To: OldAIMGuy who wrote (4978 ) 7/8/1998 8:35:00 PM From: steve in socal Read Replies (3) | Respond to of 18928
hey tomasso---the dog days of summer seem to itching their fleas right in the middle of our portfolios. got kinda bored with work things yesterday afternoon and started grazing through some unrelated "stuff" and came across the latest s&p 5 star picks. usually, if memory serves me right, we, as a group tended to not look at the 5 starts figuring all the fat was already in the fire. well, surprisingly enough, at least to moi, their appeared to my tired old eyes some 5 stars that had backed up since inclusion on the list. so, i did something i don't do enough of and did some homework and some research and when it was all said and done, i dun found myself a couple of candidates to spark up the old portfolio. i think. i identified 9 stocks that had fallen 10% or more since becoming a 5 star. they are, DECK, EA, LWN, OE, PDE, PHB, REY, TRMB, USFC. a pretty diverse group covering a lot of different sectors. they were, not surprisingly, mostly low beta stocks and seemingly not suitable for AIM. a couple might squeeze in with tightened AIM trading perameters such as LWN. if any industry deserves to be AIMed, i guess the funeral isdustry is one. it has a beta of only .60, tho. you've been talking energy and PDE is off over 12% since becoming a 5 star because of our overseas friends, however its beta is only .35. REY has a .89 beta and has shown some trading movement in '98. TRMB is the WORLD leader in GPS navigation. its beta is only .87, but looks like an interesting play. then their is EA. how does a beta of 2.2 sound? how about a company whose shares were trading at over $47 dollars in '95 and closed today at 2 13/16? its 52 week high was 9 1/2. they are a contract manufacturer of electrical equipment that's re-organizing its business thrust, institutions own 34%, revenues are declining and if you had invested $10k 5 years ago as a buy and holder you would have $3749 today. hmmm! may be my next "high risk" play and it will deffinatly be my first 5 star high risk play ever. anybody out there in AIM land have any "bon mots" to add on the paradoxical looking baby. wondering in wheeling