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

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To: JZGalt who wrote (6910)2/24/1999 1:17:00 PM
From: OldAIMGuy  Read Replies (1) of 18928
 
Hi Dave, I think I understand what you are saying. Back in my "short term trading" days, I used several different thoughts in stock selection. One main one was - "If the market turns against me, is this a stock I'm willing to own as a long term HOLD until it recovers?" "Will it survive a business recession?" was another. "Will its current long term debt ruin it in a recession?" is another way to ask the same question.

Another area I looked at then was whether the principals were also investors. I like insider ownership. Are they growing Book Value? Are they growing Sales? Are they reinvesting in their own infrastructure or research? Are they running the company by Economics or EGOnomics?

Funny, these are still the basics of what I study. The stocks that I chose for good trading generally turned out to be good AIM stocks.

Note that I've not mentioned company size or consistency of earning. If everything else is okay, then chances are earnings will eventually grow to match. It's rare that I pay attention to earnings.

MXF was a small portion of my investment pyramid and was an area that I wanted to try for some "foreign exposure" at the time. However, when you sit at the table to play the game, you should know what the rules are. I don't think I did when I started that investment. I knew that Mexico had just devalued dramatically and just figured that things would just get better afterwards. I am pleased that AIM saved me from myself, but the money probably could have been deployed more wisely.

Best regards, Tom
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