Table 2. 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 (See Below)
High
($)
Low
($)
Avalon Holdings Corporation (AWX) $7.04 $8.15 $4.15 $26.8 32.0 0.71 0.0 currently qualifies
Blair Corporation (BL) $30.60 $46.44 $23.73 $117.5 7.0 1.02 3.9  
Bon-Ton Stores, Inc., The (BONT) $37.18 $39.36 $18.38 $646.9 nmf 2.41 0.3 earnings probation (2006q3)
Bonso Electronics Internationa (BNSO) $4.07 $5.93 $3.01 $22.7 45.2 0.65 1.2 currently qualifies
Books-A-Million, Inc. (BAMM) $21.74 $22.15 $8.88 $360.2 24.7 2.51 1.5  
California Coastal Communities (CALC)* $20.57 $40.10 $17.26 $223.2 8.2 1.76 0.0  
Carriage Services, Inc. (CSV) $5.04 $5.30 $4.12 $93.6 29.6 0.98 0.0  
CPAC, Inc. (CPAK) $7.50 $8.88 $3.33 $37.1 13.6 0.97 3.7  
Cronos Group, The (CRNS) $15.14 $16.27 $10.22 $115.7 19.9 1.35 1.8  
D&E Communications, Inc. (DECC) $12.49 $13.90 $7.94 $179.7 15.6 0.97 4.0  
Duckwall-ALCO Stores, Inc (DUCK) $36.13 $42.06 $20.02 $137.0 21.3 1.31 0.0  
ePlus Inc. (PLUS) $10.09 $14.95 $8.75 $82.2 4.0 0.63 0.0 currently qualifies
Espey Manufacturing & Electron (ESP) $18.35 $19.71 $15.00 $42.5 19.9 1.27 2.8  
Flexsteel Industries, Inc. (FLXS) $12.65 $14.84 $11.55 $83.1 19.5 0.77 4.1 currently qualifies
Gottschalks Inc. (GOT) $11.25 $11.80 $6.29 $150.9 46.9 1.29 0.0  
Handleman Company (HDL) $6.64 $13.55 $6.63 $134.5 11.4 0.46 4.8  
Hanger Orthopedic Group, Inc. (HGR) $7.52 $8.95 $5.45 $165.2 nmf 1.02 0.0 earnings probation (2006q2)
Hardinge Inc. (HDNG) $15.48 $18.20 $12.68 $136.7 14.2 0.90 1.3  
Hastings Entertainment, Inc. (HAST) $7.18 $8.40 $4.75 $79.4 12.4 0.87 0.0  
Huttig Building Products, Inc. (HBP) $5.10 $9.53 $4.65 $104.7 nmf 0.91 0.0  
IntegraMed America, Inc. (INMD) $13.42 $13.48 $7.17 $86.9 43.3 2.22 0.0 approaching value limit
Lazare Kaplan Intern'l (LKI) $8.70 $9.98 $7.40 $71.3 nmf 0.76 0.0 earnings probation (2007q1)
McRae Industries (MRINA)** $11.95 $13.00 $9.05 $30.8 9.4 0.83 2.7  
Northwest Pipe Company (NWPX) $31.56 $34.59 $21.83 $216.8 12.9 1.24 0.0  
Pomeroy IT Solutions (PMRY) $7.21 $6.76 $10.85 $90.9 nmf 0.52 0.0 earnings probation (2005q4)
RCM Technologies, Inc. (RCMT) $6.07 $6.75 $4.48 $71.7 15.2 0.89 0.0  
Rex Stores Corporation (RSC) $17.92 $20.23 $13.17 $185.2 12.8 0.84 0.0  
Rocky Brands, Inc. (RCKY)* $15.29 $26.70 $9.73 $82.6 11.4 0.79 0.0 currently qualifies
Sands Regent, The (SNDS) $14.85 $15.56 $9.65 $106.3 67.5 1.66 0.0  
SigmaTron International (SGMA) $9.36 $12.34 $7.11 $35.4 19.1 0.74 0.0 currently qualifies
T-3 Energy Services, Inc. (TTES) $22.42 $28.10 $8.90 $241.0 14.9 1.91 0.0  
Tufco Technologies, Inc. (TFCO) $6.37 $7.85 $5.50 $28.9 45.5 0.79 0.0 currently qualifies
Willis Lease Finance Corporati (WLFC) $9.78 $11.30 $7.31 $90.8 29.6 0.74 0.0 currently qualifies

*company is new to the model portfolio

**McRae Industries has chosen to deregister its shares to avoid following SEC filing and reporting requirements. Its reported statements are out of date.

Source: AAII's Stock Investor Pro / Reuters. Data as of 12/8/2005

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 ratio exceeds two 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.