A.I.M. PIC List (Perverse Investment Candidates) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : A.I.M. PIC List (Perverse Investment Candidates)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: OldAIMGuy who wrote (38)	6/2/2001 9:02:22 AM
From: Bernie Goldberg	Read Replies (1) of 127

Hi Tom, Thanks for the heads up on the PIC list and AC. It is very interesting. Here's a little history that may help you in VL's addition criteria for the GS list. For at least 2 years AC was on VL's list for Portfolio II, which is stocks for Income and Potential Price Appreciation. That is where I picked it up in December of 1998. I was looking for a stock to provide me with income as well as a little growth, and it was paying about a 5.75% dividend (43 cents quarterly). The price was $25.88. The dividend grew at an astronomical rate, as did the stock price. From 43 cents to 84 cents in Nov 2000. Over the same time period the price went from 25.88 to about $45. The price peaked in Jan 01 at about $55. At that time the yield was up to about 7%. I was not AIMing AC since I had purchased it mainly for the income. My original purchase was almost 2000 shares and I was not comfortable with one stock representing such a large percentage of my total portfolio, so I decided to sell about 30% of my AC holdings and start AIMing it when it hit $54 per share. This actually happened in September when it first hit the the mid 50s. I set my safes at 10/20 Buy/Sell since I didn't want to sell too rapidly. The stock immediately tanked to $45 by mid October which gave me the opportunity to buy back about 20% of the shares I had just sold. In the February 9, 2001 VL Selections and Opinion, Ac was still on VL's Portfolio II with a 6.2% yield and was a Timeliness 3, Safety 2 stock. On February 16th it was removed from the list for another stock (Apogee Enterprises, APOG)Timeliness 2 Safety 3. This may not have been too bad a call on their part. Since 2/9/01 APOG has outperformed AC by about 50%. However its yield is only 2.7% compared to AC's present 5.34%. In April AC dropped to $41 and I was able to pick up the almost all of the rest of the shares that I had sold in September. I find it very interesting that AC never was higher than a Timeliness 3 stock even though it more than doubled in a 2 year time period. VL lowered AC to a 4 Timeliness 2/16/01. It raised it to a 2 Safety 12/01/00. Its dividend yield has dropped from 7% to 5.34% but since AIM is timing the purchases, my actual return on dollars spent is much closer to 7% than it is to 5%. AIMing with stocks like AC may not give the hot action that most people want, but it sure shows that AIM is one hell of a money manager. Bernie

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next