From: canslim-owner@xmission.com (canslim Digest) To: canslim-digest@xmission.com Subject: canslim Digest V1 #284 Reply-To: canslim@xmission.com Sender: canslim-owner@xmission.com Errors-To: canslim-owner@xmission.com Precedence: canslim Digest Thursday, September 4 1997 Volume 01 : Number 284 In this issue: [CANSLIM] IBD subscription [CANSLIM] Bid/Ask: Spreads Re: [CANSLIM] Bid/Ask: Spreads Re: [CANSLIM] Using stop loss (was Intro: Chuck Hustmyre) Re: [CANSLIM] High EPS versus RS [CANSLIM] KEG Re: [CANSLIM] High EPS versus RS [CANSLIM] Implementation of new Order Display rules Re: [CANSLIM] High EPS versus RS [CANSLIM] Economic Calendar (updated) [CANSLIM] Stocks in trouble, Part II Re: [CANSLIM] Short Interest on Keg? [CANSLIM] DailyGraphs Online [CANSLIM] Stocks to Watch [CANSLIM] RS vs EPS Re: [CANSLIM] Stocks to Watch [CANSLIM] CANSLIM style low priced stocks Re: [CANSLIM] Information Re: [CANSLIM] KEG Re: [CANSLIM] KEG Re: [CANSLIM] Economic Calendar (updated) Re: [CANSLIM] High EPS versus RS [CANSLIM] Nasdaq Re: [CANSLIM] Bid/Ask: Spreads 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: Wed, 3 Sep 97 17:21:32 +0200 From: dirk schelfhout Subject: [CANSLIM] IBD subscription I contacted IBD for information regarding a subscription from Belgium. What a joke. Here is the reply : >Subscribers to IBD in Belgium receive the paper about 7-10 days delayed at >a cost of approximately 6.00 US per issue. There are no electronic >subscriptions available at this point. Terms are 6 months and 1 year. >Thanks IBD Thanks but no Thanks, Dirk ------------------------------ Date: Wed, 3 Sep 1997 13:37:01 -0400 (EDT) From: JANSI1AUG1@aol.com Subject: [CANSLIM] Bid/Ask: Spreads Tom: I don't understand who determines the Bid/Ask price (and exactly what they mean). It seems that their definitions seem to change depending if you are buying or selling the stock (For instance the Bid means one thing when you are buying and another thing when you are selling). I have heard that the brokerage houses buy at the lower price and sells to you (when you put in a bid to buy that stock) at the higher price. Is this the relevance of Bid/Ask-to make money for brokerage firms? Recently, I bought MFAC, putting it in at mkt. price, where the bid was 21.75 and the ask was 22.75. My broker got it for me at 22.75-why not at somewhere in between? I'm posting this to the Digest, because there are probably a lot of CANSLIMMERS out there who are perplexed by these Bid/Ask terms also. jans ------------------------------ Date: Wed, 3 Sep 1997 20:40:49 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Bid/Ask: Spreads The bid is the lower price at which someone is "bidding" to buy the stock. The offer is the higher price where someone is "offering" the stock for sale. Who sets these prices? We all do. Since orders to buy or sell can only be represented by a broker dealer, the BDs who are bidding for stock may be representing one of us using a limit order; representing themselves trying to build up cheap inventory for that time that one of us throws them a "buy at market (offer)" order, in which case they net the difference; or they may be trying to cover a short created by selling to one of us at a higher price when they didn't have stock in inventory. Why didn't you get execution in between the bid and offer on a mkt buy order? Simple, the BD is in business to make a profit, he has no obligation to you to trim his profits. You don't mention the size of your order or whether you are using a full svc firm or discounter. If a discounter, then I would not expect the order taker broker to be likely to give you suggestions. If you are using a discount firm, you are expected to be experienced enough to know when to use a mkt order vs a limit order. If you were using a full svc firm but only buying a few hundred shares, then a mkt order would make sense to an experienced broker familiar with how MFAC trades. A limit order might have saved a hundred dollars or so, but might also have prevented execution just as the stock moved 2 or 3 pts, and cost you 500 dollars or so in missed profits. There's not a lot of liquidity in MFAC right now as it continues its consolidation, however the last time it broke out on heavy vol, the spread routinely would tighten to a qtr pt, and mkt orders made a lot of sense. When you try to go in between on a non-liquid stock, it can be extremely difficult to get execution. This is less so if the stock falls under the new rules to tighten spreads, however thinly traded stocks are mostly not under these rules yet (watch for my post tonight of the final implementation of these rules). Regardless of the type of brokerage house you are using, one thing you can do on large spread stocks is talk to a live broker (even if you normally trade online) and ask if his firm makes a mkt in the stock you want. If the answer is yes, ask what price he can get the stock for you at, as his firm may possibly have stock in inventory. If his firm doesn't make a mkt, you can still ask his opinion on trying to get execution in the spread. Just take his opinion with a huge grain of salt unless he is regularly trading the stock. If I was buying 1000 shares of MFAC, I would try to slice and dice the spread unless the stock was already in play (and I probably wouldn't be buying it yet if it wasn't). If I was buying several hundred, because of my background and ability to speak directly to several other BDs that I would actually do the trade thru, I might try to cut the spread a little, but I still have to give them room to make a profit, even on a trade for me. One way to better understand bid and offer (or ask) is to remember that the words are used from the perspective of who is creating that quoted price. If you enter a limit order to buy, then YOU are bidding for stock. If the BD where you place the order presents your BID to the market, then you become part of the existing bid or create a new, higher bid, depending on your limit. This is what is happening already with the stocks now under the new rules, limit orders are now either immediately executed by the BD with the order or else presented to the mkt place for execution by someone else. Size of the order doesn't matter. This is why the spreads have tightened so much, where stocks that used to trade with a qtr pt spread now trade with an eighth or a sixteenth spread. The meaning of bid and offer/ask doesn't change whether you are buying or selling. Say you enter an order to sell MFAC at market, then your order will typically be matched with someone bidding for stock, and execution is at the bid. If, while you are entering your order, someone wants the stock pretty badly and so goes high bid, then you get matched there. But the bid is still the lower price of the bid/offer (ask) quote pair. On the other hand, say you want to sell but use a limit. You now are "offering" your stock for sale and become the new, lower offer which may or may not be presented to the mkt place depending on the stock. But even if it is presented, there is still no guarantee you will sell as there must still be someone willing to buy the stock at your limit (could be a BD needing inventory, a BD needing to cover a trading short, or a BD representing a client wanting to buy the stock). Another comment: be very careful and conservative in using an AON (all or none) qualifer on your order. This complicates execution more than any other qualifer I know of, and frequently will quarantee not being executed even when the mkt is at your limit (you're selling and the bid is at your limit or you're buying and the offer is at your limit). 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: JANSI1AUG1@aol.com > To: CANSLIM@xmission.com > Subject: [CANSLIM] Bid/Ask: Spreads > Date: Wednesday, September 03, 1997 1:37 PM > > Tom: > > I don't understand who determines the Bid/Ask price (and exactly what > they mean). It seems that their definitions seem to change depending if you > are buying or selling the stock (For instance the Bid means one thing when > you are buying and another thing when you are selling). > > I have heard that the brokerage houses buy at the lower price and sells > to you (when you put in a bid to buy that stock) at the higher price. Is > this the relevance of Bid/Ask-to make money for brokerage firms? > > Recently, I bought MFAC, putting it in at mkt. price, where the bid was > 21.75 and the ask was 22.75. My broker got it for me at 22.75-why not at > somewhere in between? > > I'm posting this to the Digest, because there are probably a lot of > CANSLIMMERS out there who are perplexed by these Bid/Ask terms also. > > jans ------------------------------ Date: Wed, 3 Sep 1997 21:04:10 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Using stop loss (was Intro: Chuck Hustmyre) Hi Chuck, welcome to the group. I think you set a record for an intro, next time could you tell us a little about yourself, maybe?? Pleassssee?? You know, like what you do, your professional background, stocks you are looking at, etc?? My understanding of what WON means when he talks of a stop loss is based solely on your entry point price excluding commissions and spreads. This is because the latter items can vary from BD to BD and stock to stock. CANSLIM is hardly a "pure science" but the more variables you introduce the harder it is to apply. Jeff posted one of his regular reminders today on how to access the archives for browsing (since we don't have a FAQ, which this question once again demonstrates how much we need someone with the time to assemble one!!). There has been lots of past discussion on setting stop limits, but the bottom line for me is you gotta study the chart. An 8% downside stop loss from your entry point only works and makes sense if your entry point is correct. And both the stop loss and the entry point must be gauged from the chart pattern. As a novice, you are probably better off staying with stocks that are more mainstream and have good liquidity, thus tight spreads, so that the amount of the spread won't be a meaningful factor. If you are using a full svc broker, but doing all your own picks and decision making, then frankly (despite being a former full svc broker) you don't need that level of svc. Try to find a brokerage house that will keep you informed (e.g. when price moving news on one of your holdings is released); provide you with quotes and limited research on request; and won't charge you an arm and a leg for execution. As a neophythe, you may also just want to paper trade for awhile until you are confident you understand the CANSLIM philosophy and rules. Good luck and feel free to jump in any time with ideas or questions. 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: Chuck > To: canslim@xmission.com > Subject: [CANSLIM] Intro: Chuck Hustmyre > Date: Wednesday, September 03, 1997 8:20 AM > > Greetings. I just signed onto the group. I am a stock market neophyte and > have recently completed Mr. O'neil's book. I also have another book put > out by IBD. CANSLIM seems a very sensible way to invest to me. > > I am particularly interested in the loss cutting policy. My first question > is a clarification of sorts. Is the strict 7-8% loss a 7-8% loss in the > stock price or in the total invested including commissions and spreads? If > you calculate commissions and spreads you are already down about 2-3% the > moment after you buy the stock, leaving only room for a 5-6% price decline > before you are stopped out of a stock. > > Thanks, Chuck > > BTW, I am only a subscriber to the digest version so if you respond to this > please include a copy directly to my email address so I will be sure to get > it. > > ------------------------------ Date: Wed, 3 Sep 1997 20:49:17 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] High EPS versus RS Dan, Hope this won't sound like I am hedging my answer, but I use both RS and EPS in conjunction with a careful scrutiny of the DG chart. I have seen stocks with very high EPS where the recent earnings were 5 cents vs 1 cent kinda stuff. With this kind of stock, I tend to put more weight on revenue growth than earnings growth. I have also seen some stocks with extremely high RS that showed little if any revenue or earnings growth at all, making me suspicious of what was moving the price up. RS is basically a popularity contest (which I always flunked) so guess I don't weigh it as strongly overall as EPS, since that is proven performance. But if the company is just starting to turn profitable and earnings are still very low, then I might still put more weight on RS since that shows a level of expectation. 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: Dan Musicant To: canslim@mail.xmission.com Subject: [CANSLIM] High EPS versus RS Date: Wednesday, September 03, 1997 9:12 AM Which of these two barometers of a stock is *more important*, or (rather), which would I prefer to see at the highest possible level? When I look at a CANSLIM stock I'd rather see EPS 99 and RS high, but not *that* high. Am I wrong, or is my reasoning correct? [How useful is reason here??] If the EPS is tops, it's REALLY performing. If the RS is not tops, it's got room for improvement = this stock is more likely than a RS 99 stock to advance extremely! That is to say, I'd rather see EPS 99 than EPS 96 RS 96 RS 99 Ideas? Dan - ---------- ------------------------------ Date: Wed, 03 Sep 1997 21:54:30 -0700 From: Sam Funchess Subject: [CANSLIM] KEG Tom, What do you think about Key Energy Group converting 45. Million of it 7% debentures to common stock. If I understand it correctly the transaction has already taken place; the reason why the stock traded over 2 million shares while average is about 400 - 500 thousands shares. The stock dropped $1 on that volume. Am I right in the thought process that the transaction has already taken place or was this just a reaction of a large holder getting nervous and selling (several large holders)? Do announcements of this nature keep the stock at a side ways price pattern until the company can show improved EPS on the new outstanding shares, does this usually affect the stock in a severe way, or does it usually have no affect at all? The news article: http://biz.yahoo.com/bw/97/09/03/keg_y0004_1.html Thanks Sam sam5@mindspring.com ------------------------------ Date: Wed, 03 Sep 1997 19:06:58 -0700 From: Tim Fisher Subject: Re: [CANSLIM] High EPS versus RS At 10:54 AM 9/3/97 -0400, you wrote: >An example of a high EPS stock, low RS stock that has rocketed out of the >gate the last few days is ZOLT (Zoltec). But it had a huge rise starting >about 2 years ago (from 8 to 40). It then took a well deserved long rest >(it has been basing since April of 1996 - about 16 months). The earnings >just kept coming through and it broke out 3 days ago. So, yes this one >looks great for a double, but so did DELL in May of 1997 (3 months ago). At >that time DELL's RS was 98 or 99 and it took of out of a base at 40. It is >now in the mid 80's. > Broke out because it was BOUGHT out. It's not going to budge off the 1.33:1 purchase stock swap... Tim Fisher, 1995 President, Pacific Fishery Biologists Ore-ROCK-On Rockhounding Web Site PFB Information tfish@spiritone.com WWW http://www.spiritone.com/~tfish -- See naked fish and rocks! ------------------------------ Date: Wed, 3 Sep 1997 21:55:37 -0400 From: "Tom Worley" Subject: [CANSLIM] Implementation of new Order Display rules Many NASDAQ stocks already are trading with tighter spreads as they were implemented under the new rules requiring all limit orders to be shown to the entire investment community (not just those able and willing to pay for access to Selectnet or Instinet). Here is the schedule for those now being implemented under the final phase (a total of 5,766 stocks). Aug 4 - another 250 stocks Aug 11 - another 250 Sep 8 - another 850 Sep 15 - another 850 Sep 22 - another 850 Sep 29 - another 850 Oct 6 - another 850 and, finally, Oct 13 - the remaining (approx 930) stocks Thus, in another six weeks, all NASDAQ stocks will be under the new rules, and if you want to trade a thin stock with a large spread, you will at least know you can enter a limit order and have it presented to the entire investment community. Doesn't guarantee execution, but will assure exposure of your order. 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, 03 Sep 1997 22:22:46 -0400 From: Craig Griffin Subject: Re: [CANSLIM] High EPS versus RS Tim, At 07:06 PM 9/3/97 -0700, you wrote: >Broke out because it was BOUGHT out. It's not going to budge off the 1.33:1 >purchase stock swap... I think you are referring to ZTEC (Zytec - they make power supplies) which is merging with Computer Products. My post was regarding ZOLT (Zoltek - they make carbon fibers). ZOLT is the one that broke out of the 16 month base with high EPS rank and an RS rank of about 80. The symbols and names are similar. Regards, Craig ------------------------------ Date: Wed, 3 Sep 1997 22:13:08 -0400 From: "Tom Worley" Subject: [CANSLIM] Economic Calendar (updated) The latest forecast for the very important Employment Report due out on Friday is for an increase of 70,000 jobs (vs original est of 75K). However much commentary on the UPS strike, teachers returning to work, etc and seems that a feeling is that seasonal adjustments can't be trusted. Thus, so long as the nr is in this neighborhood, likely will be little reaction. But a report well outside the 75K figure and could swing the mkt sharply either way. New car sales report this afternoon much stronger than expected, again suggesting continued and increased consumer spending. The Leading Indicators this AM also came in slightly stronger than expected, suggesting Q3 may be shaping up to show renewed strong consumer spending, further pressuring the Feds to raise rates. 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, 3 Sep 1997 22:07:40 -0400 From: "Tom Worley" Subject: [CANSLIM] Stocks in trouble, Part II The biggie in this category today is Advanced Micro Devices (AMD). They announced after the close that they expect to report a "small operating loss" for the current qtr (Q3) due to the costs of increasing production on the AMD-K6 microprocessor. Unfortunately, the street had been forecasting earnings of 31 cents for Q3. Stock was off nearly 3 pts in after mkt trading, and will likely gap down on the open. Also likely that class action grade lawsuits will quickly be filed since the co had announced at the start of the qtr that things looked good after a weak Q2 with increasing inventory. Of course, the co today also mentioned they expected to return to profitability in Q4. In Q2, they produced 350K AMD-K6 chips, currently they expect to produce a million for the qtr however original expectations were far higher since this level doesn't make it profitable enough to cover the costs of increasing production. Also in the news after the close was ASPT announcing a 10 cent charge to be incurred in Q3. Didn't seem to be having that much impact in late trading. As expected, Gateway sold off today on its news yesterday warning of a weak qtr. The "experts" are not sure if this is an industry wide problem, and are watching for further guidance from the Analyst's meeting with DELL today and tomorrow. Some other news you may be able to use: On Thursday, NSM is expected to report earnings, Bear expects 36 cents vs 5 cents a year ago. CS reports 9/23, Bear is looking for 39 cents vs 41; and on 9/24 MU reports with a Bear estimate of a 5 cent gain vs 7 cent loss. 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, 3 Sep 1997 22:15:13 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Short Interest on Keg? Sam, I apoligize, I really meant to look it up at work so at least I could give you the nr, but I forgot. I swear, I promise (if I don't forget again) I will look it up tomorrow. Actually, I wanna know as well since I like this one. 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: Sam Funchess > To: Can Slim > Subject: [CANSLIM] Short Interest on Keg? > Date: Wednesday, September 03, 1997 12:26 AM > > Once again short interest is not displayed on DG, can someone tell me a > free site I can find this? > > Thanks > sam > sam5@mindspring.com > ------------------------------ Date: Wed, 3 Sep 1997 22:28:23 -0400 From: "Tom Worley" Subject: [CANSLIM] DailyGraphs Online Confirmed something I had been suspecting for some time. Altho officially only the volume and price are updated daily on DG Online, it had seemed to me that the RS line (but not the RS nr) was also updated daily. If you look at the chart on JPMX, it's rather obvious that the RS line was updated today. Just one more item that makes DG Online slightly better than DG (the books). Now, if only we can get them to update all the other stuff that IS updated daily in IBD!!! Speaking of IBD, the New America section today gave a nice boost to ALNK, heavy vol and good breakout. 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, 03 Sep 1997 19:32:19 PDT From: "S Menon" Subject: [CANSLIM] Stocks to Watch Could someone (Hi Craig!) give their opinion on the following stocks. AFCX (52 weeks high, good chart) ITIG (NOT near 52WH, but chart is great) GDI IBI PIXR Thanks SMenon ______________________________________________________ Get Your Private, Free Email at http://www.hotmail.com ------------------------------ Date: Wed, 3 Sep 1997 22:43:17 -0400 From: "Tom Worley" Subject: [CANSLIM] RS vs EPS As just an opinion, it has been my impression that WON places more emphasis on RS (esp if it is declining) than on EPS (e.g. he will stay in a stock longer if the RS remains strong than if EPS remains strong). Some of this is likely due the time lag effect since EPS is only updated after a qtrly earnings report while RS is a "live" measure. But even when both these nrs remain "OK" (over 80 or better), a stock trending below its 50 dma is a candidate for a sell. 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: Thu, 04 Sep 1997 02:52:33 GMT From: musicant@autobahn.org (Dan Musicant) Subject: Re: [CANSLIM] Stocks to Watch =46or what it's worth, I'll make my observations. On Wed, 03 Sep 1997 19:32:19 PDT, you wrote: :Could someone (Hi Craig!) give their opinion on the following stocks. : :AFCX (52 weeks high, good chart) I do like the chart, and today's movement was nice (~5%). However, it was on less than average volume, which is not what you want to see. :ITIG (NOT near 52WH, but chart is great) Great move today, but I gotta think that if you're not in now you better watch out. Maybe you should even if you are! :GDI=20 Not a bad pattern of consolidation. One to watch for possible breakout. =20 :IBI=20 Not the best pattern, but only time will tell. I wouldn't think of jumping in based on the chart and what I see in DG online. :PIXR=20 EPS 45 RS 73 =3D not CANSLIM numbers. But the chart looks alright. Who knows? Dan : :Thanks :SMenon : :______________________________________________________ :Get Your Private, Free Email at http://www.hotmail.com ------------------------------ Date: Wed, 3 Sep 1997 23:13:32 -0400 From: "Tom Worley" Subject: [CANSLIM] CANSLIM style low priced stocks Recognizing that "low priced stocks", no matter how good the CS nrs are, are by definition not "CANSLIM quality", nonetheless I gave in to my bent (and financial limitations) and looked at a few. Weren't many very attractive since most posters on the internest seem to think if they post one of their losers with a solid trend down and a RS of 1 that someone will buy it and drive it back up. But I did find a few! Scan Optics (SOCR) - trading around $9, RS 96, EPS 75, a/d A, timeliness B, u/d 1.8, GRS only 23 (computer - optical recognition), no info on float size or short position. Has already moved up from a base around 5 and consolidated around 8, 6.9 mil shares outstanding with 6% fund positioning. However PE (trailing) still only 13, earned .28 thru first six months (did .49 for all of prior year), and revenues up over 20% with earnings well over 100% year to year. Avg vol is 98K, did 457K today. Applied Cellular Tech (ACTC) - RS 92, EPS 75, PE 24, shares issued is only 2.3 mil, trading at 6.625 after moving up from 4.5 in past two weeks. A software dev co specializing in radio freq data networks. Earnings growth over 100%, revenue growth over 500%, est to earn 30 cents this year (up 58%), did 12 cents thru first six months. ADV is 178K, traded 457K today. Int'l Fibercom (IFCI) - RS 99, EPS 75, a/d A, issue of 4.2 mil, designs and installs fiber optic and other cable svc for the telecom cable TV industries in CA and AZ. New high today as it tries to break out, adv 317K, traded 610K. Lost 74 cents in last fiscal yr, earned 12 cents in first half of this yr. Remember my signature block, I've done no research on these other than looking at the DG Online chart. Do your own homework if you are interested. 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: Thu, 04 Sep 1997 03:15:14 GMT From: musicant@autobahn.org (Dan Musicant) Subject: Re: [CANSLIM] Information On Tue, 2 Sep 1997 15:14:29 -0500 (CDT), you wrote: :Could someone plese let me know of a service that will allow me to=20 :download data on stocks that I can import into Access. The data doesn't=20 :have to be in any particular format, but I would like to be able to=20 :possible get data on all stocks on the NYSE, NASDAQ, AMEX in one file.=20 :I'm not sure if this information is available, and if it is, if it costs= =20 :anything. : :Thanks : :Jason Jason, There are other sources (I forget the one I used once), but you can create portfolios at www.quote.Yahoo.com and download fairly detailed information in a file that will save as quotes.csv This is a comma delimited file that you can probably import directly into Access, and if not, then you can surely import it into a spreadsheet, from which you can surely import into Access. Dan ------------------------------ Date: Thu, 04 Sep 1997 00:41:23 From: bob gibson Subject: Re: [CANSLIM] KEG My apologies for butting into your post to Tom, but this may have some bearing on todays drop in price. I got nervous after seeing the high vol. and got the intraday chart from Lombard. It shows KEG opening at about 28+ and trading at low vol. until about 2:00. Then there was a double vol. spike (two) joined together at the top. I'm not sure how to interpret this, but it looked like two trades of about 1.6M shares each at close to 27.625. After that vol. fell to almost nothing and the sh. price dropped sharply. Perhaps Tom can shed more light on this. Bob At 09:54 PM 9/3/97 -0700, you wrote: >Tom, >What do you think about Key Energy Group converting 45. Million of it 7% >debentures to common stock. If I understand it correctly the transaction >has already taken place; the reason why the stock traded over 2 million >shares while average is about 400 - 500 thousands shares. The stock >dropped $1 on that volume. Am I right in the thought process that the >transaction has already taken place or was this just a reaction of a >large holder getting nervous and selling (several large holders)? Do >announcements of this nature keep the stock at a side ways price pattern >until the company can show improved EPS on the new outstanding shares, >does this usually affect the stock in a severe way, or does it usually >have no affect at all? > >The news article: > http://biz.yahoo.com/bw/97/09/03/keg_y0004_1.html > >Thanks >Sam >sam5@mindspring.com > > > ------------------------------ Date: Thu, 4 Sep 1997 07:42:24 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] KEG To answer this accurately, I went to the SEC website to look at how they have been reporting the total shares aspect. Interestingly, altho I found other filings there, such as 13D, there were no financials. Don't understand that. Obviously, this reduces the overall debt of KEG (which DG Online shows at 109%) thus saving an annual interest payment of 7% of 45 mil. It also reduces (or may eliminate, don't know since couldn't find financials) the amount of convertible bonds outstanding that could be used for arbitrage against a short position. Since I don't know what the conversion price was, can only guess that between 2 to 3 million shares have been added to the existing 10 mil share float. However, don't know if they have been reporting earnings per share on a fully diluted basis. If so, then these shares should have already been constructively counted on a diluted per share basis. I am assuming these bonds were not voluntarily converted, but rather were "callable" and were called by the corp. Holders of convertibles don't normally convert unless forced to, since they bot the bond to get income plus capital appreciation should the stock price move above the conversion price. Conversion means they lose the income portion. Upon being called, holders had to choose between converting into common stock or selling the bond on the mkt (probably at a small discount to the value of the shares represented, since any time value would have vanished upon being called). Logically no one would allow the bond to be called since that probably was at par or slightly higher, considerably less than represented by the underlying shares. Thus, if they decided to take their capital gain, then they sell to someone else at a small discount, who will convert. Some of the 2.6 mil shares traded could well have come from the existing or "new" owners of these bonds, immediately selling short the appropriate nr of shares they will eventually get from conversion, thus locking in their profit. This is speculation on my part since I don't know what the effective date for the conversion is. Is this good or bad? Well, the mkt did absorb the heavy volume, which appears to have been primarily selling. Price drop is minor, esp considering the overall chart. Recent correct entry on KEG should have you in around 23 or better, so you would still be up 15%. The next several days should show whether it will resume its upward march. If anyone wants to call the company in New Brunswick, NJ the phone nr is 908-247-4822. Questions to ask are: what was the conversion price? Were the bonds called? Did the corp buy back any bonds? What is the effective date of the conversion (e.g. deadline when the bonds will be bot back at the callable price)? AND, most importantly, how come their financials are not found in an EDGAR search at the SEC website? BTW, calling a convertible bond is much like doing a secondary, once the dirty deed is done a good performer can perform. One difference, however, is that if earnings were already being reported on a fully diluted basis, the "new" shares don't impact future EPS reports while the co saves on interest payments (in this case approx $800K each qtr). 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: Sam Funchess > To: Can Slim > Subject: [CANSLIM] KEG > Date: Thursday, September 04, 1997 12:54 AM > > Tom, > What do you think about Key Energy Group converting 45. Million of it 7% > debentures to common stock. If I understand it correctly the transaction > has already taken place; the reason why the stock traded over 2 million > shares while average is about 400 - 500 thousands shares. The stock > dropped $1 on that volume. Am I right in the thought process that the > transaction has already taken place or was this just a reaction of a > large holder getting nervous and selling (several large holders)? Do > announcements of this nature keep the stock at a side ways price pattern > until the company can show improved EPS on the new outstanding shares, > does this usually affect the stock in a severe way, or does it usually > have no affect at all? > > The news article: > http://biz.yahoo.com/bw/97/09/03/keg_y0004_1.html > > Thanks > Sam > sam5@mindspring.com > ------------------------------ Date: Thu, 4 Sep 1997 08:41:07 -0500 From: "Gess Shankar" Subject: Re: [CANSLIM] Economic Calendar (updated) On 3 Sep 97 at 22:13, Tom Worley wrote: > The latest forecast for the very important Employment Report due out > on Friday is for an increase of 70,000 jobs (vs original est of > 75K). However much commentary on the UPS strike, teachers returning > to work, etc and seems that a feeling is that seasonal adjustments > can't be trusted. Thus, so long as the nr is in this neighborhood, > likely will be little reaction. But a report well outside the 75K > figure and could swing the mkt sharply either way. > The consensus estimate of Nonfarm payrolls of 65K/75K is expected be exceeded by some analysts. Briefing.com e.g. estimates the numbers to be in the region of 110K, which includes the UPS effect. (i.e. exclude 175K of strike workers returning). If this proves to be accurate, troubled day tomorrow for stocks... Unemployment rate (4.8%) and Hourly Earnings (0.4%) are expected to be close to the estimates. Gess ------------------------------ Date: Thu, 4 Sep 1997 08:45:48 -0700 (PDT) From: Tim Fisher Subject: Re: [CANSLIM] High EPS versus RS At 10:22 PM 9/3/97 -0400, you wrote: >Tim, > >At 07:06 PM 9/3/97 -0700, you wrote: >>Broke out because it was BOUGHT out. It's not going to budge off the 1.33:1 >>purchase stock swap... > >I think you are referring to ZTEC (Zytec - they make power supplies) which >is merging with Computer Products. My post was regarding ZOLT (Zoltek - >they make carbon fibers). ZOLT is the one that broke out of the 16 month >base with high EPS rank and an RS rank of about 80. The symbols and names >are similar. > Whoops! Both show on my CANSLIM scans, got confused! 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 ------------------------------ Date: Thu, 4 Sep 1997 15:26:09 -0400 (EDT) From: JANSI1AUG1@aol.com Subject: [CANSLIM] Nasdaq Tom or anyone: I am interested in following the NASDAQ, but the way I analyze I need the NADAQ's Advances and Declines. Does ANYONE know of an address for HISTORICAL data on the NASDAQ? Jans ------------------------------ Date: Thu, 04 Sep 1997 17:31:16 -0400 From: "Surindra J. Singh" Subject: Re: [CANSLIM] Bid/Ask: Spreads Tom: How does a firm makes a mkt? On my statements I read sometimes that this firm makes a market in XYZ stock. Would you please explain. Thanks. Surindra Tom Worley wrote: Regardless of the type of brokerage house you are using, one thing you can do on large spread stocks is talk to a live broker (even if you normally trade online) and ask if his firm makes a mkt in the stock you want. If the answer is yes, ask what price he can get the stock for you at, as his firm may possibly have stock in inventory. If his firm doesn't make a mkt, you can still ask his opinion on trying to get execution in the spread. Just take his opinion with a huge grain of salt unless he is regularly trading the stock. ------------------------------ End of canslim Digest V1 #284 ***************************** 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.