TABLE 1. The Model Shadow Stock Portfolio

Company (Ticker)

Current
Price
($)

52-Week

Market-Cap
Size
($ mil)

Price-
Earnings
Ratio
(X)

Price-to-
Book
Ratio
(X)

Dividend
Yield
(%)

Notes

High
($)

Low
($)

Action Performance Co. (ATN)

14.76

18.13

8.37

273.9

nmf

1.05

1.4

earnings probation (2004q4)

AirNet Systems, Inc. (ANS)

4.24

6.20

2.73

42.9

nmf

0.78

0.0

earnings probation (2004q3)

Bon-Ton Stores, Inc. (BONT)

17.22

18.19

9.62

277.2

15.8

1.17

0.6

Books-A-Million, Inc. (BAMM)

9.38

10.70

5.26

153.4

72.2

1.21

1.3

Carriage Services, Inc. (CSV)

5.13

5.61

4.30

91.9

8.6

0.83

0.0

Cavco Industries, Inc. (CVCO)

27.38

29.74

17.50

172.2

23.8

1.65

0.0

approaching value limit

Chronimed Inc. (CHMD)

7.75

9.30

5.50

99.4

17.6

1.03

0.0

Cronos Group (CRNS)

13.30

13.70

5.30

96.6

14.3

1.45

1.5

Duckwall-ALCO Stores, Inc (DUCK)

18.36

19.79

13.96

81.7

28.2

0.72

0.0

currently qualifies

Dura Automotive Systems (DRRA)

7.11

13.88

6.39

132.5

10.8

0.32

0.0

currently qualifies

ePlus inc. (PLUS)

12.90

17.14

8.80

115.5

15.0

0.98

0.0

Espey Manufacturing & Elec. (ESP)

26.15

28.90

21.00

26.4

31.9

0.96

2.3

Gehl Company (GEHL)

28.02

28.50

14.80

182.7

12.6

1.33

0.0

Gottschalks Inc. (GOT)

8.52

9.15

3.85

110.2

20.3

1.05

0.0

Haggar Corporation (HGGR)

18.85

24.00

15.53

133.3

28.6

0.81

1.1

Hanger Orthopedic Group (HGR)

6.25

18.89

4.15

134.9

nmf

0.90

0.0

earnings probation (2004q3)

Hardinge Inc. (HDNG)

14.69

15.27

9.95

129.9

29.4

0.86

0.8

IntegraMed America, Inc. (INMD)

10.14

14.36

5.50

36.3

31.7

1.05

0.0

International Shipholding (ISH)

16.41

17.10

13.01

99.8

15.2

0.78

0.0

currently qualifies

Ladish Co., Inc. (LDSH)

12.19

12.42

7.68

165.2

93.8

1.34

0.0

Lazare Kaplan Intern'l (LKI)

12.07

12.10

6.95

101.7

18.9

1.07

0.0

Marsh Supermarkets, Inc. (MARSB)

14.37

14.75

10.70

113.5

26.6

0.87

3.6

McRae Industries (MRI.A)

12.87

14.25

8.30

35.6

11.2

0.97

2.5

Metals USA, Inc. (MUSA)

24.21

24.99

11.50

490.5

4.8

1.49

0.0

approaching size limit

Northwest Pipe Company (NWPX)

26.13

27.09

13.75

173.6

18.5

1.24

0.0

Pomeroy IT Solutions, Inc (PMRY)

15.42

16.37

10.59

190.9

17.5

0.89

0.0

Quaker Fabric Corp. (QFAB)

4.09

9.80

3.99

68.8

0.41

2.9

Rex Stores Corporation (RSC)

14.10

18.63

10.98

156.0

11.8

0.81

0.0

Sands Regent (SNDS)

12.15

19.04

5.89

84.3

20.6

1.34

0.0

Scheid Vineyards Inc. (SVIN)

6.18

6.75

3.50

31.6

23.8

0.88

0.0

Stephan Co. (TSC)

4.55

7.03

3.23

20.0

113.8

0.68

1.8

currently qualifies

T-3 Energy Services, Inc. (TTES)

9.21

10.34

5.41

97.5

nmf

0.95

0.0

earnings probation (2003q4)

TESSCO Technologies, Inc. (TESS)

15.68

19.09

7.86

65.9

11.2

1.11

0.0

U.S. Lime & Minerals Inc. (USLM)

15.10

18.27

7.27

88.2

15.7

1.88

0.0

approaching value limit

Willis Lease Finance Corp (WLFC)

8.33

9.50

6.36

74.6

19.8

0.65

0.0

Zapata Corporation (ZAP)

72.00

74.50

50.75

172.2

49.3

0.94

0.0

There are no changes to the Shadow Stock Portfolio for the first quarter of 2005.

Source: AAII's Stock Investor Pro / Reuters. Data as of 3/4/2005

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.