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 ($)

AeroCentury Corp. (ACY)

8.36

26.67

12.9

4.4

0.4

Allion Healthcare, Inc. (ALLI)

5.84

7.58

3.76

113.5

58.4

0.9

Alloy, Inc. (ALOY)

7.95

10.58

6.1

112.4

nmf

1.04

earnings probation (2007q4)

Avalon Holdings (AWX)

4.3

10.23

4.11

16.4

17.2

0.42

Books-A-Million (BAMM)

7.8

20.7

6.48

123.3

1.21

4.6

Cobra Electronics (COBR)

2.9

10.06

2.86

18.8

nmf

0.29

5.5

earnings probation (2007q4)

D&E Commun'ns (DECC)

9.38

19.99

8.07

135.8

10.3

0.71

5.3

currently qualifies

Edge Petroleum Corp. (EPEX)

5.1

15.78

3.75

146.1

nmf

0.35

earnings probation (2007q4)

Flexsteel Industries (FLXS)

11.75

14.86

77.3

7.9

0.67

4.4

currently qualifies

Gehl Company (GEHL)

15.66

33.17

14.01

190

11.1

0.72

Golfsmith Int'l Hdgs (GOLF)

2.03

8.25

1.65

nmf

0.49

earnings probation (2007q4)

Hardinge Inc. (HDNG)

13.15

40.13

11.95

150.9

0.55

1.5

Hastings Entertain. (HAST)

8.4

86.1

8.5

0.84

Haverty Furniture Cos. (HVT)

9.2

13.53

7.21

195.2

115

0.7

2.9

currently qualifies

ILX Resorts (ILX)

3.09

13.37

2.29

11.3

nmf

0.32

earnings probation (2007q3)

Johnson Outdoors (JOUT)

23.91

15.4

147.4

21.9

0.7

1.4

currently qualifies

L.S. Starrett Co. (SCX)

21.31

23.83

13.69

140.7

11.3

0.74

1.9

currently qualifies

Marlin Business Serv (MRLN)*

6.99

21.94

5.85

5.9

0.57

currently qualifies

P&F Industries (PFIN)

4.45

11.75

3.75

16.2

nmf

0.42

earnings probation (2007q4)

PGT, Inc. (PGTI)

2.94

13.01

2.18

81.7

nmf

0.39

earnings probation (2008q1)

RCM Technologies (RCMT)

4.44

10.3

3.75

56.6

22.2

0.58

Rex Stores Corp. (RSC)

15.47

22.68

14.62

166.1

0.61

currently qualifies

Rocky Brands (RCKY)

5.53

19.23

4.8

30.5

nmf

0.37

earnings probation (2007q4)

Saga Commun'ns (SGA)*

5.05

10.11

4.21

100.8

0.68

currently qualifies

Shoe Carnival (SCVL)

14.98

29.54

10.54

189

15.6

0.95

SigmaTron Int'l (SGMA)

13.37

5.25

22.9

9.5

0.44

currently qualifies

Standard Motor Prods (SMP)

8.51

16.7

5.76

158.7

10.6

0.78

4.2

currently qualifies

SureWest Commun'ns (SURW)

9.85

32.36

9.32

140.3

82.1

0.53

Tufco Technologies (TFCO)

6.46

9.51

5.02

28.9

28.1

0.78

currently qualifies

West Marine (WMAR)

4.35

17.06

4.3

95.7

nmf

0.46

earnings probation (2008q1)

Willis Lease Finance (WLFC)

16.5

10.51

95.3

6.4

0.63

currently qualifies

*Company is new to the model portfolio.
Source: AAII's Stock Investor Pro/Reuters. Data as of 6/6/2008.

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.