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

To: Evan Dimmer who wrote (3899)	1/26/1998 3:53:00 PM
From: Dave Van Rensselaer	Respond to of 18928

Ed, I have many small accounts that I am using AIM on. I have used Newport on accounts as small as $3000. Newport seems to handle bigger accounts easier. When I add to these accounts, and the price per share is going up to a sell, you can see that you have a conflict here. You want to sell and add at the same time. So, you have to resolve this to your own satisfaction. The standard answer is Twinvest. So, what you would do is just use Twinvest until you have come up to your project goal of $3000 (in my opionion) or more. Then, in my opionion, you can run a fully functional Aim program. Any thing below that I run a modified program by just dollar-cost-averaging, setting small goals for each stock until I have them all fully functional. Aim gives you a wide variance of what you do with your investments. The main thing is to learn the importance of the Portfolio Control and how it actually functions. I think, if you are dealing with small accounts, it is well worth doing many practice runs on paper to really get the feel for it. I really, really got the feel for it by investing in VLSI and FAK. If they go down, I will add more. If they go up I may decide to sell. But, Always keeping PC written next to my portfolio value so I can do the addition or subtraction. With FAK, I will probably sell the whole thing if it goes up, or add if it goes down. With VLSI I will accumulate until I get to my goal unless it goes thru the roof. If I get a good profit, what else can I do except sell, some! Hope I have given you a little more insight into AIM. DaveV

To: Evan Dimmer who wrote (3899)	1/26/1998 5:09:00 PM
From: OldAIMGuy	Respond to of 18928

Hi Evan, Just as in the above mentioned IDTI example, AIM tends to build a position over time given enough price cycles. It doesn't mean that you will always have more "shares", but you will have more "value". In the case of IDTI, since the stock is pretty much in the same range it's been since I started with it in 8/96, I have more value and shares. If it had doubled in price, I'd have more value but fewer shares. In the VLSI example at the AIM Web Site, I have about 60% more shares than when I started and the account is up in value about 139% as of last Friday. In this case, the price is up about 100% from where I started and there have been enough price cycles to generate a much larger position than where I started. As the price recovers, the 60% extra shares that I have will rapidly increase the portfolio value. It's my hope that I'll soon be able to rebuild my cash reserve in both IDTI and VLSI. IDTI is selling at just under 2X Book Value and so is VLSI. Both should about double their book value in the next 3-5 years. INTC, by comparison, will also double its sales and book value in the next 3-5 years most likely, but you must pay over 6X book value for those shares. That's quite a premium for about the same growth. Hope this helps. Best regards, Tom