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Free Zone | A.I.M. | A.I.M. Users Bulletin Board (AIMUSERS)

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Posted by: Tom Veale Member Level  Date: Saturday, December 04, 2004 8:30:43 AM
In reply to: Tom Veale who wrote msg# 14637 Post # of 32349  Send a link via email Share on Facebook Tweet this post
Re: Memo to Accounting Staff, "Re-balanceing"........

Back in September we found ourselves faced with high levels of Cash in several inventory categories. At that time the I-Wave was showing a Low Risk profile with suggested Cash levels significantly lower than what we were experiencing.

The Accounting Department brought this to Management's attention. Management luckily hadn't been out for a Three Martini Lunch that day and realized this spelled both a problem and an opportunity. Reviewing each inventory item specifically for Excess Cash and also Relative Price Strength one major "rebalancing" was looked promising.

We found that our Technology ETF had excessive cash and was also out-of-favor at that time. We made an Executive Decision! Shift the Equity/Cash ratio of IYW (the tech ETF) to match that of the I-Wave's suggested level.

Since that time, the price/share of IYW has risen 15.6% and that inventory account's value has risen 10.8% exclusive of interest and dividends.

That's why we're paid these high Executive Wages and Benefits!

At the time, none of the other inventory items were as nicely out of favor, so we did not do similar Equity/Cash rebalancing.

With the rarity of the Low Risk events, we're considering making this review manditory during such events.

Because of this excellent performance, we're giving the Accounting Department three ADDABOY's each and they will be allowed Early Release from work to be with their families on Christmans Eve. Early Release time is 4:30PM instead of 5:00PM. Keep up the good work!

Best regards,
The Management



Port Washington, WI 53074
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