Hi Evan,
Just as in the above mentioned IDTI example, AIM tends to build a position over time given enough price cycles. It doesn't mean that you will always have more "shares", but you will have more "value". In the case of IDTI, since the stock is pretty much in the same range it's been since I started with it in 8/96, I have more value and shares. If it had doubled in price, I'd have more value but fewer shares.
In the VLSI example at the AIM Web Site, I have about 60% more shares than when I started and the account is up in value about 139% as of last Friday. In this case, the price is up about 100% from where I started and there have been enough price cycles to generate a much larger position than where I started. As the price recovers, the 60% extra shares that I have will rapidly increase the portfolio value. It's my hope that I'll soon be able to rebuild my cash reserve in both IDTI and VLSI.
IDTI is selling at just under 2X Book Value and so is VLSI. Both should about double their book value in the next 3-5 years. INTC, by comparison, will also double its sales and book value in the next 3-5 years most likely, but you must pay over 6X book value for those shares. That's quite a premium for about the same growth.
Hope this helps. Best regards, Tom |
