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Strategies & Market Trends : A.I.M Users Group Bulletin Board

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To: LemonHead who wrote (8007)7/28/1999 7:36:00 AM
From: Bernie Goldberg  Read Replies (2) of 18928
 
Hi Keith,
Aiming the right stock is the essence, COMS lost out.

I'm still not sure what your criteria for investing are.
I made my first purchase of COMS in the first week of Feb. at 40.
Again 2/26/99 at 31.
Again 3/14/99 at 25.875.
Again 4/04/99 at 22.93875.
Again 4/18/99 at 21.5625.

I had my first sale at 28.8125. This was a FIFO tax loss.
If I had been a B&H investor today I would be down about 40%. Using AIM by the book I am down 15%. That looks to me like a 25% gain for AIM. By the way, when it hits 28.8125 I will be ahead even though the sock will be down 30% from when I originally bought it. IMO that's what AIM is all about. I can only refer to Mr. L's book.
Page 64. This is the first page of charts on his how to make a million hypothetical stock. He didn't get his first buy until 5 months into the program.
You say,I think I wanted some quick trades.
I had six trades with COMS in six months. What was your time frame?
If you wanted quick action you should have paid attention to Dave when he recommended AMKR. I did some DD on AMKR after he recommended it and it looked pretty good so I recommended it to a friend who I am managing some money for as an AIM candidate. We purchased it June 28th at 7 13/16. Got our first sale on July 11th at 13.3475 of 23% of the initial holding. It's now around 15 and she is complaining because she feels we shouldn't have sold so early. I guess there are some people who just don't believe that AIM works.
I bought BEAM in Dec 99. My 40% cash reserve has tripled and my stock value has increased by 50%. Since the stock is practically a 5 bagger there are some that say that AIM failed because I am only up 125%. I don't look at it that way. The way I see it I have $13000 in a stock that hasn't cost me one cent. In addition to that I have an amount of cash that has increased by 20% in a 8 month period of time. Show me where you can get 30% annually on cash. IMO Aim is not intended for gamblers, it's for people who want to invest safely and sanely. Mr. L. makes that point several times in his book. Perhaps you should do as Mr. L. suggests in the book. Take some funds and follow AIM. Be a gaqmbler and follow your instincts with some other funds. Wait a couple of years and see which method is better.
Hope this helps.
Bernie
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