From: canslim-owner@xmission.com (canslim Digest) To: canslim-digest@xmission.com Subject: canslim Digest V1 #255 Reply-To: canslim@xmission.com Sender: canslim-owner@xmission.com Errors-To: canslim-owner@xmission.com Precedence: canslim Digest Wednesday, July 30 1997 Volume 01 : Number 255 In this issue: [CANSLIM] Speaking of High Tight Flags - Check out Jabil JBIL Re: [CANSLIM] charting Re: [CANSLIM] Speaking of High Tight Flags - Check out Jabil JBIL Re: [CANSLIM] Speaking of High Tight Flags - NTAIF Re: [CANSLIM] Some screening result. Re: [CANSLIM] Speaking of High Tight Flags - Check out Jabil JBIL [CANSLIM] Volume & Adv. Inves. Seminar (was Re: HDCO comments). [CANSLIM] Intro: Brian James [CANSLIM] Economic Calendar Week of 7/28/97 [CANSLIM] Wireless Plays Re: [CANSLIM] Volume & Adv. Inves. Seminar (was Re: HDCO comments). Re: [CANSLIM] Speaking of High Tight Flags - Check out Jabil JBIL [CANSLIM] Question Re: [CANSLIM] Question [CANSLIM] Getting out Re: [CANSLIM] Getting out Re: [CANSLIM] Wireless Plays Re: HDCO comments (was [CANSLIM] List traffic). Re: [CANSLIM] Question Re: [CANSLIM] Question [CANSLIM] An anomoly??? Fw: [CANSLIM] Intro: Brian James [CANSLIM]SF Annual Dinner Re: [CANSLIM] An anomoly??? (Brokerage stocks strength) Re: [CANSLIM] Question 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: Mon, 28 Jul 1997 20:52:11 -0400 (EDT) From: Ppn3725@aol.com Subject: [CANSLIM] Speaking of High Tight Flags - Check out Jabil JBIL Just going thru the charts and noticed Jabil(JBIL) fit the price 2x and has been basing 2-3wks and hit a new high today. Opinions.. Peter Newell ------------------------------ Date: Mon, 28 Jul 1997 18:19:40 -0700 From: "John Iding" Subject: Re: [CANSLIM] charting Select phone as pay option .. and this will default to Beta Testing > > Hi I tried to get the- charting the stock market -program (which I > downloaded) but it wont let me access it because it wont accept 0000 for > the credit card number. I get so much info from IBD and you guy's anyway. > Thanks, Richard > > ------------------------------ Date: Mon, 28 Jul 1997 22:18:26 -0400 From: Craig Griffin Subject: Re: [CANSLIM] Speaking of High Tight Flags - Check out Jabil JBIL Peter, Agreed, it (JBIL) probably qualifies as well. JBIL is one of my favorite stocks in this market (very strong leader). I have owned it 3 times this year and made decent money each time. Wish I had just held on (STILL the major problem with my practice - recognizing when to hold for the long term). It looks like it may be a buy at 52 assuming the HT flag is correct. Regards, Craig At 08:52 PM 7/28/97 -0400, you wrote: >Just going thru the charts and noticed Jabil(JBIL) fit the price 2x and has >been basing 2-3wks and hit a new high today. > >Opinions.. > >Peter Newell > > ------------------------------ Date: Mon, 28 Jul 1997 22:28:03 -0400 From: Craig Griffin Subject: Re: [CANSLIM] Speaking of High Tight Flags - NTAIF NTAIF is also worth a look for a High Tight Flag possibly in process (although it has only been basing for 3 days). It had blowout earnings recently. ------------------------------ Date: Mon, 28 Jul 1997 22:42:54 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Some screening result. Everything's too extended except for what I own, one reason I'm not doing much right now. James chose to retire from the group, apparently we weren't offering very many picks he couldn't get on his own, plus some difference of opinion offended him and changed his opinion about this group. That's his right, tho I STILL think he was being way too sensitive. Last I checked he was still a member so may still be lurking if you want to tell him something. 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. Hopefully my comments will better inform and educate all investors. tom w - ---------- > From: Chih Yu Chao > To: canslim@mail.xmission.com > Subject: [CANSLIM] Some screening result. > Date: Monday, July 28, 1997 12:53 PM > > DELL, ASYT, LSS, VTSS, SANM, EAII > > Another interesting one is ANLT. I think Tom maybe will be the > first one to say: Hey, they are all too extended for me ;-) > > Where is James? Haven't see his post for a long time. > ------------------------------ Date: Mon, 28 Jul 1997 21:11:37 -0700 From: "Dave Isbell" Subject: Re: [CANSLIM] Speaking of High Tight Flags - Check out Jabil JBIL I have been watching this stock (JBIL) for two months and it has done nothing but go up. I had some money to move three weeks ago and bought MCRL instead. JBIL looks still looks great however and I would have no problem buying it (except I have no cash at the moment.) Perhaps the only thing I would wait for is a good spike in volume. The rest of the numbers in my opinion make this a good CANSLIM stock. Dave Isbell - ---------- > From: Ppn3725@aol.com > To: canslim@xmission.com > Subject: [CANSLIM] Speaking of High Tight Flags - Check out Jabil JBIL > Date: Monday, July 28, 1997 5:52 PM > > Just going thru the charts and noticed Jabil(JBIL) fit the price 2x and has > been basing 2-3wks and hit a new high today. > > Opinions.. > > Peter Newell ------------------------------ Date: Mon, 28 Jul 1997 23:06:34 -0600 (MDT) From: cando@highfiber.com Subject: [CANSLIM] Volume & Adv. Inves. Seminar (was Re: HDCO comments). > At the Advanced Investment Workshop I went >to in LA it was stated that "volume is the single most important indicator" >(close paraphrase). > > The above statement got me to thinking. Watching volume has always >been an important part of my stock picking and research. I have created an >indicator that shows a running average of volume. That helps me see if >average volume is increasing or not. Could you expound on the above >statement. > Why is volume so important?? > What are the parameters of watching volume? > When does decreasing volume make a difference? >And any other information you care to add. > >Thanks, >Jack >jack@jackm.com >http://www.jackm.com Jack, I think the point being made at the seminar by saying "volume is the single most important indicator" was one of the those "if you only had one 'xyz' to take with you to a desert island what would it be?" type of statements and that's what WON and D. Ryan would take. Volume just indicates supply and demand-you can't get much more basic than that. The statement was also made that "if you only take one thing from the seminar-REMEMBER VOLUME-if you don't you shouldn't be in the market!" [at that point several people got up, gathered their belongings and left the seminar . . . . just kidding.] Anyway, I took all that to mean that volume was important. We all received a workbook with graphs, charts, outlines, etc. which we used throughout the seminar. One of the outlines listed in order of importance the various parameters and values to look at and for, in a stock. It was as follows: ORDER OF IMPORTANCE: 1. Technical picture of the stock. ("if these are positive you have a pretty good situation") a. chart pattern b. VOLUME c. relative strength line. 2. Quarterly earnings and 5-year growth rate. 3. Group strength, other stocks in the group confirming your stock's price strength. 4. Shares outstanding. 5. Institutional sponsorship. > When does decreasing volume make a difference? What I understand is we want big volume on price increases (more people want the stock), low volume on price decreases (most people still have faith and aren't stampeding for the door) and low volume as a stock is basing showing a willingness to sit tight (not selling-just waiting for reason to get a lot of others to decide they want the stock too-a good earnings report, news releases, rating upgrades, something). That's some further elaboration from the seminar (which, by the way, was in March, 1993) and my two cents worth. Sound like Db has a good book for us to check out (his previous post). James Coburn Albuquerque, NM PS Db--thanks for the input on AZZ. ------------------------------ Date: Mon, 28 Jul 1997 22:11:57 -0700 (PDT) From: Brian James Subject: [CANSLIM] Intro: Brian James Hello everyone- I've been lurking for about a week now, and i figure it's time I formally introduce myself. My name is Brian James, 23 years of age. I graduated from Ohio University with degrees in Marketing, Finance, and International Business, and a minor in Russian. From Cincinnati, but now living in Chicago doing some computer consulting for a stockbroker friend of mine who is being thrust very quickly into the Information Age (by me). Anyway, I am finishing HTMMIS tonight, and I have to admit that I've gotten more info out of it than I did in college. That goes for Peter Lynch as well. Future plans include entering a stockbroker training program, with an eye toward manging a fund, possibly involving Russian securities, way down the road. I am currently entertaining offers from Olde Discount, NatCity Investments, and John Hancock. I mention that because any info on these companies regarding professional employment experience, customer experiences, and even word-of-mouth would be greatly appreciated. I firmly believe that anyone can gain a competitive advantage from information gained on the Internet, and that is where i hope to make my mark. By that, I do not mean that i plan to trade solely on tips from newsgroups, etc., as that would be highly irresponsible investing. However, i do believe that these sources are an excellent beginning to finding the needle in the haystack. The one glaring example I can point out is Zenith, which last year jumped nine points in a day for a 12% gain (roughly). The tip (Zenith had signed a multi-million dollar) came out the night before on the Daytraders site (www.daytraders.com) which tends to revolve around (dare i say it, Mr. O'Neill?) penny stocks, but not in this case. One question i have: Is the second edition worth diving into right away? Anyway, I've already made the digest a lot longer than it needs to be, so I'll hang it up for now. BTW, I have a teeny-tiny portfolio that is too small for frequent trading, but i'm preparing for that day. Comments on anything I've said are welcomed! _____________________________________________________________________ Sent by RocketMail. Get your free e-mail at http://www.rocketmail.com ------------------------------ Date: Tue, 29 Jul 1997 00:47:35 -0400 From: "Tom Worley" Subject: [CANSLIM] Economic Calendar Week of 7/28/97 TUESDAY (the big one) Employment Cost Index (ECI) last was up 0.6%, expected is up 0.7% - the mkt can probably handle this but still pray for 0.4 or 0.5% Consumer Confidence - still growing optimistically, last was 129.6, expected is 130.0 WEDNESDAY New Home Sales -last was 825K, expected is 810K THURSDAY Read GDP - Q1 was a finalized 5.9% up, expected for this preliminary report on Q2 is up 1.8% Initial Jobless Claims (weekly report) - last week was 299K new claims, expected is 315K. Money Supply - M2 - last was down $10.7 bil, expected is up $5.0 bil FRIDAY (the other big one!) Non farm payrolls - last was up 217K jobs, expected is up 200K jobs (again think small, the lower the nr, the better) Unemployment Rate - was 5.0%, expected is 4.9% , anything in this range is OK Purchasing Mgrs Survey - last was 55.7, expected is 56.0, anything much over this level and the mkt is likely to be spooked Factory Orders - last was down 0.7%, expected is up 1.5%, a strong reversal Personal Income - last was up 0.3%, expected is up 0.5%, if this number is met or exceeded suggests consumer spending is once again picking up, possibly sending some inflationary signals to the Feds Personal Spending - last was up 0.3%, expected is up 0.4% - I would like to see this nr stay under the Personal Income change, suggesting some increase in savings and less growth in spending. Any statements or opiniare 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. Hopefully my comments will better inform and educate all investors. tom w ------------------------------ Date: Tue, 29 Jul 1997 08:47:17 -0400 (EDT) From: Ppn3725@aol.com Subject: [CANSLIM] Wireless Plays I beleive that wireless will be the big winner for the next phase in telecommunications. Does anyone know of companies that could or are winning this? I know Windstar has large amounts of bandwidth but it is to early for them. Thanks, Peter Newell ------------------------------ Date: Tue, 29 Jul 1997 07:55:41 -0500 From: "Jack Markowitz" Subject: Re: [CANSLIM] Volume & Adv. Inves. Seminar (was Re: HDCO comments). Thanks for the answers, what you say makes good sense. As does all the parameters of CANSLIM. Volume has always been a very important part of my stock picking process. I have often noticed that volume will fall off as a stock peaks, especially if there has been an extended upward trendline. This tendency is one that gets me to put a stop loss in when I see that action. On more than one occasion the stop loss has taken me out just before or just after a trend reverses. I never have to make the first or last dollar on a trade. Another volume characteristic I have noticed is a volume spike on the bottom of a downtrend. I have always assumed that this spike was buying coming in at what some thought was a bargain price. Most of the time I have seen this, it was the bottom of a short term cycle on the longer term uptrend. Although that may be because the vast majority of the stocks I follow have established an upward trendline. Anyway, thanks for the answer and to all others in this forum, I am enjoying the posts here. See ya, Jack jack@jackm.com http://www.jackm.com Jack's Picks > > Jack, > > I think the point being made at the seminar by saying "volume is the single > most important indicator" was one of the those "if you only had one 'xyz' > to take with you to a desert island what would it be?" type of statements > and that's what WON and D. Ryan would take. Volume just indicates supply > and demand-you can't get much more basic than that. > > The statement was also made that "if you only take one thing from the > seminar-REMEMBER VOLUME-if you don't you shouldn't be in the market!" [at > that point several people got up, gathered their belongings and left the > seminar . . . . just kidding.] Anyway, I took all that to mean that volume > was important. > > We all received a workbook with graphs, charts, outlines, etc. which we > used throughout the seminar. One of the outlines listed in order of > importance the various parameters and values to look at and for, in a > stock. It was as follows: > > ORDER OF IMPORTANCE: > > 1. Technical picture of the stock. ("if these are positive you have a pretty > good situation") > a. chart pattern > b. VOLUME > c. relative strength line. > > 2. Quarterly earnings and 5-year growth rate. > > 3. Group strength, other stocks in the group confirming your stock's price > strength. > > 4. Shares outstanding. > > 5. Institutional sponsorship. > > > > When does decreasing volume make a difference? > > What I understand is we want big volume on price increases (more people > want the stock), low volume on price decreases (most people still have > faith and aren't stampeding for the door) and low volume as a stock is > basing showing a willingness to sit tight (not selling-just waiting for > reason to get a lot of others to decide they want the stock too-a good > earnings report, news releases, rating upgrades, something). > > That's some further elaboration from the seminar (which, by the way, was in > March, 1993) and my two cents worth. Sound like Db has a good book for us > to check out (his previous post). > > James Coburn > Albuquerque, NM > > PS Db--thanks for the input on AZZ. > > ------------------------------ Date: Tue, 29 Jul 1997 03:00:33 GMT From: musicant@autobahn.org (Dan Musicant) Subject: Re: [CANSLIM] Speaking of High Tight Flags - Check out Jabil JBIL On Mon, 28 Jul 1997 20:52:11 -0400 (EDT), you wrote: :Just going thru the charts and noticed Jabil(JBIL) fit the price 2x and = has :been basing 2-3wks and hit a new high today. : :Opinions.. : :Peter Newell Well, I jumped on this juggernaut a couple of weeks ago as it was shooting up past 93 on it's way to 108 3/4. I foolishly turned my back when I should have kept tight stops all the way, and I barely got out with a profit when the balloon sprung a leak. It did a 2 for 1 split and has NOT "hit a new high." Still, it has not tanked, and it doesn't look like it will. It wouldn't surprise me to see it take off again, but there was talk of resistance at 100 by virtue of something I'd have to consider *superstition* -- just a tendency for stocks to have resistance at that number. Of course, it did a 2 for 1, and now at 50 7/8, superstition-be-darned -- the sky's the limit. I'm on the sideline on this one, though. Dan ------------------------------ Date: Tue, 29 Jul 1997 07:11:58 -1000 From: "frank swenson" Subject: [CANSLIM] Question I am new to to CANSLIM and have been monitoring(aka "lurking") this group for 2 weeks or so. I'll write an introduction later but I have a question about the "N" component. Does the announcement of a stock split qualify? If so, what do you think SLR/ Frank Swenson ------------------------------ Date: Tue, 29 Jul 1997 13:39:44 -0400 From: Craig Griffin Subject: Re: [CANSLIM] Question Frank, The answer to your question re: stock splits qualifying as "New" is yes and no, but mostly no. Splits have their own characteristics, which O'Neil addresses to some degree (although I don't know how much there is on it in HTMMIS off hand). A few thoughts ... Splits sometimes do cause a stock's advance to get quite rapid. When this happens, it frequently is a climax run and the stock should be sold. Conversely, sometimes stocks that have been doing quite well will suddenly weaken on a split announcement (presumably in anticipation of the larger number of shares outstanding). Splits of 3/2 or 2/1 are generally positive long term. Splits of 3/1 and higher are frequently a sign of an impending top for some reason. Multiple splits in the period of a year are frequently a danger sign. Nothing in this business is absolute and splits are less absolute than most things, so take all of the above with a large grain of salt. Splits can be summed up as "it depends on the situation". A final note, some stocks will behave radically differently on the announcement of the split and the actual date of the split. Sometimes the announcement will drive a stock up and the actual date of the split will be the beginning of a downtrend. The reverse also happens. New highs in price, however, do qualify as a "New" as strange as that sounds. These new highs are, of course, much more meaningful when occuring on 1 1/2 times ADV (average daily volume) or more ... and when they occur at the end of an 8 week or longer base. HTH. Regards, Craig At 07:11 AM 7/29/97 -1000, you wrote: >I am new to to CANSLIM and have been monitoring(aka "lurking") this group >for 2 weeks or so. I'll write an introduction later but I have a question >about the "N" component. Does the announcement of a stock split qualify? If >so, what do you think SLR/ >Frank Swenson > > ------------------------------ Date: Tue, 29 Jul 1997 10:50:48 -0700 From: Simon Lee Subject: [CANSLIM] Getting out Hello, I have been burned a few times now because I held a stock longer than I should have. What is the easiest and quickest method of knowing when to get out of a position for you? One thing I have noticed is that most stocks make a drive and hit a peak (maximum), and then the next day, it is closes lower that the day of the peak, and for the next few days, it starts a slow downward movement. This usually is followed by a sudden drop or a major drop. Is this a good indicator of impending doom for that stock or is it just coincedence? - -Simon Lee ------------------------------ Date: Tue, 29 Jul 1997 14:24:56 -0400 From: Craig Griffin Subject: Re: [CANSLIM] Getting out Simon, O'Neil says that "buying right solves half of your selling problems". So if you bought the stock just right (in a valid breakout from a proper base, no more than 5% from the pivot), selling becomes a much simpler problem. That said, it is still too large a subject to discuss in a general way here. I would suggest reading and re-reading Chapter 10 of HTMMIS. Especially note the Selling Pointers from page 103 to 106 and the Pointers on When to Hold on the next two pages. These are the most valuable pages in O'Neil's book in my opinion. Initially, some of the pointers may not be easy to recognize in a practical way. But the more you try to apply them to charts of your stocks, the more they come clear. Remember that you will usually see several of the selling pointers apply to your stock when a stock should be sold, not just one or two. HTH. Regards, Craig At 10:50 AM 7/29/97 -0700, you wrote: > >Hello, > >I have been burned a few times now because I held a stock longer than I >should have. What is the easiest and quickest method of knowing when to >get out of a position for you? One thing I have noticed is that most >stocks make a drive and hit a peak (maximum), and then the next day, it >is closes lower that the day of the peak, and for the next few days, it >starts a slow downward movement. This usually is followed by a sudden >drop or a major drop. Is this a good indicator of impending doom for >that stock or is it just coincedence? > >-Simon Lee > > ------------------------------ Date: Tue, 29 Jul 1997 16:13:17 -0600 (MDT) From: Jeff Beckham Subject: Re: [CANSLIM] Wireless Plays One company you might look into is Anadigics (ANAD). They produce the Radio and Microwave frequency integrated circuits used in wireless communications. Their customers include Qualcomm, L.M. Ericsson, Nokia and Sony. Goldman Sachs has predicted growth of 122% for this company in 1997. RS=84 EPS=99 Acc/Dist.=B At 08:47 AM 7/29/97 -0400, you wrote: >I beleive that wireless will be the big winner for the next phase in >telecommunications. Does anyone know of companies that could or are winning >this? I know Windstar has large amounts of bandwidth but it is to early for >them. >Peter Newell ------------------------------ Date: Tue, 29 Jul 1997 21:54:05 -0400 From: "Tom Worley" Subject: Re: HDCO comments (was [CANSLIM] List traffic). Gotta figure out why every now and then I get cast into the "list management" role, must be doing something wrong here. Anyway, any complaints send them to Jeff, I'm just another group member who likes to respond a lot, and occasionally post. My job severely inhibits my ability to suggest specific stocks, but I am free to comment on others' picks, as well as to share general mkt info and experience with the industry. On the other hand, this is the most civilized group I have found on the net, so maybe I should grab some credit where I can, even if I don't deserve it??? Sorry, Jeff, didn't mean to run on so. 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. Hopefully my comments will better inform and educate all investors. tom w - ---------- From: Richard Estes To: canslim@mail.xmission.com Subject: Re: HDCO comments (was [CANSLIM] List traffic). Date: Sunday, July 27, 1997 1:54 AM I agree the list requirements are restrictive, but I suppose that the host server set them and not Jeff or Tom, Whoever this list was set up for. HDCO is moving into a ------------------------------ Date: Tue, 29 Jul 1997 17:21:39 -1000 From: "frank swenson" Subject: Re: [CANSLIM] Question Craig Thank you for your reply.....I think. If I understand you correctly, then the split announcenent is important but only in conjuction with a lot of other information. With this in mind what do you and others think about SLR who just announced a split? Frank - ---------- From: Craig Griffin To: canslim@mail.xmission.com Subject: Re: [CANSLIM] Question Date: Tuesday, July 29, 1997 7:39 AM Frank, The answer to your question re: stock splits qualifying as "New" is yes and no, but mostly no. Splits have their own characteristics, which O'Neil addresses to some degree (although I don't know how much there is on it in HTMMIS off hand). A few thoughts ... Splits sometimes do cause a stock's advance to get quite rapid. When this happens, it frequently is a climax run and the stock should be sold. Conversely, sometimes stocks that have been doing quite well will suddenly weaken on a split announcement (presumably in anticipation of the larger number of shares outstanding). Splits of 3/2 or 2/1 are generally positive long term. Splits of 3/1 and higher are frequently a sign of an impending top for some reason. Multiple splits in the period of a year are frequently a danger sign. Nothing in this business is absolute and splits are less absolute than most things, so take all of the above with a large grain of salt. Splits can be summed up as "it depends on the situation". A final note, some stocks will behave radically differently on the announcement of the split and the actual date of the split. Sometimes the announcement will drive a stock up and the actual date of the split will be the beginning of a downtrend. The reverse also happens. New highs in price, however, do qualify as a "New" as strange as that sounds. These new highs are, of course, much more meaningful when occuring on 1 1/2 times ADV (average daily volume) or more ... and when they occur at the end of an 8 week or longer base. HTH. Regards, Craig At 07:11 AM 7/29/97 -1000, you wrote: >I am new to to CANSLIM and have been monitoring(aka "lurking") this group >for 2 weeks or so. I'll write an introduction later but I have a question >about the "N" component. Does the announcement of a stock split qualify? If >so, what do you think >Frank Swenson > > ------------------------------ Date: Tue, 29 Jul 1997 23:52:44 -0400 From: Craig Griffin Subject: Re: [CANSLIM] Question Frank, I think the split in SLR is likely to be mostly a non-event. It implies management's continued confidence in the company's prospects. The extra shares could cause a brief selloff in the stock price: ie. give people an excuse to take a profit ("hey, I had 500 shares, now I've got 1000 shares. I think I will sell 200 of them and buy that new computer"). The stock is extended from it's last base at 62-63ish. Broke out from cup w/handle on 6/16 (the day before earnings were announced) and is now up about 20%. It deserves a rest anyway (but in this market, lots of stocks are just doing the EverReady Bunny thing, so who knows). If I were holding SLR, I would get worried if suddenly the stock starts surging and runs up another 15%, 20%, 25% from here in a couple or three weeks - might be a climax run (which is sometimes associated with a split). Why worry if such a nice fast gain were to occur? Because it frequently signals the end of an advance in a stock (people panic to buy before it is too late and finally there is no one left who still wants to buy the stock, but has not yet done so, and then before too long you get a panic in the other direction). I rate this as an unlikely scenario, but possible. I believe the real drivers for the stock price are things like the new deal with Ericsson Telecom, which is part of the reason it is accorded its premium p/e ratio (vs. the current earnings estimates for 97 and 98). Lots of people apparently believe they will do better than those estimates. My opinion only. Likely to be worth what you paid for it ;^). Regards, Craig At 05:21 PM 7/29/97 -1000, you wrote: >Craig >Thank you for your reply.....I think. If I understand you correctly, then >the split announcenent is important but only in conjuction with a lot of >other information. With this in mind what do you and others think about >SLR who just announced a split? >Frank > ------------------------------ Date: Wed, 30 Jul 1997 07:28:53 -0400 From: "Tom Worley" Subject: [CANSLIM] An anomoly??? Bear Stearns reported its earnings yesterday, and once again beat First Call estimates. Since it is a bellweather stock for the Finance-Investment Bankers group, thought I might find some good trading opportunities so took a look at the top five in the group. Was surprised to find all with very high RS yet earnings are declining year to year for both 97 and 98. Why are the CS nrs so high (RS, EPS, a/d, up/down, etc)?? The top five are ADV, LEH, MER, DLJ, AB. Any thoughts?? 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. Hopefully my comments will better inform and educate all investors. tom w ------------------------------ Date: Wed, 30 Jul 1997 07:44:17 -0400 From: "Tom Worley" Subject: Fw: [CANSLIM] Intro: Brian James Once again majordomo and I seem to be quarreling, leastways didn't see this one returned, so (sigh) try try try again. 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. Hopefully my comments will better inform and educate all investors. tom w - ---------- > From: Tom Worley > To: canslim@mail.xmission.com > Subject: Re: [CANSLIM] Intro: Brian James > Date: Tuesday, July 29, 1997 9:40 PM > > Welcome to the group, Brian. As one of the resident "registered > reps" in this group (altho no longer active) I will share with you > the same "wisdom" I would follow were I to go back to being an > active broker. Seek out a major wirehouse (Merrill Lynch, Smith > Barney, etc). I considered Olde Disc when I finally stepped down > and gave up my book, primarily cuz they were advertising a lot and > attracting steady "call in" new clients. I know of nothing adverse > against any of the ones you mentioned, however a major wirehouse > can offer far more in training and experience, as well as name > prestige. After a few years as a sales asst and hopefully licensed > broker, and with a clientele firmly behind you, you can branch out > and do different things. I started with a penny stock firm, a big > one, and that affected my entire business. > > As to "tips" from the Internet, what I have found is that many come > from investors who didn't know what they are doing, many of whom > found themselves upside down and send out rumors and tips hoping to > create buying pressure and get themselves back close to a break > even. I don't even bother to check them out any more, altho I do > forward some of the more outrageous on to the SEC, just in case > they missed them. > > A valid discussion group, such as this one, that follows a > discipline and where the membership is stable enough to get to know > some of the members, can offer many good ideas as well as serving > as a sounding board. > > Good luck in your career. > > 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. Hopefully > my comments will better inform and educate all investors. > > tom w > > ---------- > > From: Brian James > > To: canslim@xmission.com > > Subject: [CANSLIM] Intro: Brian James > > Date: Tuesday, July 29, 1997 1:11 AM > > > > > > Hello everyone- > > > > I've been lurking for about a week now, and i figure it's time I > > formally introduce myself. My name is Brian James, 23 years of > age. I > > graduated from Ohio University with degrees in Marketing, > Finance, and > > International Business, and a minor in Russian. From Cincinnati, > but > > now living in Chicago doing some computer consulting for a > stockbroker > > friend of mine who is being thrust very quickly into the > Information > > Age (by me). Anyway, I am finishing HTMMIS tonight, and I have to > > admit that I've gotten more info out of it than I did in college. > That > > goes for Peter Lynch as well. Future plans include entering a > > stockbroker training program, with an eye toward manging a fund, > > possibly involving Russian securities, way down the road. I am > > currently entertaining offers from Olde Discount, NatCity > Investments, > > and John Hancock. I mention that because any info on these > companies > > regarding professional employment experience, customer > experiences, > > and even word-of-mouth would be greatly appreciated. I firmly > believe > > that anyone can gain a competitive advantage from information > gained > > on the Internet, and that is where i hope to make my mark. By > that, I > > do not mean that i plan to trade solely on tips from newsgroups, > etc., > > as that would be highly irresponsible investing. However, i do > believe > > that these sources are an excellent beginning to finding the > needle in > > the haystack. The one glaring example I can point out is Zenith, > which > > last year jumped nine points in a day for a 12% gain (roughly). > The > > tip (Zenith had signed a multi-million dollar) came out the night > > before on the Daytraders site (www.daytraders.com) which tends to > > revolve around (dare i say it, Mr. O'Neill?) penny stocks, but > not in > > this case. > > One question i have: Is the second edition worth diving into > right > > away? > > > > Anyway, I've already made the digest a lot longer than it needs > to be, > > so I'll hang it up for now. BTW, I have a teeny-tiny portfolio > that is > > too small for frequent trading, but i'm preparing for that day. > > > > Comments on anything I've said are welcomed! > > > > > > > > > > > ____________________________________________________________________ > _ > > Sent by RocketMail. Get your free e-mail at > http://www.rocketmail.com > > ------------------------------ Date: Wed, 30 Jul 1997 09:09:08 -0400 From: derek b Subject: [CANSLIM]SF Annual Dinner For those w/o access to Silicon Investor, this function has been happening for over 5 years, originally started by Prodigy users. Newcomers are welcome. To: Ellie Burch (1840 ) From: Ellie Burch Jul 30 1997 12:16AM EST Reply #2168 of 2170 The San Francisco Bay Area Canslim Group will have its Annual Dinner in conjunction with the San Francisco Money Show on Saturday, August 16th, at the Sir Francis Drake Hotel 450 Powell Street, San Francisco. No-host cocktails are at 6:00 PM, followed by a wonderful dinner (fresh salmon), and then the highlight of the evening - our speakers, Henry Brookins of Brookins Buys, and Joanne Segura from Track On/Line who will talk about the new 6.0 software for real time trading. Many well-known folks will be attending such as Jim Sheffield, Bruce Brotnov, Dave Cook and others. The cost of the dinner is $42.00 per person all-inclusive. If you wish to attend, please email me immediately (elliebu@sprynet.com). Ellie Burch ------------------------------ Date: Wed, 30 Jul 1997 11:42:50 -0400 From: Craig Griffin Subject: Re: [CANSLIM] An anomoly??? (Brokerage stocks strength) Tom, RE: The Brokerages and their unusual strength given neg. earnings ests. ... 1. On a longer term basis, it looks like Japan's market for Brokerages and Investment Bankers is finally about to open up. Over the next couple of years, the larger US firms may be doing quite a bit of business in a new and very large market. There is of course, all the rest of Asia. CCI certainly is making big $ over there, perhaps the Investment Bankers can as well (?). 2. These firms also seem to be trading right around their long term growth rates on a PE basis. Another thought is that perhaps the market saw 1996 as a special situation year and expected 1997 and 1998 to be much worse than has turned out to be the case (ie. poor earnings expected due to poor market conditions). Since 1997 and 98 look like the bull of the century, earnings are coming in higher than originally expected (just a guess, haven't checked this). 3. Otherwise, I have no idea, it does seem weird :^). SCH is the purest CANSLIM type stock in the group. They constantly seem to get it right and come out with new products. However, I have seen a couple of sell suggestions lately based on "valuation". It looks like it will continue to be a good long term growth story IMO. Regards, Craig At 07:28 AM 7/30/97 -0400, you wrote: >Bear Stearns reported its earnings yesterday, and once again beat >First Call estimates. Since it is a bellweather stock for the >Finance-Investment Bankers group, thought I might find some good >trading opportunities so took a look at the top five in the group. > >Was surprised to find all with very high RS yet earnings are >declining year to year for both 97 and 98. Why are the CS nrs so >high (RS, EPS, a/d, up/down, etc)?? The top five are ADV, LEH, MER, >DLJ, AB. > >Any thoughts?? > >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. Hopefully >my comments will better inform and educate all investors. > >tom w > > ------------------------------ Date: Wed, 30 Jul 1997 10:36:32 -0700 (PDT) From: Tim Fisher Subject: Re: [CANSLIM] Question At 05:21 PM 7/29/97 -1000, you wrote: >Craig >Thank you for your reply.....I think. If I understand you correctly, then >the split announcenent is important but only in conjuction with a lot of >other information. With this in mind what do you and others think about >SLR who just announced a split? >Frank > Dunno about SLR, but MCRL, which has been strong, announced a 2:1 split the day their earrnings came out a little higher than First Call. The whisper numbers had already driven it up about 12 points, and the earnings, which were not that spectacular, and the split announcement drove it up another 5 points or so. My default expectation for the earnings announcement was no reaction which has been standard for companies that just barely beat their estimates. So I guesas the announcement prompted someone to buy it. It's a CANSLIM stock and has been strong for a few quarters now. I wouldn't even bother giving reasons for negative split reactions on stocks which don't make the CANSLIM criteria. Another example is DELL, which turned into a rocketship the week before the split, then dropped right after the split (on some relatively bad news too). But it's up 4 (8 pre-split) the past 2 days. Tim Fisher tfish@spiritone.com 1995 President - Pacific Fishery Biologists Keeper of the ORE-ROCK-ON Rockhounding in Oregon Home Page http://www.spiritone.com/~tfish ------------------------------ End of canslim Digest V1 #255 ***************************** 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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