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Re: Conrad post# 11

Wednesday, 09/11/2002 4:49:36 AM

Wednesday, September 11, 2002 4:49:36 AM

Post# of 621
Conrad, As you know AIM and Vortex are forms of averaging down programs, they buy more stock as the price goes down. When you look closly at the stock charts of these two funds they use both stock splits and stock reverse splits.
http://moneycentral.msn.com/investor/charts/charting.asp?Symbol=uopix
Set period to five years. The first split was a reverse split 1 for 5 , the next split was 4 for 1, the last was 1 for 5. Lets say you had build you stock shares up to 1000, they do the 1 for 5 split you now have 200 shares, then the price goes up you sell shares. You have 50 shares left, they do the 4 for 1 split, you now have 200 shares,and the price goes down, you again build your shares up to say 800 shares and they have the 1 for 5 reverse split. you now have 160 shares. I don't think this is the way to AIM, or Vortex a stock.

uspix had a 15 to 1 reverse stock split!
Note: If I remember correctly Tom tried to AIM one of these funds, you may want to check with him as to how he did.




Come see me at Systematic Investing group #board-966 lets talk formula plans.

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