TABLE 1. 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
($)
Low
($)
BioScrip Inc. (BIOS)* 5.66 9.8 5.13 209.1 20.2 0.66 0  
Bon-Ton Stores (BONT) 17.91 19.78 10.62 298 14.2 1.11 0.6  
Books-A-Million, Inc. (BAMM) 8.82 10.7 5.52 142.8 14.7 1.06 2.3  
Carriage Services, Inc. (CSV) 5.9 6.3 4.3 107.9 14.8 0.92 0  
Cavco Industries, Inc. (CVCO) 28.01 29.74 17.97 176.1 19.2 1.63 0 approaching value limit
Cronos Group (CRNS) 11.91 14.88 5.98 87.3 7.9 1.16 2  
Duckwall-ALCO Stores (DUCK) 20 20.78 14.61 89.5 12.3 0.77 0  
ePlus inc. (PLUS) 12.12 17.14 8.8 108.5 13.8 0.93 0  
Espey Mfg. & Electron (ESP) 26.9 28.9 22.35 27.2 30.6 0.98 2.2  
Finlay Enterprises (FNLY)** 12.86 21.99 10.59 115.8 8.6 0.69 0  
Five Star Quality Care (FVE)** 7.1 9.19 3.65 87 16.1 0.89 0  
Gehl Company (GEHL) 31.45 32.1 16.55 212.7 13.1 1.47 0  
GenTek Inc. (GETI)** 10.71 56 10.07 108.1 nmf 1.24 0 earnings probation (2005q1)
Gottschalks Inc. (GOT) 10.88 12.45 3.85 142.5 27.9 1.26 0  
Haggar Corp. (HGGR) 19.38 24 15.53 137.2 25.8 0.81 1  
Hanger Orthopedic Grp. (HGR) 4.89 16.05 4.15 105.2 nmf 0.69 0 earnings probation (2004q3)
Hardinge Inc. (HDNG) 15.04 16.75 9.95 133.7 27.3 0.89 0.8  
IntegraMed America (INMD) 10.25 14.36 5.5 38.1 29.3 1.07 0  
International Shipholding (ISH) 14.4 17.1 13.01 87.6 6.5 0.63 0 currently qualifies
Ladish Co., Inc. (LDSH) 10.98 12.42 7.97 150.3 22 1.2 0  
Lazare Kaplan Intern'l (LKI) 8.8 12.55 6.95 74 13.1 0.77 0 currently qualifies
Marsh Supermarkets (MARSB) 12.47 15 10.7 98.3 24 0.76 4.2 currently qualifies
McRae Industries (MRI.A) 11.51 14.25 8.3 31.8 9 0.86 2.8  
Metals USA, Inc. (MUSA) 21.27 25.85 13.4 431.4 4.3 1.25 0 buyout pending at $22
Northwest Pipe Co. (NWPX) 22.3 29.47 15.33 149.8 11 1.02 0  
Pomeroy IT Solutions (PMRY) 12.8 16.37 10.59 161.1 13.9 0.73 0 currently qualifies
Rex Stores Corporation (RSC) 15.45 18.63 11.92 172.3 6.6 0.81 0  
Sands Regent, The (SNDS) 9.96 19.04 7 69.5 16.1 1.19 0  
Scheid Vineyards Inc. (SVIN) 6.1 6.75 4 31.1 26.5 0.84 0  
Stephan Co., The (TSC) 4.36 7.03 3.23 19.1 109 0.65 1.8 currently qualifies
T-3 Energy Services (TTES) 7.2 10.34 5.41 76.2 17.1 0.73 0 currently qualifies
TESSCO Technologies (TESS) 13.23 19.09 7.86 55.6 9.5 0.92 0  
U.S. Lime & Minerals (USLM) 15.2 19.49 8.05 89.3 13 1.76 0 approaching value limit
Willis Lease Finance (WLFC) 8.08 9.1 6.36 73.1 21.8 0.62 0 currently qualifies
Zapata Corporation (ZAP) 6.27 10.22 5.8 120 62.7 0.65 0  

*Chronimed and MIM Corp. merged to form BioScrip on March 14, 2005.

**company is new to the model portfolio.

Source: AAII's Stock Investor Pro/Reuters. Data as of 6/3/2005.

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.