Table 3. The Model Shadow Stock Portfolio
Company (Ticker) Current
Price
($)
52-Week Market
Cap
($ Mil)
P/E
Ratio
(X)
P/B
Ratio
(X)
Div
Yield
(%)
Notes (See Below)
High
($)
Low
($)
Avalon Holdings Corporation (AWX) 4.8 5.6 3.8 18.3 26.7 0.49 0 currently qualifies
Blair Corporation* (BL) 24.37 46.44 23.73 94.8 4.9 0.8 4.9  
Bon-Ton Stores, Inc., The (BONT) 25.9 34.14 15.55 441 nmf 1.61 0.4  
Bonso Electronics International (BNSO) 3.36 5.93 3.01 18.7 37.3 0.55 1.5  
Books-A-Million, Inc. (BAMM) 16.63 18.78 7.51 277.5 19.8 1.92 1.9  
Carriage Services, Inc. (CSV) 4.63 6.75 4.12 86 25.7 0.89 0  
CPAC, Inc.* (CPAK) 5.75 6.97 3.33 28.4 16.9 0.76 4.9 currently qualifies
Cronos Group, The (CRNS) 13.25 13.9 9.75 101.3 18.7 1.19 2.1  
D&E Communications, Inc. (DECC) 11.35 13.52 7.8 163.2 13.7 0.88 4.4  
Dominion Homes, Inc. (DHOM) 6.03 18.05 5.18 51.2 nmf 0.26 0 earnings probation (2006q2)
Duckwall-ALCO Stores, Inc (DUCK) 36.15 36.58 20.02 137 23.6 1.33 0  
ePlus Inc. (PLUS) 9.45 14.95 8.75 77 3.7 0.59 0 currently qualifies
Espey Manufacturing & Electron (ESP) 17.95 20.45 15 41.3 24.6 1.29 2.9  
Flexsteel Industries, Inc.* (FLXS) 12.65 15.51 12.01 83 17.6 0.77 4.1 currently qualifies
Gottschalks Inc. (GOT) 8.61 9.81 6.29 115.2 nmf 0.98 0  
Handleman Company (HDL) 7.23 14.65 6.7 146.3 10.2 0.5 4.4  
Hanger Orthopedic Group, Inc. (HGR) 7.32 8.95 5.45 161.3 13.8 1.02 0  
Hardinge Inc. (HDNG) 14.75 19 12.68 130.3 17 0.86 0.8  
Hastings Entertainment, Inc.* (HAST) 6.39 8 4.34 73 11.8 0.76 0 currently qualifies
Huttig Building Products, Inc.* (HBP) 4.93 9.76 4.65 101.2 6.7 0.81 0  
IntegraMed America, Inc. (INMD) 10.04 11.56 7.2 64.9 32.4 1.69 0  
International Shipholding Corp. (ISH) 12.52 17.89 11.91 76.6 nmf 0.56 0 earnings probation (2006q2)
Lazare Kaplan Intern'l (LKI) 9.5 10.95 7.4 77.9 52.8 0.83 0  
McRae Industries (MRINA) 12.45 14.5 9.05 32.1 9.1 0.86 2.6  
Northwest Pipe Company (NWPX) 31 32.25 21.83 212.8 12.8 1.25 0  
Pomeroy IT Solutions, Inc. (PMRY) 7.74 9.12 6.76 97.8 nmf 0.47 0 earnings probation (2005q4)
RCM Technologies, Inc. (RCMT) 4.91 7.47 4.48 57.9 14 0.73 0 currently qualifies
Rex Stores Corporation (RSC) 14.89 20.23 12.55 153.8 7.6 0.69 0 currently qualifies
Sands Regent, The (SNDS) 14.69 15.56 8.6 104.7 28.8 1.66 0  
SigmaTron International (SGMA) 8.51 12.34 6.15 32.2 18.1 0.69 0 currently qualifies
T-3 Energy Services, Inc. (TTES) 20.25 28.1 8.9 216.7 16.5 1.81 0  
TESSCO Technologies, Inc. (TESS) 24.03 24.4 12.5 100.8 17.9 1.49 0  
Tufco Technologies, Inc. (TFCO) 6.75 7.85 5.5 30.6 48.2 0.84 0  
Willis Lease Finance Corp. (WLFC) 8.9 11.3 6.7 82.6 46.8 0.66 0 currently qualifies
*company is new to the model portfolio. Source: AAII's Stock Investor Pro/Reuters. Data as of 9/8/2006.

Explanation of Notes

Approaching Size Limit: Stocks are sold if their market capitalization goes above three times the initial maximum criterion. The current market capitalization maximum for initial screening is $200 million. Stocks are marked "approaching size limit" if their current market cap exceeds 2 1/2 times the initial criterion, or $500 million.

Approaching Value Limit: Stocks are sold once their price-to-book-value ratio goes above three times the initial criterion. The current initial price-to-book ceiling is 0.80. Stocks are marked "approaching value limit" if their current price-to-book-value ratio exceeds 2 1/2 times the initial criterion, or 2.00.

Currently Qualifies: Stock still qualifies as a buy when the screen is run with current data. Stocks that don't currently qualify as a buy are held until they meet one of the sell rules.

Earnings Probation: If last 12 months' earnings from continuing operations are negative, the stock is put on probation; if a subsequent quarter has negative earnings prior to 12-month earnings becoming positive, the stock is sold. The date within the parentheses lists the calendar quarter during which the company first reported negative trailing 12-month earnings.