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


To: RFH who wrote (9541)12/12/1999 8:16:00 PM
From: Jack Jagernauth  Read Replies (1) | Respond to of 18928
 
Hi RFH,

I enjoyed the updated charts at your web site.

I just looked at a 1-year chart of PLAB, and it is absolutely mouthwatering (from an AIM standpoint)

I ran a simulation for PLAB using weekly data in PCA.

Starting price at Nov. 28, 1994 - $9
Most Recent Price - $24
Lots of ups and downs in between.

AIM worked well with the following parameters:
Buy Safe - 8%
Sell Safe - 8%
Starting Cash Reserve - 50%
Min. amount to trade - 10% of shares.

I am using 10% of equity and lower Buy Safe/Sell Safe in order to reduce the # of trades and commission as a percent of dollar value of trade. Using 5% of equity and standard 10/10 (Buy Safe/Sell Safe) works fine too.

There were 29 buys and 33 sells for the period of about 5 years.

Stock price gain: 167%
AIM return: 192%
# of Shares Owned: plus 67% over initial shares bought
Cost per share - $3.35

Regards, Jack



To: RFH who wrote (9541)12/13/1999 8:59:00 AM
From: JZGalt  Read Replies (1) | Respond to of 18928
 
PLAB chart is mouthwatering from AIM from a combination of factors that might not occur for quite some time again.

quote.yahoo.com illustrates the trends in the semiconductor equipment industry and isn't going away.

As far as Buy and Hold, these are not Buy and Hold stocks because they are cyclical. No need to hold through those troughs. Your timeframe is much smaller than mine. I tend to think out 2-3-5 years, not what is going to be good for the next six months or so. Just an old fashioned idea of buying well and selling slowly what others are going to want later on.

The market this year is no real exception to those rules, but the timeframe is compressed and the magnitude of the moves are very very large relative to all previous moves.
----
Dave