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

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To: OldAIMGuy who wrote (7296)4/19/1999 8:22:00 AM
From: Bernie Goldberg  Read Replies (1) of 18928
 
Hi,
The Dogs have a lot going for them:
1 Low trading costs( You make 4 trades at the start and then on average 4 to 6 trades a year afterwards which means very low commissions.
2 Since no trades are done in less than 365 days there are low taxes.
3 All the picks pay dividends between 2% and 3%. this isn't much, but I think it is what keeps the system viable.
4 If you start your Dogs off with more than $5000 the dividends will more than cover the trading costs at $12 per trade.
Since January 4th this year I am sitting on MO, JPM, CAT, and MMM.
The only loser in the bunch is MO and that's one that should not have been included this year. It's another case where I have fallen in love with a stock and been wrong. I also fell in love with MRK and DD, both of which I converted to AIM accts. MRK just kept going up up up. DD went up for a while and then dropped precipitously. Now it's going up again and is turning into a pretty fair AIM stock.
One interesting thing about the Dogs: Two years ago we bought MMM at about 65. A year later we sold it at about 94. At that price it was no longer a dog. MMM has come back to the kennel and this year we bought it back at 72. Just like AIM only slower. We even got buy about 30% more shares because of the growth we had last year.
Bernie

P.S. The timing model is starting to look interesting. It is getting closer than it has been in the last 2 yrs to a sell signal. It has been moving closer for the past 12 weeks. The trigger trips at 20 weeks.
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