From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #1151 Reply-To: canslim Sender: owner-canslim-digest@lists.xmission.com Errors-To: owner-canslim-digest@lists.xmission.com Precedence: bulk Content-Transfer-Encoding: quoted-printable X-No-Archive: yes canslim-digest Wednesday, February 21 2001 Volume 02 : Number 1151 In this issue: Re: [CANSLIM] RCII Re: [CANSLIM] Fw: Group Discount for Daily Graphs Online [T2001021900NS] Re: [CANSLIM] CHBS Re: [CANSLIM] BBBY Re: [CANSLIM] Motley Fool Mechanical Investing Re: [CANSLIM] CHBS Re: [CANSLIM] BBBY RE: [CANSLIM] CHBS Re: [CANSLIM] RCII Re: [CANSLIM] EASI Re: [CANSLIM] BBBY Re: [CANSLIM] EASI RE: [CANSLIM] Motley Fool Mechanical Investing Re: [CANSLIM] Motley Fool Mechanical Investing - Backtesting ---------------------------------------------------------------------- Date: Wed, 21 Feb 2001 18:41:00 -0500 From: asosis@ca.ibm.com Subject: Re: [CANSLIM] RCII Hello David, please do post the chart of SDLI. I will greatly appreciate it. Btw, what charting software do you use? Anna Sosis "David Squires" @lists.xmission.com on 02/21/2001 03:09:18 PM Please respond to canslim@lists.xmission.com Sent by: owner-canslim@lists.xmission.com To: cc: Subject: Re: [CANSLIM] RCII Hi All, This one is pretty cut and dry. The correct buy point is off the handle high(35 1/8) on 1/23/01. The most recent little flag is just that. The stock is extended so buying it here (even if you had a good market) is risky. SDLI, last summer is a good example of a high handle. High handles should not form more than 12% above the high of the cup or else they tend to be faulty. If someone wants me to post a chart of SDLI let me know. Good Trading, DSquires - ----- Original Message ----- From: "Tim Fisher" To: Sent: Wednesday, February 21, 2001 10:49 AM Subject: RE: [CANSLIM] RCII > I disagree, it looks like a high handle to me, the pivot is right here at > 40. Nice vol dry-up, narrow trading range, in fact the past week looks like > a High Tight Flag. GRS of 62 makes it marginal CANSLIM, but that's the only > fault I can find with it. It made the "Select Stocks" list that I pull part > of my watch list from; here's the URL: > > http://members.aol.com/~ranord/reports/PUBSTKA.HTM > > P.S. Guess I was due to be right for once (chance, not skill!); EASI did > pop the cork today and is advancing nicely on good vol so far this AM. > > On 08:08 AM 2/21/01, Rick Parsons Said: > >Looks like RCII had a nice cup and handle and broke out on high volume on > >1/23/01. > > > > > >Rick > >-----Original Message----- > >From: owner-canslim@lists.xmission.com > >[mailto:owner-canslim@lists.xmission.com]On Behalf Of Vanchee1@aol.com > >Sent: Wednesday, February 21, 2001 10:56 AM > >To: canslim@xmission.com > >Subject: [CANSLIM] RCII > > > >Buying RCII today, looks to me like its about done basing and ready to move > >again. > > > >Sold my MGRC, just do not like the way the chart is looking > > > >ACLNF, holding ready to break > > > >SPCH, holding looking better every day, my smallest cap holding > > > >KDE, will explode someday. > > > >ASHW, looks only OK will be the first one I sell when I need to buy another > >stock. > > > >Chris. > > Tim Fisher > Ore-Rock-On and Pacific Fishery Biologists WWW Sites > > Tim@OreRockOn.com > WWW: http://OreRockOn.com > See naked fish and rocks! > > > - > > - - ------------------------------ Date: Wed, 21 Feb 2001 18:41:05 -0500 From: "Tom Worley" Subject: Re: [CANSLIM] Fw: Group Discount for Daily Graphs Online [T2001021900NS] She is referring to a new version due out then with many new features. I don't recall at the moment all the details, but one was being able to toggle between one year and five year charts. Tom Worley stkguru@netside.net ICQ # 5568838 - ----- Original Message ----- From: Rick Parsons To: Sent: Wednesday, February 21, 2001 9:07 AM Subject: RE: [CANSLIM] Fw: Group Discount for Daily Graphs Online [T2001021900NS] What does he mean by "Our first priority is to launch version of Daily Graphs Online (which you will be able to start testing in mid Spring)." ?? Rick - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Tom Worley Sent: Tuesday, February 20, 2001 9:47 PM To: CANSLIM Subject: [CANSLIM] Fw: Group Discount for Daily Graphs Online [T2001021900NS] Sorry everyone, I tried. I did at least establish some of the conditions to be met if this is done in the future (certified as a member of the group, meet an unspecified time period as a member to qualify). The discussion is below for your information. Tom Worley stkguru@netside.net ICQ # 5568838 - ----- Original Message ----- From: To: Sent: Tuesday, February 20, 2001 7:28 PM Subject: RE: Group Discount for Daily Graphs Online [T2001021900NS] Hi Tom You explained yourself perfectly. We completely understood what you were referring to. I'm sorry you misunderstood the term I used. On our end, we would refer to you as a group account, even if it really is a group rate. This "Group" would be an account to manage, and requirements such as the one you mentioned (such as being a member for a specified period) would have to be enforced. By-passing the printed product requirement is a change in our system as well. It is not a matter of reconsideration at all; it is something that we have considered and are going to research further. We as an organization would like to have happy subscribers, but the implementation of a "Group Rate Offering" is something that needs to undergo an implementation period, and we are not prepared to launch this right now. Our first priority is to launch version of Daily Graphs Online (which you will be able to start testing in mid Spring). Feel free to let me know if you have any other questions or comments. Gail Daily Graphs Online Sender : stkguru@netside.net Tracking Number : T2001021900NSZ409691 Pool : Daily Graphs Online Sent to : Date : 2/20/01 3:45 PM - --- - --- Hi Gail, I guess I didn't explain myself very well. We are not looking for a "group account" where we could all have a shared access. What we are interested in trying to get is a "group rate" where the member to qualify is certified as in good standing in the group. Other requirements likely could be also imposed, such as being a member for a specified period (so potential subscribers don't just jump into the group for the discount, then drop out). I recognize that a "group account" would require infrastructure changes, and I do not see a need or an interest in something like that, at least at this time. We also were hoping to eliminate the requirement of subscribing to the "book of the month" club with Daily Graphs, in order to get the present discount / group rate. Many of the members are in other countries, where IBD and Daily Graphs (books) are either not available, or are excessively dated by the time received. DGO is ideal for them. I understand you must be careful not to "cannibalize" Daily Graphs (books), but I do not believe more than a handful, if that many, of our members subscribe to the paper version. There are a number that subscribe to IBD, and as far as I can tell, would continue doing so for the different content. Possibly this could be re-considered? Tom Worley stkguru@netside.net ICQ # 5568838 - ----- Original Message ----- From: To: Sent: Tuesday, February 20, 2001 4:52 PM Subject: RE: Group Discount for Daily Graphs Online [T2001021900NS] HI Tom, Thanks for your e-mail. Your note was brought to a committee discussion this morning. While we are very pleased with this interest, we do not currently have the infrastructure setup to maintain group accounts. There would be a large maintenance issue. This is not to say that we don't intend to allow for something like this in the future. We need to look into this and discuss this further. We will be sure to notify you when we reach a solution, but I do not anticipate that this will be in the very near future. Please feel free to e-mail us at custserv@dailygraphs.com if you have any further questions on this issue. Sincerely, Gail Daily Graphs Online Sender : stkguru@netside.net Tracking Number : T2001021900NSZ406249 Pool : Daily Graphs Online Sent to : "DGOnline Customer Service" Date : 2/19/01 2:08 PM - --- - --- As you likely know, I am a long term subscriber to DGO, having started during the beta test period. You likely also know that I am an active spokesperson in favor of this service, especially with the online CANSLIM discussion group in which I actively participate. Many of the members of this online group got their first experience with Daily Graphs (paper or online) during the recently ended beta testing at investors.com. There are many that are considering subscribing online, but are held back by the cost, especially if they are new to CANSLIM and still not sure about it. I am not aware of any discounting that you offer other than in conjunction with Daily Graphs (books). I, like several other present subscribers, dislike the idea of trees being cut down to print and mail a book to us once a month that we often do not even open. Nonetheless, I have mentioned this discount to the group members, and several are considering it. But it would be beneficial to the group, and I think good business for you as well, if you could offer a group discount for an annual subscription to DGO. Our group is well established, now over four years old. Membership is formally established and by request, and could be certified by the list-owner, Jeff Salisbury. Membership is currently about 500 (ranks just appreciably thinned by termination of the digest version). If we had more members using Daily Graphs Online as their preferred charting service, we would be much more "on the same page" with our discussions. Even for those of us now subscribing, a lower group rate would still permit you to save a few bucks by eliminating the cost of printing and shipping us one book a month. More than 20 people so far (not presently subscribing) have expressed an interest in subscribing if we can get a group rate. Depending on the rate, I suspect others would sign up as well. Respectfully awaiting Management's consideration, Tom Worley stkguru@netside.net ICQ # 5568838 - - - - - - ------------------------------ Date: Wed, 21 Feb 2001 18:50:26 -0500 From: "Tom Worley" Subject: Re: [CANSLIM] CHBS This is a multi-part message in MIME format. - ------=_NextPart_000_0055_01C09C37.27A78C00 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable I see a one week support just under $25, which was the start of a handle = coming out of the cup, and the springboard for this now failing base. I = would be inclined (considering the past three days of "M" style selling = pressure) to wait and see if it can hold there. If not, get out of its = way. Tom Worley stkguru@netside.net ICQ # 5568838 ----- Original Message -----=20 From: Surindra=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, February 21, 2001 1:30 PM Subject: [CANSLIM] CHBS CHBS is down along with numerous retailers today. Although all the = canslim numbers are looking good, it is down about 20% from peak and has = hit the "mental" sell level set. =20 Would you sell at this level or hold on? I am inclined to hold with of = course the risk of loss of profit. =20 Regards =20 Surindra Singh - ------=_NextPart_000_0055_01C09C37.27A78C00 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
I see a one week support just under $25, which was = the start=20 of a handle coming out of the cup, and the springboard for this now = failing=20 base.  I would be inclined (considering the past three days of "M" = style=20 selling pressure) to wait and see if it can hold there. If not, get out = of its=20 way.

Tom Worley
stkguru@netside.net
ICQ # = 5568838
 
 
----- Original Message -----
From:=20 Surindra
To: canslim@lists.xmission.com =
Sent: Wednesday, February 21, = 2001 1:30=20 PM
Subject: [CANSLIM] CHBS

CHBS is down along with numerous = retailers=20 today. Although all the canslim numbers are looking good, it is down = about 20%=20 from peak and has hit the "mental" sell level set.
 
Would you sell at this level or = hold on? I=20 am inclined to hold with of course the risk of loss of = profit.
 
Regards
 
Surindra=20 Singh
- ------=_NextPart_000_0055_01C09C37.27A78C00-- - - ------------------------------ Date: Wed, 21 Feb 2001 18:59:40 -0500 From: "Tom Worley" Subject: Re: [CANSLIM] BBBY "M" Tom Worley stkguru@netside.net ICQ # 5568838 - ----- Original Message ----- From: Mike Heath To: Canslim Sent: Wednesday, February 21, 2001 4:42 PM Subject: [CANSLIM] BBBY I've been following BBBY for about three weeks now. It's looks like a nice cup and handle to me, but I'm not sure what to make of the last two days. Any thoughts? Mike Heath Austin, TX __________________________________________________ Do You Yahoo!? Yahoo! Auctions - Buy the things you want at great prices! http://auctions.yahoo.com/ - - - - ------------------------------ Date: Wed, 21 Feb 2001 19:04:29 -0500 From: "Tom Worley" Subject: Re: [CANSLIM] Motley Fool Mechanical Investing It's not the only problem, just one of the more obvious ones. They are also heavily focused on fundamentals, digging way deep into them, without consideration of market conditions at all. And a fixed stop loss at 8% will take you out of many goods stocks, if any are left after this ongoing debacle, while a less rigid approach can keep you in them on pullbacks and dips once you are ahead at least 15%. Tom Worley stkguru@netside.net ICQ # 5568838 - ----- Original Message ----- From: Pritish Shah To: Sent: Wednesday, February 21, 2001 5:04 PM Subject: Re: [CANSLIM] Motley Fool Mechanical Investing If the only problem with this model is that it does not have loss prevention strategy, how about incorporating it into the method and cut off stocks at 8% loss and keep the money in cash or bonds until the next investment cycle. Regards, Pritish On Mon, 19 Feb 2001, Rick Parsons wrote: > Since I am new to this board, please forgive me if this subject has already > been covered in previous posts. > > The Motley Fool used to run a Mechanical Investing Workshop ( > http://www.fool.com/workshop/down.htm ) which used screens to select stocks. > The forum members spent an immense amount of time back testing the screens > as far back as 15 years. > > Almost all screens are based on using only stocks that rate #1 on Value > Line's Timeliness. Currently Motley Fool had to suspend their Mechanical > Investing Workshop due to a dispute with Value Line. The forum is still > active. But that is another issue. > > It is interesting to note that one of the best performing screens was called > the Formula 90. > Here is a description of the screen. > > Method: > 1. Using ValueLine, begin with all stocks with Timeliness Rank = 1. > 2. Keep those stocks with an Earnings Per Share rank of 90 or higher in > Investor's Business Daily. > 3. Perform a primary descending sort using Investor's Business Daily's Stock > Relative Strength rank. > 4. Perform a secondary descending sort using Investor's Business Daily's > Accumulation/Distribution rank. > 5. Keep the top 10. (Can keep the top 5 or 3 or whatever) > > Every 4 weeks or every month (or week, quarter, year) run the screen again > and buy the new stocks that appear and sell those that drop off the list. > Try to keep equal amounts invested in each stock. > > Here are the returns for holding the top 5 stocks: > > 12-Month Returns > 1/85 to 1/86 56.3% > 1/86 to 1/87 29.3% > 1/87 to 1/88 14.8% > 1/88 to 1/89 -3.0% > 1/89 to 1/90 28.9% > 1/90 to 1/91 14.1% > 1/91 to 1/92 138.8% > 1/92 to 1/93 31.6% > 1/93 to 1/94 44.5% > 1/94 to 1/95 13.7% > 1/95 to 1/96 33.1% > 1/96 to 1/97 57.3% > 1/97 to 1/98 8.8% > 1/98 to 1/99 108.0% > Summary > CAGR 36.9% > GSD 28.2% > S&P 500 CAGR 16.7% > CAGR + 3 sigma 188.5% > CAGR + 2 sigma 125.0% > CAGR + 1 sigma 75.5% > CAGR - 1 sigma 6.7% > CAGR - 2 sigma -16.7% > CAGR - 3 sigma -35.1% > > This is just one screen of many which have show good returns when > backtested. > The reason for bringing this up, is that there may be some value of > incorporating ValueLines Timeliness rank of #1 when screening for IDB or > Canslim type stocks. > > Here is another screen: > > RELATIVE STRENGTH - IBD > Method: 1. Using ValueLine, begin with all stocks with Timeliness Rank = 1. > 2. Perform a primary descending sort using Investor's Business Daily's Stock > Relative Strength rank. > 3. Perform a secondary descending sort using Investor's Business Daily's > Earnings Per Share rank. > 4. Perform a tertiary descending sort using Investor's Business Daily's > Accumulation/Distribution rank. > 5. Keep the top 5. (or 10 or 3 depending on your choice) > > The main difference with this screen is it sorts by RS first rather than > EPS. > > Here are the results of backtesting: > > 12-Month Returns > 1/85 to 1/86 41.3% > 1/86 to 1/87 28.0% > 1/87 to 1/88 10.0% > 1/88 to 1/89 0.7% > 1/89 to 1/90 59.9% > 1/90 to 1/91 2.1% > 1/91 to 1/92 101.9% > 1/92 to 1/93 22.9% > 1/93 to 1/94 51.5% > 1/94 to 1/95 6.0% > 1/95 to 1/96 32.6% > 1/96 to 1/97 32.3% > 1/97 to 1/98 53.4% > 1/98 to 1/99 151.5% > Summary > CAGR 37.7% > GSD 29.7% > S&P 500 CAGR 16.7% > CAGR + 3 sigma 200.6% > CAGR + 2 sigma 131.8% > CAGR + 1 sigma 78.6% > CAGR - 1 sigma 6.2% > CAGR - 2 sigma -18.2% > CAGR - 3 sigma -36.9% > > Those of you who want more information, start with > http://www.davidcompton.com/MI_update.html > This site is a little overwhelming but has just about every bit of > information you will need. > > Ciao, > > Rick > > > - > > - - - - ------------------------------ Date: Wed, 21 Feb 2001 18:24:58 -0600 From: "The Curry's" Subject: Re: [CANSLIM] CHBS This is a multi-part message in MIME format. - ------=_NextPart_000_0087_01C09C33.98F2FBA0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Surindra, Hi! I'm sure other will comment on your situation. It is my opinion, = based on expereince, that you should not hold onto this stock if it has = hit your mental stop. Number 1 rule: Cut your losses so you preserve = capital. Look at how it gapped down to it's 50 dma line? The = ClearStation.com site shows a vol. % change of 555. The markets are = heading down rapidly; we don't know how soon the economy will get = better. I would not get stuck with a potential loser; you will regret = it. Even though you do not want to take a loss, you must stick to your = rules of the game. If and when the chart and fundamentals look good to = you again after 31 days, you can repurchase. All the best, Patti ----- Original Message -----=20 From: Surindra=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, February 21, 2001 12:30 PM Subject: [CANSLIM] CHBS CHBS is down along with numerous retailers today. Although all the = canslim numbers are looking good, it is down about 20% from peak and has = hit the "mental" sell level set. =20 Would you sell at this level or hold on? I am inclined to hold with of = course the risk of loss of profit. =20 Regards =20 Surindra Singh - ------=_NextPart_000_0087_01C09C33.98F2FBA0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Surindra,
 
Hi!  I'm sure other will comment = on your=20 situation.  It is my opinion, based on expereince, that you should = not hold=20 onto this stock if it has hit your mental stop. Number 1 rule: Cut your = losses=20 so you preserve capital. Look at how it gapped down to it's 50 dma line? = The=20 ClearStation.com site shows a vol. % change  of 555. The = markets=20 are heading down rapidly; we don't know how soon the economy will = get=20 better.  I would not get stuck with a potential loser; you will = regret=20 it.  Even though you do not want to take a loss, you must stick to = your=20 rules of the game. If and when the chart and fundamentals look = good to you=20 again after 31 days, you can repurchase.
 
All the best, Patti
----- Original Message -----
From:=20 Surindra
To: canslim@lists.xmission.com =
Sent: Wednesday, February 21, = 2001 12:30=20 PM
Subject: [CANSLIM] CHBS

CHBS is down along with numerous = retailers=20 today. Although all the canslim numbers are looking good, it is down = about 20%=20 from peak and has hit the "mental" sell level set.
 
Would you sell at this level or = hold on? I=20 am inclined to hold with of course the risk of loss of = profit.
 
Regards
 
Surindra=20 Singh
- ------=_NextPart_000_0087_01C09C33.98F2FBA0-- - - ------------------------------ Date: Wed, 21 Feb 2001 18:33:09 -0600 From: "The Curry's" Subject: Re: [CANSLIM] BBBY Hi Mike! What I see is heavy distribution; just like in alot of other stocks today. The Dow was down -204 today. People who had a profit in this stock were locking them in. All the best, Patti - ----- Original Message ----- From: "Mike Heath" To: "Canslim" Sent: Wednesday, February 21, 2001 3:42 PM Subject: [CANSLIM] BBBY > I've been following BBBY for about three weeks now. > It's looks like a nice cup and handle to me, but I'm > not sure what to make of the last two days. > > Any thoughts? > > Mike Heath > Austin, TX > > > __________________________________________________ > Do You Yahoo!? > Yahoo! Auctions - Buy the things you want at great prices! http://auctions.yahoo.com/ > > - > > - - ------------------------------ Date: Wed, 21 Feb 2001 19:31:27 -0500 From: "Hugh Fader" Subject: RE: [CANSLIM] CHBS This is a multi-part message in MIME format. - ------=_NextPart_000_001D_01C09C3C.E3AB5080 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: 7bit One thing that would make me tend to hold a bit longer is that it seems to have bottomed out just above the 50 day moving average and its pivot point. - - Hugh -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Surindra Sent: Wednesday, February 21, 2001 1:30 PM To: canslim@lists.xmission.com Subject: [CANSLIM] CHBS CHBS is down along with numerous retailers today. Although all the canslim numbers are looking good, it is down about 20% from peak and has hit the "mental" sell level set. Would you sell at this level or hold on? I am inclined to hold with of course the risk of loss of profit. Regards Surindra Singh - ------=_NextPart_000_001D_01C09C3C.E3AB5080 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
One=20 thing that would make me tend to hold a bit longer is that it seems to = have=20 bottomed out just above the 50 day moving average and its pivot=20 point.
 
-=20 Hugh
-----Original Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of=20 Surindra
Sent: Wednesday, February 21, 2001 1:30=20 PM
To: canslim@lists.xmission.com
Subject: = [CANSLIM]=20 CHBS

CHBS is down along with numerous = retailers=20 today. Although all the canslim numbers are looking good, it is down = about 20%=20 from peak and has hit the "mental" sell level set.
 
Would you sell at this level or = hold on? I=20 am inclined to hold with of course the risk of loss of = profit.
 
Regards
 
Surindra=20 Singh
- ------=_NextPart_000_001D_01C09C3C.E3AB5080-- - - ------------------------------ Date: Wed, 21 Feb 2001 18:30:01 -0500 From: asosis@ca.ibm.com Subject: Re: [CANSLIM] RCII - --0__=852569FA0080D8178f9e8a93df938690918c852569FA0080D817 Content-type: text/plain; charset=us-ascii David, Please do post a chart of SDLI. Btw, what software are you using? Anna Sosis "David Squires" @lists.xmission.com on 02/21/2001 03:09:18 PM Please respond to canslim@lists.xmission.com Sent by: owner-canslim@lists.xmission.com To: cc: Subject: Re: [CANSLIM] RCII Hi All, This one is pretty cut and dry. The correct buy point is off the handle high(35 1/8) on 1/23/01. The most recent little flag is just that. The stock is extended so buying it here (even if you had a good market) is risky. SDLI, last summer is a good example of a high handle. High handles should not form more than 12% above the high of the cup or else they tend to be faulty. If someone wants me to post a chart of SDLI let me know. Good Trading, DSquires - --0__=852569FA0080D8178f9e8a93df938690918c852569FA0080D817-- - - ------------------------------ Date: Wed, 21 Feb 2001 17:06:10 -0800 From: David Thompson Subject: Re: [CANSLIM] EASI To all DAKT looks like it could break down strongly Thursday. The hammer it formed on today's chart (2/21) looks pretty ominous, especially considering the volume. As bad as the daily chart looks, the 5 minute chart doesn't look any better, breaking down below both the 20 ma and the 50 ma at the very end. David T Steven Limbert wrote: > To All......... > > DAKT is breaking out of a cup with handle on the daily as well as the weekly > charts dating back to Jan 2000. > > Pivot point is about 16 to 16.5 so it is extended, hope some people got in > anyhow. > > Does anyone ever buy in at a dip after a breakout if it gets back within 5% > of the pivot point? > > Any thoughts on DAKT overall? > > Thanks, > Steve Limbert > > >From: Vanchee1@aol.com > >Reply-To: canslim@lists.xmission.com > >To: canslim@lists.xmission.com > >Subject: Re: [CANSLIM] EASI > >Date: Tue, 20 Feb 2001 14:37:09 EST > > > >One of my better performers, should do good for at least another year might > >see some basing every now and then. > > > >Another one ready to rock is ACLNF, watch this one this week, also earnings > >are due anytime now. > > > >Chris > > > >PS, TRR and DAKT doing well today, didnt buy though. > > > >- > > > > _________________________________________________________________ > Get your FREE download of MSN Explorer at http://explorer.msn.com > > - - - ------------------------------ Date: Wed, 21 Feb 2001 19:09:19 -0600 From: "David Squires" Subject: Re: [CANSLIM] BBBY Tom, Thank you for the best post to this list since September 1, 2001!! I couldn't have said it better or more briefly myself!!!! Good Trading, Dave - ----- Original Message ----- From: "Tom Worley" To: Sent: Wednesday, February 21, 2001 5:59 PM Subject: Re: [CANSLIM] BBBY > "M" > > Tom Worley > stkguru@netside.net > ICQ # 5568838 > > > ----- Original Message ----- > From: Mike Heath > To: Canslim > Sent: Wednesday, February 21, 2001 4:42 PM > Subject: [CANSLIM] BBBY > > > I've been following BBBY for about three weeks now. > It's looks like a nice cup and handle to me, but I'm > not sure what to make of the last two days. > > Any thoughts? > > Mike Heath > Austin, TX > > > __________________________________________________ > Do You Yahoo!? > Yahoo! Auctions - Buy the things you want at great prices! > http://auctions.yahoo.com/ > > - > > > > - > - - ------------------------------ Date: Wed, 21 Feb 2001 18:23:26 -0700 From: esetser Subject: Re: [CANSLIM] EASI At 11:37 AM 2/21/01 -0500, you wrote: >To All......... > >DAKT is breaking out of a cup with handle on the daily as well as the weekly >charts dating back to Jan 2000. > >Pivot point is about 16 to 16.5 so it is extended, hope some people got in >anyhow. > >Does anyone ever buy in at a dip after a breakout if it gets back within 5% >of the pivot point? Yes, I have had some good purchases doing this! >Any thoughts on DAKT overall? > > >Thanks, >Steve Limbert > >>From: Vanchee1@aol.com >>Reply-To: canslim@lists.xmission.com >>To: canslim@lists.xmission.com >>Subject: Re: [CANSLIM] EASI >>Date: Tue, 20 Feb 2001 14:37:09 EST >> >>One of my better performers, should do good for at least another year might >>see some basing every now and then. >> >>Another one ready to rock is ACLNF, watch this one this week, also earnings >>are due anytime now. >> >>Chris >> >>PS, TRR and DAKT doing well today, didnt buy though. >> >>- >> > >_________________________________________________________________ >Get your FREE download of MSN Explorer at http://explorer.msn.com > > >- > > > - - ------------------------------ Date: Wed, 21 Feb 2001 20:33:07 -0500 From: "Rick Parsons" Subject: RE: [CANSLIM] Motley Fool Mechanical Investing The Mechanical Investing folks at Motley Fool have done a painstaking job= of backtesting these screens. However, I have never seen them attempt to test the screens with stop los= ses to my memory. But it is an idea that can always be looked into. Rick - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Pritish Shah Sent: Wednesday, February 21, 2001 5:04 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] Motley Fool Mechanical Investing If the only problem with this model is that it does not have loss prevention strategy, how about incorporating it into the method and cut off stocks at 8% loss and keep the money in cash or bonds until the next investment cycle. Regards, Pritish On Mon, 19 Feb 2001, Rick Parsons wrote: > Since I am new to this board, please forgive me if this subject has already > been covered in previous posts. > > The Motley Fool used to run a Mechanical Investing Workshop ( > http://www.fool.com/workshop/down.htm ) which used screens to select stocks. > The forum members spent an immense amount of time back testing the scre= ens > as far back as 15 years. > > Almost all screens are based on using only stocks that rate #1 on Value > Line's Timeliness. Currently Motley Fool had to suspend their Mechanic= al > Investing Workshop due to a dispute with Value Line. The forum is stil= l > active. But that is another issue. > > It is interesting to note that one of the best performing screens was called > the Formula 90. > Here is a description of the screen. > > Method: > 1. Using ValueLine, begin with all stocks with Timeliness Rank =3D 1. > 2. Keep those stocks with an Earnings Per Share rank of 90 or higher in > Investor=92s Business Daily. > 3. Perform a primary descending sort using Investor=92s Business Daily=92= s Stock > Relative Strength rank. > 4. Perform a secondary descending sort using Investor=92s Business Dail= y=92s > Accumulation/Distribution rank. > 5. Keep the top 10. (Can keep the top 5 or 3 or whatever) > > Every 4 weeks or every month (or week, quarter, year) run the screen ag= ain > and buy the new stocks that appear and sell those that drop off the lis= t. > Try to keep equal amounts invested in each stock. > > Here are the returns for holding the top 5 stocks: > > 12-Month Returns > 1/85 to 1/86 56.3% > 1/86 to 1/87 29.3% > 1/87 to 1/88 14.8% > 1/88 to 1/89 -3.0% > 1/89 to 1/90 28.9% > 1/90 to 1/91 14.1% > 1/91 to 1/92 138.8% > 1/92 to 1/93 31.6% > 1/93 to 1/94 44.5% > 1/94 to 1/95 13.7% > 1/95 to 1/96 33.1% > 1/96 to 1/97 57.3% > 1/97 to 1/98 8.8% > 1/98 to 1/99 108.0% > Summary > CAGR 36.9% > GSD 28.2% > S&P 500 CAGR 16.7% > CAGR + 3 sigma 188.5% > CAGR + 2 sigma 125.0% > CAGR + 1 sigma 75.5% > CAGR =96 1 sigma 6.7% > CAGR =96 2 sigma -16.7% > CAGR =96 3 sigma -35.1% > > This is just one screen of many which have show good returns when > backtested. > The reason for bringing this up, is that there may be some value of > incorporating ValueLines Timeliness rank of #1 when screening for IDB o= r > Canslim type stocks. > > Here is another screen: > > RELATIVE STRENGTH - IBD > Method: 1. Using ValueLine, begin with all stocks with Timeliness Rank = =3D 1. > 2. Perform a primary descending sort using Investor=92s Business Daily=92= s Stock > Relative Strength rank. > 3. Perform a secondary descending sort using Investor=92s Business Dail= y=92s > Earnings Per Share rank. > 4. Perform a tertiary descending sort using Investor=92s Business Daily= =92s > Accumulation/Distribution rank. > 5. Keep the top 5. (or 10 or 3 depending on your choice) > > The main difference with this screen is it sorts by RS first rather tha= n > EPS. > > Here are the results of backtesting: > > 12-Month Returns > 1/85 to 1/86 41.3% > 1/86 to 1/87 28.0% > 1/87 to 1/88 10.0% > 1/88 to 1/89 0.7% > 1/89 to 1/90 59.9% > 1/90 to 1/91 2.1% > 1/91 to 1/92 101.9% > 1/92 to 1/93 22.9% > 1/93 to 1/94 51.5% > 1/94 to 1/95 6.0% > 1/95 to 1/96 32.6% > 1/96 to 1/97 32.3% > 1/97 to 1/98 53.4% > 1/98 to 1/99 151.5% > Summary > CAGR 37.7% > GSD 29.7% > S&P 500 CAGR 16.7% > CAGR + 3 sigma 200.6% > CAGR + 2 sigma 131.8% > CAGR + 1 sigma 78.6% > CAGR =96 1 sigma 6.2% > CAGR =96 2 sigma -18.2% > CAGR =96 3 sigma -36.9% > > Those of you who want more information, start with > http://www.davidcompton.com/MI_update.html > This site is a little overwhelming but has just about every bit of > information you will need. > > Ciao, > > Rick > > > - > > - - - - ------------------------------ Date: Wed, 21 Feb 2001 20:22:16 -0600 From: "David Squires" Subject: Re: [CANSLIM] Motley Fool Mechanical Investing - Backtesting Hi all, The original email in this tread says the MF backtested this particular strategy for 15 years. I am not trying to embarrass anyone here, just making sure everyone understands what this means. If you subtract 15 from the year 2000 you end up with 1985. This is 3 years after the great secular bull market in stocks started. For those who don't know, the market has bull and bear markets every 2-4 years. However, this occurs in the context of secular bull and bear markets, which can last a quarter decade. Any conceived strategy that is not backtested through AT LEAST one secular bull AND bear market is not worth considering. With these parameters you have to go back to 1970 to have this assurance. In my opinions, you should backtest any mechanical strategy to the 1900's and have a full understanding of economics before risking your hard earned money. Anyone thinking about implementing a mechanical trading system better give a lot of thought to drawdown. Drawdown is basically the maximum drop in the value of your account from peak to trough. There are two key things to keep in mind here... the depth of the drawdown, if it is too large, can easily make you stop using the great method just when you shouldn't. Second, the drawdown could last so long that you stop using the system. A key O'Neil statement applies here..."they either scare you out or wear you out" As an example, the return for this method was 14+% from 87-88 but the drawdown you would have experienced in 1987 would have chilled you to the bone! DSquires - ----- Original Message ----- From: "Rick Parsons" To: Sent: Wednesday, February 21, 2001 7:33 PM Subject: RE: [CANSLIM] Motley Fool Mechanical Investing The Mechanical Investing folks at Motley Fool have done a painstaking job of backtesting these screens. However, I have never seen them attempt to test the screens with stop losses to my memory. But it is an idea that can always be looked into. Rick - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Pritish Shah Sent: Wednesday, February 21, 2001 5:04 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] Motley Fool Mechanical Investing If the only problem with this model is that it does not have loss prevention strategy, how about incorporating it into the method and cut off stocks at 8% loss and keep the money in cash or bonds until the next investment cycle. Regards, Pritish On Mon, 19 Feb 2001, Rick Parsons wrote: > Since I am new to this board, please forgive me if this subject has already > been covered in previous posts. > > The Motley Fool used to run a Mechanical Investing Workshop ( > http://www.fool.com/workshop/down.htm ) which used screens to select stocks. > The forum members spent an immense amount of time back testing the screens > as far back as 15 years. > > Almost all screens are based on using only stocks that rate #1 on Value > Line's Timeliness. Currently Motley Fool had to suspend their Mechanical > Investing Workshop due to a dispute with Value Line. The forum is still > active. But that is another issue. > > It is interesting to note that one of the best performing screens was called > the Formula 90. > Here is a description of the screen. > > Method: > 1. Using ValueLine, begin with all stocks with Timeliness Rank = 1. > 2. Keep those stocks with an Earnings Per Share rank of 90 or higher in > Investor's Business Daily. > 3. Perform a primary descending sort using Investor's Business Daily's Stock > Relative Strength rank. > 4. Perform a secondary descending sort using Investor's Business Daily's > Accumulation/Distribution rank. > 5. Keep the top 10. (Can keep the top 5 or 3 or whatever) > > Every 4 weeks or every month (or week, quarter, year) run the screen again > and buy the new stocks that appear and sell those that drop off the list. > Try to keep equal amounts invested in each stock. > > Here are the returns for holding the top 5 stocks: > > 12-Month Returns > 1/85 to 1/86 56.3% > 1/86 to 1/87 29.3% > 1/87 to 1/88 14.8% > 1/88 to 1/89 -3.0% > 1/89 to 1/90 28.9% > 1/90 to 1/91 14.1% > 1/91 to 1/92 138.8% > 1/92 to 1/93 31.6% > 1/93 to 1/94 44.5% > 1/94 to 1/95 13.7% > 1/95 to 1/96 33.1% > 1/96 to 1/97 57.3% > 1/97 to 1/98 8.8% > 1/98 to 1/99 108.0% > Summary > CAGR 36.9% > GSD 28.2% > S&P 500 CAGR 16.7% > CAGR + 3 sigma 188.5% > CAGR + 2 sigma 125.0% > CAGR + 1 sigma 75.5% > CAGR - 1 sigma 6.7% > CAGR - 2 sigma -16.7% > CAGR - 3 sigma -35.1% > > This is just one screen of many which have show good returns when > backtested. > The reason for bringing this up, is that there may be some value of > incorporating ValueLines Timeliness rank of #1 when screening for IDB or > Canslim type stocks. > > Here is another screen: > > RELATIVE STRENGTH - IBD > Method: 1. Using ValueLine, begin with all stocks with Timeliness Rank = 1. > 2. Perform a primary descending sort using Investor's Business Daily's Stock > Relative Strength rank. > 3. Perform a secondary descending sort using Investor's Business Daily's > Earnings Per Share rank. > 4. Perform a tertiary descending sort using Investor's Business Daily's > Accumulation/Distribution rank. > 5. Keep the top 5. (or 10 or 3 depending on your choice) > > The main difference with this screen is it sorts by RS first rather than > EPS. > > Here are the results of backtesting: > > 12-Month Returns > 1/85 to 1/86 41.3% > 1/86 to 1/87 28.0% > 1/87 to 1/88 10.0% > 1/88 to 1/89 0.7% > 1/89 to 1/90 59.9% > 1/90 to 1/91 2.1% > 1/91 to 1/92 101.9% > 1/92 to 1/93 22.9% > 1/93 to 1/94 51.5% > 1/94 to 1/95 6.0% > 1/95 to 1/96 32.6% > 1/96 to 1/97 32.3% > 1/97 to 1/98 53.4% > 1/98 to 1/99 151.5% > Summary > CAGR 37.7% > GSD 29.7% > S&P 500 CAGR 16.7% > CAGR + 3 sigma 200.6% > CAGR + 2 sigma 131.8% > CAGR + 1 sigma 78.6% > CAGR - 1 sigma 6.2% > CAGR - 2 sigma -18.2% > CAGR - 3 sigma -36.9% > > Those of you who want more information, start with > http://www.davidcompton.com/MI_update.html > This site is a little overwhelming but has just about every bit of > information you will need. > > Ciao, > > Rick > > > - > > - - - - - - ------------------------------ End of canslim-digest V2 #1151 ****************************** To unsubscribe to canslim-digest, send an email to "majordomo@xmission.com" with "unsubscribe canslim-digest" in the body of the message. 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