You need a space between the . and $ in .$ALIAS
. $ALIAS
Also; the shell may be having trouble expanding the tilde, so specify it thus:
ALIAS=$HOME/.alias
Check that you don't have a .bash_profile (or .bash_login) if you're using bash, or it'll ignore .profile altogether - check the "INVOCATION" section of the bash manpage for more.
EDIT: Here's the pertinent section from the manpage
Quote:
it first reads and executes commands from the file /etc/profile, if that file exists. After reading
that file, it looks for ~/.bash_profile, ~/.bash_login, and ~/.profile, in that order, and reads and
executes commands from the first one that exists and is readable.
Cheers
ZB