GUMM - Eliminate the Common Cold Message Board

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Biotech / Medical : GUMM - Eliminate the Common Cold

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To: Mike M who wrote (1462)	11/8/1999 12:35:00 PM
From: OldAIMGuy	Read Replies (1) of 5582

<Off Topic> Hi Mike, RFH's method of managing the risk of being involved with new technology seems to be a logical choice in the case of GUMM. We can assume that there may be a few lumps and bumps along the way to their ultimate success and making small incremental (and profitable) adjustments to his account seems to be prudent. It's not the same as "selling out" or "selling short", but just taking a few dollars off the table. It is more like "harvesting" than "slash and burn." One thing that isn't immediately apparent with RFH's short history is that there's interest accumulating any time the Cash Reserve is in positive territory. GUMM pays no dividend, so that interest helps to compensate that account during periods of inactivity. The AIM method never has one sell all the way out of an issue by itself. It maintains an envelope of risk no matter how high the price should ultimately rise. It uses the cash during market setbacks to expand the risk envelope, "rewarding" the user for good fiduciary management. Improvements to the AIM method have taken place to help it perform better with stocks with a positive slope to their trend line. Those improvements keep the cash portion of the account from becoming impractical. This was a shortcoming of the the original AIM algorithm. It would appear that there's not very many people on this thread that would fall into the "gray" area of opinion on GUMM! There's those that are very bullish and others that are bearish. Most don't spend much time describing why they have their opinions or what their own "business plan" for investing is. I think it was not only informative but generous of RFH to have shared as much information as he did. I guess we could say that RFH is more cautiously "bullish" than some others here. AIM's 20/20 hindsight works well with volatile issues. Sometimes much better than a 50/50 guess about the future. RFH has shown profitable results from staying with a plan through both thick and thin. This is very different than the very short term mentality of many on SI and certainly the YaHoo threads. It's not as extreme as either Buy And Hold or Short Term. Anything that modifies the Risk/Reward equation is going to have an effect on overall performance both short term and long term. In summary, those who bring good information and advice to the thread should be encouraged. Those that post only shallow comments don't really contribute anything. Keep up the good work. Best regards, Tom

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