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

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

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To: Bernie Goldberg who wrote (39)	6/2/2001 12:22:36 PM
From: OldAIMGuy	of 127

Hi Bernie, Thanks for the great history. AC may never be dropped to a #5 Timeliness and therefore never qualify for the PIC list, but that doesn't mean it's trash! AC probably belongs in a different part of the Investment Pyramid than pure growth stocks. With the healthy dividend shared with investors it certainly has Foundation potential. With a 52 week high and low of about $38 and $60, it should trip some occasional trades and give you some AIM profits as well as the on-going yield. Makes for a very nice total return. With my current lowly cash reserve levels I doubt if I'll add any to my account at this time, but I've been watching it almost from the time you first mentioned it on the AIM board. As you know, I use one of AC's products for income - ACG and it's done well for me over the years. I believe if the market's kind enough to me this cycle I'll let ACG's cash reserves rise to about 20% of the holding's value. That should provide me with enough cash on the next FED tightening schedule if I keep my SAFE range large enough. Currently I have SAFE set at 20% Buy and 0.0% for Sell. Being a closed end fund, it tends to stay within a Premium and Discount range that's near the Net Asset Value. No growth potential here. I've been selling off small portions of my ACG now for several months. This has occurred at very nice profits while it still kicks out its handsome dividend on a monthly basis. When I sell shares, it's usually at about a 30% LIFO gain (or slightly better) and so it represents almost three years worth of dividends collected all at once. Therefore the cash reserves can sit at Money Market Rates with no problem for quite some time. Usually the next FED cycle comes along within that time frame to put the money back to work. Congratulations on a great management job. Best regards, Tom

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