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 Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: Bruce A. Bowman who wrote (5153)	7/23/1998 8:30:00 AM
From: JZGalt	Read Replies (1) \| Respond to of 18928

Remember to go over how to handle a change of stocks in the AIM portfolio: keeping the same account value and PC, etc. I think Tom addressed that in his FAQ. Sorry Bruce, I understand what Tom is trying to do with the VEALIES, but the mechanics elude me. In the software that you provided, the sale of a stock does not adjust the PC number. The equation in English is: If there has been a "buy" new PC = previous PC + (amount of buy) / 2 If there has been a "sell" new PC = previous PC I can see where if a sell action is taken, the cash level rises, and this in turn effect both the next buy and sell points, but I didn't follow the "adjustment" Tom made in the FAQ. It would seem like it the percentage cash level desired is exceeded, then you would want to have the "sale" accounted for in the PC just like the buy would be (possibly more so). In that case: If there has been a "sell" new "PC" = previous PC - (amount of sale)/2 Tom, I'm sure I'm not the only one who would benefit from an explanation of when, and under what circumstance you would adjust the PC. I'd also like your thoughts on how this should be employed on a portfolio of several stocks. If the "portfolio" cash level is exceeded in stock A (AMZN), but is low in stock B (TDW), do you adjust the PC of only A, both A and B or do you treat every stock as an individual adjustment. What I would appreciate is a two stock example where you are trying to maintain a maximum 33% cash position. Friede Goldman (FGII)- 25% cash, buy safe = 10%, sell safe = 15% 07/07/98 28.375 529 15010.38 07/13/98 24.104 41 988.26 07/14/98 23.158 43 995.79 07/22/98 22.272 45 1002.24 Cameron (RON) = 25% cash, buy safe = 8%, sell safe = 8% 07/07/98 51.250 293 15016.25 07/20/98 43.221 23 994.08 07/21/98 41.495 24 995.88 07/22/98 39.887 25 997.18 Right now these two stocks have a value of $30592 and the cash is $4026 for a cash percentage of 13.1% Assume these stocks both start rising straight to the moon. ;-) I have the next sell at: FGII = 32 shares at 32.294 RON = 19 shares at 52.044 Can you give me the next series of sell points and number of shares and explain at what point you would start to modify the PC to keep the maximum of 33% desired? I don't want to put you on the spot, but I would like to follow some sort of proven methodology for this model portfolio vs. my winging it. ---- Dave