From: canslim-owner@xmission.com To: canslim-digest@xmission.com Subject: canslim Digest V1 #45 Reply-To: canslim@xmission.com Errors-To: canslim-owner@xmission.com Precedence: canslim Digest Friday, 17 January 1997 Volume 01 : Number 045 In this issue: [CANSLIM] STOPS/LIMITS Re: [CANSLIM] TLGD (Tollgrade Comms) by Simon Re: [CANSLIM] cup and handle Re: [CANSLIM] Increasing group size? [CANSLIM] Replying to the list or individual? Re: [CANSLIM] charts Re: [CANSLIM] TLGD (Tollgrade Comms) by Simon Re: [CANSLIM] increasing list activity RE: [CANSLIM] cup and handle Re: [CANSLIM] cup and handle Re: [CANSLIM] STOPS/LIMITS Re: [CANSLIM] increasing list activity - CONTEST Re: [CANSLIM] Views on novice picks? Re: [CANSLIM] Replying to the list or individual? Re: [CANSLIM] cup and handle 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: connor@adrs1.dseg.ti.com (Martin Connor 575-6279) Date: Fri, 17 Jan 97 08:55:19 CST Subject: [CANSLIM] STOPS/LIMITS I am currently holding: ETEC (bought at 26) up at 38 ATML (bought at 31) up at 38 I called my broker to place STOP LOSS orders, and they said they could not because these are NASDAQ stocks and only the NYSE allows STOP LOSS orders. Is this true, or do I need to find another broker? Also, does any one have any comments on any of the WEB brokerage services? Thanks, Martin c. m-connor@ti.com ------------------------------ From: "David F. Cameron" Date: Fri, 17 Jan 97 9:25:21 CST Subject: Re: [CANSLIM] TLGD (Tollgrade Comms) by Simon My comments on TLGD: 1. Simon, good insight. I like your thoroughness & logic. 2. But.... I wouldn't buy TLGD despite the positives in DG. Keep in mind, though, that I'm wrong a lot (and I freely admit it!). I like the size of the company. I like the industry it is in. What I don't like is that its big volume spike was around Sep. 30. At that point, the stock would have been a buy (for me- if I wasn't wallowing in my own problems...). The move on around Dec. 23 brought it to a new base, but on much lower volume. If I'd bought on Sep.30 - I'd have sold on Dec. 26 or so. I don't think this is a bad stock, far from it. Its just that my experience with this chart formation is that the stock will most likely base for quite a while unless there is an earnings surprise or a major new product. As Zoran says, I sure wouldn't short it- I just wouldn't expect a move for a while. Having said all that,remember - make your OWN decisions. Don't sell on my advice! I am wrong often - but this game is all about probabilities - and the highest probability in MY mind is a long basing period. Good luck, (and keepposting) Dave Cameron dcameron@harper.cc.il.us ------------------------------ From: Jonathan Polito - Lucent ASCC Date: Fri, 17 Jan 1997 10:39:17 -0500 Subject: Re: [CANSLIM] cup and handle O'Neil gives a fundamental basis for picking stocks with CANSLIM. But part of the other side of the equation falls into chart analysis. The "action" of the stock and market contributes to the N,S,L,M. O'Neil gives really only an introduction to chart analysis. The patterns that he describes have been common, known patterns since before the advent of common computing. One of the most important tenets of Technical Analysis (the larger part of chart analysis) is that a trend remains in effect until a reversal. While this sounds obvious, identifying the trend and reversal can sometimes be rather difficult and is part art. That said, the cup+handle represents a consolidation of an uptrend. The problem buying a tight uptrend is that you risk a possible reversal. Even if the uptrend remains in effect, a correction could erode 2/3s of the previous uptrend. So the cup+handle, is a "saucer" type pattern with a further handle consolidation before a break-out. The saucer/cup shows profit taking and then re-accumulation, followed by the shakeout of the scaredy cats. The other patterns carry different meaning. A double bottom is a possible reversal of a down-trend. Whereas the conterpart in a uptrend, a double-top is bearish. Likewise, triangular patterns indicate other things.... These 2 parts really complement each other - find stocks matching the CANSLIM fundamental criteria, then look for bullish chart patterns. - - Jonathan. ------------------------------ From: jeff@scrooge.idec.sdl.usu.edu (Jeff Salisbury) Date: Fri, 17 Jan 1997 08:48:24 -0600 Subject: Re: [CANSLIM] Increasing group size? > Another thought that only Jeff can really speak to is: what would a > doubling, for instance, in group size do to the list server. And also, how > about a doubling in message traffic going out to a list doubled in size? > Maybe this would be insignificant extra work for the server, or maybe not. > How about it Jeff. Craig, The effect of doubling the CANSLIM group would be minimal. Xmission, my ISP, hosts dozens of mail lists, many of which are orders of magnitude larger than CANSLIM. > I believe that increasing the list size would be pretty easy with some > notices posted at various points on the internet. I initiated this group by making posts to misc.invest.stocks on a daily basis for about 1-2 weeks. The high initial growth-rate surprised me. Since that time, I have intermitently posted to newsgroups trying to bolster the CANSLIM group. The results from my occasional postings has underwhelmed me. I will try posting again on a daily basis for a 1-2 week period and report back the results. > But the key is to > increase the number of posters. I favor increasing the number of posters by increasing the size of the list. I don't favor removing people from the list if they don't participate... Best Regards, Jeff Salisbury - CANSLIM list admin ------------------------------ From: jeff@scrooge.idec.sdl.usu.edu (Jeff Salisbury) Date: Fri, 17 Jan 1997 08:56:38 -0600 Subject: [CANSLIM] Replying to the list or individual? > P.S. Jeff, when I responded to David's canslim message, it > sent it out to him personally. I thought you fixed that > field problem. Zoran, The CANSLIM list is setup to include a "reply-to: canslim@xmission.com" header in every message that goes out. Most mail tools use this header to fill in the address when you hit the "reply" button on your mail tool. My guess is that your tool isn't using this header... Regards, Jeff ------------------------------ From: Craig Griffin Date: Fri, 17 Jan 1997 10:58:42 -0500 Subject: Re: [CANSLIM] charts At 03:25 PM 1/17/97 +0100, you wrote: >For charts you can also use: > >http://www.investools.com/cgi-bin/charts.pl > Johan, I like this site! What I like is the ability to get log or arithmetic charts and the ability to select the moving averages displayed. (Unfortunately being a Windows 3.1 user, I could not evaluate the Win 95 site that Jeff mentioned.). Best regards, Craig ------------------------------ From: Craig Griffin Date: Fri, 17 Jan 1997 11:32:00 -0500 Subject: Re: [CANSLIM] TLGD (Tollgrade Comms) by Simon Hi Zoran, Glad to have you back from Macedonia. And I agree, after you step away for a bit it takes a while to get re-synced up with the market feel. But to the business at hand: At 09:27 AM 1/17/97 -0500, you wrote: > >In addition... >..(snip) >The % earnings increases would at least have >to go in sync with the PE. The estimated 18% >for 98 doesn't match the present PE of 35, >and I believe most of the growth fund managers >seek value by matching those two numbers. > O'Neil says that the best merchandise is never cheap and he only asks that the stock have a positive earnings estimate. He does not compare the estimate to the growth rate per se. Here are a couple of reasons for the phenomenon. 1) There are stocks such as Fastenal (FAST) (very high quality company) that NEVER trade at or near their estimated growth rate. Yet year after year the stock price advances with the same built in "premium". It's a great company, and if you do the investing math (which I have in a book at home - not here in FL with me), you will see that a company which will grow 30% year after year is well worth a PE of 58 now (if your timeframe is 3 years out). So in this case managers are paying for the expected CONSISTENCY of earnings. 2) There are other stocks such as Ascend, in the first few months after it went public, where the estimates were not even close. Once again I do not have my files of DGs to look back, but as an example: sometimes you will see a company with a 50% growth estimate in earnings for the coming year trading at a PE of 80. Then over the next 4 quarters this "overpriced" stock will come in with earnings growth of 100%, 120%, 178%, and 225%. Sure enough, as the earnings surprises come in, the analysts will dutifully raise their estimates, but never enough to make the stock look like a fair value. OFTEN BY THE TIME THIS HAPPENS THE STOCK IS READY TO TURN DOWN for it's first real correction or base period! 3) Sometimes stocks are mispriced, people think they are higher quality than they really are and the earnings don't come through with those wonderful surprises. In this situation you will get clobbered with gaps down, etc. What to do? Be aware that you will often have to pay up for the best merchandise. Buy breakouts and set your stops - this affords you protection. If you buy a breakout on a stock like this (pulling out of a 8 week or longer base and don't pay more than 5-10% past the pivot point). The stock will frequently run say 25% past the base before you get into the earnings period. Then, if the stock DOES tank due to earnings, the base you bought from will serve as support. They will frequently gap down, but "hang" at the top of the base, closing just above or below it for the day or at least giving you a few hours at that price to get out. Then you can at least break even or get out with a small loss. This is one of the more subtle reasons to buy a breakout, rather than a stock that is up 20% already ... to protect yourself from the sudden sideswipe. I have not applied this thinking to TLGD (Tollgrade), so I don't have an opinion yet on that particular stock (although thanks to Simon for bringing it to the group's attention and a hearty "Welcome Aboard, Simon" as well). Just to try to keep you from making a mistake that I have made for years - using PE vs earnings estimates to limit your selections. Just try to be sure when you pay up, that the merchandise you are buying is the real (quality) item and not an imposter with a good story only (and big hype). Whew. Sorry, I didn't have time to make this shorter. Hope this is useful. Best regards, Craig ------------------------------ From: Eric Shen - FDC Date: Fri, 17 Jan 1997 08:01:48 -0800 (PST) Subject: Re: [CANSLIM] increasing list activity Johan Van Houtven wrote: > Nice idea. We will have to set some rules. > How about picking stocks above a certain price. I don't follow the market close enough to buy $2 stocks and turn around and sell it for $2.25 an hour later. I remember that O'Neil's philosophy is that if a stock is low, it's low for a reason. That's why IBD doesn't list stocks under $12 in their most active/most up in price list. > --- 1 hours later, second thoughts --- > > Maybe a competion will make things here a bit too, umh, competitive? Maybe > we should just pick potential winners and discuss them here? What do you all > think? I would like to see everybody's picks and their reasoning behind it. I believe we can learn from both winners and losers. Not only would I like to see winning stocks, but I would like to learn why stocks that qualified for CANSLIM lost money. This can help me avoid pitfalls in the future. Eric > > At 11:20 PM 1/16/97 EST, you wrote: > >Hello everyone, > > > > Does anyone have any comments on a canslim stocking picking > >contest? I believe it would bring forth many "new" stocks for everyone. > > > >Jay in Pa > > > > > > --- Johan Van Houtven / Belgium > > - -- - ------------------------------------------------------------------------ Eric Shen 916-356-5536 Intel Corporation, FM5-161 fax: 916-356-5719 1900 Prairie City Rd, Folsom, CA 95630 eshen@pcocd2.intel.com - ------------------------------------------------------------------------ ------------------------------ From: Linda Thomas Date: Fri, 17 Jan 1997 10:29:07 -0500 Subject: RE: [CANSLIM] cup and handle - ------ =_NextPart_000_01BC0461.46089E40 Content-Type: text/plain; charset="us-ascii" Content-Transfer-Encoding: quoted-printable Zoran, I don't know whether your cup and handle theory is correct or not, but = it sounds reasonable. I recently read Martin Pring's _Technical = Analysis Explained_ which was a decent introduction to the subject, but = you'll never see the phrase "cup with handle" in the book so it won't be = any help in that regard. -Linda - ------ =_NextPart_000_01BC0461.46089E40 Content-Type: application/ms-tnef Content-Transfer-Encoding: base64 eJ8+IgkPAQaQCAAEAAAAAAABAAEAAQeQBgAIAAAA5AQAAAAAAADoAAEIgAcAGAAAAElQTS5NaWNy b3NvZnQgTWFpbC5Ob3RlADEIAQ2ABAACAAAAAgACAAEEkAYAqAEAAAEAAAAQAAAAAwAAMAIAAAAL AA8OAAAAAAIB/w8BAAAARwAAAAAAAACBKx+kvqMQGZ1uAN0BD1QCAAAAAGNhbnNsaW1AeG1pc3Np b24uY29tAFNNVFAAY2Fuc2xpbUB4bWlzc2lvbi5jb20AAB4AAjABAAAABQAAAFNNVFAAAAAAHgAD MAEAAAAVAAAAY2Fuc2xpbUB4bWlzc2lvbi5jb20AAAAAAwAVDAEAAAADAP4PBgAAAB4AATABAAAA FwAAACdjYW5zbGltQHhtaXNzaW9uLmNvbScAAAIBCzABAAAAGgAAAFNNVFA6Q0FOU0xJTUBYTUlT U0lPTi5DT00AAAADAAA5AAAAAAsAQDoBAAAAHgD2XwEAAAAVAAAAY2Fuc2xpbUB4bWlzc2lvbi5j b20AAAAAAgH3XwEAAABHAAAAAAAAAIErH6S+oxAZnW4A3QEPVAIAAAAAY2Fuc2xpbUB4bWlzc2lv bi5jb20AU01UUABjYW5zbGltQHhtaXNzaW9uLmNvbQAAAwD9XwEAAAADAP9fAAAAAAIB9g8BAAAA BAAAAAAAAAKRWgEEgAEAHQAAAFJFOiBbQ0FOU0xJTV0gY3VwIGFuZCBoYW5kbGUA9wgBBYADAA4A AADNBwEAEQAKAB0ABwAFABkBASCAAwAOAAAAzQcBABEACgAaADMABQBCAQEJgAEAIQAAADUyNzBF RTNDNDI2RkQwMTFCOTBBMDA0MDA1MkQ5RjIzAPUGAQOQBgD0CAAAIQAAAAsAAgABAAAACwAjAAAA AAADACYAAAAAAAsAKQAAAAAAAwAuAAAAAAADADYAAAAAAEAAOQCQSoItiwS8AR4AcAABAAAAHQAA AFJFOiBbQ0FOU0xJTV0gY3VwIGFuZCBoYW5kbGUAAAAAAgFxAAEAAAAWAAAAAbwEiy0XPO5wU29C EdC5CgBABS2fIwAAHgAeDAEAAAAFAAAAU01UUAAAAAAeAB8MAQAAABAAAABsaW5kYUB2aXNpeC5j b20AAwAGEFkiE9sDAAcQ/wAAAB4ACBABAAAAZQAAAFpPUkFOLElET05US05PV1dIRVRIRVJZT1VS Q1VQQU5ESEFORExFVEhFT1JZSVNDT1JSRUNUT1JOT1QsQlVUSVRTT1VORFNSRUFTT05BQkxFSVJF Q0VOVExZUkVBRE1BUlRJTlAAAAAAAgEJEAEAAADVBQAA0QUAAJ4NAABMWkZ1aw9epgMACgByY3Bn MTI1cjIMYGMxAzABBwtgbpEOEDAzMw8WZmUPkk8B9wKkA2MCAGNoCsBzhGV0AtFwcnEyAACSKgqh bm8SUCAwAdCFAdA2D6AwNTA0FCHzAdAUEDR9B20CgwBQA9T7Ef8TC2IT4RRQE7IY9BTQ+wcTFeQ1 Fk8XXxhnFBQY0lkU0WFoA3EV5DcRjjIUMzgbhCAHbSBDRT8V5B/RHt0UQB/vIPV5cucCgwwBEZ0x NhYxIz8DgvpHCdFrJLQWMSVODlAmbz0Dc1QIcCS0KaElTTg26ym/IPRCB0B0DeAktA/A7xqNH7gH EyFGMiMBL10i9/8w1SSWLOEanCYoMNQnyR6h/zSOKaYw1CsnH9E0jSzXMNS/LmkPkDcfH7kd8yFH MDm/9yLpPlUklTEPkDnPJjg+VP8nyEHgFj8piT5UKyZB4CmhXznvPdwuZgKRCOY7CW8w9Ur/ZQ4w NUwqTUFM/04J/0wUTjJMn1BvUC1Pr03fTC//EGA5oFX6VxFWz1fZTBRYAr9Wb1o/Wf1Zf1evW3Q5 DlAfXsRgIVhDYCACgnN0eepsB5BoCeB0AAATUAPwUGRjdGwKsVxieGGYZGp1YZAFEGdoBUI7ROIM AWMJwGKAAzBzbvxleBtgB7AFsADAAnMTEJxjcw+QAzBjsGRpLpBKdhOARAEQYXUugCAKUArAYQnA YXBoIM5GAiFhUxpSaS0/IQFAXGxpaaNiX2LDYgsgcs8JUGvCGtBrwnc0VWEbMJ5wAdBm4mPfZOhi YRtA/mQCIGbRZXMaUGgABRACMFYtaKADYTotUG9xIFModWJqBZB0cSBEYfh0ZTpo9CzhaY9qn2uv /2y/bcdh4G2AC4AOEmbRDDDPZIQOUG7fb+5SZWdgGzH4IEhlbYAEkGj0HqFy/790D3UfdisIYGKw C4BlYcDdZ2BsAUB2/3gCMILgCNDyYgqwdDh4eH0BD2MxoZ95P2/lg3B7QAtQeS9osPd2IAsRe7Vz aPQf0Xy/fc//ft92L23PhN+F74b0cUJw5L1yGTmJL2NfAzCDIzmNAg8aYo1/ehiUEERvY3X/B4AC MAXQaHBmRowUZyUMQPOVKGbBRW1ogHnABABKId+SQpGgkeCKwQGAbnGgAGC/CfBnEJaAAgFmAHfC ZQDwS5aAYaBwTqBcdgiQd/prC4BkIwCc4gTwB0AQYX8BQA4AipJh8IxQnkUCEG//BUIbURLycjCZ gAtgcjAhQKg6XFxwcG9oUW1ooDcDEAeQoPBNDeADYHNvuQGAIE8BIA3gnDBcoqbTmXALcGwuefB0 mhAbQLeR4GVBgOJ4AUCbQW5h8PdLEKREZ6RjAyAS8wCABZD4bHZsAFCm4A5wZgCm0v8BkAAgp2Kd MZbBAcGm0RsQnw9wAACm4AzQAZAgLkoy/6bIDlCngi6AkjCn/6kPqh+/D8Cm4AWBq7+sz63fbCMA 3abgbKt/sD+xRSmqTBpgx68fs/+xNGIgKAKRtR//pxMs4LLPt4+4n7mvp0AeoP+68qfPvF+9b6pM H9C6/8B//8GPwp+nQJFwv3/FD8YfxySfCvkDMJGfkq+NHXtaBbBNAHAsCoUKhUkgefEnpQVAa8zB IHdh8HSlcZQgeQhhIJaQcCAAcGtlQLDhZGHAINIhBbB5viAEANKwBbBLEM0QIAWx4RNQdCwgYoDA 1BAFQP2iUHWbUAQgSxB5wAIgAaD5YcAuINER1IGWwYag1iKfZUCXAAAgzIFwcmcnBCDWXwKRmJBU BZBoAwCd0d8wwNaAhqCZwZlgeAtTCYD9ApBf0eEN4GiQhwAEID6Q7wWBlsJwkQNgZA5wLpACIH3T oG/TotWwcZTVNNJxJ/5sAyBlgHth1bAJ4N1zaIB7aDATcSLSwgPw0iDTNSJn3HHdcwbgb2vVsdWC d/3RU2ITgABw1ABh8M0w4WRrciDWIWcLES7QTAyCILQtTJ0xYQqFSjAA5tAAAAADABAQAAAAAAMA ERAAAAAAAwCAEP////9AAAcwYDR53IoEvAFAAAgwYDR53IoEvAELAB+ACCAGAAAAAADAAAAAAAAA RgAAAAADhQAAAAAAAAMAIYAIIAYAAAAAAMAAAAAAAABGAAAAABCFAAAAAAAAAwAkgAggBgAAAAAA wAAAAAAAAEYAAAAAUoUAAFANAAAeAESACCAGAAAAAADAAAAAAAAARgAAAABUhQAAAQAAAAQAAAA4 LjAAAwBFgAggBgAAAAAAwAAAAAAAAEYAAAAAAYUAAAAAAAALAE6ACCAGAAAAAADAAAAAAAAARgAA AAAOhQAAAAAAAAMAT4AIIAYAAAAAAMAAAAAAAABGAAAAABGFAAAAAAAAAwBRgAggBgAAAAAAwAAA AAAAAEYAAAAAGIUAAAAAAAAeAGCACCAGAAAAAADAAAAAAAAARgAAAAA2hQAAAQAAAAEAAAAAAAAA HgBhgAggBgAAAAAAwAAAAAAAAEYAAAAAN4UAAAEAAAABAAAAAAAAAB4AYoAIIAYAAAAAAMAAAAAA AABGAAAAADiFAAABAAAAAQAAAAAAAAAeAD0AAQAAAAUAAABSRTogAAAAAAMADTT9NwAArb8= - ------ =_NextPart_000_01BC0461.46089E40-- ------------------------------ From: Craig Griffin Date: Fri, 17 Jan 1997 12:00:01 -0500 Subject: Re: [CANSLIM] cup and handle The Stock Farmer has a superb CANSLIM oriented site. In addition to nice stock picking, they are excellent chart readers (ie. I agree with most of what they say :^) ). Anyhow, here is a link to their "Cup and Handles" page with graphic examples, http://www.accessone.com/~logical/bases.htm Here are their chart pages - they don't outline the base here for you, but these are chart patterns that worked - ie. the breakouts were real and resulted in good gains, http://www.accessone.com/~logical/logicpix.htm http://www.accessone.com/~logical/oldpix1.htm http://www.accessone.com/~logical/oldpix2.htm Here is the main page, http://www.accessone.com/~logical/farmer.htm By the way, notice that most of the cups are not real deep. The deep cups with handles like AMAT has, are more failure prone, but not necessarily so. When I look at CURE I see a nice cup w/handle. Cup starts at 28 on 06/03/96. Cup ends on 11/26/96 at 28.25. Handle then forms. It droops down (which is good) to a low of 24.25 on 12/19/96. The price then starts to "climb up the handle". Sometimes I have heard it is ok to "buy half-way up the handle" (from Ian Woodward) in strong markets. Thats what this means. After the drooping of the handle is complete and the price starts back up the handle. Then on 1/03/97 you get a breakout on good volume with a high that day of 30. Note that the pivot point or break point is 28.25 (the high point in the handle). This is not a perfect formation because the handle drooped down too much (more than 10%). But I have found that if you wait for a perfect formation, you miss a lot of opportunities. Hope this helps. Best regards, Craig ------------------------------ From: Zoran Mitrovski Date: Fri, 17 Jan 1997 12:01:32 -0500 (EST) Subject: Re: [CANSLIM] STOPS/LIMITS Martin wrote: > I am currently holding: > > ETEC (bought at 26) up at 38 > ATML (bought at 31) up at 38 Congratulations, Martin. Nice job. > I called my broker to place STOP LOSS orders, and they said they could not > because these are NASDAQ stocks and only the NYSE allows STOP LOSS orders. > > Is this true, or do I need to find another broker? > Also, does any one have any comments on any of the WEB brokerage services? FIND ANOTHER BROKER!!!!!!!!!!! Please! I'm with E*trade, and I like it so far. Their phone lines suck big time though. In no time of day can I reach them without 10-20 min hold-time. Their new site is really nice with tons of news, charts, quotes and research info. They promise to also include technical charting analysis (with Java) ability in Feb. I haven't checked the others, but I have heard good stuff about Lombard, Datek (no research, news and fancy stuff, but real time quotes and fast executions). > Thanks, > > Martin c. > m-connor@ti.com Good luck, Zoran ;^) ------------------------------ From: Zoran Mitrovski Date: Fri, 17 Jan 1997 12:07:14 -0500 (EST) Subject: Re: [CANSLIM] increasing list activity - CONTEST Johan, I like your second thoughts better. > --- 1 hours later, second thoughts --- > > Maybe a competion will make things here a bit too, umh, competitive? Maybe > we should just pick potential winners and discuss them here? What do you all > think? A contest would be also logistically impossible to support. For example who would keep track of the results? How do you deal with trading frequency? Etc. I like it the way it is, and especially the new traffic increase as of lately. We're doing just fine, can't you see? Cheers, Zoran ;^) ------------------------------ From: Eric Shen - FDC Date: Fri, 17 Jan 1997 08:25:27 -0800 (PST) Subject: Re: [CANSLIM] Views on novice picks? tom worley wrote: [Charset ISO-8859-1 unsupported, filtering to ASCII...] > A five week "trial" subscription to the NASDAQ edition is a grand total of > $14 plus $15 postage (sad when postage is worth more than the product, what > is this country coming to) and a full year subscription (52 weekly books) > is all of $363 plus $156. If in five weeks I can't make at least one > successful decision worth $29 be it to cut a loser or buy/hold/sell a > winner or in one year one successful trade for $519 profit, then I will > quit calling myself a CANSLIMer. I agree that DG is a good tool, but not the only tool available. For those people that are just starting out and don't have that much cash available to spend on individual stocks, a $500 outlay for research is pretty costly. For example, if I have $5000 to work with, I will need to make at least 10% a year to cover DG costs. It's worse than a loaded mutual-fund. Value Line gives good information, albeit to a limited number of stocks. I can find Value Line in my local library which is free. (Not exactly, since I pay property and state income taxes, but I digress...) > > Value line also gives poor coverage to high PE stocks, which is where > virtually every emerging new company and technology will be found. > That's true, but not all CANSLIM stocks are emerging new company and technology stocks. La Quinta Motor Inns was a CANSLIM stock and I don't they are that hi-tech. :) > tom w > ---------- Eric - -- - ------------------------------------------------------------------------ Eric Shen 916-356-5536 Intel Corporation, FM5-161 fax: 916-356-5719 1900 Prairie City Rd, Folsom, CA 95630 eshen@pcocd2.intel.com - ------------------------------------------------------------------------ ------------------------------ From: Craig Griffin Date: Fri, 17 Jan 1997 12:39:23 -0500 Subject: Re: [CANSLIM] Replying to the list or individual? Jeff, It's not doing it one way or the other consistently. This post that you just sent had your e-mail in the reply-to box, not the canslim@xmission.com. I had to change it to send it to the list. Weird, but true. I have sent two or three with that result in the last few days. Additionally, I have sent either two or three to the list server which I never got back. But other people got them because they responded to them! Can't help but think that it is xmission.com doing this too. Anybody else sometimes not getting back a copy of his own posts? Thanks Jeff. Speaking for myself and for the list, we do appreciate your sponsorship. Very best regards, Craig At 08:56 AM 1/17/97 -0600, you wrote: >> P.S. Jeff, when I responded to David's canslim message, it >> sent it out to him personally. I thought you fixed that >> field problem. > >Zoran, > >The CANSLIM list is setup to include a "reply-to: canslim@xmission.com" header >in every message that goes out. Most mail tools use this header to fill in the >address when you hit the "reply" button on your mail tool. My guess is that >your tool isn't using this header... > >Regards, > >Jeff > ------------------------------ From: Craig Griffin Date: Fri, 17 Jan 1997 12:43:41 -0500 Subject: Re: [CANSLIM] cup and handle Jonathan, Great post! I learned a lot. Thank you! Best regards, Craig At 10:39 AM 1/17/97 -0500, you wrote: > >O'Neil gives a fundamental basis for picking stocks with CANSLIM. But >part of the other side of the equation falls into chart analysis. The >"action" of the stock and market contributes to the N,S,L,M. O'Neil >gives really only an introduction to chart analysis. The patterns that >he describes have been common, known patterns since before the advent >of common computing. > >One of the most important tenets of Technical Analysis (the larger >part of chart analysis) is that a trend remains in effect until a >reversal. While this sounds obvious, identifying the trend and >reversal can sometimes be rather difficult and is part art. > >That said, the cup+handle represents a consolidation of an >uptrend. The problem buying a tight uptrend is that you risk a >possible reversal. Even if the uptrend remains in effect, a correction >could erode 2/3s of the previous uptrend. > >So the cup+handle, is a "saucer" type pattern with a further handle >consolidation before a break-out. The saucer/cup shows profit taking >and then re-accumulation, followed by the shakeout of the scaredy >cats. > >The other patterns carry different meaning. > >A double bottom is a possible reversal of a down-trend. Whereas the >conterpart in a uptrend, a double-top is bearish. Likewise, triangular >patterns indicate other things.... > >These 2 parts really complement each other - find stocks matching the >CANSLIM fundamental criteria, then look for bullish chart patterns. > >- Jonathan. > > ------------------------------ End of canslim Digest V1 #45 **************************** To subscribe to canslim Digest, send the command: subscribe canslim-digest in the body of a message to "majordomo@xmission.com". 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