From: canslim-owner@xmission.com To: canslim-digest@xmission.com Subject: canslim Digest V1 #28 Reply-To: canslim@xmission.com Errors-To: canslim-owner@xmission.com Precedence: canslim Digest Saturday, 21 December 1996 Volume 01 : Number 028 In this issue: [CANSLIM] (Fwd) Is the 8-10% rule realistic ? Re: [CANSLIM] 99 >= EPS > [CANSLIM] Wall Street Journal article [CANSLIM] List of HI-EPS, HI-ERG stocks from TELESCAN Re: [CANSLIM] List of HI-EPS, HI-ERG stocks from TELESCAN Re: [CANSLIM] (Fwd) Is the 8-10% rule realistic ? Re: Fw: [CANSLIM] Stock Market and Stock Pick Re: [CANSLIM] List of HI-EPS, HI-ERG stocks from TELESCAN [CANSLIM] STRL Re: [CANSLIM] Wall Street Journal article [CANSLIM] DG online Re: [CANSLIM] List of HI-EPS, HI-ERG stocks from TELESCAN Re: [CANSLIM] Wall Street Journal article Re: [CANSLIM] Wall Street Journal article Re: [CANSLIM] List of HI-EPS, HI-ERG stocks from TELESCAN See the end of the digest for information on subscribing to the canslim or canslim-digest mailing lists and on how to retrieve back issues. ---------------------------------------------------------------------- From: jeff@scrooge.idec.sdl.usu.edu (Jeff Salisbury) Date: Fri, 20 Dec 1996 15:00:52 -0600 Subject: [CANSLIM] (Fwd) Is the 8-10% rule realistic ? Everyone, This message was inadvertantly sent to me at canslim-owner. I am forwarding it to the group... Jeff Salisbury - --- Forwarded mail from MMLEUN@ccmail.monsanto.com From: MMLEUN@ccmail.monsanto.com To: "canslim-owner(a)xmission.com" Subject: Is the 8-10% rule realistic ? Date: Fri, 20 Dec 1996 15:45:19 -0600 To all, I don't think the rule of cutting loss at 8-10% is realistic at all. With the recent market volatility, even Coca - cola have a 10 % adjustment within this week! Do I misunderstood O'Neil's rule ? Please help on how this should be done! Thanks! Have a Merry X'mas! My favorite stocks for 1997 are : csco, coms and cs! Martina - ---End of forwarded mail from MMLEUN@ccmail.monsanto.com ------------------------------ From: patrick.wahl@unpcbbs.cts.com (Patrick Wahl) Date: Fri, 20 Dec 1996 05:29:00 GMT Subject: Re: [CANSLIM] 99 >= EPS > JO>What is DG? Joan If you want to see what information you get with the Daily Graphs, each page of DG contains four charts like the middle chart printed in the stocks in the news feature in the IBD (the one with one year of data and earnings and sales for 4 quarters along the bottom). ------------------------------ From: joani@mindspring.com (Joan Sherman) Date: Fri, 20 Dec 1996 23:44:57 -0400 Subject: [CANSLIM] Wall Street Journal article I have a question that I would appreciate if someone could explain for me According to the article (pgc2) Abreast of the Market - last paragraph: Michael Schwartz, chief options strategist at Oppenheimer, said exuberant buying at one point drove the March futures contract on the S & P 500 to a large premium over fair value, in part because sellers of the future were scarce due to the approaching year-end and holiday season. Arbitragers bought the cash stocks aggressively and sold the futures. Firstly, explain this for me, please, secondly, what impact will this have at the next options expiration? Thanks, Joan Sherman ------------------------------ From: Dan Sutton Date: Fri, 20 Dec 1996 23:56:26 -0500 (EST) Subject: [CANSLIM] List of HI-EPS, HI-ERG stocks from TELESCAN Here is a list of stocks with High EPS, High ERG and High Group Rank from a search I use in TELESCAN. The search was done after todays market close.TELESCAN criteria seldom match IBD numbers exactly, but they should be very close. Symbol Grp Price EPSRk ERG GrpRk TMAR OWD 46 89 99 97 UTI OWD 36 90 99 97 SIPX ESE 33 93 99 99 HMAR OWD 22 95 99 97 MDCO OWD 19 80 99 97 SBSE EEE 36 97 99 86 MLR ATT 30 95 99 96 CLDR OWD 61 92 99 97 QLGC DCO 23 93 99 98 INVX DCO 55 81 99 98 MOIL OCP 20 95 99 90 FGAS OIL 37 86 99 95 PETD OCP 4.8 98 99 90 ACTM EEE 30 95 98 86 FLC OWD 40 85 99 97 DELL DCS 54 98 99 95 CAM OWD 45 94 99 97 COLL ATT 5.9 92 99 96 AALR DCS 13 99 99 95 VTSS ESE 41 99 99 99 ESV OWD 49 98 99 97 ULTK EEE 26 97 98 86 LCRY EEE 36 97 98 86 CTN DPE 45 98 97 73 CKH OWD 64 97 99 97 GLM OWD 20 91 99 97 INTC ESE 134 89 99 99 RDC OWD 24 90 99 97 ENCD DPE 40 95 97 73 NE OWD 20 87 99 97 RSYS DSO 49 99 97 71 GLBL OWD 19 91 99 97 CHML MAN 39 93 97 82 IOM DPE 18 96 97 73 BBOX EEE 40 89 98 86 ETRC DCS 12 86 99 95 PRDE OWD 20 89 99 97 CLFY DSO 44 97 96 71 CMSX DSO 22 98 96 71 GROV BSB 49 85 98 93 STM ESE 68 96 99 99 GEN EEE 20 94 98 86 CIBR DCS 31 97 99 95 SII OWD 45 92 99 97 SYSF DSO 15 97 96 71 EVI OWD 50 97 99 97 CHK OCP 54 98 99 90 TOS ORE 75 81 99 98 ESST ESE 28 82 99 99 SFY OCP 28 92 98 90 WDC DPE 56 90 96 73 ETEC DSO 35 99 96 71 UMC OCP 48 80 97 90 UNT OCP 8.6 86 98 90 MARY OCP 25 87 98 90 VSVR DCS 49 99 99 95 ATMI ESE 17 89 99 99 OPAL ESE 18 89 99 99 STBI DCS 21 92 99 95 VRC OWD 22 85 99 97 RMDY DSO 50 99 96 71 SCOP DSO 42 99 96 71 GATE DCS 57 94 99 95 JDAS DSO 30 91 95 71 SMOD DPE 25 88 95 73 CHPS ESE 17 98 99 99 MCRL ESE 28 85 99 99 ROSS DSO 8.8 85 95 71 AMMB FDM 26 81 98 96 PSFT DSO 51 99 96 71 PBK BSL 25 92 98 89 MTSI DPE 28 85 95 73 HP OWD 54 87 99 97 NEV OCP 49 80 97 90 PEGA DSO 30 99 96 71 AE ORE 12 82 98 98 GPT BSB 48 84 98 93 MXP OCP 5.4 89 98 90 RATL DSO 37 84 94 71 VNTV DSO 27 99 96 71 PGSAY OWD 37 89 99 97 SAI FDM 43 90 99 96 WIND DSO 48 92 95 71 SIGM DCO 11 82 98 98 CBTSY DSO 55 98 95 71 ALOG DCO 32 91 99 98 LBI FDM 4.3 96 99 96 KEG OWD 11 91 99 97 TROW SEC 42 86 98 94 PPP OCP 45 89 98 90 MCAF DSO 46 96 95 71 SCH SEC 31 90 98 94 PMTS FSE 18 96 98 93 GDX.A RDR 17 80 97 94 RB OWD 28 93 99 97 KTII EEE 10 81 97 86 QCSB BSB 48 90 98 93 LOM OCP 16 99 98 90 RES OWD 15 86 98 97 PESC OWD 15 81 98 97 ------------------------------ From: Zoran Mitrovski Date: Sat, 21 Dec 1996 01:16:46 -0500 (EST) Subject: Re: [CANSLIM] List of HI-EPS, HI-ERG stocks from TELESCAN Dan, thanks for posting the list. Excuse my ignorance but I have few questions: What do EPSRk and ERG mean exactly? IBD calculates the EPS rank of the stock by a formula that I'd like to get a peek at. I wonder how much emphasis is put on the two latest quarters' increase and how much on yearly growth. What does Telescan use? Also is GrpRk the rank of the stock within the group or the rank of the group on the market? Can you describe Telescan and how you use it to pick stocks? Thanks, Zoran ------------------------------ From: "tom worley" Date: Sat, 21 Dec 1996 08:42:02 -0500 Subject: Re: [CANSLIM] (Fwd) Is the 8-10% rule realistic ? The most basic premise of CANSLIM investing is timing. This means finding stocks that show superior earnings and revenues growth compared first to their industry group and second to the market at large, then studying the charts and the bases and resistance levels and identifying the pivot, or breakout, points reasonably accurately. This is the part of investing that you can control, your own homework and your own timing. What you can't control is the actions of all other investors, esp the institutional types. Because of this, as well as to protect yourself from your own mistakes in reading all of this, you should use a reasonably tight stop loss based, at least initially, upon your final buy price. This should be in the neighborhood of 8%. O'Neill's book explains why this nr was found to work, if you haven't read the book then this discussion group's comments will often make little sense to your investing methods. The key to using a stop is to protect you from what you can't control and thereby end up with a significant loss. First and foremost, you must protect your principal. If you lose that, you are out of the game and sitting on the bench, feeling real hurt and bruised. You are correct, many stocks, esp in the volatile mkt we have had lately, can flucuate wildly, even exceeding 10% in a week. This doesn't mean the stock is in trouble, that is why M is in CANSLIM. You have to be able to read and consider the mkt conditions in your hopefully daily assessment of your portfolio. good luck tom w - ---------- > From: MMLEUN@ccmail.monsanto.com > To: canslim > Subject: Is the 8-10% rule realistic ? > Date: Fri, 20 Dec 1996 15:45:19 -0600 > > To all, > > I don't think the rule of cutting loss at 8-10% is realistic at > all. With the recent market volatility, even Coca - cola have a 10 % > adjustment within this week! Do I misunderstood O'Neil's rule ? Please > help on how this should be done! Thanks! > > Have a Merry X'mas! My favorite stocks for 1997 are : csco, coms > and cs! > > Martina > > > ---End of forwarded mail from MMLEUN@ccmail.monsanto.com ------------------------------ From: "tom worley" Date: Sat, 21 Dec 1996 08:51:19 -0500 Subject: Re: Fw: [CANSLIM] Stock Market and Stock Pick Judging by what you have been buying, and how, you are definitely an investor. A trader does not normally bottom fish, nor does a CANSLIMer, and it certainly appears you have been doing a lot of that. The danger of bottom fishing is: a) there is a reason for the stock to be trading at low multiples, obviously it is out of favor for a reason. If you fail to identify the reason(s) and ensure they have been corrected, then you are buying a stock that can go even lower. The market at large sets the value, esp short term, when a stock is in trouble. b) Forget book value (it can often be overstated and at best is misleading if you don't do close and intense analysis of the asset valuations). c) Forget past earnings, they are only history now. Future expectations are what counts, and obviously they are low or the stock would not be at a low. d) Watch out for tax related selling, a stock that has tumbled is usually a candidate for yr end tax related selling to book losses to offset prior gains. e) Watch out for end of qtr window dressing by mutual funds and other institutional money mgrs. You appear to be "value shopping" which can prove out to be rewarding if you buy quality solid cos for the long term. On the other hand, by definition, you are not likely to be buying "top performing" cos, which is what the CANSLIM philosophy is trying to identify. good luck tom w - ---------- > From: Haw-Jye Shyu > To: canslim@xmission.com > Subject: Re: Fw: [CANSLIM] Stock Market and Stock Pick > Date: Friday, December 20, 1996 10:12 AM > > Dear Dean: > > I like your approach. It makes sense to me, especially try to make over 100% > gain. But honest with you, whenever I buy the stock, I always strongly > believe that this time I'll make a big profit out of the stock (a gamler > psychological behavior). But, > > For the past year, I always > 1) do bottom fishing: > KM (buy at 8 sold at 12) , a 50% gain in 4 month > LSI (buy at 22 still hodl on it), 30% gain so far > CSCO buy at 60 sold at 68, a 13% gain in 1 one month > VJET (buy at 11 sold at 7 1/4) , 34% lost > > > 2) following suggestion from panelist of the Louis Ruskier TV program: > BLY (buy at 16 sold at 22), 37% gain in 4 month > BSPT (buy at 9 7/8 and sold at 6 1/4), 37% lost > IQ (mergered to CU) (equilent to buy at 23.5 sold at 22 and 1/8, this time I > stick to the 8% stop) and now it back to 24. 8% lost > > After a whole year of reading, following and trading (total 14 trades). I > discovered that I learned a lot but made very little money not to mention > when the tax hit me and the profit eaten by commision. Where did I go wrong? > Am I a trader or an investor? > > HJS > > ----- Begin Included Message ----- > > >From owner-canslim@xmission.com Fri Dec 20 01:06 EST 1996 > From: "Dean Edwards" > To: > Subject: Fw: [CANSLIM] Stock Market and Stock Pick > Date: Fri, 20 Dec 1996 18:13:52 +1300 > X-MSMail-Priority: Normal > X-Priority: 3 > MIME-Version: 1.0 > Content-Transfer-Encoding: 7bit > > What do I mean when I said "Reward / Risk" ratio? > The risk is that you always cut your losses at 7-8% no hesitation, no > questions, no doubts you just get out! > > What is my reward? > I do not buy a stock unless I think I can double my money. That is my goal > or aim. Trying to double your money makes you focus on stock selection and > forces you to find the very best stock. In a currency trade you don't risk > your money unless its a killer trade. The same thing with a stock > basically. > > CANSLIM helps you identify the strongest and best growth stocks in the > stock market. It also tells you when to cut your losses. If the purchase > price drops below 7-8%. However I have never been satisfy with 'M' market > conditions. If there was a correction in the market tomorrow, I am not > going to sell any of my stocks. For starters there are too many false > signals in the stock market. A correction in the market doesn't happen in > 1 day nor 1 week. When you have a major break in the market the trend still > takes a long time to be defined upward or downward and of course there are > always rallies in the market. > > Back to my Reward / Risk ratio. > Some of my companies have made returns that are over a 100%. I let the > company tell me when to sell my investment. For example a drop in profits, > decrease in sales, or market share, profit margins etc. I have found > outstanding companies using CANSLIM in the past, only to see large profits > evaporate. > For example in March 1994 there was a US interest rate hike. A market > correction lasting 9-10 months. I bought Cisco Systems and Wellfleet > Communications (now called Bay Networks) just before the correction. > Nothing wrong with the companies except market conditions. I sold both > companies for a small capital gain. Subsequently Cisco soared over 300% and > Bay over 100%. For 3 years my stock return performance was abysmal. I had > to study my mistakes to find out what I was doing wrong. I then made an > important discovery that has helped me improved my stock return > performance. > > I absolutely refuse to sell any stock unless company conditions change for > the worse or it drops below my 7-8% purchase price . I am currently holding > Fore Systems in my portfolio for a capital gain of 111%. I have taken the > initial risk at the beginning (if my purchase price dropped below 7-8% I > would have been forced to sell) and now I expect it to double to 200% (my > large reward). That is what I meant when I referred to Reward/Risk ratio. > My goal was to make a 100% return for taking the risk in the first place. > > Goal Setting > False market conditions would have normally shaken me out of a stock like > Fore Systems a long time ago. And then what would I have to show for it? A > small capital gain. Cut your losses and let your profits ride based on > "company" and not market conditions. If you already have a healthy gain on > your stock investment, then you don't have to worry about market > conditions. I tend to focus on company conditions and my goal is to aim > for a 100% return on my investment. If I didn't set that goal, I would > probably lose interest in the stock get bored and sell it. Again there > would be nothing wrong with the company but market conditions would spook > me enough to sell it or the stock price was sitting there doing nothing. My > other weakness is always wanting something to happen. Patience is a virtue > in the stock market.. > > Merry XMAS to all and happy New Year. > By the way there is suppose to be 200 people in this CANSLIM group. > How about everyone comes forward with there one favourite stock selection > for next year. I will be very happy to have 200 CANSLIM stocks to choose > from > as a Christmas present :-) > > Regards Dean > > ---------- > ------------------------------ From: Dan Sutton Date: Sat, 21 Dec 1996 09:23:44 -0500 (EST) Subject: Re: [CANSLIM] List of HI-EPS, HI-ERG stocks from TELESCAN At 01:16 AM 12/21/96 -0500, you wrote: > >Dan, thanks for posting the list. >Excuse my ignorance but I have few questions: >What do EPSRk and ERG mean exactly? IBD calculates >the EPS rank of the stock by a formula that I'd like >to get a peek at. I wonder how much emphasis is put on >the two latest quarters' increase and how much on yearly >growth. What does Telescan use? > >Also is GrpRk the rank of the stock within the group or the >rank of the group on the market? Can you describe Telescan >and how you use it to pick stocks? > >Thanks, >Zoran > Zoran, EPS Rank combines a company's earnings performance over the past five years into a single indicator so that it can be used to rank earnings momentum against all other companies. It is computed as the weighted sum of the following earnings growth rates (over 5 years), with the heaviest weight on the most recent quarter: Last quarter percentage change in EPS, Previous quarter percentage change in EPS, 5-year percentage change in EPS and EPS stability, which is one standard deviation of data fit through five years of quarterly EPS data (TELESCAN uses three years if five years are not available). ERG is the sum of three rankings EPS rank, price rank(a close facsimile of IBD's Relative Strength rank) and group rank which sum is then ranked against all other companies. Group Rank measures an industry group's strength over six months, using the sum of the group's relative performance, with the heaviest weighting on the most recent three months. TELESCAN is a database service that allows you to build customized searches for stocks using your choice of about 240 different fundamental and technical indicators. You can use a combination of 40 at a time to develop stock selections. They also have modules for Mutual Funds and Options, although I do not subscribe to those. The basic service is about $30 per month for one hour of online time. Additional hours are around $5 per. The software is around $300. While the information seems fairly accurate I occasionally find figures that do not agree with those posted by IBD, Barrons, Wall Street Journal or other sources.TELESCAN also has what they call a PROSEARCH builder where you enter a list of stocks and it will bring back the search parameters required to return the list. As an example I can enter IBD's weekend review and it will bring back the criteria that is similar in all these stocks that would be required to find them in a Prosearch scan. It will also backtest your searches and show you the return over any historic time period you desire(monthly or annually up to 3 years). It is an expensive service, but it has great potential. After you have the list, you still need to do your homework. The first week I had it, I spent hours building a "foolproof" search and bought a stock that ended up being de-listed, and is now selling on the bulletin boards for about 10% of what I paid. I am currently using two or three filters based on Ian Woodwards posting on American On-Line, as well as a fairly basic CANSLIM search. And by the way, TELESCAN has not made me rich yet, it is not the Holy Grail...only another research tool! After I download the stock info,I then plug it into EXEL using a spreadsheet I have devised to further analyse the selections. The spreadsheet cuts my initial analysis time down by about 90%. Hope this answers your questions. it is not the Holy Grail..it is not the Holy Grail...it is not the Holy Grail ------------------------------ From: "David F. Cameron" Date: Sat, 21 Dec 96 8:37:03 CST Subject: [CANSLIM] STRL OK, I'm asking several of you to put your thinking caps on re: STRL. I bought STRL at a recent breakout when it passed 40. A look at the chart shows I was a little late on the pivot point (if you agree that it was one...) but decent enough given the move. After the buy, STRL went up to 44 - then seemed to start consolidating. It dropped to 41-1/2 by 41-/34 on lower than average volume. Then on Thurs. or Fri. IBD ran a front page article that mentioned STRL as a good stock with accelerating earnings. The next thing I knew is looking at Friday's close that STRL dropped to 39-1/2 (or so). Any interpretations? My gut feel is to sell if it drops below 38 because of the chart read, but there is a part of me that thinks someone is fading IBD on this one. I've seen it happen before - stocks they mention drop after the mention - maybe more than 10% - but then rebound. Or is this coincidence. Anyway, I'll follow my own star regardless, but Friday's move was unexpected, and I;d appreciate anyone's spin on this. Thanks, Dave Cameron dcameron@harper.cc.il.us ------------------------------ From: "tom worley" Date: Sat, 21 Dec 1996 09:49:27 -0500 Subject: Re: [CANSLIM] Wall Street Journal article I will try not to hedge your question too much. What the article says is that there was heavy buy side volume on the S&P Mar contracts anticipating a good mkt thru Q1, thus the arbitragers took the opportunity to short sell the futures contracts at a high premium, while simultaneously buying the underlying stocks at today's price. Their reward: the immediate premium; their cost: tying up capital for up to three months; their risk: none, they have already locked in the net. As to the effect on the next contract expiration (which will actually be in Jan, Feb and Mar even tho we are talking about Mar contracts, all will be effected), it depends on what the mkt does in the next 1,2, and 3 months. Let's assume for the moment that I know what I am so often yapping about and the mkt does very well in Jan. These arbitragers will have a long posit in many stocks, while holding a short posit in the contracts. A month of time value will have elapsed, so the value of the contracts will have dropped, offset in part or more by the rising value of the underlying stocks. Depending on the size of the move, it may be financially beneficial (as well as releasing capital otherwise tied up) for them to buy back the contracts (hopefully lower than they short sold them) and sell the stocks (hopefully at a profit), thus leading to or anticipating a correction in the mkt which could reverse the situation. This same scenario will again hold true in Feb and Mar, assuming the mkt didn't already do a correction. I hope I have answered your basic questions, if I didn't or got too complicated, just ask again. tom w - ---------- > From: Joan Sherman > To: canslim@xmission.com > Subject: [CANSLIM] Wall Street Journal article > Date: Friday, December 20, 1996 10:44 PM > > > > I have a question that I would appreciate if someone could explain for me > > According to the article (pgc2) Abreast of the Market - last paragraph: > Michael Schwartz, chief options strategist at Oppenheimer, said > exuberant buying at one point drove the March futures contract on the > S & P 500 to a large premium over fair value, in part because sellers > of the future were scarce due to the approaching year-end and holiday > season. Arbitragers bought the cash stocks aggressively and sold the > futures. > Firstly, explain this for me, please, secondly, what impact will this have > at the next options expiration? > Thanks, Joan Sherman > ------------------------------ From: Michael A Langston Date: Sat, 21 Dec 1996 11:59:32 -0500 Subject: [CANSLIM] DG online rumor has it that DG may go online in late january -- pricing is yet to be determined, and hardcopy will continue -- advertising for this service to begin after the new year, it might be a good idea to keep an eye peeled... mike ------------------------------ From: Zoran Mitrovski Date: Sat, 21 Dec 1996 16:23:44 -0500 (EST) Subject: Re: [CANSLIM] List of HI-EPS, HI-ERG stocks from TELESCAN Dan, thanks again. Your long explanation was very enlightening to me. One think that I don't like about these EPS rankings is that they don't provide you with info on the TREND of the EPS increase/decrease. For instance, if a stock had an astronomic EPS yearly increase 3 years ago and an extremely good previous quarter but a sluggish present one and average performance for the rest of the time it could still rank better than a stock with a consistently improving EPS increases. The standards deviation could help a little bit to solve this problem but if it was found relative to a straight line fit, I don't think it'll help much either. That's why I want to see the IBD formulas myself, or hope that O'Neil was smart enough to take my above concerns into consideration. I gotta work now...I'm flying in three days and there's still so much work to be done. Oh, I got bored and I bought me some SEMX on Friday. My father told me that he can hook me to the Net from Macedonia so probably I will be able to follow the market from there. Cheers, Zoran ------------------------------ From: joani@mindspring.com (Joan Sherman) Date: Sat, 21 Dec 1996 19:19:46 -0400 Subject: Re: [CANSLIM] Wall Street Journal article Tom, I appreciated your very clear explanation. There is so much to absorb regarding investing concepts and strategy - the one thing I know is how little I know. Nice to know your're there. Happy Holidays, Joan. ------------------------------ From: "tom worley" Date: Sat, 21 Dec 1996 20:17:14 -0500 Subject: Re: [CANSLIM] Wall Street Journal article One thing I have learned after almost 40 yrs in mkt is that I am still learning something new every day. That is one good aspect of my job, running the "back office" for a brokerage house, as it gives me some exposure to the trading aspects I would otherwise not have. Would hate to leave it for a more typical job. tom w - ---------- > From: Joan Sherman > To: canslim@xmission.com > Subject: Re: [CANSLIM] Wall Street Journal article > Date: Saturday, December 21, 1996 6:19 PM > > Tom, I appreciated your very clear explanation. There is so much to absorb > regarding investing concepts and strategy - the one thing I know is how > little I know. Nice to know your're there. Happy Holidays, Joan. > ------------------------------ From: "tom worley" Date: Sat, 21 Dec 1996 20:14:14 -0500 Subject: Re: [CANSLIM] List of HI-EPS, HI-ERG stocks from TELESCAN Don't count on ever seeing O'Neill's formulas, they are closely guarded, but I do know from verbal briefings I have had that the EPS formula does take into account the rate of increase/decrease in earnings, that is the primary point of the formula, to show rate of growth, not just earnings relative to other stocks. Glad to hear we won't lose you while on vacation. Since you got bored enough to buy another stock, does this mean all the papers are finished? Have a safe trip. tom w - ---------- > From: Zoran Mitrovski > To: canslim@xmission.com > Cc: Zoran Mitrovski > Subject: Re: [CANSLIM] List of HI-EPS, HI-ERG stocks from TELESCAN > Date: Saturday, December 21, 1996 4:23 PM > > > Dan, thanks again. Your long explanation was very > enlightening to me. One think that I don't like about > these EPS rankings is that they don't provide you with > info on the TREND of the EPS increase/decrease. For instance, > if a stock had an astronomic EPS yearly increase 3 years ago > and an extremely good previous quarter but a sluggish present one > and average performance for the rest of the time it could still rank > better than a stock with a consistently improving EPS increases. > > The standards deviation could help a little bit to solve > this problem but if it was found relative to a straight line > fit, I don't think it'll help much either. > > That's why I want to see the IBD formulas myself, or hope that > O'Neil was smart enough to take my above concerns into > consideration. > > I gotta work now...I'm flying in three days and there's still > so much work to be done. Oh, I got bored and I bought me some > SEMX on Friday. My father told me that he can hook me to the > Net from Macedonia so probably I will be able to follow the > market from there. > > Cheers, > Zoran ------------------------------ End of canslim Digest V1 #28 **************************** To subscribe to canslim Digest, send the command: subscribe canslim-digest in the body of a message to "majordomo@xmission.com". If you want to subscribe something other than the account the mail is coming from, such as a local redistribution list, then append that address to the "subscribe" command; for example, to subscribe "local-canslim": subscribe canslim-digest local-canslim@your.domain.net A non-digest (direct mail) version of this list is also available; to subscribe to that instead, replace all instances of "canslim-digest" in the commands above with "canslim". Back issues are available for anonymous FTP from ftp.xmission.com, in pub/lists/canslim/archive. These are organized by date.