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

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To: OldAIMGuy who wrote (9522)12/9/1999 10:08:00 PM
From: Jack Jagernauth  Read Replies (2) of 18928
 
Thanks Tom, Bernie, Steve, I think I understand. It's better to AIM individual stocks and choose them carefully.

Even blue chips get clobbered, and sometimes they move so slowly, it's like spending a 'lifetime' waiting for some mutual funds to generate AIM trades.

It is very interesting to me how much we could know about expected returns before plunking down money.

I back-tested a few stocks in PCA (nice job D1)

1. Blue chip - TRP.TO (a large Canadian utility)
After 5 years, it provided a total AIM return of 17% (ouch!)
and yesterday it got clobbered because they cut the dividend 30%.

2. Blue chip - CM.TO (a large Canadian dividend paying bank)
After 5 years, it's AIM total return is 149% (not bad for a big bank, but it doesn't mean it'll provide a similar return going forward).

3. A miscellaneous stock - MNG.TO (a gold mining stock with on-going negative earnings, which I casually pulled out of a mutual fund I own). After just 2 years, it's AIM total return is 163%. B&H would be up 70% in this stock.

I could have actually made good money owning this money losing beauty, instead of owning the precious mtls fund.

Choosing the security to AIM makes a huge difference.

Thanks again, Jack
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