This post is not an endorsement; it is for informational purposes, an update to my previous post on this newsletter.

The American Association of Individual Investors (AAII), a site that I’m fond of for their stock screens, among other things, is still offering their “Stock Superstars Report.” I got my second solicitation through the U.S. Snail, as I did the first one, but you can also check out their online solicitation if you like.

I found two things about their solicitation very interesting:

(1) Their printed material mentioned returns from inception through 12/31/2007 (six years). No mention was made in the mailed material of performance in 2008.

(2) The price has gone down. The initial solicitation showed a “normal” price for this service of $199 annually, or $359 for two years, with a promotional price of $149 annually or $259 for two years. Today’s mailing mentions the former promotional price ($149/1-yr or $259/2-yrs) as “the” price, no other price mentioned.

Their returns have been poor in 2008, -11.2% through 8/1/2008, although they’ve been decent but unimpressive since inception: +6.87% annualized over 6 years and 7 months. View the AAII Stock Superstars performance page. On a relative basis, it’s hot, but on an absolute basis, it’s not.

They periodically select four systems from the stable of “expert screens” they maintain at their site, with an eye towards what’s “working” best historically, while minimizing correlation between selected systems. I’m not sure what their rotation and selection frequency is. I do like the ideas behind the portfolio; mechanical systems on proven anomalies, with lazy tracking and monitoring. I also think the price is about right, because it would be a minimal drag on a six-figure or higher portfolio. I’m not crazy about the returns, however.