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Re: byculla post# 477

Wednesday, 11/10/2010 3:16:27 PM

Wednesday, November 10, 2010 3:16:27 PM

Post# of 516
Hi B, Re: AIM PIC List.......................

It seemed to be working okay but lacked a following here on Investors Hub. The idea was to use Value Line's excellent screen of "Highest Growth Stocks" but only use stocks that were rated #5 in Timeliness (out of favor) as choices for getting started. Once that occurred, the stock would remain in the account either until it became again a #1 Timely stock or would become an AIM holding and let the Lichello model work its magic.

Sometimes there were no #5s, so I guess one could use #4 and #5 as the Timeliness review points. What we wanted was really good companies with long successful track records to manage with AIM. What we also wanted was not to pay the "premium" that is usually associated with the #1 Timely stocks. We wanted to buy great companies when they were out of favor.

We kept the study going a long time. You can look at the various holdings and their histories at http://www.aim-users.com/pic.htm .

Here's a list of the stock tickers we'd used back then:
ADCT, ADPT, APCC, AVD, BBDB.TO, CBK, CDN, CCU, CERN, CGNX, CHUX, CLE, COGN, CSCO, CSC, ELN, ELX, ERICY, FHCC, FIC, GPS, HELE, INTC, IVC, KEA, KSS, LEG, MCRS, MKL, MOLXE, MTW, NAUT, NBTY, OSI, PLAB, PPC, RATL, ROST, SCH, SMTC, SUNW, SWFT, TIF, TLAB, TROW, VOD, VOL, VP, WMS, WTSLA, ZQK.........

Just for fun, here's Chirstopher & Banks Clothing for the last three years with typical Lichello AIM settings. The red "zig zag" lines show reversals of at least 30% or more making them tradeable with AIM's mechanism set to standard values.



and here's how AIM was handling it up to about the start of the graph above:



One would have needed deep pockets to have bought all the shares AIM would have suggested in late 2008, but there would have been nice rewards and plenty of cycles from which we could have profited.

Thanks for asking about this topic. If you're looking for a relatively good way to select stocks for AIMing, this simple method seemed to work just fine. Looking at the October 1st Value Line list, Steel Dynamics (STLD) and Atlantic Telenetwork (ATNI) were the only two stocks out of 100 that qualify as PIC candidates.

Best regards, Tom




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