MEMBERSHIP STATEMENT: DECEMBER 2016 I’m pleased to bring you the Family Trust Membership Statement for December 2016. For those of you that have joined the Family Trust in the past few days, welcome! Around this time every month, you can expect a “membership statement,” which briefs you on the latest orders, trades and market news from the past month. This month, I’ve included a special feature just for our new members, including five Family Trust stocks to buy now. In the meantime, let’s briefly review what has happened with our stocks since I recorded the Family Trust podcast a few weeks ago. Speaking of which, if you haven’t had a chance to listen to the podcast, I strongly recommend that you do so. In it, I discuss the dramatic short-covering rally following the election, as well as my market outlook through yearend. Since Election Day, the market has been reacting to speculation about President-elect Donald Trump’s policies for the next four years. Investors have been flocking to low-quality value stocks, particularly those in the industrial, financial and energy sectors. This strategy isn’t sustainable because most companies in these sectors won’t start to see sales and earnings growth for another few quarters. At the same time, I’m looking for sustainable profit opportunities that will likely do well under the next administration, but are still performing well presently. Over the past few weeks, I’ve recommended both MazTec (MTZ) and Northrop Grumman (NOC) as plays on the expected boom in infrastructure and defense spending, respectively. I recommend you get those GTC in orders as soon as possible, because NOVEMBER HIGHLIGHTS these stocks are trading just a hair above their GTC prices. Meanwhile, last week several of our technology stocks were caught up in sector-wide profit taking. This includes Gigamon (GIMO) and Weibo Corp. (WB), two recent additions to the Family Trust. If you haven’t added these stocks yet, the recent pullback is a tremendous buying opportunity.

Total Return: 30.3% November Performance: 0.6% S&P 500 Nov. Performance: 3.4% Cash Position: 14.4%* Portfolio Yield: 1.44% Average Sales Growth: 19%

Shares of Facebook (FB) were also under pressure after Canaccord Genuity cut its target price to $160. However, this price target still represents nearly a 39% premium over its current price. And, given that analysts have been aggressively revising their EPS projections higher, FB should blow right past that target.

Average Earnings Growth: 40%

I understand that the recent “washing machine” market has been frustrating. According to CNBC, just three stocks on the Dow are responsible for the index’s 1,200 point rally over the past month. However, I expect that things will settle down in no time. In fact, today [December 7], Wall Street is experiencing a muchneeded broad-based rally. As I write this, all but five of our portfolio stocks are in the green. The holiday season should continue to spread cheer and optimism throughout Wall Street and Main Street, which should support higher stock prices through yearend. As always, I look for the creme de la creme, namely our Family Trust stocks, to lead the move higher, especially as institutional investors fine-tune their portfolios in the final weeks of the year.

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SPECIAL FEATURE 5 STOCKS FOR NEW MEMBERS TO BUY NOW I’ve written this next section especially for any new Family Trust members that have joined in the past few days. But if you’ve been with the Family Trust longer and haven’t yet added any of these positions, I strongly recommend you do so at your earliest convenience. (Note: If you’ve already added up to the allocations listed on the portfolio page, you’re all set. These allocations are there to make sure that you’re properly diversified, so please do not exceed them.) I’ve hand-picked these five stocks off our Family Trust portfolio for their superior fundamental and quantitative ratings—and also because each one is trading near or below its original GTC price. This means that you’re getting the best of both worlds—rock-solid companies at attractive prices. If you’ve never worked with “Good-Til-Cancelled” orders, they function very much like limit orders. All of my buy recommendations will come with a specific GTC order that will automatically trigger when the stock is at or below our optimal price. I’ll provide specific GTC prices for each of these five stocks, but you may find that one or more of the stocks are trading below their GTC prices. In that case, buy the stock at market prices. Next, let’s discuss how much you should buy of each stock. For this, you’ll need to visit the Allocation Calculator page. Then, determine how much you plan to invest with the Family Trust. This amount should be what you’re willing to set aside for the Family Trust alone. If you follow any of my other newsletters (Blue Chip Growth, Emerging Growth, Dividend Growth, Ultimate Growth, High Velocity or Platinum Growth Club), please keep the Family Trust completely separate from any positions from those services. Going forward, this will make it easier for you to track the Family Trust portfolio and ensure that you’re achieving the appropriate portfolio mix. Once you’ve decided how much you want to invest in the Family Trust, plug it into the Allocation Calculator and hit “Calculate.” This will show you how much you need to invest in each Family Trust stock, in terms of both share count and dollar value. The Allocation Calculator also breaks down which stocks are trading under their GTC prices (which you can buy at market prices), and which are trading above their GTC prices (which you should place GTC orders for). So without further ado, let’s dig into the top five stocks for all new Family Trust members to buy as soon as possible.

NEW BUY #1: APPLIED MATERIALS INC. (AMAT) Applied Materials Inc. (AMAT) is the world’s leading semiconductor and display equipment company. Applied Materials boasts a portfolio of over 10,000 patents and brings in nearly $10 billion in annual revenue. For the current quarter, Applied Materials expects between $3.20 billion and $3.34 billion in net sales and adjusted EPS between $0.62 and $0.70. Compared with the year ago quarter, this represents 41.6% to 47.8% sales growth, and 150% to 169% earnings growth. Place a GTC order to buy AMAT at $30.65 per share, with a 3% allocation.

NEW BUY #2: GIGAMON INC. (GIMO) Gigamon Inc. (GIMO) develops products and services for infrastructure architects, managers and operators to give them visibility and control of network traffic, both physically and virtually. Its Visibility Fabric solutions are used in the U.S., North and South America, Europe, the Middle East, Africa and the Asia Pacific region. Based on Gigamon’s recent third-quarter results, its products are in hot demand. In the third quarter, revenue soared 47% year-over-year and net income surged 75%. For the fourth quarter, analysts are forecasting 27.6% annual earnings growth and 36.1% annual sales growth. GIMO is trading below our GTC price of $58.35 per share, so go ahead and place a market order for this stock, with a 3% allocation. Navellier Family Trust

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NEW BUY #3: INTUITIVE SURGICAL INC. (ISRG) Intuitive Surgical Inc. (ISRG) is in a business that sounds like it comes straight from a science-fiction novel: Surgical robotics. Intuitive Surgical Inc. got its big break in 1999 when it introduced the da Vinci surgical system. This system allows doctors to perform minimally invasive surgery with enhanced dexterity, precision and control. This technology benefits the patients, who usually experience less pain, a shortened hospital stay, fewer infections and less scarring. This neat system has steadily caught on in the healthcare industry; last year alone, the company’s systems were used in 650,000 procedures worldwide. ISRG is trading below our GTC price of $670.65 per share, so place a market order for this stock, with a 2% allocation.

NEW BUY #4: OCLARO INC. (OCLR) Oclaro Inc. (OCLR) provides lasers and optical components, modules and subsystems to be used in enterprise networks and data centers, as well as optical transport and metro networks. The company’s products enable fast optical networks and high-speed connections for streaming video, voice over IP, cloud computing and other applications. Oclaro is benefiting from the boom in cloud computing, as well as the demand for an increase in data speeds. OCLR is trading below our GTC price of $8.85 per share, so place a market order for this stock, with a 2% allocation.

NEW BUY #5: WEIBO CORP. (WB) Weibo Corp. (WB) is popularly known as "China’s answer to Twitter." Weibo is a social media company that allows Chinese users to express themselves, connect with others, discover Chinese-language content and use push notifications on their mobile devices. Weibo also offers online games and mobile apps. Weibo has experienced tremendous growth since its launch in 2010. WB is trading below our GTC price of $50.65 per share, so place a market order for this stock, with a 2% allocation. After adding these five stocks, you should continue placing orders for as many Family Trust stocks as possible, at the specific GTC prices and allocations. I’ve prepared a special guide here that walks you through the portfolio building process start to finish, so feel free to bookmark this page. Let’s now dig into all that has happened with the Family Trust portfolio in the past month.

RECENT PORTFOLIO ACTIVITY Open Buy Orders

Open Sell Orders

Recently Bought

Recently Sold

CTRE @ $14.05 EVA @ $24.35 FN @ $40.65 MTZ @ $38.05 NOC @ $244.65

ATVI @ $37.75 BGSF @ $15.65 COST @ $157.85 EXR @ $76.80 HRL @ $34.65 NTT @ $42.05

AMAT @ $30.65 BAX @ $46.65 GIMO @ $58.35 IDXX @ $117.65 ISRG @ $670.65 MTD @ $400.65

CLX @ $122.35 HD @ $114.65 MXL @ $16.65 NVEE @ $23.85 ORLY @ $252.35 PSA @ $229.35

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NOVEMBER PORTFOLIO SNAPSHOT Total Return

Cash

Yield

Sales Growth

Earnings Growth

30.3%

14.4%

1.44%

19%

40%

Sales and Earnings Growth

Portfolio Risk Composition

40%

11%

Family Trust

40% 30%

S&P 500

Conservative

19% 20%

Moderate

5%

10%

3%

0% Sales Growth

$490,000.00

89%

Earnings Growth

Portfolio Value (Dec. 2015 - Dec. 2016)

$470,000.00 $450,000.00 $430,000.00 $410,000.00 $390,000.00 $370,000.00 $350,000.00

Capital Gains

Dividends

As you can see above, our Family Trust investing strategy centers around companies that are trouncing the market average in terms of sales (19%) and earnings growth (40%). Furthermore, our portfolio is heavily weighted in Conservative stocks (89%), while Moderately Aggressive stocks (11%) are peppered in for growth potential. Navellier Family Trust

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RECENTLY ADDED Applied Materials Inc. (AMAT) is the world’s leading semiconductor and display equipment company. Applied Materials boasts a portfolio of over 10,000 patents and brings in nearly $10 billion in annual revenue. For the current quarter, Applied Materials expects between $3.20 billion and $3.34 billion in net sales and adjusted EPS between $0.62 and $0.70. Compared with the year ago quarter, this represents 41.6% to 47.8% sales growth, and 150% to 169% earnings growth. Place a GTC order to buy AMAT at $30.65 per share, with a 3% allocation. Baxter International Inc. (BAX) is in the business of saving the lives of patients with kidney failure or kidney disease. Baxter International’s hospital products division produces IV solutions and premixed drugs for hospital patients, as well as surgical care products and parenteral nutrition products. Baxter’s renal division produces dialysis machines, PD solutions, dialyzers and other acute renal products. Baxter serves patients and clinicians in more than 100 countries across the Americas, Europe, the Middle East, Africa and Asia. Place a GTC order to buy BAX at $46.65 per share, with a 2% allocation. Gigamon Inc. (GIMO) develops products and services for infrastructure architects, managers and operators to give them visibility and control of network traffic, both physically and virtually. Its Visibility Fabric solutions are used in the U.S., North and South America, Europe, the Middle East, Africa and the Asia Pacific region. Based on Gigamon’s recent third-quarter results, its products are in hot demand. In the third quarter, revenue soared 47% year-over-year and net income surged 75%. For the fourth quarter, analysts are forecasting 27.6% annual earnings growth and 36.1% annual sales growth. GIMO is trading below our GTC price of $58.35 per share, so go ahead and place a market order for this stock, with a 3% allocation. Idexx Labs (IDXX) has grown into a leading provider of veterinary products and services over the past three decades. Last year alone, the company dedicated $100 million in research and development; as a result of this dedication to innovation and new products, Idexx Labs has a variety of products that are used by veterinarians in more than 175 countries. Place a GTC order to buy IDXX at $117.65 per share, with a 3% allocation. Intuitive Surgical Inc. (ISRG) is in a business that sounds like it comes straight from a science-fiction novel: Surgical robotics. Intuitive Surgical Inc. got its big break in 1999 when it introduced the da Vinci surgical system. This system allows doctors to perform minimally invasive surgery with enhanced dexterity, precision and control. This technology benefits the patients, who usually experience less pain, a shortened hospital stay, fewer infections and less scarring. This neat system has steadily caught on in the healthcare industry; last year alone, the company’s systems were used in 650,000 procedures worldwide. ISRG is trading below our GTC price of $670.65 per share, so place a market order for this stock, with a 2% allocation. Mettler-Toledo International Inc. (MTD) has the market cornered on precision instruments. Whether it’s in a lab, a factory or in a commercial kitchen, Mettler-Toledo’s products ensure accuracy, consistency and safety. Mettler-Toledo offers a wide range of weighing instruments, analytical instruments and systems, inspection systems and specialized laboratory equipment. Mettler-Toledo sells its products in 39 countries, with 39% of sales from the Americas, 32% of sales from Europe and 29% from Asia. Place a GTC order to buy MTD at $400.65 per share, with a 2% allocation.

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OPEN BUY ORDERS CareTrust REIT (CTRE) is a real estate investment trust that focuses on healthcare and senior housing properties. CareTrust operates 149 healthcare properties and three senior housing properties across 20 states. And the company is actively looking to acquire more properties throughout the U.S. In the third quarter, CareTrust reported funds from operations (FFO) of $16.3 million, or $0.28 per share, on $27.1 million in sales. The analyst community was looking for FFO of $0.27 per share on $26.2 million in sales, so CareTrust posted a 3.7% earnings surprise and a slight sales surprise. Place a GTC order to buy CTRE at $14.05 per share, with a 3% allocation. Enviva Partners LP (EVA) is the largest producer of wood pellets in the world. Through its six plants in the U.S., Enviva Partners produces about 2.3 million metric tons of wood pellets each year. The wood pellets are used throughout the U.S., United Kingdom and Europe to fuel plants that had previously used coal for power. Enviva Partners recently lifted its full-year 2016 guidance; it now expects net income between $40 million and $42 million. Enviva Partners also recently increased its quarterly dividend by 2.9% to $0.52 per share. The stock currently has a hefty 7.4% yield. Place a GTC order to buy EVA at $24.35 per share, with a 2% allocation. Fabrinet (FN) is based in the Cayman Islands. The company focuses on precision optical, electro-mechanical, electro-optical and electronic manufacturing services, which are used by original equipment manufacturers (OEMs) in the production of optical communication components, modules and sub-systems, industrial lasers, medical devices and sensors. As such, its customers include leaders in a variety of markets including automotive, aerospace, medical, industrial and optical electronics. For the second quarter 2017, Fabrinet is targeting between 42.5% and 44.2% annual sales growth. Earnings per share are forecast to rise between 56% and 60%. Place a GTC order to buy FN at $40.65 per share, with a 3% allocation. MasTec, Inc. (MTZ) has provided engineering, construction and maintenance support for major infrastructure projects for the past 80 years. The company operates in several industries, including utilities (wind farms, solar farms and natural gas), government (water and sewer) and communications (wired and wireless telephony). During the third quarter, MasTec’s revenue jumped 43% while adjusted net income soared 225%. MasTec also posted a 17.4% earnings surprise. For the fourth quarter, analysts are forecasting 152.4% annual earnings growth and 27.7% annual sales growth. Place a GTC order to buy MTZ at $38.05 per share, with a 3% allocation. Northrop Grumman Corp. (NOC) is a major defense and aerospace company, building everything from aircraft carriers to tankers to radar systems. Long-time members may remember that we previously held NOC in the Family Trust; in July 2015, we sold it for a 37% total return. In light of the recent election results, I’ve decided to add it back, because defense spending is expected to increase dramatically under the Trump administration. NOC also is a great income stock; it has raised its dividend by 12.5% in the past year, and it has 1.5% dividend yield. Place a GTC order to buy NOC at $244.65 per share, with a 3% allocation.

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OPEN SELL ORDERS As we near the end of 2016, I want to ensure that the Family Trust portfolio is locked and loaded for the coming flight to quality. Now is a good time to make sure that you’re caught up on our pending sell orders, which are: Activision Blizzard Inc. (ATVI): Place a GTC order to sell ATVI at $37.75 per share. When this order triggers, we’ll be selling ATVI at An 8.0% loss. BG Staffing Inc. (BGSF): Place a GTC order to sell BGSF at $15.65 per share. When this order triggers, we’ll be selling BGSF at a 21.2% loss. Costco Wholesale Corp. (COST): If you haven’t already, place a GTC order to sell COST at $155.35 per share. When this order triggers, we’ll be selling COST for a 5.7% return. Extra Space Storage (EXR): If you haven’t already, place a GTC order to sell EXR at $76.80 per share. When this order triggers, we’ll be selling EXR at a 3.9% loss. Hormel Foods Corp. (HRL): Place a GTC order to sell HRL at $34.65 per share. When this order triggers, we’ll be selling HRL at an 18.8% loss (including dividends). Nippon Telegraph & Telephone Corp. (NTT): Place a GTC order to sell NTT at $42.05 per share. When this order triggers, we’ll be selling NTT at a 3% loss.

RECENTLY CLOSED POSITIONS Clorox Co. (CLX): We originally bought CLX on November 6, 2015 at $122.35 per share, with a 3% allocation. We then sold CLX on November 7, 2016 at $114.65 per share, for a total loss of -3.7%. Home Depot (HD): We initiated our position in HD on April 21, 2015 at $114.65 per share, with a 2% allocation. On September 1, 2015, we then added another 3% to this position at the same GTC price. We sold the entire position on November 22, 2016, at $130.65 per share. Including dividends, our total return was 16.8%. NV5 Holdings (NVEE): We originally purchased NVEE on June 26, 2015 at $23.85 per share, with a 3% allocation. We then sold NVEE on November 10, 2016 at $32.35 per share. Including dividends, our total return was 35.6%. MaxLinear (MXL): We purchased MXL on May 5, 2016 at $16.65 per share, with a 2% allocation. We then sold MXL on November 9, 2016 at $21.65 per share. Our total return was 30.0%. O’Reilly Automotive Inc. (ORLY): We purchased ORLY on October 13, 2015 at $252.35 per share, with a 3% allocation. On November 1, 2016, we sold ORLY at $262.65 per share, for a 4.1% return. Public Storage (PSA): We bought PSA on November 6, 2015 at $229.35 per share, with a 3% allocation. We then sold PSA on November 29, 2016 at $208.35 per share, for a total loss of -6.1%.

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OUR DIVIDEND PAYMENTS The ultimate goal of the Family Trust is to ensure smooth and steady returns. So dividends are a crucial part of our investing strategy. At the time of writing this, our overall average yield is 1.44%. Among our dividendpaying stocks, the average yield is 2.48%. So our stocks are often a prime target for yield seekers. By comparison, the S&P 500 currently has an average dividend yield of 2.02% and the 10-Year Treasury yields 2.34%. The average one-year growth rate among our dividend-paying stocks is 4.9%. Several of our companies paid dividends in November, and we also have a number of dividend payments coming out soon. You’ll want to keep the following dates on your radar. (To access the most current exdividend dates at any time, please visit the Family Trust portfolio page, and select “Income View.”)

DIVIDEND DATES TO ADD TO YOUR CALENDAR

Recent Dividend Payments

Upcoming Dividend Payments

Ticker DRI

Date 11/1/2016

Amount/Share $0.56

Ticker NVDA

Ex-Dividend 11/23/2016

Pay Date 12/19/2016

Amount $0.14

NDAQ

12/14/2016

12/30/2016

$0.32

T

11/1/2016

$0.48

BAX

11/30/2016

1/3/2017

$0.13

AYI

11/1/2016

$0.13

AHH

12/23/2016

1/5/2017

$0.18

CLX

11/14/2016

$0.80

DLR

12/13/2016

1/13/2017

$0.88

HRL

11/15/2016

$0.145

BGSF

11/7/2016

$0.25

STZ

11/22/2016

$0.40

EVA

11/29/2016

$0.53

AWK

12/1/2016

$0.375

v

Family Trust Average Dividend Yield – 2.48% 1-Year Dividend Growth – 4.9%

Once you get these dividend payments, if you don’t need to use the money right away and are still building your portfolio, I recommend that you reinvest. Use the Allocation Calculator to determine if you are underweight in any of your holdings and add to it if you are (remember; always add at the set GTC order price). If you are fully invested, you can take the cash. I don’t want you to have your price adjusted, so when you place your order, look for the option for “do not reduce,” or DNR. If you talk with your broker, you can also instruct them to “do not reduce.” This should keep your GTC at the specified level. You can also go back in and manually reset the trigger price on your order if it does reduce. Navellier Family Trust

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