Divimensa was established January 1972.

The club is, for tax purposes, a partnership in the eyes of the Fed and State. It operates similar to a Mutual Fund, in that members own shares in the club in proportion to their individual amounts invested. However, each member has only one vote during meetings or on referenda.

The primary goal is long term appreciation of our assets with a secondary goal of investor education. There are no considerations given to secondary agendas such as tax planning, social statements, or "life style" choices.

We invest in common stocks looking for:
1) An average Earning per Share (E/S) growth rate of 15% per year for the
last five years.
2) An average company Sales growth rate of 15% per year for the last five
years.
3) Low Price/Earnings ratio.
The above are not the sole criteria used in our decision making. Other factors such as current Assets to Liabilities ratio, company size, etc., are also considered.

Requirements for joining Divimensa:
1) Current Mensa membership.
2) A minimum investment of $120.00 per year and approximately $25.00 for
expenses, prepaid by the first of the year. Partial year joining is prorated.
3) Signing of the Articles of Partnership Agreement.

Participation in club activities:
Meetings are once per quarter year with attendance optional.

Safety and return on investment:
Part of the expense cost listed above pays for a bond provided by the NAIC, (National Association of Investors Corporation) which protects only against an illegal activity covered under the conditions of the bond agreement.

Return on investment can vary from year to year. There are no guarantees of return minimums. Some years have seen a negative return. Long term results have been acceptable.

Dividend, Interest, and Capital Gains Distribution:
In keeping with the long term nature of the club, all increases in our holdings are retained for future investment. At the end of the year, a statement showing the "paper profits" is issued to club members. It is each members' responsibility to report this on their individual tax returns.

Club Management:
The club is run by the members from which the Executive Committee is elected at the January "Annual Meeting." Those on the committee serve voluntarily and do not receive any compensation except for reimbursements for expenses, such as copy costs etc.

Buying and selling stocks:
The Stock Selection Committee meets prior to the general meeting to examine the portfolio to determine if any of the existing stocks should be recommended for sale or holdings increased, or whether to purchase stocks not already held. These recommendations are then presented at the general meeting to be discussed and voted upon by the members present at the quarterly meeting.

Access to holdings:
Because of club goals of long term appreciation and the fact that our club managers are volunteers, the quickest payout can be between one and two months, depending on when a member chooses to resign. Also if the club does not have the cash currently available, the resigning member may have to pay the liquidation costs.

The preceeding is detailed in the Articles of Partnership.