From: canslim-owner@xmission.com (canslim Digest) To: canslim-digest@xmission.com Subject: canslim Digest V1 #238 Reply-To: canslim@xmission.com Sender: canslim-owner@xmission.com Errors-To: canslim-owner@xmission.com Precedence: canslim Digest Tuesday, June 24 1997 Volume 01 : Number 238 In this issue: Re: [CANSLIM] Mkt comment (was Fundamental Importance) Re: [CANSLIM] Fundamental Importance [CANSLIM] hello Re: [CANSLIM] IBD Online Re: [CANSLIM] IBD Online [CANSLIM] issues with big bases that have yet to break out. Re: [CANSLIM] IBD Online Re: [CANSLIM] Cup and Handle [CANSLIM] IBD,DG online Re: [CANSLIM] IBD Online Re: [CANSLIM] MRVC [CANSLIM] PROX Re: [CANSLIM] issues with big bases that have yet to break out. [CANSLIM] FW: MRVC Specs Re: [CANSLIM] IBD Online Re: [CANSLIM] Fundamental Importance Re: [CANSLIM] MRVC [CANSLIM] Economic Reports Re: [CANSLIM] Cup and Handle Re: [CANSLIM] Fundamental Importance Re: [CANSLIM] Daily Graphs [CANSLIM] Re: your mail Re: [CANSLIM] IBD Online RE: [CANSLIM] Fundamental Importance 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. ---------------------------------------------------------------------- Date: Tue, 24 Jun 1997 09:32:22 -0700 From: "Ken Davidson" Subject: Re: [CANSLIM] Mkt comment (was Fundamental Importance) The market is'nt coming back very much this morning. If the market closed down today momentum players will be singing the blues. We could have a great test on the upside of the market here. One thing that is interesting is that bonds have completly taken out any possibility of a interest rate rise. It would be interesting to see what happens if the Fed does raise rates! Ken Davidson - ---------- > From: Tom Worley > To: canslim@mail.xmission.com > Subject: Re: [CANSLIM] Mkt comment (was Fundamental Importance) > Date: June 23, 1997 6:54 PM > > Well, survived the lightning. Reading my quick comments, guess I > was right, at least about the volatility. In case you didn't catch > the news big event today on relatively light volume was the > Japanese Prime Minister making some comments about possibly dumping > US Treasuries to keep the US dollar weak. Since the Japanese are > huge holders of US stocks and bonds, this was viewed as a real > threat, and the bond and stock mkt sold off. Well after the close, > he was still apologizing for how his comments were misunderstood > (well, duh, like they are going to throw away about 3 basis points > just to try and manipulate the foreign exchange??). As a result, I > expect a strong bond mkt tomorrow with the stock mkt (at least the > big caps) following suit. > > tom w > ---------- > > From: Tom Worley > > To: canslim@mail.xmission.com > > Subject: Re: [CANSLIM] Fundamental Importance > > Date: Sunday, June 22, 1997 7:45 AM > > > > I continue to see some negative preannouncements of earnings, on > > Friday this included TRID and CACI. My gut feeling with no > > > off early. Next week will likely remain volatile, but with vol > > decreasing (adding to the volatility) since we are now well into > > the summer doldrums. > > > > you money. I'm gone, lightning close. > > > > tom w > > > > Any statements or opinions are strictly my own and not that of my > > employer. My comments should not be intrepreted as a > recommendation > > of any kind. I am a licensed (inactive) broker and an active > > investor. All investors should do their own research prior to any > > investment, especially one learned about on the Internet. > > > > ---------- > > > From: pwahl@postoffice.worldnet.att.net > > > To: canslim@mail.xmission.com > > > Subject: Re: [CANSLIM] Fundamental Importance > > > Date: Saturday, June 21, 1997 9:50 PM > > > > > > How about a market comment? - Looking ahead to next week, there > > are no > > > major economic reports due to be released, the next FOMC > meeting > > is > > > on July 1 and 2, and we are beginning to get near the next > > earnings > > > reporting period. Throwing all that together, I sort of expect > a > > > > > quiet market next week, for a change. > > > > > > Longer term, some guy on NBR tonight predicted a Dow at 40,000 > in > > 20 > > > years, so maybe buying the S&P index and just holding forever > is > > the > > > way to go. > > > > > > > > > ------------------------------ Date: Tue, 24 Jun 1997 09:36:43 -0700 From: "Ken Davidson" Subject: Re: [CANSLIM] Fundamental Importance I write a weekly comment on economic data each week and the up coming possiblities. For example: Economic Effects Monday was a quiet day as nothing came out. Tuesday revealed that we continue to have no inflation in the economy as CPI was reported only being up +.01%, core rate up +.02%. For the year, CPI is only up 1.4%. Housing starts came in lower instead of an expected rise. Starts were down -4.82% At 9:15 est. Industrial production was reported quite strong coming in up 4/10ths%, capacity utilization was 83.7. This is a very high level and may be hard to sustain without future inflation. Bonds sold off on the good news. They have had quite a run of late so this may be why. Stocks began lower but then moved higher as the day went on. Weekly chain store sales were up for another week. Johnson Redbook numbers were strong for the second week in a row coming in up +1.7%. BTM Schroeder numbers were flat for the week. The market is still ignoring these numbers as everyone is thinking that the economy won't pick up in the near term. Thursday had another surprise in weekly jobless claims being up instead of down. They were up +8000, moving the four week average to 335,000. The Philadelphia federal reserve business activity report came in at a strong 25.2 but prices paid went down to 15 from 16.2. At first bonds fell on the news but then meandered back to neutral ground by the close. Next week's Economic data This coming week's economic indicators will be the last before the Fed meets July 1st and 2nd. On Tuesday, Consumer confidence will be out. This will give them a good idea of how confident the public are with the present economic situation. Along with this number will be the weekly chain store sales reports. These numbers could have some impact as the Johnson Redbook numbers the last two weeks have been very strong. On Wednesday, durable goods orders and existing home sales are out. The timing for these numbers could be good because if the economy is going to begin to show any strength for the second half of the year it could start here. Thursday has weekly jobless claims and the overall help wanted index. Jobless claims have been on the rise of late so they could be a good indicator to see if the trend is continuing. On Friday we get the last revision for second quarter GDP and consumer sentiment to verify the consumer confidence number. The numbers out this week probably won't sway the Fed in any direction on interest rates but if there is something that appears out of whack with consensus, who knows what could happen! Hope you like this. If anyone would like more info let me know. Ken Davidson > Time constraints have prevented me from posting as much economic > stuff. In addition, I have been monitoring a weekly review from > "timely-invest" which was mentioned here some weeks ago, and have > found it to be a good source for those interested in the economic > impact on the market. I find that the weekly commentary posted (to > subscribe send email to timely-invest-on@mail-list.com) is so close > to what I would have written that this is one more task that I can > abdicate (in truth, it "warms the cockles of my heart" as one of my > former Commanding Officers was so fond of saying, when I find > myself no longer needed in an educational/informative phase). The > one item that this site lacks is forecasting the upcoming economic > reports, and I will continue to post that, with whatever opinion I > may have. > > As far as next week is concerned, there is very little of > significance to watch for. There are two "consumer confidence" > reports out, neither are likely to affect the mkt or the Feds. On > Wednesday, the Durable Goods report is released, and may be > significant due to the recent increases in industrial production. > Also on Wed is the Existing Home Sales, which I don't expect to > make a difference, altho likely to be up a tad due recent mortgage > rate drops. On Thursday is the Jobless Claims, only sig here will > be if it shows a change in trend from the recent pattern of > increasing claims. And on Friday is the revision to Q1 GDP, again > not likely to be a market mover. The only remaining economic report > due out of significance is the monthly employment report, and I > don't know if it will be released prior to the Fed's meeting on > 7/1-2. > > I continue to see some negative preannouncements of earnings, on > Friday this included TRID and CACI. My gut feeling with no > scientific assessment is that Q2 earnings are not as robost as Q1. > Some of this may be a result of analysts being too euphoric, vice a > true slow down in growth, but there have definitely been some signs > of growth decelleration in some sectors, such as the storage cos. I > have seen some early warning signs on PC makers as well, with the > homes in the US with a PC now over 40%. On the other hand, I saw a > report that something like 25% of all PCs are replaced annually > (this was home and business combined, I think). And, of course, of > those not replaced, some are being upgraded with addl RAM, drive, > and/or software, so these industry sub-sectors are hardly dead in > the water. > > I am in the midst of a weather front, with lightning, so signing > off early. Next week will likely remain volatile, but with vol > decreasing (adding to the volatility) since we are now well into > the summer doldrums. > > BTW, you can't buy S&P and "hold on forever" even if you liked the > 8+% return, since options eventually expire, and time would cost > you money. I'm gone, lightning close. > > tom w > > Any statements or opinions are strictly my own and not that of my > employer. My comments should not be intrepreted as a recommendation > of any kind. I am a licensed (inactive) broker and an active > investor. All investors should do their own research prior to any > investment, especially one learned about on the Internet. > > ---------- > > From: pwahl@postoffice.worldnet.att.net > > To: canslim@mail.xmission.com > > Subject: Re: [CANSLIM] Fundamental Importance > > Date: Saturday, June 21, 1997 9:50 PM > > > > How about a market comment? - Looking ahead to next week, there > are no > > major economic reports due to be released, the next FOMC meeting > is > > on July 1 and 2, and we are beginning to get near the next > earnings > > reporting period. Throwing all that together, I sort of expect a > > > quiet market next week, for a change. > > > > Longer term, some guy on NBR tonight predicted a Dow at 40,000 in > 20 > > years, so maybe buying the S&P index and just holding forever is > the > > way to go. > > > > > > ------------------------------ Date: Tue, 24 Jun 1997 09:20:27 -0700 From: "Ken Davidson" Subject: [CANSLIM] hello hello. Here is my market view. I am going to up grade it a bit this friday as one of my most important indicators just gave me a signal. They only come around every 5 years or so. > How about a market comment? - Looking ahead to next week, there are no > major economic reports due to be released, the next FOMC meeting is > on July 1 and 2, and we are beginning to get near the next earnings > reporting period. Throwing all that together, I sort of expect a > quiet market next week, for a change. > > Longer term, some guy on NBR tonight predicted a Dow at 40,000 in 20 > years, so maybe buying the S&P index and just holding forever is the > way to go. I've been thinking much about the comparisons of this time period and 1987 and I'm starting to see the signs but I think we have further to go. You could really see and feel it coming in `87. The build up was incredible. Each day as the market went higher the elastic got tighter. This time around it feels like it's unbelievable what has happened but it doesn't seem like a mania yet. In September of `87 I read on the front of the Globe and Mail that a newspaper boy was taking all of the money he earned and putting it into mutual funds. That was the day I turned bearish on the market. Today kids are learning about the market in school and doing pretend trading for practice. The recent move we've had has caught people off guard. I think its because it has been so fast. The market is going faster then the sharp rise the Japanese Market had into 1990. After the blowoff the Nikkeis high was 44,000. Today it still sits over 50% lower at 20,250. Interestingly, both the Dow and the Nikkei Dow were at 1000 in 1982! This market has moved so fast in 2 months people haven't been able to catch up. With all of the money pouring into the market I don't know if we'll see a real bear market for quite some time. In 1987 many people called it a bear market. I don't because it only lasted a little over 2 months. It was a devastating blow to many people but it wasn't agonizing. Some people foretold a depression coming after the crash but once the market settled down it was back to the same grind. The peak of the market was in August and it slowly descended until the week before the crash. That week and the day of the crash were the biggest declines. The low in the market was set on crash day Oct. 19th 1987. Since that day the market has basically been straight up. Even the 1990 correction was closer to a bear market being 4 months in duration. The market actually stayed down after the crash! If we see another crash in the market I think it will decline fast and then start to retrace its fall. If the market hits a new high and then decides it can't move any further then I would consider that we're in for a sustained bear market. But until money quits coming into the market all I can see at worst are corrections. They could be at least 20% corrections, however! Ken ------------------------------ Date: Tue, 24 Jun 1997 12:53:57 -0400 (EDT) From: investor@yvv.com (Trader Jack) Subject: Re: [CANSLIM] IBD Online >O'neil himself has a couple 21" monitors to view a couple thousand graphs >each time he sits down as well as every imaginable search screen method. >He is definately NOT in the analog age. Very much digital. That's all well and good for the "Big O", but if he wants to keep the circulation up on IBD, he's gonna havta digitize it. O'Neil may be digital but IBD sure isn't. Trader Jack ------------------------------ Date: Tue, 24 Jun 1997 13:03:24 -0400 From: Jonathan Polito - Lucent ASCC Subject: Re: [CANSLIM] IBD Online >>>>> "Zoran" == Zoran Mitrovski writes: Zoran> This irrational tendency to keep the hard-copy version of the Zoran> paper alive, by purposefully avoiding to take advantage of new Zoran> technology reminds me of the situation when Kodak deliberately Zoran> avoided taking advantage of the new digital imaging Zoran> advancements just to keep the present cash-cow (chemical film Zoran> processing) industry alive. I believe they woke up in time. This also reminds of AT&T not trying to not encourage the Internet because they were afraid that Internet telephony would bite into their long-distance cash cow. Of course, now that Lucent has separated from AT&T, Lucent is pushing Internet technology big time. - - Jonathan. ------------------------------ Date: Tue, 24 Jun 1997 11:05:52 -0700 From: Harlan Subject: [CANSLIM] issues with big bases that have yet to break out. The following is a list of issues with the fundamental characteristics similiar to those of the model book study of the biggest winners in history with big bases that have yet to break out. All that remains are the technical aspects to consider. MRVC-MRV Comms. Breakout is 30.0 as of the time of this posting It's breaking into a new high right now. CMVT- Comverse technology . Breakout is 38.0 with vol. ,also a Telecom stock,would like to see RS improve a bit. WHIT- Whitman-Hart. 9month base breakout 29.0 with vol. BEAV-BE aerospace 6month base, just finished a cup waiting for handle to form. breakout at 29.0 with vol. SCTR-Specialty Teleconstructors 6month base, in process of finishing a cup. needs a little time yet,keep on your shopping list. I'd rather have a list and be prepared in the event that they do breakout than to read about the ones that did breakout in the paper and say OOPS missed that one. stay tuned the next list will be issues with characteristics similiar to those of the model book study that have broken out and am waiting for an initial pullback (some will some won't,sometimes this is more of an art than a science.) And maybe time permitting the next list would be comprised of issues that are in an uptrend that tend to trade along the moving averages (20,50) the risk with those is that you never know when the party ends. Thats why you use the moving average as your guide and your stop. More on that later. Just calling it as I see it. Harlan Any statements or opinions are strictly my own and not that of my employer. My comments should not be interpreted as a recomendation of any kind. I'm a lisenced broker and active trader. All investors should do they're own research prior to any investment, especially one learned on the Internet. This is strictly for informational and educational purposes only. ------------------------------ Date: Tue, 24 Jun 1997 12:24:47 -0500 (CDT) From: Anthony Ku Subject: Re: [CANSLIM] IBD Online Dailygraphs includes a lot more information than IBD has. Dailygraph is definitelyworth the price, though expensive. I don't like the Online version of it because it does not have search functions. Plus I like to just browse through 3000 stocks weekly and see which stocks met my criteria technically, then look for fundamental information and see if it worth buying. It's hard to scan through 3000 stocks using anything on the computer. If they have a search function that allows you to search, say, stocks thathave EPS > 90, RS > 80 and made a new high on heavy volume, then it'd be wroth getting the online version. Anthony Ku aku@idir.net On Mon, 23 Jun 1997, Charles F. Corbit III wrote: > When I subscribed to IBD a couple of weeks ago, I asked the sales rep if > they were ever planning to put the stock quotes on line, so that you could > search and sort. She said that O'Neil was against that and had absolutely > no plans of doing that. The reason she said was that O'Neil thought that > investing and research required a hands on approach (IMHO, not a very > progressive view to hold). However, I am confused as they have the DGs > online. I am assuming that the DGs are updated daily at close and that it > include ALL stocks in the IBD ? Why is the price so high ? Are there > other features that I am not aware of ? > > Regards, > > Charlie > ------------------------------ Date: Tue, 24 Jun 1997 12:27:28 -0500 (CDT) From: Anthony Ku Subject: Re: [CANSLIM] Cup and Handle I like the formation on ADEX. It is currently inching up higher and higher due to earning expectation. Be careful though, if the earning is negative, you can see an instant drop of at least $5 in the stock, which is typically norm nowadays. Anthony Ku On Mon, 23 Jun 1997, Charles F. Corbit III wrote: > Here are a couple I have been tracking, can some of the resident experts > please tell me if they see a valid cup and handle (or beginnings of a > handle) ? The volume looks like it is picking up for DCO. > > DCO > ----------------------------- > EPS 90 > RS 92 > Acc/Dis A > Mgt 32 % > Inst 31% > Shrs out 7.3 MM > Grp Str A > 5yr EPS 20 % > 12 Mos. EPS Change: 41.3 % > > > ADEX > ---------------------------- > EPS 95 > RS 97 > Acc/Dis A > Mgt 33 % > Inst 33 % > Shrs Out 8.5 MM > Grp Str A > Ann EPS 250 % > Qtr EPS 36 % > > > I picked up ADEX the other day, so I hope I made the right choice, I > thinking the earnings on 6/27 will give it a short boost. Thanks for the > help. > > Charlie > ------------------------------ Date: Tue, 24 Jun 1997 11:26:12 -0700 From: Harlan Subject: [CANSLIM] IBD,DG online I've recently read about alot about this online issue thats being discussed so much and thought I'd add my two cents. In reguards to the screening issue that was brought up they do have a screening service, however its only open to us institutions, the price is (for an individual investor ) astronomical , for institutions its a matter of the internal budjet,and whether or not to go the soft dollar route (trades for research) some of they're proppriatory reseach is in the line of 75,000 a yr. believe it or not. FWIW Harlan Pyan ------------------------------ Date: Tue, 24 Jun 1997 13:27:48 -0400 (EDT) From: Zoran Mitrovski Subject: Re: [CANSLIM] IBD Online Trader Jack wrote: > ... > There are better ways to make decisions than simply > using straight numbers (sorry all of you engineers out there!). :) Don't apologize to us, TJ. ;^) I would think that it is exactly the engineers who would come out first and question the meaning of the presented numbers. We love the numbers not because they are there to be played with, but because they MEAN something. The problem arives when the numbers start losing their intended meaning (thus value). One of my most mportant trading rules is NEVER to let a number that I don't know EXACTLY how it is derived, influence my trading decisions. Btw, how "straight" were the numbers that you used to describe PROX to the group? ;^) Numbers are cool, TJ. ;^) Cheers, Zoran http://www.seas.rochester.edu:8080/ee/users/zmitrov/home.html ------------------------------ Date: Tue, 24 Jun 1997 11:36:38 -0600 (MDT) From: Jeff Beckham Subject: Re: [CANSLIM] MRVC >Triple top. Hehehe. > > Seriously, it will turn into one unless there's follow-thru >volume on the current b/o. It still has quite cleared the upper reaches of its >trailing 12month high. Take a look at the 5 year chart if you haven't >already. Just off the screen of the one year chart you'll see a climax top >back in Spring of '96 at approx $34/share. You may get some buffetting >from this as the last of these folks are washed out. Check out the volume >on the climax! Yeee---hawwww! > >Trader Jack This top occured when Cabot put out a strong buy recommendation on this one. This happened about the same time as Presstek and Iomega were recommended. Shortly after they all went bust. Jeff ------------------------------ Date: Tue, 24 Jun 1997 11:39:19 -0700 From: Harlan Subject: [CANSLIM] PROX Trader Jack, couldn't have said it better myself,notice a theme here? wireless, wireless, wireless. sounds like the Telecom Equip. group to me. take a good look at some other stocks in the group, what do you all see. How about a lot of stocks in the group finishing of corrections/consolidations trying to make another run? you tell me? ------------------------------ Date: Tue, 24 Jun 1997 13:54:40 -0400 (EDT) From: Zoran Mitrovski Subject: Re: [CANSLIM] issues with big bases that have yet to break out. Harlan wrote: > CMVT- Comverse technology . Breakout is 38.0 with vol. ,also a Telecom > stock,would like to see RS improve a bit. You must mean 48. I bot this one on the fake breakout a couple of weeks ago (I think Patrick mentioned it first together with ACTM, and I posted my analysis on them as well). > I'd rather have > a list and be prepared in the event that they do breakout than to read > about the ones that did breakout in the paper and say OOPS missed that > one. Or even better trade the range of the base once it's established well. After the fake b/o on CMVT, I traded it two times (in @ 44 5/8, and out @ 46) in the calmness of the low volume envirnment and by using limit orders once it approached the buy/sell points. I just closed the last trade yesterday. Actually it closed itself because it only spiked long enough for my limit sale to get executed. I also think it is a great co and worth watching for a b/o @ 48 on volume for a long term trade. Cheers, Zoran http://www.seas.rochester.edu:8080/ee/users/zmitrov/home.html ------------------------------ Date: Tue, 24 Jun 1997 13:08:27 -0500 From: "SIMMS, FRANK R. (JSC-EV4)" Subject: [CANSLIM] FW: MRVC Specs > >Has MRVC started it's move? Ian liked it a couple of weeks ago. >According to Ian: > > "Its ERG credentials are 99:76:75 .. In the last four qtrs it has delivered >120%, 100%, 100% and 111%.. > Its Acc/Dist is an 'A'" > > ------------------------------ Date: Tue, 24 Jun 1997 15:57:49 -0400 (EDT) From: investor@yvv.com (Trader Jack) Subject: Re: [CANSLIM] IBD Online > >Trader Jack wrote: > >Btw, how "straight" were the numbers that you used to describe >PROX to the group? ;^) Numbers are cool, TJ. ;^) Well, the numbers looked pretty straight, but I'm not sure if the analysts' pens were crooked or not... :) TJ ------------------------------ Date: Tue, 24 Jun 1997 00:17:29 -0800 From: pwahl@postoffice.worldnet.att.net Subject: Re: [CANSLIM] Fundamental Importance > From: "Tom Worley" > BTW, you can't buy S&P and "hold on forever" even if you liked the > 8+% return, since options eventually expire, and time would cost > you money. I'm gone, lightning close. Sure you can: Any S&P Index Fund, such as the Vanguard Fund. ------------------------------ Date: Tue, 24 Jun 1997 13:00:19 -0800 From: pwahl@postoffice.worldnet.att.net Subject: Re: [CANSLIM] MRVC > To: canslim@xmission.com > On a positive note MRVC was up 1 3/4 on 3X their normal volume on an > otherwise dismal day for the market. > > Could someone give their TA on the chart on this one? I see several > different patterns when I look at it! I've been trying to figure it out myself. Don't agree with other post I saw the it is making a triangle, or is in an uptrend. I suppose the entire period the price has spent between 20 and 29, something like 9 months(?), is a broad base, although rather loose. It probably needs to be above 30 to consitute a breakout, would be a little more convincing if the base had not had such a wide range. The positive is the growth rate, well ahead of the PE ratio. That would seem to indicate good price appreciation potential. Hopefully this is somewhat more helpful than confusing. You are right, tough one to figure out. ------------------------------ Date: Tue, 24 Jun 1997 13:00:19 -0800 From: pwahl@postoffice.worldnet.att.net Subject: [CANSLIM] Economic Reports This is probably of most interest to Tom, and any bond traders, but here is the lowdown on which economic reports cause the most price movement in the bond market. This is important because bonds tend to move the stock market, and most of these reports, if not all, are released at 8:30 am est. This is from the Mar. 1997 issue of Technical An. of stocks and commodities, from the Alex Saitta interview. 32 ticks is a 0.1% move in the yield, which is fairly substantial in the bond world. Report Avg Range Emplyment/Payroll 48 Retail Sales 35 CPI 35 PPI 34 GDP 34 Housing Starts 29 Nat Assoc. of Pur. Managers 29 Leading Indicators 29 Industrial Prod. 28 Durable Goods 27 Personal Income 27 Trade Fig. 27 Easy to see why the Employment report is closely watched each month. Incidentally, each Monday the front page of the IBD has a calendar of which reports are due for the upcoming week. ------------------------------ Date: Tue, 24 Jun 1997 13:00:19 -0800 From: pwahl@postoffice.worldnet.att.net Subject: Re: [CANSLIM] Cup and Handle > From: "Charles F. Corbit III" > I picked up ADEX the other day, so I hope I made the right choice, I > thinking the earnings on 6/27 will give it a short boost. Thanks for the > help. Can't argue with your results, I guess you could say it formed a flag during the first week of June, probably not a bad place to get in. The more exact buy point was the first week of May, where it spiked out of a downward drifting handle, I guess it was, on high volume. Also note that volume was very low in April as the price drifted lower. Volume again dried up in June as price drifted down. I would take the lower volume on price consolidations and increased volume on price increases as good signs. I hope I am not beating a dead horse, but this chart is a good one to use as an example on why trailing too tight a stop is going to cost you in the longer haul. The buy point was around 21, the price went to 26 (+23%), pulled back to just under 23 (3/26 = 11% retracement), before turning up again, and hitting 28 today. If you mechanically use a trailing stop of 8%, you are out at 24 or so. But if you had watched the stock during the drop to 23, the volume was light, seemed like it was worth hanging in there for further price gains. I promise, that was my last word on stops. ------------------------------ Date: Tue, 24 Jun 1997 15:17:08 -0500 (CDT) From: Anthony Ku Subject: Re: [CANSLIM] Fundamental Importance But look at that ugly chart of BOST. Fundamental analysis alone isn't good enough. Anthony Ku On Mon, 23 Jun 1997, Tom Worley wrote: > On the other hand, there is a lot that the individual investor can > "discover" all on his own. Using BOST as the example, notice > whether the parking lot is as full as it used to be, ask yourself > did you use one of their coupons in the afternoon rather than > buying dinner at a much higher price, how are they compared to the > competition in quality, service, size of portions, price, etc. You > would be surprised how much this kiind of "subjective observation" > can alert you to a stock that is "happening" vs one in trouble. > Also listen to what your friends and associates say, are they > raving or condemning. You shouldn't base an investment decision on > this kind of input, but it can be very valuable in alerting you and > making you take a closer look. > > I also encourage all to go to the SEC site and read the recent > filings. yeah, I know, they are often long and boring, but often > the analyst's upgrades and downgrades are right out of the comments > section of a 10Q or 10K. It's their job to read this kind of stuff, > and they do, and the results often move the market, at least on > that stock. > > tom w > > Any statements or opinions are strictly my own and not that of my > employer. My comments should not be intrepreted as a recommendation > of any kind. I am a licensed (inactive) broker and an active > investor. All investors should do their own research prior to any > investment, especially one learned about on the Internet. > > ---------- > > From: Eccless@aol.com > > To: canslim@mail.xmission.com > > Subject: Re: [CANSLIM] Fundamental Importance > > Date: Monday, June 23, 1997 8:55 AM > > > > In a message dated 97-06-21 02:55:48 EDT, Trader Jack wrote: > > > > << Well, the below article tells what the big money hasn't been > ignoring > > about BOST. > > Lots of unknowns associated with the company's restructuring has > given money > > managers the willys. Big money hates a "certainty" that > suddenly becomes an > > uncertainty. BOST now fits the latter description. > > >> > > > > Thanks for your comments and news item regarding Boston Chicken. > > > > It's interesting to note, however, that BOST's decline began in > December, > > considerably before the negative information became available. > Watching the > > market action tells you that there is a problem although you may > not know > > precisely what the problem is. > > > > The fact is that most individual investors will be among those > who are the > > last to know. So, reliance on fundamental indicators to make a > decision to > > buy BOST in December would have resulted in a loss for the > investor. > > > > Sometimes a stock's move up or down has nothing to do with > fundamentals or > > news stories. Often it' s just a matter of what is or is not > fashionable. > > > > Douglas Herman > > > ------------------------------ Date: Tue, 24 Jun 1997 15:23:18 -0500 (CDT) From: Anthony Ku Subject: Re: [CANSLIM] Daily Graphs No, but i did signuyp for the PRINTED version of Daily graphs. The ONLINE version do not have the search routine etc. and you can't scan through 3000 charts as easily with the online version as the printed version. Yeah it is steep, 52 weeks for $900 or approximately. As far as the timeliness is concerned, yes it lags by maybe 1 day, but since I live in Kasnas, IBD lags by one day as well since i don't get it untila fter close. Besides, I like getting good priceson stocks that hasn't exploded yet :). Anyone tried PITBULL system? Anthony Ku aku@idir.net On Mon, 23 Jun 1997, Sam Funchess wrote: > Does anybody subscribe to daily graphs after thier beta tester? I like > the info given for a quick ref. but I just don't see spending 800 bucks > on a quick ref. I e-mailed them and told them to let me know if they > lower thier price, but I just did'nt thiunk thier service was worth that > price. 66 bucks a month; yeah right. > Sam > coach@spyder.net > > ------------------------------ Date: Tue, 24 Jun 1997 15:29:05 -0500 (CDT) From: Anthony Ku Subject: [CANSLIM] Re: your mail On Tue, 24 Jun 1997, Dan Musicant wrote: > Would you please explain? I found that the software was virtually > useless unless I "registered." When I investigated what this was > about, I saw an online registration form of considerable extent. > Included was a section that requested my credit card number. This > looks for all the world like a charge for service. NOW. What do you > want with my credit card number, anyway? Everybody knows that it's > regarded risky to give your credit card number online, period. Giving > it to a party that swears that they are not charging you seems > ludicrous. How do you explain this outlandish circumstance? > Well I sign upw ith them for the beta test. I used the "call in for the CC number" as the option. :) i.e. they don't get my cc number. Besides, if they chartgge it without your permission you can call your CC company and have it revoked. Or just enter 0000 0000 0000 0000 as the CC number, they said dthey do'nt care. Anthony ku aku@idir.net ------------------------------ Date: Tue, 24 Jun 1997 12:39:34 -0700 (PDT) From: Joseph Vaughn-Perling Subject: Re: [CANSLIM] IBD Online they have a growing number of such canned searches. No custom screening yet though that is still just in the (much more expensive) WONDA product. If you haven't looked at the DG online lately, you should check it out again. http://www.dailygraphs.com On Tue, 24 Jun 1997, Anthony Ku wrote: > > Dailygraphs includes a lot more information than IBD has. > Dailygraph is definitelyworth the price, though expensive. I don't like > the Online version of it because it does not have search functions. Plus > I like to just browse through 3000 stocks weekly and see which stocks met > my criteria technically, then look for fundamental information and see if > it worth buying. It's hard to scan through 3000 stocks using anything on > the computer. If they have a search function that allows you to search, > say, stocks thathave EPS > 90, RS > 80 and made a new high on heavy > volume, then it'd be wroth getting the online version. > > Anthony Ku > aku@idir.net > > > On Mon, 23 Jun 1997, Charles F. Corbit III wrote: > > > When I subscribed to IBD a couple of weeks ago, I asked the sales rep if > > they were ever planning to put the stock quotes on line, so that you could > > search and sort. She said that O'Neil was against that and had absolutely > > no plans of doing that. The reason she said was that O'Neil thought that > > investing and research required a hands on approach (IMHO, not a very > > progressive view to hold). However, I am confused as they have the DGs > > online. I am assuming that the DGs are updated daily at close and that it > > include ALL stocks in the IBD ? Why is the price so high ? Are there > > other features that I am not aware of ? > > > > Regards, > > > > Charlie > > > > ------------------------------ Date: Tue, 24 Jun 1997 14:05:13 -0700 From: Brian Nash Subject: RE: [CANSLIM] Fundamental Importance I remember looking in on this just a matter of weeks ago, and 16 of 16 analysts still rated it a 'Buy' on Zacks. > ---------- > From: Anthony Ku[SMTP:aku@cypress.idir.net] > Reply To: canslim@mail.xmission.com > Sent: Tuesday, June 24, 1997 4:17 PM > To: canslim@mail.xmission.com > Subject: Re: [CANSLIM] Fundamental Importance > > > But look at that ugly chart of BOST. Fundamental analysis alone isn't > good enough. > > > > Anthony Ku > > On Mon, 23 Jun 1997, Tom Worley wrote: > > > On the other hand, there is a lot that the individual investor can > > "discover" all on his own. Using BOST as the example, notice > > whether the parking lot is as full as it used to be, ask yourself > > did you use one of their coupons in the afternoon rather than > > buying dinner at a much higher price, how are they compared to the > > competition in quality, service, size of portions, price, etc. You > > would be surprised how much this kiind of "subjective observation" > > can alert you to a stock that is "happening" vs one in trouble. > > Also listen to what your friends and associates say, are they > > raving or condemning. You shouldn't base an investment decision on > > this kind of input, but it can be very valuable in alerting you and > > making you take a closer look. > > > > I also encourage all to go to the SEC site and read the recent > > filings. yeah, I know, they are often long and boring, but often > > the analyst's upgrades and downgrades are right out of the comments > > section of a 10Q or 10K. It's their job to read this kind of stuff, > > and they do, and the results often move the market, at least on > > that stock. > > > > tom w > > > > Any statements or opinions are strictly my own and not that of my > > employer. My comments should not be intrepreted as a recommendation > > of any kind. I am a licensed (inactive) broker and an active > > investor. All investors should do their own research prior to any > > investment, especially one learned about on the Internet. > > > > ---------- > > > From: Eccless@aol.com > > > To: canslim@mail.xmission.com > > > Subject: Re: [CANSLIM] Fundamental Importance > > > Date: Monday, June 23, 1997 8:55 AM > > > > > > In a message dated 97-06-21 02:55:48 EDT, Trader Jack wrote: > > > > > > << Well, the below article tells what the big money hasn't been > > ignoring > > > about BOST. > > > Lots of unknowns associated with the company's restructuring has > > given money > > > managers the willys. Big money hates a "certainty" that > > suddenly becomes an > > > uncertainty. BOST now fits the latter description. > > > >> > > > > > > Thanks for your comments and news item regarding Boston Chicken. > > > > > > It's interesting to note, however, that BOST's decline began in > > December, > > > considerably before the negative information became available. > > Watching the > > > market action tells you that there is a problem although you may > > not know > > > precisely what the problem is. > > > > > > The fact is that most individual investors will be among those > > who are the > > > last to know. So, reliance on fundamental indicators to make a > > decision to > > > buy BOST in December would have resulted in a loss for the > > investor. > > > > > > Sometimes a stock's move up or down has nothing to do with > > fundamentals or > > > news stories. Often it' s just a matter of what is or is not > > fashionable. > > > > > > Douglas Herman > > > > > > > ------------------------------ End of canslim Digest V1 #238 ***************************** 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.