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

To: JZGalt who wrote (6838)	2/12/1999 7:58:00 PM
From: JZGalt	Read Replies (1) \| Respond to of 18928

The index is XLK. Still can't find out which stocks are included. ---- Dave

To: JZGalt who wrote (6838)	2/12/1999 8:55:00 PM
From: LemonHead	Respond to of 18928

Can I just take the average cost of the shares + cash reserve as my starting point, or is there some other method which would lead to more accurate results? Dave I am sure Tom or one of the more experienced members will set us strait, but here's my take. I think if the stock has declined in value that you would set the Portfolio Control to the current value of the holding. Set Cash reserves to zero (this will get me in trouble). Tweak the buy/sell resistance to make some turn and earn return's based on the minimum shares or dollar value to trade. I'm probably way off base here, but I think that AIM was designed for that initial investment, If you bring an existing into the framework then I think it must be calculated and placed in the formula as if you made the entire purchase at todays market value. Also it probably works in reverse for holdings that have increased over time, then maybe you should show some cash reserve? This I haven't worked with because I am more interested in salvaging my laggards. At this point, I'm just the WaterBoy so take it FWIW. Keith

To: JZGalt who wrote (6838)	2/15/1999 11:57:00 AM
From: OldAIMGuy	Read Replies (1) \| Respond to of 18928

Hi Dave, Actually Keith did a pretty good job of handling your basic question. There's a variety of ways to handle rolling an existing investment into an AIM account. If you've owned an equity for a long time and have accumulated shares at various prices, for a P&L reason, you might want to use the average cost as your starting point, but AIM might also turn right around and tell you to unload a pile of it. If it has a large capital gain already built into it, then it's probably better to set Portfolio Control at 100% of the current equity value instead of average cost. If you're light on Cash Reserve for the account but have good capital gain in it, it makes some sense to set PC at 90% of the equity value. That way you start selling some shares almost immediately and build your cash reserve up accordingly. Keith covered the down side where you might be starting with a stock that's currently showing an average loss. And YES, be cautious about how much cash reserve you put with it. Remember if you start with very low cash reserves, it will be a very long time 'til you start pulling "vealies." If you fully fund the account with Cash Reserve, then the "vealies" start much sooner. Hope this helps a bit. I'm delighted to see you break the ice here and with such an interesting stock, too. AIM High! Best regards, Tom