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Strategies & Market Trends : AIM Questions and Answers -- Ignore unavailable to you. Want to Upgrade?

To: RFH who wrote (94)	1/20/2000 12:54:00 PM
From: OldAIMGuy	Read Replies (1) \| Respond to of 221

Hi Rob, Darn it anyway!!! I just finished a beautiful explanation of what to do and then SI blew it all away when I tried to post it! Well, let's see how good my ST memory is! It would make perfect sense to go ahead and enter the current average cost of all the remaining shares as the starting value of the fund in Newport. Then, just as you have suggested, bring the portfolio current next week with the NAV of the fund at that time. One thing is that there may be a problem with where the Hold Range will be once you have brought the account current next week. You may want to take the remaining shares (about 813, I think) times the current share price and enter that value as the Portfolio Control. That will establish the account based upon current price rather than on some historical average value. Use SHIFT+F4 to bring up the PC Adjust window. Next, to establish a credible Hold Zone you should review several years of the fund's history in graph form. See what it's historical highs and lows have been. Set the $$$ and Share minimums to where you would like them relative to your commissions. Next, using the What If window, try different Buy and Sell Resistance levels to bring the trade range into good focus within the historical highs and lows. Please let me know how this works. Best regards, Tom

To: RFH who wrote (94)	1/21/2000 5:57:00 PM
From: OldAIMGuy	Respond to of 221

Hi Rob, If you do the calculations as though you were doing "average cost" basis for tax purposes the results come out a bit differently. In that case, you are only selling Average Cost shares any time you sell. You calculate a new average cost only when you buy shares. Here it is: # of shares Price/share Ave.Cost/share Value 1148.410 $22.64/share $22.64 $26,000 -382.67 $22.64 _________ 765.740 $22.64 $17,336 +148.750 $27.61 ________ 914.490 $23.448 $21,443 - 16.00 $23.448 ________ 898.490 $23.448 $21,068 -450.000 $23.448 ________ 448.490 $23.448 $10,516 +364.969 $32.92 ________ 813.459 $27.698 $22,531 This method ignores profit or loss on the shares sold and only looks at the average cost of the remaining shares plus the new shares added. Bernie's method gives credit for the profitable sales to date. You can use either method, but if you're paying Uncle Sam, use my method!! :-) Best regards, Tom