TABLE 1. The Individual Investor's Shadow Stock Portfolio
Company (Ticker) Current
Price
($)
52-Week Mkt
Cap
Size
($ mil)
P/E
Ratio
(x)
P/B
Ratio
(x)
Div
Yield
(%)
Notes
High
($)
Low
($)
AirNet Systems, Inc. (ANS) $4.35 $5.18 $3.20 43.8 15.5 0.52 0.0  
Bon-Ton Stores, Inc. (BONT) $12.88 $17.95 $4.52 206.2 11.5 0.86 0.8  
Books-A-Million, Inc. (BAMM) $6.05 $7.18 $2.44 99.9 11.0 0.75 0.0 currently qualifies
Cavco Industries, Inc. (CVCO) $40.00 $41.20 $15.00 125.9 20.3 1.30 0.0  
CPAC, Inc. (CPAK) $5.66 $6.99 $5.21 28.0 nmf 0.61 4.9 earnings probation (2003q4)
Cronos Group (CRNS) $6.80 $7.45 $3.46 49.4 11.7 0.79 1.2 currently qualifies
Duckwall-ALCO Stores, Inc (DUCK) $16.86 $17.89 $9.90 73.4 11.5 0.66 0.0 currently qualifies
Espey Manufacturing & Ele (ESP) $22.50 $27.35 $17.60 22.7 16.2 0.83 2.2  
Galyan's Trading Company (GLYN)* $11.00 $16.05 $7.60 191.0 55.0 0.89 0.0  
Gehl Company (GEHL) $16.96 $18.25 $9.50 91.8 18.4 0.89 0.0  
Gottschalks Inc. (GOT)* $4.76 $6.48 $1.59 61.3 14.9 0.58 0.0  
Haggar Corporation (HGGR) $20.14 $22.60 $10.91 144.0 9.6 0.84 1.0  
Hardinge Inc. (HDNG) $12.03 $13.35 $7.55 106.4 nmf 0.76 0.2 earnings probation (2003q3)
Hub Group, Inc. (HUBG) $33.89 $36.05 $8.45 274.6 27.6 1.80 0.0 approaching value limit
IntegraMed America, Inc. (INMD) $7.70 $8.44 $5.03 27.0 25.7 0.82 0.0  
International Shipholding (ISH) $14.11 $17.10 $8.82 85.8 15.9 0.69 0.0 currently qualifies
Ladish Co., Inc. (LDSH) $8.71 $10.23 $5.30 113.4 nmf 0.98 0.0 earnings probation (2004q1)
Lazare Kaplan Intern'l (LKI) $8.35 $9.19 $5.60 71.0 46.4 0.78 0.0 currently qualifies
Marsh Supermarkets, Inc. (MARSA) $13.00 $15.00 $10.45 103.2 nmf 0.80 4.0 earnings probation (2003q1)
McRae Industries (MRI.A) $9.65 $11.75 $6.07 26.7 12.7 0.84 2.5  
Metals USA, Inc. (MUSA) $15.37 $18.17 $3.75 310.1 11.9 1.41 0.0  
Northwest Pipe Company (NWPX) $15.70 $16.55 $11.13 103.6 20.9 0.78 0.0 currently qualifies
Pomeroy IT Solutions, Inc (PMRY) $13.35 $16.18 $9.81 163.6 16.9 0.81 0.0  
Quaker Fabric Corp. (QFAB) $7.71 $11.00 $6.20 129.7 16.4 0.76 1.6 currently qualifies
Sands Regent (SNDS) $7.15 $9.34 $2.88 40.4 6.1 0.85 0.0  
Scheid Vineyards Inc. (SVIN)* $5.14 $6.99 $2.57 28.1 9.2 0.73 0.0 currently qualifies
Stephan Co. (TSC) $4.64 $4.86 $3.66 20.5 25.8 0.59 1.7 currently qualifies
T-3 Energy Services, Inc. (TTES) $6.30 $7.39 $4.77 66.7 nmf 0.65 0.0 earnings probation (2003q4)
TESSCO Technologies, Inc. (TESS) $18.49 $19.00 $6.11 81.9 28.4 1.49 0.0  
U.S. Lime & Minerals Inc. (USLM) $9.19 $10.97 $3.11 53.5 10.8 1.25 2.0  
Webco Industries, Inc. (WEB)* $4.15 $5.24 $2.61 29.4 9.4 0.57 0.0 currently qualifies
Willis Lease Finance Corp (WLFC) $8.50 $9.50 $4.10 75.5 17.7 0.68 0.0  
Zapata Corporation (ZAP) $65.61 $69.00 $36.17 156.9 82.0 0.86 0.0  

*company is new to the list
Source: AAII's
Stock Investor Pro / Reuters. Data as of 6/4/2004

EXPLANATION OF NOTES
Approaching Size Limit: Stocks are sold if their market capitalization goes above 2½ 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 two times the initial criterion, or $400 million.

Approaching Value Limit: Stocks are sold once their price-to-book-value ratio goes above 2½ 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 ratio exceeds two times the initial criterion, or 1.60.

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.

Two-Year Rule: Stocks are sold after two years if they would no longer qualify as a new buy. The "two-year rule" note indicates when a stock will be sold if it does not pass the current screen.