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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: Larry Grzemkowski who wrote (9425)	11/30/1999 9:10:00 PM
From: Steve Grabczyk	Read Replies (1) \| Respond to of 18928

Larry: I was thinking of doing the same thing in a separate install of Newport. Like you I have 7 stocks in my 'basket'. I am taking a 'cash cow' approach within my AIM account so I use a common cash pool. I decided to do this in a Lotus spreadsheet instead, since all of the money market interest, cash dividends not reinvested, reinvested dividends, commissions, etc can be detailed every month when I get my statement from the broker. I will then have a total value that is in line with my actual account. I can then graph all of the activity in any number of ways. Now just gotta do it. Maybe once I do, I'll post it on that web site I'm gonna get around to as well. Regards; Slow in Seagoeville (lot's of towns in Texas!)

To: Larry Grzemkowski who wrote (9425)	12/1/1999 12:24:00 AM
From: Jack Jagernauth	Respond to of 18928

Hi Larry, that's interesting! I would have tried doing it differently in Newport. Instead of using ADD A STOCK, I would have added Cash and Shares to the Basket, with the price per share being the new average cost per share of the Basket of 7 stocks. I don't know if that would have worked; however, I like the idea. When you get a Sell signal, you would sell some of your most profitable shares, and do the opposite for a Buy Signal - buy shares of stock that has dropped the most. Is that how you are planning to work it? Regards, Jack

To: Larry Grzemkowski who wrote (9425)	12/1/1999 11:43:00 AM
From: Bernie Goldberg	Read Replies (1) \| Respond to of 18928

i think what you are trying to do with a basket of stocks is set up a mini-mutual fund fund. if that is the case, assuming a $2,500 investment in each of seven stocks, you would have (7*2500) or $17500 invested in stock. mr. lichello recommends that you have equal dollars invested in each stock. You would then make up a number of shares. whatever is comfortable for you. let's say 500. you divide $17500 by 500 to get the NAV of each share. this would give you a price of $35 per share. Start a sheet in excel or whatever SS you use. it will be easy to set the above up. when you update you prices, weekly or whatever just put the new prices in for each stock. take the total and divide by the # of remaining shares. newport will eventually tell you buy or sell some shares. let's say you NAV gets up to $43 and Newport says to sell 25 shares at $43. what i would do is to take the one stock that has appreciated the most and sell $1075 worth of it. it may have gone from 6 to 25 for example. and you would then sell 43 shares at $25 to come up with atotal of $1075. You then tell newport that you sold 25 shares at $43 what has to be right is the total. hope this helps. i am doing this for a friend of mine with two stocks and would happy to send you a SS for excel. it is very small and simple. bernie

To: Larry Grzemkowski who wrote (9425)	12/1/1999 4:37:00 PM
From: OldAIMGuy	Read Replies (1) \| Respond to of 18928

Hi Larry, The best way to handle a basket of stocks that I've found is to make a mini mutual fund from the basket. To do this you'll be adding up the total value of the portfolio and then give it an arbitrary number of shares, say 1000. So, if your basket's value is $10,000 and you start it with 1000 shares, you "Net Asset Value" (NAV) is $10 per share. In this case, you would put the "LARRY FUND" in Newport with a symbol of LGFnd, the name Larry's Fund and enter 1000 shares at $10/share. Enter your estimated cash reserve as well. Now, next week when you are to update, sum the value of your "basket" and divide by 1000. This will give you the price per share to enter into the program. Let's assume that the value is now $10,500. You would enter $10.50/share as the price. When you Buy or Sell according to AIM and Newport's wishes, you will be selling "average" shares based upon the NAV at that time. For instance, let's assume that AIM's directed you to sell $1000 of your "fund." Let's also assume that you've decided to sell some shares of LU to satisfy it. On that day LU is selling for $76 per share. You would sell 13 shares of LU. Now, AIM/Newport is assuming you are selling "average" shares that are worth $12.22 NAV. So, in Newport, you will enter the Sell trade as 81.833 shares sold at $12.22 (total value equal to $1000). Next time you update the prices you'll take the total value and divide by 918.167 shares that remain in the account. This will give you the new NAV to enter into the account. This probably sounds more complex that it really is. Once you get the hang of it, it's easy. As always, keep similar stocks from similar market sectors in you "basket" as this helps to keep them all moving in the same direction. Best regards, Tom