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

To: Steve Grabczyk who wrote (10109)	1/22/2000 9:10:00 AM
From: OldAIMGuy	Read Replies (1) \| Respond to of 18928

Hi Steve, Of the driving forces for successful AIM investing, we have "Volatility", "Cyclicality", "Growth" and always "Survivibility." We always want the company in which we invest to be a survivor. That goes without question. I guess this could eliminate Chapt. 11 companies - unless we had some incredibly good inside information. Should something happen that could jeopardize the company's continuing to exist, then we should head for the exit! Should we stumble onto a company that does have good growth, whether it be steady or erratic, AIM will help us prosper with the company. Should that growth decline or stop in a long term way, maybe it would be time to exit. It's much easier to find cyclical stocks, even ones with relatively short time frames, than it is to find the next big winner on Wall Street. Mature, successful companies abound. AIM was specifically designed for cyclical stocks. We shouldn't ignore this segment just because the Tech area has been booming. The cyclicals are there and their P/E's won't give you nose bleeds. Again, if the cyclical nature of the stock should dry up, we might as well quit AIMing it and move on. A year with essentially no AIM trades would give us reason to move on. Volatility comes along for the ride with rapid growth. However as a company or an industry matures, volatility tends to dry up. This isn't necessarily a bad thing. The company may still have a decade of steady growth ahead of it even if it doesn't swing around in price like a chimp on amphetamines. I don't think I'd sell a stock ONLY because of a lack of volatility. It would need one of the other AIM traits to have diminished as well. As you can see, this part of investing isn't an exact science. I do end investments periodically. I usually have been able six months later to classify the move as a "STREWIE"! I guess we have to use the "through the looking glass" approach. Take what attracts us to a stock and reverse the image. Again, I can't stress enough trying to establish very long term horizons on what we want in our portfolio. Look at the years I had to wait for my GENE to come to life. AIM helped me accumulate enough of a position so that when "Lift-Off" came, it was one heck of a ride! Think MegaTrends! Hope this helps! Best regards, Tom