Yes, Mike. You are absolutely correct. The AIM system lags the buy and hold investor when a stock takes off to the stratosphere. In fact, it seriously underperforms it. I feel, like many of those here discussing GUMM that a sustained rise is inevitable, and I will subsequently hold off on selling for the time being. (There is a method of incorporating this expectation into the "math" of the program itself). However, even though at one time I was the proud holder of over 2400 shares back in December of 1998, (the price at the time was around $6), there was no way to predict the price action we have enjoyed to date. Again, this trading method takes the emotions of fear and greed out of the equation, and if (God forbid) the price were to correct from here back to single digits, I would be buying again hand over fist! My trading of IIT, also on my web page, is a good example of a stock which took off from its lows around $4 to around $24, corrected to around $14 (where I was again buying) and is heading up again (hopefully). I started using AIM on IIT back in March of 1998 at a price of 14 1/8, and had I just held it, I would be close to even today. However, the program has me up over $17K as of Friday's close. I guess it's just a question of style and risk tolerance. (By the way, this account is in my IRA, so capital gains are not a factor).
Thanks for your constructive criticism!!
Sincerely,
RFH
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