to QUANT IX, be they do to user/reviewer suggestions, or changes beyond our control, i.e., changes in the tax code, accounting procedures, etc. *****(10) ***** Assuming you have installed this shareware version as described, and are currently at the QPE21 subdirectory prompt, enter: "QPE" <CR> The screen will clear and display our copyright notice. Since these instructions will guide you through the novice mode, wait until you see the main menu for MASTPORT (notice upper left corner of screen). Again, the Master Portfolio (MASTPORT) is the database that stores all common data for the individual portfolios. The common data need only be entered once to the MASTPORT and not repeatedly to each portfolio in the system. Other than the main menu, there are four other menus available. They are: 1) The Portfolio Menu, 2) The Symbol Menu 3) The Report Menu , and 4) The Utility Menu On-line help is available for each of these menus by selecting that choice. Master Portfolio, Portfolio Menu ================================ From the Mastport Main Menu, enter: select portfolio menu enter "01" <CR> This menu provides the general maintenance of the existing Master Portfolio. From here the Master Portfolio can be packed to remove records marked for deletion, and be listed to verify the contents. If you plan to list out the sample Master to view a sample of each asset type QUANT IX can handle, please be certain your printer is set to compressed mode. Return to the Mastport Main Menu, selection "0" <CR> Master Portfolio, Symbol Menu ============================= The Symbol Menu enables you to add security assets to the Master portfolio, and to change, delete, recall, display (to your screen) and print security assets in the Master Portfolio. Before proceeding, the following list identifies the security types handled by this shareware version of QUANT IX. type = U (US governments) type = A (agencies) type = E (tax exempt bonds) type = B (corporate bonds) type = P (preferred stocks) type = F (mutual funds) type = S (common stocks) type = X (special stocks) Add a New Symbol ---------------- The Master Portfolio provided in this shareware version contains a record of each security type. At this time you will learn how to add a tax-exempt bond, a government issue, and a common stock. Instructions for adding other assets will not be discussed in this shareware version, however, they can be added should you want to do so on your own. (All asset additions are discussed in the bound reference manual of version 3.1b). (11) From the Symbol Menu (02), enter: add a new symbol enter "01" <CR> At the screen prompt, "please enter symbol", enter: "MUNI" <CR> (symbol example for municipal bond) The screen will now show the entries for adding assets to the Master Portfolio. Please consider this critical point: the screen shows all the possible variable entries for the different asset types you will be entering. However, depending on the security type being entered, some of the data fields are not applicable. Thus, those fields are omitted. This will become more clear as you work through these three examples. Provided now is a brief description of each variable on your screen. Full descriptions are found in the bound reference manual of version 3.1b. name:............name of asset you are entering. date:............date of this addition. type:............the security type as discussed previously. class:...........industry classification for common stocks, either cyclical, growth, stable, or energy. ye. flag:........a "*" indicates fiscal year other than 12/31. If your intentions are to use QUANT IX solely for portfolio management, the following four fields complete the data entry. Furthermore, by purchasing the current version 3.1b, these four variables can be retrieved automatically via CompuServe or Warner, thus creating a fully-automated portfolio management package that can update your portfolios to reflect current market data. mkt. price:......the current market price. div-int/sh:......current dividend on a common stock, or coupon interest rate on a bond. earn./sh.:.......the current annual earnings per share. For common stocks only. beta:............the Beta factor, a measure of volatility. The next four fields are only required if you intend to use QUANT IX for common stock analysis. They apply only to common stocks. They can be omitted. Sources to find these variables are listed in the reference manual of version 3.1b. proj. div.:......the estimate for next year's dividend. proj. earn.:.... the estimate for next year's earnings. grow. div.:......the estimated dividend growth rate. trail p/e:.......the trailing P/E ratio. The remaining 9 variables are no longer valid. Due to changes made into law by the Financial Accounting Standards Board, these variables are no longer reported by corporations in a manner useful to QUANT IX. Thus, these fields, as well as the Cash Flow Model & Report of this shareware version, are obsolete. Please ignore these fields. The good news is that the current version of QUANT IX has replaced this feature with a useful per share report for fundamental ratio analysis. Comparisons for P/E ratios, dividend yields, book value per share, cash flow per share, etc. are available and very useful for further evaluating common stocks. (12) Continue now with the following entries to add "MUNI" to the Master Portfolio. Listed are the only fields that apply for a municipal bond type. name: Metro Knoxville 5.5 date: 02/01/89 type: E (tax exempt bond) mkt. price: 98.00 div-int/sh: 5.50 (%) Use the PgDn key and respond "Y" to "is this record OK." To now add a government issue - from the Symbol Menu (02), enter: add a new symbol enter "01" <CR> enter "USTSY" <CR> at the symbol name prompt. name: US TN 13.125 2001 date: 02/01/89 type: U (gov't. security) mkt. price: 129.28 (note: US gov't.s priced in 32nds.) div-int/sh: 13.125 (%) Use the PgDn key and respond "Y" to "is this record OK." To add a common stock, from the Symbol Menu (02): add a new symbol enter "01" <CR> enter "IBM" <CR> at the symbol name prompt. name: Int'l Business Machines date: 02/01/89 type: S (common stock) class: G (growth) ye. flag: NA mkt. price: 127.75 div-int/sh: 4.40 earn/share: 9.27 beta: 0.95 proj. div. 4.40 proj. earn. 11.26 grow. div. 11.50 (%) trail. p/e. 13.20 The remaining 9 fields are no longer valid and should be ignored. Use the PgDn key and respond "Y" to "is this record OK." This concludes the sample data entries for the Master Portfolio. Further examples are provided with version 3.1b. Return now to the Symbol Menu (02). For a brief discussion of the remaining selections from this menu, enter: help for this menu enter "10" <CR> When done, return to the Mastport Main Menu, select "0" <CR>. (13) To view the selections of the Mastport Report Menu, and the Mastport Utility Menu, please make the appropriate selections at this time. At each menu, review the help selection for a brief discussion. Security Search =============== This QUANT IX feature allows users to scan all portfolios in the system to locate a particular security. This is especially useful if you are managing multiple portfolios and you would like a quick account of which portfolios hold a particular asset. Since this option generates a report, please be certain to have your printer set to compressed print and is on-line. From the Master Portfolio Main Menu, enter: security search enter "05" <CR> To try this feature, enter the security symbol for General Motors, "GM" <CR>. QUANT IX now scans all the portfolios in the system, searching for open records of GM. The Security Search Report then prints. The report that is being generated will show that GM is held in a portfolio called TESTPORT. As other portfolios are added to the system, they too will be included in the report should they own GM. What-If Selection ================= Perhaps the most powerful feature of QUANT IX is the ability to ask "what-if" questions. This option allows the user to determine theoretical prices under different sets of assumptions. For example, assume you wish to see how the valuation models react to a new dividend estimate for a stock. Changing the dividend to reflect the new estimate, while in the "what-if" mode, instructs QUANT IX to re-evaluate the security and predict new prices and rates of return. This is a very powerful tool because it allows users to determine how different situations affect the valuation of investments both BEFORE AND/OR AFTER actual ownership. Finally, this artificial intelligence agent performs the "what-if" test without changing the actual record in the Master Portfolio. This ensures that the original data remains safe and unchanged. From the Master Portfolio Main Menu, enter: what if enter "06" <CR> the cursor flashes at the word symbol. To test assets currently held in the Master Portfolio, enter the asset's symbol over the word "symbol", followed by enough blanks to completely fill the field (for example, use "PG"). Now use PgDn to see page two, the current valuation estimates for this asset (PG). You may wish to print these results. Now return to page one and change those fields you wish to test. For this example, change the "proj. div." to $2.00, and change the "earn/share" to $4.40. Now use PgDn to page two to display the results of your test. Now print these for comparisons to those printed above. You see, being able to test a wide variety of variables, or a combination of variables, puts you in a favorable position for better decisions regarding buying more of, holding, or selling a particular asset. (14) As mentioned, QUANT IX also has the ability to evaluate securities not currently included in the Master Portfolio. Using the "what-if" feature in this manner will help you to research securities prior to actual ownership. Performing the "what-if" prior to actual purchase can help you screen potential candidates to be included in your portfolio. The method is similar to that discussed above, except, after entering the asset to be tested, and when moving to page two, you'll see no current estimates. That's because the asset is not currently a part of the Master Portfolio. For this demonstration, you will perform "what-if" on Walgreens, which is not included in the sample Master Portfolio. Enter "WAG" in the symbol field followed by enough blanks to cover the field. Before entering anymore data, PgDn to page two, followed by <CR> back to the top of page one (this method stores the symbol temporarily in the database). Now complete your "what-if" analysis by entering the data for Walgreens. For this test use the following data: name.............Walgreens mkt. price.......36.00 div-int/sh.......0.60 earn/share.......2.10 proj. div........1.10 proj. earn.......2.45 grow. div........20.50 trail. p/e.......15.10 Recall the 9 fields for the cash flow model are ignored. Now PgDn to page two in order to view the results. To print the results from this analysis, follow the instructions at the bottom of the page. Now, wouldn't you say that this is a truly powerful feature of QUANT IX? Having the ability to "value" stocks prior to ownership improves your process of selecting stocks for purchase. No longer do you have to rely on a broker's recommendation, a friend's "sure-buy", or the always popular "cocktail party hot-tip." With the help of QUANT IX, you have in effect five personal security analysts working for YOU to screen through these "tips" to identify worthwhile purchase candidates. When you are finished using the "what-if" feature, fill the "symbol" field with blanks, and the PgDn. You will leave "what-if" and return back to the Main Menu. QUANT IX will erase the "what-if" data without disturbing the records in the Master Portfolio. One important note: The valuation models used by QUANT IX have been, and are currently, used in related forms both on Wall Street, as well as taught in the academic community. They are not "black box" formulas designed by us, rather, they are used by professionals who believe valuation analysis provides an edge in the difficult world of stock market investing. If you're interested in the make-up of the model formulas, as well as their reference sources, they are both provided in the bound reference manual with version 3.1b. [Now realizing the powerful nature of QUANT IX's "what-if" testing feature, you may have decided you do indeed wish to order a full-featured copy of the current version 3.1b. If so, use the provided order form, or phone us toll free at (800) 247-6354. As the independent reviewers have said, "the powerful 'what-if' feature alone makes QUANT IX a great value at just $89". Order today - you won't be disappointed]. (15) Change Date =========== Use this selection to change the system date. It is the date that will appear on the printed reports. Change Constants ================ All of the valuation models share a common set of Constants. These are changed monthly with this selection. Enter: change constants enter "08" <CR> This displays the Constants screen. Brief descriptions are listed. Full descriptions, as well as sources, are available in the bound reference manual. Risk Free Rate of Return: yld. on most recent 52 week T-Bill. Rate of Inflation: estimate of next year's infl. rate. P/E Ratio: P/E of the market index. Average Yield: avg. div. yld. of the market index. Exp. Return on market: total mkt. return expected next 12 mo. D.J.I.A. month end level of DJIA. Date Entered: month end date. Advancing the cursor allows you to change any of the constants. Changing them to reflect actual data will give you valuations based on the current financial environment. After you've made your changes, return to the Master Portfolio Main Menu. Change Current Portfolio ======================== This selection is used to move to individual portfolios within QUANT IX. After making the selection, you simply enter the individual portfolio's four letter prefix as instructed. You will try this selection later. Skip here. Change Mode to Expert ===================== QUANT IX can operate in either menu mode, or command line (expert) mode. The command line speeds your navigation through the program after you become more familiar with QUANT IX. Enter: change mode to expert enter "10" <CR> Two blank fields appear on the screen which accept the command lines. To get an onscreen listing of the various commands, enter "HLP" <CR> in the first field, and <CR> in the second field. To return to menu mode, enter this in the blank fields: :CHG: <CR> :MODE**: <CR> You've now finished the selections for the Master Portfolio. Now onto the selections for an individual portfolio. (16) Individual Portfolio - Main Menu ================================ The Master Portfolio acts as a library, supplying the individual portfolios with common information. Individual portfolios contain specific information - i.e., acquisition dates, quantity, and costs. To move from the Master Portfolio to an individual portfolio, now enter: change current portfolio enter "09" <CR> This shareware version includes a sample individual portfolio (TESTPORT). To access it, enter the four letter prefix "TEST" when prompted. When QUANT IX returns, the main menu will appear the same, however, the portfolio name in the upper left hand corner indicates you're now in testport. The submenus for individual portfolios are different. Choose help ("11") for this menu for a quick discussion of the selections. Individual Portfolio - Portfolio Menu ===================================== From the Main Menu, enter: select portfolio menu enter "01" <CR> The testport portfolio menu allows you to add new portfolios, delete old portfolios, and update, pack, and list portfolios. Add a New Portfolio ------------------- QUANT IX allows you to manage and monitor multiple portfolios. To add a new portfolio, enter: add a new portfolio enter "1" <CR> QUANT IX prompts you for a four letter prefix for the new portfolio. Use "ABCD" and <CR>. Just that simply you've setup a new portfolio. To log into it, use the "change portfolio" command (09) from the Main Menu of Testport. Then switch back to testport to proceed with these instructions. Please note: new portfolios can only be added from an existing individual portfolio, not from the Master Portfolio. Delete an Old Portfolio ----------------------- To delete a portfolio you no longer wish to monitor with QUANT IX, use this selection. Enter: select portfolio menu enter "01" <CR> delete an old portfolio enter "02" <CR> enter old portfolio prefix enter ABCD" <CR> Respond "yes" to the question "do you really want to delete ABCDPORT?" You will return to the testport main menu. (17) Update Current Portfolio/Update All Portfolios ---------------------------------------------- From the Testport Main Menu, select portfolio menu (01). The update selections ("3", "4") of QUANT IX update one (or all) individual portfolios within the system, as well as the Master Portfolio. Use the selection when: * you've added or deleted assets to either the Master Portfolio, or other individual portfolios; * you've changed assets in the Master Portfolio to reflect changes in market price, dividends, earnings, etc.; * you've added or deleted individual portfolios to QUANT IX; * you've changed the valuation constants at month end; * prior to printing portfolio reports. You will try this selection after adding some symbols to the Test Portfolio. Skip here. Use the Help selection "07" from the testport portfolio menu for brief discussions regarding the "Pack" selection and the "List" selection. Then return to the testport main menu (selection "0"). Individual Portfolio - Symbol Menu ================================== The Symbol Menu (02" of an individual portfolio is used to track specific information of individual portfolios i.e., acquisition dates, quantity, and costs. You're able to add security assets to an individual portfolio, and to change, delete, recall, display (to your screen) and print security assets in an individual portfolio. These selections are used after an asset has been first added to the Master Portfolio. Add a New Symbol ---------------- The following three examples coincide to the assets you added earlier to the Master Portfolio. If they were not added to the Master Portfolio, omit the entry or you will get an error message. From the Testport Symbol Menu, enter: add a new symbol enter "1" <CR> At the "symbol name prompt", enter: "MUNI" <CR> (this is the tax-exempt bond example) acq. date: 02/01/89 sh/par: 50000 (par value) cost: 51000.00 (you'll notice that the commissions & fees with the transaction are factored in and the cost is your "net" amount. Version 3.1b now factors out these commissions & fees, improving the portfolio management features). QUANT IX will ask you if this record is okay. Respond "Y". (18) From the Testport Symbol Menu (02), enter: add a new symbol enter "1" <CR> At the "symbol name prompt", enter: "USTSY" <CR> (this is the government T-Bill example) acq. date: 02/01/89 sh/par: 10000 (par value) cost: 10125.00 Respond "Y" to this record being okay. You're back at the Main Menu. From the Testport Symbol Menu (02), enter: add a new symbol enter "1" <CR> At the "asset name prompt", enter: "IBM" <CR> (this is the common stock example. For this example you will add multiple lots for the same security). Enter purchase lot 1: acq. date: 02/01/89 sh/par: 50 cost: 6075 Respond "Yes" to this record being okay. Return to the Testport Symbol Menu ("02") and add ("1") this second lot for IBM. acq. date: 02/11/89 sh/par: 50 cost: 6185 Each security lot is entered and maintained separately in the individual portfolio data base. Lots are combined in the Analysis Report to give total values for each asset. Other reports display the lots on an individual basis. Return now to the Symbol Menu. From the Testport Main Menu, enter: select symbol menu enter "02" <CR> Change a Symbol --------------- This selection ("2") allows you to change asset acquisition records in the case you made errors when first adding them. It is also used for stock splits, where you adjust only the "number of shares" field to reflect the split. Your cost remains the same. Delete a Symbol --------------- This selection ("3") is used to mark assets, or particular asset lots, for deletion from an individual portfolio. After this selection, QUANT IX asks you if the lot (or asset) should be deleted. If so, the record is marked for deletion. The actual deletion occurs with the "Pack" command. You can "Recall" records marked for deletion if the Pack command has not been used. (19) Display a Symbol (5) /Display all Symbols (6) --------------------------------------------- These are extremely useful features for viewing assets directly on your screen. You can immediately view items such as: unrealized gains/losses, the number of shares owned, the estimated income from owning the asset, and other useful information. To display the IBM records added previously, enter: display a symbol enter "05" <CR> At the "enter symbol" promptenter "IBM" <CR> Your screen now displays the first lot of IBM added earlier. At the flashing cursor, select '2' to view the 2nd page of this record which shows the current valuation estimates. Then select '3' to show the current variables of IBM which we added to the Master Portfolio earlier. Select 'N' for the second lot of IBM. When done, select 'Q'. You're at the Testport Main Menu. Individual Portfolio - Update Commands -------------------------------------- Earlier we touched on the use of the Update selection. Now that we've added some new assets to the Test Portfolio, it's time to try this useful feature. From the Testport Main Menu, enter: select portfolio menu enter "01" <CR> update current portfolio enter "3" <CR> On your screen you'll see the update process of QUANT IX for Testport. Note: the update command is used to update one (or all) individual portfolios within the system, as well as the Master Portfolio. Use the selection when: * you've added or deleted assets to either the Master Portfolio, or other individual portfolios; * you've changed assets in the Master Portfolio to reflect changes in market price, dividends, earnings, etc.; * you've added or deleted individual portfolios to QUANT IX; * you've changed the valuation constants at month end; * prior to printing portfolio reports. In the case when you have multiple portfolios in the system, simply use the Update All Portfolios command. When finished, you will return to the Testport Main Menu. (20) Individual Portfolio - Report Menu ================================== This shareware version of QUANT IX Portfolio Evaluator produces 9 different reports, used for either portfolio management or stock analysis. Version 3.1B of QUANT IX now provides 13 reports in all, including new reports for improving the portfolio management capabilities of QUANT IX, as well as a new report which offers fundamental ratio analysis in place of the obsolete Cash Flow Report. Also, reports can now be directed to your monitor for quick appraisal. From the Testport Main Menu, enter: select report menu enter "03" <CR> Now appearing on your screen are the various reports that can be generated for individual portfolios by this shareware version of QUANT IX. If you choose to print any of the reports, please be certain your printer is online and set to compressed print. Provided here is a brief description of the different reports. The Analysis Report: a portfolio management report that shows cost, market price and value, unrealized gain/loss, income, yield, earnings per share, P/E ratio and beta. The Summary Report: a stock analysis report that shows degree of diversification, valuation model projections, and a summary of the important market universe statistics. The Fundamental Report: a stock analysis report that shows all the data and projections of the fundamental valuation model. The Modern Portfolio Theory Report: a stock analysis report that shows all the data and projections of the MPT model. The Inflation Adjusted Report: a stock analysis report that shows all the data and the projections of the Inflation Adjusted model. The Variable Growth Dividend Discount Report: a stock analysis report that shows all the data and projections of the Variable Growth Dividend Model. The Cash Flow Report: Now obsolete due to changes by the Financial Accounting Standards Boards, effective January 1989. This report has been replaced by a useful per-share fundamental analysis report in the current version 3.1b. The Basis Report: a portfolio management report that organizes all the securities on a lot by lot basis showing portfolio percentages, unrealized gains and losses, and percentage gain/loss. When done, return to the Testport Main Menu. The remaining selections from this menu, are very similar to those discussed for the Master Portfolio Main Menu earlier in this tutorial. As a refresher, you may like to review the help selection. To exit to DOS, select "0". ******** ******** (21) You've now worked through the this shareware version of QUANT IX and should have a pretty good understanding of QUANT IX and it's potential. We're confident you'll agree that QUANT IX does represent a comprehensive investment software program. It is our hope that this shareware version is of use to you. If it is, please return $25 for the registration fee. On the other hand, if you have found this shareware version useful, we know you would greatly benefit by obtaining the current version 3.1b with all the great improvements and additional features it offers. At just $89, investors worldwide have found QUANT IX to be an easy-to-use, comprehensive software program that offers the affordable opportunity for managing and/or analyzing their portfolios. Won't you join them? Call us at (800) 247-6354, or return the order form. We hope to hear from you - QUANT IX SOFTWARE s