From: canslim-owner@xmission.com (canslim Digest) To: canslim-digest@xmission.com Subject: canslim Digest V1 #287 Reply-To: canslim@xmission.com Sender: canslim-owner@xmission.com Errors-To: canslim-owner@xmission.com Precedence: canslim Digest Tuesday, September 9 1997 Volume 01 : Number 287 In this issue: Re: [CANSLIM] Date: Mon, 8 Sep 1997 14:53:20 -0400 [CANSLIM] Market Direction Re: [CANSLIM] Date: Mon, 8 Sep 1997 14:53:20 -0400 Re: [CANSLIM] KEG Re: [CANSLIM] Estimated Taxes Re: [CANSLIM] Mkt Comment (was What?? No comments?) Re: [CANSLIM] New Introduction [CANSLIM] Economic Calendar, week of Sep 9, 1997 Re: [CANSLIM] Date: Mon, 8 Sep 1997 14:53:20 -0400 Re: [CANSLIM] Nam Tai Electronics NTAIF [CANSLIM] When to Sell? Re: [CANSLIM] Nam Tai Electronics NTAIF Re: [CANSLIM] When to Sell? Re: [CANSLIM] Nam Tai Electronics NTAIF Re: [CANSLIM] KEG Re: [CANSLIM] Stop loss Re: [CANSLIM] Date: Mon, 8 Sep 1997 14:53:20 -0400 [CANSLIM] DG Short Interest & ROI [CANSLIM] TMSR breakout? [CANSLIM] Beta testing software [CANSLIM] MRVC [CANSLIM] SOCR [CANSLIM] Nasdaq up 10...What sectors flew? Re: [CANSLIM] Nam Tai Electronics NTAIF Re: [CANSLIM] Nasdaq up 10...What sectors flew? 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, 8 Sep 1997 16:20:09 -0400 (EDT) From: Dbphoenix@aol.com Subject: Re: [CANSLIM] Date: Mon, 8 Sep 1997 14:53:20 -0400 In a message dated 97-09-08 14:55:11 EDT, you write: << A few weeks ago a book "Charting the stock market" was discussed. The book describes some charts that are new to me. Is there software available to generate these charts? I could do it myself but I assume it has already been done. I'm annoyed that I was "flushed out of the pocket" so to speak when KEG had that huge volume/ small price drop last week. If the people who stayed in could enlighten me as to why they did I'd appreciate it. I assumed it would bounce back some but I was concerned the free fall wouldn't stop for several points. Thanks, Colt >> Colt, You're probably referring to me. What charts are you referring to? P&F? Wave? He discusses several different kinds. As far as KEG goes, I just responded to another post on KEG. If it doesn't answer your question, let me know. - -----Db ------------------------------ Date: Mon, 08 Sep 1997 19:45:18 -0700 From: Jeffry White Subject: [CANSLIM] Market Direction Tom: You wrote: >Date: Fri, 5 Sep 1997 20:40:21 -0400 >From: "Tom Worley" >Subject: Fw: [CANSLIM] Market direction >Can't remember this one showing on, so am reposting it in its >entirety along with some comments from today's trading. >First, some indexes: DOW 30 - 5.3% below its all time high NYSE Composite - 2.5% below its all time high S&P500 - 3.3% below its all time high NASDAQ - hit a new high today for the first time in a month Russell 2000 - hit its SEVENTH straight consecutive high >Dow 30 lost 44 points today, Proctor and Gamble (PG) contributed >over 12 of those negative points and has been extremely volatile >lately. >Volume has been strong and probably near average or better all week >The "market" (Dow 30) gained 257 points on Tuesday, and finished >the week up almost exactly 200 pts. Wednesday, Thursday and Friday >and each day did over 536 mil shares on NYSE, with an average of >550 mil for those three days. The 257 pt move on Tuesday was done >on 497 mil shares. >WON looks for a 1% follow thru 3-8 days out as confirmation of a >sig mkt move, that means the five trading days of next week. >Because of this, it's too early to say conclusively, but I believe >the rotation of money from big caps to secondary and small caps is >continuing, and Wed thru Friday served as healthy consolidation >days for the record setting gains of Tuesday. >Another point, the consensus of economists were amazingly on target >for every report this week. Can't remember the last time this >happened. If they can keep this up, I may have to stop second >guessing them and just report their opinion. Granted, on the most >important report of the week (today's employment nrs) I was more on >target than they were, but hey, they were still close. >tom w An observation about some of your "M" analysis in contrast to WON's rather specific criteria. First, the Nasdaq is a much broader measure than the Dow30 and, according to my computerized friends at the "Stock Farmer", produces much more reliable signals for short and intermediate term trend changes. Your focus on the Dow and later about the NYSE in these comments seems to belie the point that seems to make the most sense in this market: the small cap rotation is definitely happening, and what do we make of that fact with reference to the "M" as a whole that is supposed to govern our CANSLIM efforts. Second, WON looks for a 1% follow through within a 3-10 day window from the commencement of a short term rally from a clear down trend, not 3-8 as you suggest. Additionally, under the Nasdaq, the existing short term rally began on 8/18 (a clear reversal on higher volume than the prior day). That is the day the downtrend reversed for the first time after we came off the highs produced in the latest upleg. Tuesday's (9/2) action was on the 10th day after 8/18, and would qualify as a follow through day. However, I would note for those readers who are beginning to read the "Stock Farmer", their back tested data suggests that where the index makes a 5 day low after the commencment of the short term rally (as it did on 8/28), the follow through day window begins anew. WON doesn't clarify this point, however. So, my opinion is that a follow through day occurred on 9/2 and the question is whether we will fall prey to a failed rally. Under the "Stock Farmer" analysis, the follow through day window reopened on 8/28 and 9/2 was one day early, and doesn't, therefore, qualify as a true follow through day. Either way, a failed rally remains a possibility whether you use 8/18 or 8/28, although we are moving a little beyond the former for it to be much of a threat. In summary, I disagree that Tuesday is the commmencment of a short term rally point from which the 3-10 day follow through day period runs. Rather it is more accurately described as a follow through day or just a huge and historic move within a short term rally which began on 8/18. jeffry white ------------------------------ Date: Mon, 08 Sep 1997 17:13:10 -0700 From: Tim Fisher Subject: Re: [CANSLIM] Date: Mon, 8 Sep 1997 14:53:20 -0400 At 12:51 PM 9/8/97 -0600, you wrote: > >I'm annoyed that I was "flushed out of the pocket" so to speak when KEG >had that huge volume/ small price drop last week. If the people who >stayed in could enlighten me as to why they did I'd appreciate it. I >assumed it would bounce back some but I was concerned the free fall >wouldn't stop for several points. > Easy, it didn't hit my stop. Couldn't have if your stop was 15%, since it never fell that far from the high. 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: Mon, 08 Sep 1997 17:17:32 -0700 From: Tim Fisher Subject: Re: [CANSLIM] KEG At 04:09 PM 9/8/97 -0400, you wrote: >(When you buy a stock also alters your perception dramatically. For example, >if KEG were to drop below its 20EMA and bounce back on good volume, I'd >pyramid it. On the other hand, someone buying it higher than, say, 26.5 >would be stopped out. He wouldn't have the luxury of just sitting there and >watching the drama unfold because he bought "too late". Would he buy it back >on a rebound? Probably not. Most people have a great deal of difficulty >doing this, for psychological rather than technical reasons.) > I got stopped out of MAVK and bought it right back the next day, for obvious reasons. I guess 15% stop loss was too little for that one. In KEG at 22-3/4 I believe at the correct buy point (was probably a secondary buy ala WON). 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: Mon, 8 Sep 1997 21:18:06 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Estimated Taxes It's been a nr of years since I had to do qtrly est taxes, so the rules may have changed somewhat, but if I recall correctly, your final payment (due in very early Jan, I think) can be used to bring you up to 100% of your 96 pmt. Since portfolio gains can be offset in late Dec by losses, you can honestly say you didn't know you would owe addl taxes till late Dec. My advice would be to accrue the money in a tax free savings acct/90 day CD type instrument so you can get some interest on the money rather than letting Uncle have it for free use. Then, in early Jan, draw out what, if anything, you will need to make a "one time" estimated payment to bring you to 100%, and let the balance make some more interest till April 15. This does raise a good point, it's now September. Come early December, there will be many sell tickets entered for tax related reasons and having nothing directly to do with how the stock is then trading. The most common candidates for this will be the ones with big run ups or big losses (to offset already taken losses or profits, respectively). You should start reviewing your portfolio now to see if you should take some action early to aid your tax picture. Remember, you can take up to $3000 in losses against ordinary income if you itemize. And you can carry over to future years any balance over that $3000. If you already have big gains that you have taken this year, and are sitting on some dogs hoping they will eventually come back, you may want to take the loss to offset those gains. Or if you have already taken some losses, and don't need the writeoff, you may want to sell some profitable stocks. Remember, if you sell for a loss, you must not rebuy the stock for 30 days before and after the sale. However, if you sell for a profit, you can immediately repurchase the stock if you still want to own it, thus booking the profit for tax purposes at a cost of two commissions. I am not a tax expert, just done my own for several decades. Like always, this advice is worth no more than what you paid for it. You should always consult a paid professional, or do your own homework. Any statements or opinions are strictly my own and not that of my employer. My comments should not be interpreted 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 E. Jenkins > To: canslim@xmission.com > Cc: jenkr@global2000.net > Subject: [CANSLIM] Estimated Taxes > Date: Monday, September 08, 1997 4:24 AM > > I can't be sure that our regular tax payments will equal our 1996 > taxes (it will be close), therefore I have got to start paying > estimated taxes. > > If I have our employers deduct a surplus, to cover that portion, then > the estimated tax would apply only to my short term capital gains. > The simplest way to pay the estimated tax would be to pay the tax on > the capital gains that occur with in that particular payment period, > rather than annualize them and have a big tax bill January 15. > ------------------------------ Date: Mon, 8 Sep 1997 21:33:01 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Mkt Comment (was What?? No comments?) I disagree that the current enthusiasm for secondary and small cap stocks will only last another week. Granted, it is to be expected that there will be some consolidation and profit taking along the way, just was we saw with the big caps. However, Russell 2000 hit its eighth straight new high today, NASDAQ hit its second since early August, and the Transportation index hit its first since Aug 6. The Dow Theorists looking for the DJIA to also hit a high, reconfirming a bull trend, are likely to wait a long time as the DJIA is over 5% under its record and S&P is 3% under its high. Despite the recent performance of the secondary and small cap stocks, trailing PEs remain on average well under the S&P500 from casual observation (least I am having no trouble finding ones with great earnings and revenue growth that are only showing a trailing PE of 15 to 20, with a projected PE far less). I think this area of the mkt has many months to go before it becomes overpriced. Any statements or opinions are strictly my own and not that of my employer. My comments should not be interpreted 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: Dbphoenix@aol.com > To: canslim@mail.xmission.com > Subject: Re: [CANSLIM] What?? No comments? > Date: Monday, September 08, 1997 10:16 AM > > problematic. It's unlikely that the current enthusiasm on Wall Street will > last more than another week. At some point, we'll have the usual round of > profit-taking. That may provide a buying opportunity. > ------------------------------ Date: Mon, 8 Sep 1997 21:25:40 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] New Introduction Welcome to the group, Dick. Sounds like you're already on the right track. No, you didn't miss any "screening" capabilities on DG Online. Despite many requests for this, they aren't providing it as of yet. There have been a number of discussions of how you can screen stocks using other software pkgs, you may want to go thru this group's archives for some of the past posts. That can narrow down your search when you go to DGO. There are also some useful "reports" on DGO listing fasting growing stocks, highest RS and EPS, etc. If you have the time, you can also use these to go thru the charts. Any statements or opinions are strictly my own and not that of my employer. My comments should not be interpreted 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 E. Jenkins > To: canslim@xmission.com > Cc: jenkr@global2000.net > Subject: [CANSLIM] New Introduction > Date: Monday, September 08, 1997 2:44 AM > > Hi all... > > I'd like to introduce myself. My name is Richard (Dick) Jenkins and > I have been a reader of the digests for several months. I thoroughly > enjoy the group and the wealth of info provided. > > I have subscribed to DTN for 2 1/2 years and have been saving the > and posting the data to Metastock. I have made a few feeble stocks > investments in Dell and Microsoft. I have WJO's first (revised) > edition and have read it twice. I also subscribe to IBD and > received the recent video, which I have watched. > > I am 56 years of age and with retirement coming soon, I really would > like to see major increases in our net worth. Most of our money is > in a 401K that is managed by Fidelity. I am in the highest yielding > equity fund offered (a variant of the S&P500), so there is not much > more that I can do there. > > I have just signed up for beta-testing of DG. I was amazed to find > no screening capabilities (or did I miss something). I have also > started using the S&P and First Call reports on eSchwab. > > I have GOT to start really reading IBD, particularly the new h/l, > market and charts pages. I tend to be a follower but feel that I > need to get in earlier and CANSLIM is the preferred method. > > I am sure in the days and weeks ahead, I will have a number of > newbee questions, but will save them for later. > > Best wishes to all, > Dick ------------------------------ Date: Mon, 8 Sep 1997 22:07:58 -0400 From: "Tom Worley" Subject: [CANSLIM] Economic Calendar, week of Sep 9, 1997 A friend of mine from college is dying, and my mind is clouded with that, so here's the calendar, but no comments or opinions from me tonight. My judgement is too impaired. MONDAY Consumer borrowing, July, reported today, June revised from unchanged to up $0.8 billion, and July estimated at up $4.3bil, actually up 6.5bil TUESDAY Nonfarm productivity, for Q2, last up 0.6%, est for revision is for up 2.0% THURSDAY Current Acct Balance, for Q2, was down $41 bil, est for revision is for down $37.8 bil Initial Jobless Claims, week to Sep 6, was 326K, est for 325K Money Supply, week to Sep 1, was plus $3.8bil, est for plus $6.0 bil FRIDAY Retail Sales, August, was up 0.6%, est is for up 0.7% Producer Prices, was down 0.1%, est is for up 0.3% Any statements or opinions are strictly my own and not that of my employer. My comments should not be interpreted 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, 09 Sep 1997 02:49:48 GMT From: musicant@autobahn.org (Dan Musicant) Subject: Re: [CANSLIM] Date: Mon, 8 Sep 1997 14:53:20 -0400 : :I'm annoyed that I was "flushed out of the pocket" so to speak when KEG :had that huge volume/ small price drop last week. If the people who :stayed in could enlighten me as to why they did I'd appreciate it. I :assumed it would bounce back some but I was concerned the free fall :wouldn't stop for several points. : :Thanks, :Colt There was a large block of KEG sold last week one afternoon that was about 13% of the outstanding shares. It is actually surprising that the price only dropped 1 dollar that day. It had something to do with a conversion of bonds for stock, and the holder liquidating.=20 Dan ------------------------------ Date: Tue, 09 Sep 1997 03:17:04 GMT From: musicant@autobahn.org (Dan Musicant) Subject: Re: [CANSLIM] Nam Tai Electronics NTAIF I heard of this stock at Silicon Investor from a person who thought it undervalued and a likely performer. This was maybe three weeks ago when it was around 26. It's now 21 1/4 and just reversed a downtrend on a 3+% up day. Recent quarters see an amazing reversal in the trends: Earnings -30%, +20%, +55%, +471% (0.97 vs. 0.17) in successive quarters!! 7.8 million shares. 4.6 million float. EPS 93 RS 95 A/D =3D C Timeliness =3D B Growth rate 23% PE 10 =46unds 5% Group RS 94 Am I wrong, or is this a candidate for a major breakout, or at least a real recovery? Any opinions? What am I missing here? Dan ------------------------------ Date: Tue, 9 Sep 1997 01:31:08 -0400 From: lventura@juno.com (Louis F. Ventura) Subject: [CANSLIM] When to Sell? I've spent the past several months learning about "buying" stocks using the CANSLIM principles. Knock on wood, things are going well. However, it just dawned on me that I know little or nothing about "selling." So I continued my research, including re-reading HTMMIS, Chap.10 (When to Sell...) I'm still waffling on what constitutes a good sell decision, and here's why: 20% - WON says, "Take 20% profits when you have them (except with the most powerful of all stocks)." 35% - I'm up about 35% with two of the CANSLIM stocks I recently purchased. 40-50% - WON recommends developing a profit-and-loss plan. My original profit target was 40-50%, a little more aggressive than 20%. 100-200% - WON comments that the most powerful stocks of all are capable of increases of 100%, 200%, or more. Almost 10-baggers - Two of the CANSLIM stocks which I model, SMTC and JBIL, have rocketed 640% and 900%, respectively, in 12 months. Source = www.bigcharts.com Bulls, Bears, and Pigs - WON kindly reminds us, "Bulls make money and bears make money, but pigs don't." How do you folks go about making "sell" decisions??? Louis ~~~~~~~~~~~~~~~~~~~~~~~~ ------------------------------ Date: Tue, 9 Sep 1997 07:55:15 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Nam Tai Electronics NTAIF In the past, this stock has had a reputation for manipulation. Don't know if still true. Any statements or opinions are strictly my own and not that of my employer. My comments should not be interpreted 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: Re: [CANSLIM] Nam Tai Electronics NTAIF Date: Monday, September 08, 1997 11:17 PM I heard of this stock at Silicon Investor from a person who thought it undervalued and a likely performer. This was maybe three weeks ago when it was around 26. It's now 21 1/4 and just reversed a downtrend on a 3+% up day. Recent quarters see an amazing reversal in the trends: Earnings -30%, +20%, +55%, +471% (0.97 vs. 0.17) in successive quarters!! 7.8 million shares. 4.6 million float. EPS 93 RS 95 A/D = C Timeliness = B Growth rate 23% PE 10 Funds 5% Group RS 94 Am I wrong, or is this a candidate for a major breakout, or at least a real recovery? Any opinions? What am I missing here? Dan - ---------- ------------------------------ Date: Tue, 9 Sep 1997 08:02:29 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] When to Sell? First, bulls and bears make money, pigs just get slaughtered. Second, when I am fortunate enough to have a stock double, and I have had several, then I actively look for an excuse to sell at least half the position. Any, I repeat any, sign of weakness and I am out of at least half. This way I get my principal back and can still benefit if the stock continues up. If it weakens further, then I sell the rest. Generally, I do not buy for very short term trades. As a result, I am not usually looking for 20-30%, rather I want to see 50% or better as I try to target seriously undervalued stocks. If a stock moves to fast, however, I may go ahead and take a quick, short term profit and not worry if it moves even higher. Any statements or opinions are strictly my own and not that of my employer. My comments should not be interpreted 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: Louis F. Ventura > To: canslim@xmission.com > Subject: [CANSLIM] When to Sell? > Date: Tuesday, September 09, 1997 1:31 AM > > I've spent the past several months learning about "buying" stocks using > the CANSLIM principles. Knock on wood, things are going well. However, > it just dawned on me that I know little or nothing about "selling." So I > continued my research, including re-reading HTMMIS, Chap.10 (When to > Sell...) I'm still waffling on what constitutes a good sell decision, > and here's why: > > 20% - WON says, "Take 20% profits when you have them (except with the > most powerful of all stocks)." > > 35% - I'm up about 35% with two of the CANSLIM stocks I recently > purchased. > > 40-50% - WON recommends developing a profit-and-loss plan. My original > profit target was 40-50%, a little more aggressive than 20%. > > 100-200% - WON comments that the most powerful stocks of all are capable > of increases of 100%, 200%, or more. > > Almost 10-baggers - Two of the CANSLIM stocks which I model, SMTC and > JBIL, have rocketed 640% and 900%, respectively, in 12 months. Source = > www.bigcharts.com > > Bulls, Bears, and Pigs - WON kindly reminds us, "Bulls make money and > bears make money, but pigs don't." > > How do you folks go about making "sell" decisions??? > > Louis > ~~~~~~~~~~~~~~~~~~~~~~~~ ------------------------------ Date: Tue, 09 Sep 1997 13:47:28 GMT From: musicant@autobahn.org (Dan Musicant) Subject: Re: [CANSLIM] Nam Tai Electronics NTAIF On Tue, 9 Sep 1997 07:55:15 -0400, you wrote: :In the past, this stock has had a reputation for manipulation. :Don't know if still true. I am very sensitive to this as I *have a feeling* that it was manipulation that I suffered from in my *play* on NBTY, which has gone back to the doldrums of its lower 20 days (in fact it's at 19 1/2) after flying up to about 35 post earnings release recently. I don't know about NTAIF in this regard. What information do you have on this, Tom?=20 I did some more research and found a very lively and extensive discussion at Silicon Investor. This is the URL for anyone interested: http://www.exchange2000.com/~wsapi/investor/Subject-4172 It appears that the recent lowering in value of this issue is due to "insider trading." Namely, the largest shareholder, a Mr. Koo, who it appears heads up the Hong Kong based company, decided to dump a large amount of his holdings on the market. He apparently still holds around a million shares, in the neighborhood of 10% of the outstanding shares. Speculation varies on his motives. He owes the company some money due to loans. As Tom has noted in the past, insider trading does not necessarily mean that there is anything wrong with the company or that future performance is expected to decline.I suspect after reader through the thread (all posts since 9/3) mentioned above is that this is the case here. Others may disagree. I think that when you are in a position like Mr. Koo you don't think like a speculator or long term investor. Just my opinion. Dan : :Any statements or opinions are strictly my own and not that of my :employer. My comments should not be interpreted 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: Re: [CANSLIM] Nam Tai Electronics NTAIF :Date: Monday, September 08, 1997 11:17 PM : :I heard of this stock at Silicon Investor from a person who thought :it :undervalued and a likely performer. This was maybe three weeks ago :when it was around 26. It's now 21 1/4 and just reversed a :downtrend :on a 3+% up day. Recent quarters see an amazing reversal in the :trends: : :Earnings -30%, +20%, +55%, +471% (0.97 vs. 0.17) in successive :quarters!! : :7.8 million shares. 4.6 million float. :EPS 93 :RS 95 :A/D =3D C :Timeliness =3D B :Growth rate 23% :PE 10 :Funds 5% :Group RS 94 : :Am I wrong, or is this a candidate for a major breakout, or at :least a :real recovery? Any opinions? What am I missing here? : :Dan :---------- : ------------------------------ Date: Tue, 09 Sep 1997 10:24:32 -0700 From: Sam Funchess Subject: Re: [CANSLIM] KEG ALso far from a guru.. I expect the stock to make a minor stall at the current prices and begin a small upward movement until their next qtr. report. The stock has had a great run the past ten weeks and could use a rest. although I make these statements I did just do some pyramiding to increase my share with the anticipation the stock is still going up. The company expects future earnings to continue at the 100%+ rate. I feel the stocks ability to absorb 2.5 million shares and only drop $1 was an outstanding display of strength. Sam Sorry for the delay I have not been near my computer for a while. Talib Hirji wrote: > I bought KEG at $ 26.00 though I see the best entry point would have > been > around 23. Getting late into the trend I now find it difficult to set > my > "Stop Price". If I set it at 10% to 15% under my purchase price I > might be > exiting too soon. > > What is the recommendation in such case by the Gurus on this board ? > > TIA > > Talib ------------------------------ Date: Mon, 8 Sep 1997 18:53:07 -0500 From: "Jack Markowitz" Subject: Re: [CANSLIM] Stop loss WON says it is Fire Insurance. I have never had insurance that I didn't have to pay for. So, if you use the CANSLIM system and you stick with the 8% loss, you will pay some premiums. But you will have the insurance. It doesn't matter if the stock goes back up, you have finished with that trade. You will drive yourself nuts if you second guess every trade you make. Look at the stock again, if it seems like a CANSLIM candidate and you want to give it a try at the then current price, then start a new trade. The old trade is done, gone and not to be worried about. See ya, Jack jack@jackm.com http://www.jackm.com Jack's Picks - ---------- > From: SIMMS, FRANK R. (JSC-EV4) > To: 'canslim@mail.xmission.com' > Subject: [CANSLIM] Stop loss > Date: Monday, September 08, 1997 3:02 PM > > I too have the experience that almost all of my 10% stops quickly > recovered and left me with a loss. When I hold on and don't exit, it > goes lower! As a newbie I try to learn. Best guess is that a 15% stop > is appropriate in a volatile stock when I make my normal dumb purchases. > If one buys the stock as it is rising from a known major support level > then a stop just under the support level is appropriate. Also, if you > buy near the bottom of a dip then a 8-10% stop loss would be ok. It all > depends on the volatility, timing and the price you by at. > > Best Wishes, > > Bob ------------------------------ Date: Tue, 09 Sep 1997 11:24:43 -0700 From: Sam Funchess Subject: Re: [CANSLIM] Date: Mon, 8 Sep 1997 14:53:20 -0400 Colt Forsythe wrote: > I'm annoyed that I was "flushed out of the pocket" so to speak when > KEG > had that huge volume/ small price drop last week. If the people who > stayed in could enlighten me as to why they did I'd appreciate it. I > assumed it would bounce back some but I was concerned the free fall > wouldn't stop for several points. I was not bothered by the drop because I had purchased at 19 9/16, so I had a decent cushion. Also the $1 drop came during the last 1 hr and half, this was a time which I do not have access to a computer to check quotes so the action transpired before I could react. After seeing KEG close down after being up considerable all day I began to investigate. I found out through the help of people such as Tom and others from this site and elsewhere that the huge amount of shares that traded hands had to be part of the bond conversion. I also found out that the bond conversion was a good thing for long term issues but could have an short term effect on prices.... so I had to wait. The next day the stock took off as it had been doing for the past couple of days as if nothing had happened. There was no real reason or threat of a loss so I could stand back and analyze the situation clear headed and with time to spare. This is why I have not been flushed out of KEG. In fact because of the markets ability to absorb such an influx of shares I bought more. Sam sam5@mindspring.com > > > Thanks, > Colt ------------------------------ Date: Tue, 9 Sep 1997 11:57:41 -0400 (EDT) From: JANSI1AUG1@aol.com Subject: [CANSLIM] DG Short Interest & ROI Tom: My Beta version of DG has no short interest for KEG, nor SOCR either. (I looked them up in datablock.) I thought when no SI showed in DG that meant there was no SI (or significant SI over a fraction of a percent, at least. This is not so?). About the ROE: Thanks. I can't believe I confused equity with price. Oh, well. Your explanation was brief, lucid, and appreciated. Thanks for setting me straight on WON's definition of "Annual Earnings" too. Have you ever heard of Metastock incompatibiltiy with DG? For some reason, my stocks don't seem to load when I minimize DG-even though I'm off-line. jans ------------------------------ Date: Tue, 9 Sep 1997 11:08:30 -0500 From: "Ricardo Bekin" Subject: [CANSLIM] TMSR breakout? Thrustmaster is making new highs on good volume. Ricardo ------------------------------ Date: Sun, 7 Sep 1997 10:05:05 +0000 From: "Lost" Subject: [CANSLIM] Beta testing software Greetings, I have recently joined your list after noticing a posting on one of the investment newsgroups. As it turns out, I have been subscribing to IBD for about 2 months, and am in the middle of reading WON's book as well. My investing experience is mixed. I first got into the market in 1980, when I invested in stocks through a full service broker. After about 2-3 years of TOO much excitement, and too many losses, I essentially got out. I got back into the market again as a result of building my 401k accounts, and have been actively investing them and my other funds for the last 5 years, however ONLY through mutual funds. At this point in my life I have decided that it is time to look at individual stocks, and I like the information and format of the IBD approach. WRT this list and the DG website, I was interested in trying out the DG software as a Beta tester, and when I followed the links and downloaded the software, it looks like you have to pay for the software first. This does not seem like beta testing to me. Did I do something wrong????? As I mentioned I am a rookie, but hopefully I can learn from your discussions, as I ask stupid questions. My biggest problem appears to be having enough time to read my email, and to properly investigate potential investments. Oh well!!! BTW, I just opened an account for my 15 year old son who wants to invest in the market, so he is currently looking for a stock to buy with cash he has, thanks to cashing in his savings bonds. Lost ------------------------------ Date: Tue, 9 Sep 1997 12:00:42 -0600 (MDT) From: Jeff Beckham Subject: [CANSLIM] MRVC From Briefing.com: MRV Communications (MRVC) 34 3/4 +2 1/8: former high-flyer breaking out today amidst strong volume. Issue setting new 52-week high on volume of 1.35 mln shares vs yesterday's 619,000 and 3-month average daily volume of 330,000. (Posted 13:06 ET). Jeff ------------------------------ Date: Tue, 09 Sep 1997 17:28:26 From: bob gibson Subject: [CANSLIM] SOCR News item via pointcast from PR Newswire 9/9 12:41pm EDT Anthem, Inc., one of the largest health care management and ins. orgs. in US, has selected Scan-Optics to provide processing and imaging technology. Anthem currently processes 40 million health care claims and responds to six million customer inquiries annually There's more of the same, but no mention of what this might mean to SOCR financially. It didn't seem to affect the sh price either. Maybe tomorrow. Bob ------------------------------ Date: Wed, 10 Sep 1997 01:49:49 GMT From: musicant@autobahn.org (Dan Musicant) Subject: [CANSLIM] Nasdaq up 10...What sectors flew? I see where the Nasdaq composite index was up about the same amount as yesterday. However, the stocks that I watch showed very little of the advance I saw yesterday. I guess I tend to watch technology, relatively speaking, and Nasdaq is said to be tech heavy. What sectors accounted for the advance? Dan ------------------------------ Date: Tue, 9 Sep 1997 22:07:42 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Nam Tai Electronics NTAIF If you want a good example of why I generally pay little attention to insider trading (at least selling, buying can be a good indicator) look at the DG chart on Misonix (MSON). There was continual insider selling from Nov 96 thru May 97. The price range was 7-10. I bot today at 17.25 (it hit 19) (love those small float stocks!). Had those insiders waited six months, they would have sold at double the price. Insiders sell for many reasons, one of the most common being stock options about to expire (which cost them no direct money, but are part of their compensation pkg) and may be exercisable WAY under current price as they are likely from grants five years prior. Any statements or opinions are strictly my own and not that of my employer. My comments should not be interpreted 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: Re: [CANSLIM] Nam Tai Electronics NTAIF Date: Tuesday, September 09, 1997 9:47 AM On Tue, 9 Sep 1997 07:55:15 -0400, you wrote: :In the past, this stock has had a reputation for manipulation. :Don't know if still true. I am very sensitive to this as I *have a feeling* that it was manipulation that I suffered from in my *play* on NBTY, which has gone I did some more research and found a very lively and extensive discussion at Silicon Investor. This is the URL for anyone interested: http://www.exchange2000.com/~wsapi/investor/Subject-4172 It appears that the recent lowering in value of this issue is due to "insider trading." Namely, the largest shareholder, a Mr. Koo, who it money due to loans. As Tom has noted in the past, insider trading does not necessarily mean that there is anything wrong with the company or that future performance is expected to decline.I suspect after reader ------------------------------ Date: Tue, 9 Sep 1997 22:12:54 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Nasdaq up 10...What sectors flew? Most days lately, at least six of the eight main sectors have been up. Today, the ones I saw mentioned were computer index up 0.8%; Morgan Stanley High Tech 35 index up 0.1%; nonbank financial index up 0.7%; financials svcs sector up, amt unknown. Any statements or opinions are strictly my own and not that of my employer. My comments should not be interpreted 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] Nasdaq up 10...What sectors flew? Date: Tuesday, September 09, 1997 9:49 PM I see where the Nasdaq composite index was up about the same amount as yesterday. However, the stocks that I watch showed very little of the advance I saw yesterday. I guess I tend to watch technology, relatively speaking, and Nasdaq is said to be tech heavy. What sectors accounted for the advance? Dan - ---------- ------------------------------ End of canslim Digest V1 #287 ***************************** 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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