Table 4. 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
($)
Low
($)
AeroCentury Corp. (ACY)* 17.16 26.67 10.95 26.5 7.3 0.85 0
Allion Healthcare (ALLI) 5.15 7.58 3.85 83.4 34.3 0.8 0
Alloy, Inc. (ALOY)* 7.19 12.84 6.42 101.2 34.2 0.55 0 currently qualifies
Avalon Holdings (AWX) 5.5 10.87 4.23 20.9 14.9 0.53 0 currently qualifies
BlueLinx Holdings (BXC) 4.66 11.96 2.96 145.6 nmf 0.93 0 earnings probation (2007q4)
Books-A-Million (BAMM) 7.69 20.7 7.56 122.4 6.5 1.31 4.7  
Building Mat'ls Hdg (BLG) 3.93 20.22 3.66 115.5 6 0.19 0
Cobra Electronics (COBR) 3.97 10.72 3.65 25.7 nmf 0.4 4 earnings probation (2007q4)
D&E Commun'ns (DECC) 10.08 19.99 10.05 145.6 11.7 0.77 5 currently qualifies
Edge Petroleum (EPEX) 4.4 15.78 4.05 125.6 14.7 0.28 0 currently qualifies
Flexsteel Indus. (FLXS) 12.75 15.94 11 83.8 8.1 0.73 4.1 currently qualifies
Gehl Company (GEHL) 14.64 33.17 14.01 179.6 7.3 0.68 0 currently qualifies
Golfsmith Int'l Hdg (GOLF) 2.47 11.1 2.23 39 nmf 0.56 0 earnings probation (2007q4)
Hardinge Inc. (HDNG) 13.14 40.13 12.01 150.8 8.9 0.58 1.5
Hastings Entertain. (HAST) 7.88 10 5.87 83.6 9.3 0.87 0
Haverty Furniture (HVT) 9.24 15 7.21 201.7 115.5 0.72 2.9  
ILX Resorts (ILX) 5.25 13.37 2.29 18.5 nmf 0.53 0 earnings probation (2007q3)
Johnson Outdoors (JOUT) 18.02 23.91 17 165.9 22 0.83 1.2  
L.S. Starrett Co. (SCX) 16.42 20.52 13.69 108.4 10 0.58 2.4 currently qualifies
P&F Industries (PFIN) 7.09 14.3 5.17 28.1 30.8 0.46 0 currently qualifies
PGT, Inc. (PGTI) 2.88 13.01 2.86 79.7 288 0.38 0
RCM Technologies (RCMT) 5.14 10.3 4.93 61.9 8.4 0.69 0 currently qualifies
Rex Stores Corp. (RSC) 17.18 22.68 14.62 174 8.1 0.71 0 currently qualifies
Rocky Brands (RCKY) 5.21 19.23 4.8 28.6 nmf 0.35 0 earnings probation (2007q4)
Shoe Carnival (SCVL) 11.88 35.26 10.54 150.5 9.6 0.76 0 currently qualifies
SigmaTron Int'l (SGMA) 7.17 13.37 6.88 27.4 12.6 0.53 0 currently qualifies
Standard Motor Prods (SMP) 7.41 19.45 6.8 136.5 11.8 0.69 4.9 currently qualifies
SureWest Commun'ns (SURW)* 12.63 32.36 12.15 182.7 50.5 0.65 7.9 currently qualifies
Tufco Technologies (TFCO) 6.27 9.51 5.52 28.4 31.4 0.75 0 currently qualifies
West Marine (WMAR) 6.85 18.38 6.2 149.6 97.9 0.51 0 currently qualifies
Willis Lease Finance (WLFC) 12.1 16.5 10 102 8 0.7 0 currently qualifies
*Company is new to the model portfolio.
Source: AAII's Stock Investor Pro/Reuters. Data as of 3/7/2008.

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.

Not Qualified as a Buy for 2 Yrs: Stock has not met the buy criteria for over two years and can be sold if cash is needed.

See the Shadow Stock Portfolio area of AAII.com for more information.