Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : A.I.M. PIC List (Perverse Investment Candidates) -- Ignore unavailable to you. Want to Upgrade?

To: OldAIMGuy who wrote (116)	1/25/2002 5:27:21 PM
From: JSLyons	Read Replies (1) \| Respond to of 127

Hello Tom. Perhaps I misunderstood, but it seems from my own reading of AIM that volatility, provided of course that it doesn't take a stock's value down to zero and keep it there, is the key to success. As I have noted before, AIM will work LESS well with a stock than goes from 1 to 100 in a straight line than the old buy-and-hold approach. Of course, this never happens with my stocks! While I agree that beaten-down issues that are fundamentally sound are good investment candidates, I am not convinced they are the best for AIM. Over time, AIM should smooth out missed entry points. Like the 1 to 100 example above, AIM will underperform at least at first as a fundamentally good stock returns to its norm from an unexpected or unexplained blow. You allude to this yourself in NAUT, noting the Beta value is not ideal. That's just a different way of saying what I pointed out -- it's lack of volatility. I got the zigzag idea from Don Carlson on the Fool board and it appears to be an excellent part of a AIM screen. I keep a close eye on your PIC lists, so keep up the good work. Rgds, Jonathan