Hey Lostcowboy,
Yes, that is AIM doing its job. When the cost = zero you have Freeshares! When it is negative, the market gave you some shares. Also when the avg cost goes down your dividend yield will go up, the dividend yield can help you to decide what to sell. For example i bought some CLMS earlier this year. I had one AIM sell which brought my avg cost to -$0.02(i targeted for zero). My dividend yield is now infinite, or the cash/dividend stream is free from now on. Now i have a difficult decision because CLMS is on its MA200 (or close) and threatens to go under it. Do i keep it or sell and rotate into something else? Rotations are nice, but you need to know where to rotate to. I am evaluating the cash stream and cash yield of equities now and use that to determine growth and price(DCF). I hope to find candidates for rotation in that way.
At least i hope to avoid bad choices.
(The thing i noticed was that this calculation is the same as when you recalculate the avg cost after each transaction using usual algorithms to calculate an average. It is easy and applicable whenever you know how much shares and cash you have and what the initial amount of shares and cash was. It aggregates all activity)
Kind Regards, K
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