A.I.M. Users Bulletin Board

[SFSecurity]

Hi Adam, Firebird, As Adam says, the reverse split will make it possible for institutional investors to get in; however, that does not seem all that likely to me.

The reason is that currently XBKS has a float of roughly 230 million shares and about $600 million capitalization. With a 10 to 1 reverse split they will have only about 23 million share, much too small, I would think, for institutional investors. Typically the big guys don't do all that much when there are only small amounts of stock available to trade because they have so much money they need to park. When they purchase, unless they ease in very slowly, it makes the price jump and they don't like that.

If you have 60 billion under management, like #25 on Lipper's list, VMFXX, getting only a $1 million dollar position puts them in the position of having to manage way too many positions, potentially as many as 60,000. Way too expensive to do.

A number of people, including AAII, say that staying with small cap positions is more profitable because they move around more because there is not the steadying force of large institutional investors. Since AIM needs volatility to work at its best it seems reasonable to stay with the small cap positions.

Look at what you've been doing Firebird with your Pocket Change Portfolio. All low priced and small cap. Seems like you stay out of the way of the big guys and do well by doing so. Wish I knew how to find those positions so I could a small portion of my money to work this way. You said you are using Automatic Investor, right? Does it help you find these positions or is there another tool/website you are using?

Warmest Regards,

Allen