D1,
I've run AIM side by side on my own GALT position and Buy and Hold have cleaned the clock of AIM although the recent pull back is making the B&H position less profitable.
Starting 2/11/99 when I recommended it to this list and made my last purchase.
AIM settings.
0 Buy SAFE, 20 Sell SAFE, 25% initial cash position, $1,000 minimum trade. $80k initial investment total.
AIM 1340 shares + $88,985 = $151,977
B&H 2900 shares + $20,000 = $156,300
As little as 1 month ago I almost sold the entire position as it almost became overvalued. Overvalued at that time was $64, 52 week high is $64 3/4, but I didn't have the GTC orders in.
If I had sold the position at $60 the results are dramatically different.
AIM 1340 shares + $88,985 = $169,401
B&H $194,000
That's a $25k difference in only 6 months assuming you follow the undervalued/overvalued criteria.
Depending on what timeframe you choose you get dramatically different results from AIM. Your two year time frame starts Mr Buy&Hold at an extreme overvaluation point and forces him to hold the stock. My February timeframe sets up AIM at a point where the stock is undervalued.
The timeframe of the initial position makes a difference in most examples.
Be very careful with GALT however. It is much more likely to be out of business or taken oven in the next two years. This is not a stock you want to be AIMing longer term IMO.
BTW, If you liked GALT, take a look at MMCN. <grin>
----
Dave |
