A.I.M. Value Line Stocks

[OldAIMGuy]

Hi T, Re: Value Line Model Portfolios for long term AIMing................

The two lists have several suitable candidates for AIMing. The above average dividend list may seem a bit stoggy but might offer good total return (price growth + dividend capture + profitable volatility capture). The 3-5 year list doesn't change positions very often if that makes a difference to you. Most libraries at universities and public libraries will have Value Line for your review.

Look for those stocks with the higher 3-5 year growth potential as a first filter. Next, check the BETA of those stocks you choose. The higher the better for AIM in general. BETA gives a feel for correlation of the stock price with market direction as well as a feel for amplitude of price change. So, a high BETA will generally trade in the same direction as the market but with a bit more amplitude. One of my favorite Value Line measures is on their individual stock pages in the lower right hand corner. It's labeled "Stock's Price Stability" and also helps to give a bit of personality to the issue in question. A lower number indicates higher price volatility where a higher number indicates higher stability. For instance, EXAS, a medical test maker, has a Stock's Price Stability of just 15. INTC comes in around 70 by comparison. Price Stability and BETA may help you trim these lists down a bit. Note that neither gives you any "quality" measure, however. Financial Strength, debt structure and profitability need to be looked at also.

The higher dividend stocks on Model II's list can be evaluated in similar fashion. AIM might not trade these stocks as often, but AIM always trades effectively.

Using StockCharts.com's Zig Zag graphing function can also help when viewing your stocks on a 'Weekly' basis. ZigZag can help guide you toward proper SAFE settings for your chosen stocks. If you are trying to choose between, say, INTC and AMD, if both are fundamentally sound companies, then you could use the same ZigZag setting for both and see which one has historically has more 'round trip' moves over the previous 3 years. That might offer a tie breaker for selection.

Hope this helps,
OAG Tom