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

To: Jack Jagernauth who wrote (11951)	7/2/2000 2:45:29 PM
From: LemonHead	Read Replies (1) \| Respond to of 18928

Hi Jack, How do you accumulate? Well I'll tell you what I am doing with SNDK but this is by know means a recommendation for any one else to follow. I felt that I needed at least 500 shares to set up the AIM account properly. My initial DD IMO revealed that the price was a little high based on the valuation scenario's I attempt to use. But based on recent history it looked about as low as it would get and yet at $50+ a share I wasn't ready to invest $25,000 for the ownership of the shares. So I started with 100 shares and plan to pick up the balance in two more purchases if I continue to be comfortable with my decision. Sort of like putting up a deposit on a house before having it checked for termites. If I tried to AIM the 100 share lot then I would be trading in 5 to 10 share allotments. I want to trade at least 25 shares at a time. Now I have 200 more shares and will pick up the balance when I feel the price fits my plan. I probably should just use the "Add share feature" in the software. But I've chose to use this approach. When I get my full accumulation then I will have to make a decision as to my starting price. I may use an average cost or the current market price. Although Dave didn't AIM the way you & I might, he almost always accumulated his core position with three different entries. He also always reminded me that his valuation process did not work for all stocks. I don't think it works for SNDK, but Larry's PEG method might (I still haven't taken the time to learn PEG or YPEG). This also allows me the time to re allocate investment funds from other sources. I generally have some holdings that may AIM or may not. They are candidates for weed control. Then I have dead wood or rockets without parachutes like CTXS. I use limit orders 90% of the time, but there are cases were I will use a market order. For example. I recently took a 300 share position in ASYT on a Thursday at $35 a share. Friday it was scooting right along then all of a sudden in the afternoon the bottom fell out of it. I just happened to log on at 2:30 and there it was staring me in the face with a big $27. Bang I pulled the trigger for 300 more. Then Monday it opened back at $35. FWIW – BWDIK Keith