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

To: Bernie Goldberg who wrote (17054)	10/11/2001 1:59:34 PM
From: OldAIMGuy	Respond to of 18931

Hi Bernie, Funny you should mention CSCO. In the PIC list, AIM is selling 5% of CSCO today at $16.23 after adding those shares just two weeks ago at $12.18. That's a healthy 33% LIFO gain in a very short time. The rest of the PIC list info is at: Message 16489086 Best regards, Tom

To: Bernie Goldberg who wrote (17054)	10/12/2001 9:02:45 AM
From: rgammon	Read Replies (2) \| Respond to of 18931

Bernie, I am enjoying this conversation immensely!!! Yes, if you sold ACG to buy ZF, that would be a mistake. I think we would have to call you a Yield Chaser if you did that. If you are purchasing CEFs as a buy n' hold investment, then I agree 100% with your comments. It is FAR better to buy the funds when they are selling at a discount to NAV than when they are selling at a premium to NAV. Tom's PIC list uses some of the same criteria although couched in different terms. In both cases, the argument is that it is FAR better to start an AIM when a stock/fund is out of favor with investors. We need to look at the model's cycle and see what happens. The math suggests to me that it is immaterial where you start your AIM, provided that the same number of cycles happens for each possible starting point. Starting near the low point WILL tend to make many people happier with an AIM, since the first transaction after the initial purchase is a bit more likely to be a sell than another buy. I don't have one of the modelling tools that makes this trivial to demonstrate, so perhaps one of the other participants here can run the model and report the results. I propose that we start on model at 8, the other at 5, and let both run thru 3 complete sinusoids and lets see which account is ahead (shares, cash). Does Morningstar offer a chart that plots NAV vs Price? None of the charting services I use are capable of showing both. Are there other chart tools that show this characteristic? Robert