From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #1182 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 Tuesday, March 6 2001 Volume 02 : Number 1182 In this issue: Re: [CANSLIM] Late IBD [CANSLIM] averaging up/dn & tax free vs taxable acct [CANSLIM] importing from qp2 into excel Re: [CANSLIM] averaging up/dn & tax free vs taxable acct Re: [CANSLIM] Medical/Dental/Svcs + AIQ Re: [CANSLIM] Medical/Dental/Svcs + AIQ Re: [CANSLIM] averaging up/dn & tax free vs taxable acct Re: [CANSLIM] attached charts...an idea [CANSLIM] Pitbull Investor / Stocktables.com Re: [CANSLIM] Acc/Dis Numbers Re: [CANSLIM] LNCR RE: [CANSLIM] Mutual Funds - Cut Your Losses Re: [CANSLIM] Pitbull Investor / Stocktables.com Re: [CANSLIM] averaging up/dn & tax free vs taxable acct ---------------------------------------------------------------------- Date: Tue, 6 Mar 2001 09:42:09 -0800 From: "Bill Triffet" Subject: Re: [CANSLIM] Late IBD This is a multi-part message in MIME format. - ------=_NextPart_000_003E_01C0A621.B6D0E950 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable I think it has to with Wm O'Neal's proprietary institutional services. = That would perhaps cut into it. I also think that IBD is just now = entering the new net publishing age. It was just last year that they = hired some java programmers to redo the website. - -Bill Triffet ----- Original Message -----=20 From: Maninder=20 To: canslim@lists.xmission.com=20 Sent: Monday, March 05, 2001 9:58 PM Subject: Re: [CANSLIM] Late IBD I wonder why entire contents of IBD are not published online, so that = we can screen stocks as per one's strategy, such as CANSLIM. They can = offer online version exclusively to the print subscribers, and wont have = fear of losing subscribers. That way ALL their subscribers have the same = timely access. I asked the customer service several times, and they = always give vague answers. Clearly, this goes against some business = strategy they have, which I am not able to understand. Are there some = ways one can screen IBD data without doing it manually, with eye ? = (short of buying DGO).=20 Maninder=20 --- Spencer48@aol.com wrote:=20 > curry2@clnk.com writes:=20 >=20 > << In the 9 months I have subscribed I have never had even one week = where all=20 > my IBD issues arrived on time=20 - -------------------------------------------------------------------------= - ----- Do You Yahoo!? Yahoo! Mail Personal Address - Get email at your own domain with = Yahoo! Mail. - ------=_NextPart_000_003E_01C0A621.B6D0E950 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable

I think it has to with Wm O'Neal's = proprietary=20 institutional services. That would perhaps cut into it. I also think = that IBD is=20 just now entering the new net publishing age. It was just last year = that=20 they hired some java programmers to redo the website.

-Bill Triffet

----- Original Message -----

From:=20 Maninder=20

To: canslim@lists.xmission.com=

Sent: Monday, March 05, 2001 = 9:58=20 PM

Subject: Re: [CANSLIM] Late = IBD

I=20 wonder why entire contents of IBD are not published online, so that we = can=20 screen stocks as per one's strategy, such as CANSLIM. They can offer = online=20 version exclusively to the print subscribers, and wont have fear of = losing=20 subscribers. That way ALL their subscribers have the same timely = access. I=20 asked the customer service several times, and they always give vague = answers.=20 Clearly, this goes against some business strategy they have, which I = am not=20 able to understand. Are there some ways one can screen IBD data = without=20 doing it manually, with eye ? (short of buying=20 DGO).

Maninder

--- = Spencer48@aol.com=20 wrote:
> curry2@clnk.com writes:
>
> << In = the 9=20 months I have subscribed I have never had even one week where all =
> my=20 IBD issues arrived on time=20

Do You Yahoo!?
Yahoo! = Mail Personal=20 Address - Get email at your own domain with Yahoo!=20 Mail. - ------=_NextPart_000_003E_01C0A621.B6D0E950-- - - ------------------------------ Date: Tue, 6 Mar 2001 12:10:08 -0600 From: "Norman" Subject: [CANSLIM] averaging up/dn & tax free vs taxable acct This is a multi-part message in MIME format. - ------=_NextPart_000_0465_01C0A636.62B24930 Content-Type: text/plain; charset="Windows-1252" Content-Transfer-Encoding: quoted-printable Recently there was an article in IBD on averaging up as a stock moves up = and cautioning against averaging down. I have a friend who routinely averages down in what we both agree are quality tech 'blue chip' companies with good revenue growth and = earnings. He is trading 9-10 stocks in an IRA account. I am still learning CANSLIM and how to apply the method, but as I = understand it WON's method is primarily short/intermediate term investing. If an investors time = horizon is long (say 5 years) how does a buy-at-52-week-lows method compare with CANSLIM? My friend and I have 'compared' CANSLIM vs buy-n-hold tech blue chips at length. My delimma is that I find both mehtods 'logical' when used in = the right type of account: CANSLIM in any type account, and b-n-h in a long = term account such as retirement money. I am not particularly drawn to = b-n-h, but the way he is doing it, it seems logical, especially in the current market. Has = any one else thought about this: CANSLIM vs buy-n-hold in a long-term = account? =20 Norman Boyd - ------=_NextPart_000_0465_01C0A636.62B24930 Content-Type: text/html; charset="Windows-1252" Content-Transfer-Encoding: quoted-printable

Recently there was an article in IBD on averaging up as a stock = moves up=20 and
cautioning against averaging down.

I have a friend who = routinely=20 averages down in what we both agree are
quality tech 'blue chip' = companies=20 with good revenue growth and earnings.
He is trading 9-10 stocks in = an=20 IRA account.

I am still learning CANSLIM and how to apply = the=20 method, but as I understand it WON's method is
primarily = short/intermediate=20 term investing. If an investors time horizon
is long (say 5 = years) how=20 does a buy-at-52-week-lows method compare = with
CANSLIM?

My friend=20 and I have 'compared' CANSLIM vs buy-n-hold tech blue chips = at
length. =20 My delimma is that I find both mehtods 'logical' when used in = the
right type=20 of account: CANSLIM in any type account, and b-n-h in a long = term=20 account such as retirement money. I am not particularly drawn to = b-n-h,=20 but the way
he is doing it, it seems logical, especially in the = current=20 market. Has any one else thought about this: CANSLIM vs buy-n-hold = in a=20 long-term account?

Norman Boyd

- ------=_NextPart_000_0465_01C0A636.62B24930-- - - ------------------------------ Date: Tue, 6 Mar 2001 13:30:05 -0600 From: "John Adair" Subject: [CANSLIM] importing from qp2 into excel This is a multi-part message in MIME format. - ------=_NextPart_000_0000_01C0A641.8F53E920 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable X-MIME-Autoconverted: from 8bit to quoted-printable by mail1.brightok.net id NAA14075 Hi This is a luker for a long time I am developing a spreadsheet using the dll files in quotes plus to down load about 500 days of data on any stock in their database. I import into excel, date, open, hi, lo, close, volume, qrs,. To this data I program the 20 day mov of volume, 50 day mov of volume,% o= ff the 50 day mov of volume. I program the accumulation/dist days based on Oneals formula. I then enter any stock in cell A1of excel and all the data instantly appe= ar. If the volume is not up in all columns. I consider there is not accumulat= ion of this stock and not worth further evaluation. Note the accumulation and the % off hi columns are surprising . I note accumulation for months but = the volume will not be that much up I think I need to rework my formula for this portion. Btw If you haven=92t tried the dll files in quotes plus to download data = into excel you might like it. Actually any piece if data in quotes plus may be imported into excel at the same time. I would send a spreadsheet but I do= n=92t think it would fit In the xmission . I submit this for criticism and comment. - ------=_NextPart_000_0000_01C0A641.8F53E920 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable

Hi This is a luker for a long time <John><= /b>

I am developing a spreadsheet = using the dll files in quotes plus to down load about 500 days of data on any = stock in their database. I import into excel, date, open, hi, lo, close, volume, = qrs,.<= /b>

To this data I program the 20 day mov of volume, 50 day mov of volume,% off the 50 day mov of = volume. <= /b>

I program the accumulation/dist days based on Oneals = formula.<= /b>

I then enter any stock in cell A1of excel and all the data instantly = appear. If the volume is not up in all columns. I consider there is not = accumulation of this stock and not worth further evaluation. Note the accumulation and = the % off hi columns are surprising . I note accumulation for months but the = volume will not be that much up<= /b>

I think I need to rework my formula for this = portion.<= /b>

Btw If you haven’t tried the dll files in quotes plus to download data = into excel you might like it. Actually any piece if data in quotes plus may be = imported into excel at the same time. I would send a spreadsheet but I = don’t think it would fit In the xmission .<= /b>

I submit = this for criticism and comment.

- ------=_NextPart_000_0000_01C0A641.8F53E920-- - - ------------------------------ Date: Tue, 6 Mar 2001 12:39:08 -0700 From: "Patrick Wahl" Subject: Re: [CANSLIM] averaging up/dn & tax free vs taxable acct On 6 Mar 01, at 12:10, Norman wrote: > My friend and I have 'compared' CANSLIM vs buy-n-hold tech blue chips at > length. My delimma is that I find both mehtods 'logical' when used in the > right type of account: CANSLIM in any type account, and b-n-h in a long term account such as retirement money. I am not particularly drawn to b-n-h, but the way > he is doing it, it seems logical, especially in the current market. Has any one else thought about this: CANSLIM vs buy-n-hold in a long-term account? Actually, your friends idea seems sound, and I do that sort of investing a bit in my IRA accounts, it has worked out ok. I think it is a personality thing as much as anything else. I like a little more activity than that, and I feel my risk management is better with CANSLIM, since I am not letting anything run away from me. - - ------------------------------ Date: Tue, 6 Mar 2001 11:55:37 -0800 (PST) From: Maninder Subject: Re: [CANSLIM] Medical/Dental/Svcs + AIQ Frank For checking where you top current groups with highest relative strength appear in IBD, would you mind posting your results ocacsionally ? So that we can get a feel what are the features of your groups as they appear in IBD. For example, if the top groups by your screen match the ones which appear in IBD which have the highest % increase, then we can conclude that a simple look at the IBD groups will give us the same data. Regards Maninder __________________________________________________ Do You Yahoo!? Get email at your own domain with Yahoo! Mail. http://personal.mail.yahoo.com/ - - ------------------------------ Date: Tue, 06 Mar 2001 12:18:05 -0800 From: Tim Fisher Subject: Re: [CANSLIM] Medical/Dental/Svcs + AIQ I would also be curious as to how the QP2 report compares. It is located at: http://members.aol.com/~ranord/reports/PUBGRP4.HTM On 11:55 AM 3/6/01, Maninder Said: >Frank > >For checking where you top current groups with highest relative strength >appear >in IBD, would you mind posting your results ocacsionally ? So that we can get >a feel what are the features of your groups as they appear in IBD. For >example, if the top groups by your screen match the ones which appear in IBD >which have the highest % increase, then we can conclude that a simple look at >the IBD groups will give us the same data. > >Regards > >Maninder > > > > >__________________________________________________ >Do You Yahoo!? >Get email at your own domain with Yahoo! Mail. >http://personal.mail.yahoo.com/ > >- Tim Fisher Ore-Rock-On and Pacific Fishery Biologists WWW Sites Tim@OreRockOn.com WWW: http://OreRockOn.com See naked fish and rocks! - - ------------------------------ Date: Tue, 6 Mar 2001 12:41:21 -0800 (PST) From: John Subject: Re: [CANSLIM] averaging up/dn & tax free vs taxable acct Clearly the strategy depends upon the proposition that "quality tech 'blue chip' companies with good revenue growth and earnings will go up". If you happen to pick a company that does not go up (the CFO runs off with the money, the company is sued for pollution, etc.), you will own a lot of that stock! On 6 Mar 01, at 12:10, Norman wrote: > I have a friend who routinely averages down in what > we both agree are quality tech 'blue chip' companies > with good revenue growth and earnings. > He is trading 9-10 stocks in an IRA account. __________________________________________________ Do You Yahoo!? Get email at your own domain with Yahoo! Mail. http://personal.mail.yahoo.com/ - - ------------------------------ Date: Tue, 6 Mar 2001 18:22:39 -0500 From: "Gary W. Horan Jr." Subject: Re: [CANSLIM] attached charts...an idea This is a multi-part message in MIME format. - ------=_NextPart_000_00CD_01C0A66A.6D74F6E0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Ann, I use Outlook Express at home and Outlook at work and the attachments = show inline.=20 ----- Original Message -----=20 From: Norman=20 To: canslim@lists.xmission.com=20 Sent: Saturday, February 24, 2001 10:54 PM Subject: Re: [CANSLIM] attached charts...an idea Ann, I think maybe, if the sender has his/her mail client configured in a = particular way, you should see the image in the body of the message = without actually having to click on the attachment. I am using Outlook = Express and seeing the charts that way; in addition to having an = attachment. Norman ----- Original Message -----=20 From: Ann Hollingworth=20 To: canslim@lists.xmission.com=20 Sent: Saturday, February 24, 2001 9:13 PM Subject: [CANSLIM] attached charts =20 I try to practice "safe computing" by never opening attachments. But = I have a feeling I am missing out on some good stuff people are sending = now! What are other people doing with attachments? Ann Hollingworth Reading Recovery Teacher Massachusetts =20 =20 - ------=_NextPart_000_00CD_01C0A66A.6D74F6E0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable

Ann,

I use Outlook Express at home and Outlook at work = and the=20 attachments show inline.

----- Original Message -----
From:=20 Norman
To: canslim@lists.xmission.com =

Sent: Saturday, February 24, = 2001 10:54=20 PM

Subject: Re: [CANSLIM] attached = charts...an idea

Ann,

I think maybe, if the sender has his/her mail client configured = in a=20 particular way, you should see the image in the body of the message = without=20 actually having to click on the attachment. I am using Outlook = Express=20 and seeing the charts that way; in addition to having an = attachment.

Norman

----- Original Message -----
From:=20 Ann=20 Hollingworth
To: canslim@lists.xmission.com =

Sent: Saturday, February 24, = 2001 9:13=20 PM

Subject: [CANSLIM] attached=20 charts

I=20 try to practice "safe computing" by never opening attachments. But I = have a=20 feeling I am missing out on some good stuff people are sending now! = What are=20 other people doing with attachments?

Ann Hollingworth
Reading Recovery=20 Teacher
Massachusetts

- ------=_NextPart_000_00CD_01C0A66A.6D74F6E0-- - - ------------------------------ Date: Tue, 06 Mar 2001 15:48:01 -0600 From: canslim Subject: [CANSLIM] Pitbull Investor / Stocktables.com does anyone out there know anything about Pitbull Investor and Stocktables.com? I know what it is (a service that help people pick canslim stocks but is it any good? bj downes - - ------------------------------ Date: Tue, 6 Mar 2001 18:37:19 -0500 From: "Gary W. Horan Jr." Subject: Re: [CANSLIM] Acc/Dis Numbers Robert, How do I get this in a spreadsheet? I do have excel - ----- Original Message ----- From: "Robert" To: Sent: Sunday, February 25, 2001 10:00 PM Subject: [CANSLIM] Acc/Dis Numbers > Here are the latest Acc/Dis numbers: > > Date A B C D E AB/A:E %E > 2/12/01 1209 2699 1066 761 233 65% 4% > 2/13/01 1174 2662 1109 761 241 65% 4% > 2/14/01 1204 2655 1105 741 238 65% 4% > 2/15/01 1167 2674 1087 748 242 65% 4% > 2/16/01 1148 2657 1087 765 251 64% 4% > 2/20/01 1199 2643 1096 747 235 65% 4% > 2/21/01 1123 2602 1121 801 245 63% 4% > 2/22/01 1081 2560 1124 820 276 62% 5% > 2/23/01 996 2485 1161 868 307 60% 5% > 2/26/01 911 2455 1192 913 335 58% 6% > > > Spread sheet version > > Date,A,B,C,D,E,AB/A:E,%E > > 2/12/01,1209,2699,1066,761,233,65%,4% > 2/13/01,1174,2662,1109,761,241,65%,4% > 2/14/01,1204,2655,1105,741,238,65%,4% > 2/15/01,1167,2674,1087,748,242,65%,4% > 2/16/01,1148,2657,1087,765,251,64%,4% > 2/20/01,1199,2643,1096,747,235,65%,4% > 2/21/01,1123,2602,1121,801,245,63%,4% > 2/22/01,1081,2560,1124,820,276,62%,5% > 2/23/01,996,2485,1161,868,307,60%,5% > 2/26/01,911,2455,1192,913,335,58%,6% > > Robert > > > _________________________________________________________ > Do You Yahoo!? > Get your free @yahoo.com address at http://mail.yahoo.com > > > - > - - ------------------------------ Date: Tue, 6 Mar 2001 20:35:44 -0500 From: "Tom Worley" Subject: Re: [CANSLIM] LNCR If 50% of the float is owned by funds, it doesn't hold that 50% of the funds have not invested in it yet. It just means that 50% of the float is still not owned by funds, but there could still be a sizable portion of that held by investors through private placements, counted in the float but not necessarily freely trading. So the effective liquidity could be even less than 50%. The more liquidity is reduced, the more the ADV (Average Daily Volume) declines, the less a fund manager is willing to be involved, and the less he will commit in monetary terms. And, of course, the more volatility is likely to increase, making the chance of a decent base and a predictable entry point that much harder. Tom Worley stkguru@netside.net ICQ # 5568838 - ----- Original Message ----- From: Mike Lucero To: Sent: Tuesday, March 06, 2001 1:29 AM Subject: Re: [CANSLIM] LNCR A quibble is that 50% of funds haven't invested in the stock; 50% of the float of the stock is owned by funds. Mike - ----- Original Message ----- From: To: Sent: Monday, March 05, 2001 6:57 AM Subject: Re: [CANSLIM] LNCR > Tom: > > I hadn't fully considered "additional institutional buying" as being > necessary to raise the stock price. Thus,since there are so many funds > already invested in the stock (50%), it's unlikely, as you put it, any more > funds would invest in it. Thanks for the interesting heads-up. > > jans > > - > > - - - - ------------------------------ Date: Tue, 06 Mar 2001 18:39:11 -0700 From: esetser Subject: RE: [CANSLIM] Mutual Funds - Cut Your Losses But what about all the times the market corrects 8-10% and then moves up? How do you know when to get back in? In the case of a single stock, you call it a failure and move on. But it's much less clear-cut in funds, IMHO. At 12:36 PM 3/2/01 -0500, you wrote: >Regarding "but a mutual fund is the market, or a >market sector, and the market isn't going away, your fund should >always recover once the market does.." > >Yes the fund will recover...eventually. But at what price? For example, if >it is a tech fund down 40%, it has to recover 66% just to get back to it's >highs. And how long will that take? 2 or 3 years? > >Mutual Funds can be bought and sold by using a mental stop or have your >charting software give you an alert when you hit your set stop. The stop >should be no more than 8% or 10% below your buy point. Cut your losses. >This is the only way you can win. No one wants to or should put up with a >40% or more loss. > >Imagine if one sold at the 8% mental stop. Now when the fund is down 40%, >reinvest the money. Then what would your situation be like in 2 or 3 years? >You will be up 66% (minus your 8% or 10% stop loss), not just even to where >you were 2 or 3 years ago. > >This is not market timing. This is simply cutting your losses. The fund >tells you what to do. > >Buy and hold is market propaganda. Sure it works great in bull markets but >not in this current market. > > >Rick > > - - ------------------------------ Date: Tue, 6 Mar 2001 20:43:16 -0500 From: "Tom Worley" Subject: Re: [CANSLIM] Pitbull Investor / Stocktables.com I do not consider Pitbull a valid CANSLIM source, too much hype and tout. The owner apparently attempted several forays into the group, no idea of his success at recruiting. Tom Worley stkguru@netside.net ICQ # 5568838 - ----- Original Message ----- From: canslim To: Sent: Tuesday, March 06, 2001 4:48 PM Subject: [CANSLIM] Pitbull Investor / Stocktables.com does anyone out there know anything about Pitbull Investor and Stocktables.com? I know what it is (a service that help people pick canslim stocks but is it any good? bj downes - - - - ------------------------------ Date: Tue, 6 Mar 2001 20:59:38 -0500 From: "Tom Worley" Subject: Re: [CANSLIM] averaging up/dn & tax free vs taxable acct This is a multi-part message in MIME format. - ------=_NextPart_000_007F_01C0A680.5C36E4E0 Content-Type: text/plain; charset="Windows-1252" Content-Transfer-Encoding: quoted-printable WON's argument against averaging down is based on the belief that a top = performing stock does not give you that opportunity. Should you be = presented with that opportunity, then either you didn't pick a top = performing stock, or it is no longer a top performing stock. Either way, = you should be applying your stop loss rules. What your friend is doing is value shopping (or bottom fishing). Nothing = wrong in that, it is simply another strategy designed to eventually make = better profits than a savings account. I think the key difference is = that CANSLIM is designed around a set of rules intended to protect you = against a major loss of capital, and to force you into taking profits at = more or less the right time. Value shopping does not have, in my = opinion, any protection against even better opportunities to average = down in the future (e.g. no downside risk limitations) other than pure = value. And, bottom line, value is what all the investment community = collectively places on a stock, and that is usually based on = expectation. And expectations, being an emotional thing, is based on = what is seen for the future, which is usually earnings growth related. The issues of tax free (it's not really, only tax deferred) vs taxable = should not be a significant factor in either buy or sell decisions. = Granted, if it's December 28, and there are only two trading days to go = to force a profit into the new year, and delay paying taxes on the gains = for 15 or so months, then it might be a factor. Or if you are only a = week away from changing a gain from short term to long term, then the = difference in taxation might offset the loss in price you may pay. But a = deteriorating stock is a deteriorating stock, risking loss of profits, = or of capital. Before being introduced to CANSLIM, I got my master's degree in Value = Shopping, with a minor in Fundamentals. The sheepskin cost a hefty = price, one I did not soon forget. Took me many years to pay off that = student loan! I still get twinges sometimes, and hurriedly load Daily = Graphs and look at the chart, in particular the EPS and the chart trend. = That usually cures me. If that still doesn't work, I look at the support = bases, and ask myself "if it breaks that base, how much lower could it = still go?". That one always does the trick. Tom Worley stkguru@netside.net ICQ # 5568838 ----- Original Message -----=20 From: Norman=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, March 06, 2001 1:10 PM Subject: [CANSLIM] averaging up/dn & tax free vs taxable acct Recently there was an article in IBD on averaging up as a stock moves = up and cautioning against averaging down. I have a friend who routinely averages down in what we both agree are quality tech 'blue chip' companies with good revenue growth and = earnings. He is trading 9-10 stocks in an IRA account. I am still learning CANSLIM and how to apply the method, but as I = understand it WON's method is primarily short/intermediate term investing. If an investors time = horizon is long (say 5 years) how does a buy-at-52-week-lows method compare = with CANSLIM? My friend and I have 'compared' CANSLIM vs buy-n-hold tech blue chips = at length. My delimma is that I find both mehtods 'logical' when used in = the right type of account: CANSLIM in any type account, and b-n-h in a = long term account such as retirement money. I am not particularly drawn = to b-n-h, but the way he is doing it, it seems logical, especially in the current market. = Has any one else thought about this: CANSLIM vs buy-n-hold in a = long-term account? =20 Norman Boyd - ------=_NextPart_000_007F_01C0A680.5C36E4E0 Content-Type: text/html; charset="Windows-1252" Content-Transfer-Encoding: quoted-printable
WON's argument against averaging down is based on = the belief=20 that a top performing stock does not give you that opportunity. Should = you be=20 presented with that opportunity, then either you didn't pick a top = performing=20 stock, or it is no longer a top performing stock. Either way, you should = be=20 applying your stop loss rules.

What your friend is doing is value shopping (or = bottom=20 fishing). Nothing wrong in that, it is simply another strategy designed = to=20 eventually make better profits than a savings account. I think the key=20 difference is that CANSLIM is designed around a set of rules intended to = protect=20 you against a major loss of capital, and to force you into taking = profits at=20 more or less the right time. Value shopping does not have, in my = opinion, any=20 protection against even better opportunities to average down in the = future (e.g.=20 no downside risk limitations) other than pure value. And, bottom line, = value is=20 what all the investment community collectively places on a stock, and = that is=20 usually based on expectation. And expectations, being an emotional = thing, is=20 based on what is seen for the future, which is usually earnings growth=20 related.

The issues of tax free (it's not really, only tax = deferred) vs=20 taxable should not be a significant factor in either buy or sell=20 decisions. Granted, if it's December 28, and there are only two = trading=20 days to go to force a profit into the new year, and delay paying taxes = on the=20 gains for 15 or so months, then it might be a factor. Or if you = are only a=20 week away from changing a gain from short term to long term, then the = difference=20 in taxation might offset the loss in price you may pay. But a = deteriorating=20 stock is a deteriorating stock, risking loss of profits, or of=20 capital.

Before being introduced to CANSLIM, I got my = master's degree=20 in Value Shopping, with a minor in Fundamentals. The sheepskin cost a = hefty=20 price, one I did not soon forget. Took me many years to pay off that = student=20 loan! I still get twinges sometimes, and hurriedly load Daily = Graphs and=20 look at the chart, in particular the EPS and the chart trend. That = usually cures=20 me. If that still doesn't work, I look at the support bases, and ask = myself "if=20 it breaks that base, how much lower could it still go?". That one always = does=20 the trick.

Tom Worley
stkguru@netside.net
ICQ #=20 5568838

----- Original Message -----
From:=20 Norman
To: canslim@lists.xmission.com =

Sent: Tuesday, March 06, 2001 = 1:10=20 PM

Subject: [CANSLIM] averaging = up/dn &=20 tax free vs taxable acct

Recently there was an article in IBD on averaging up as a stock = moves up=20 and
cautioning against averaging down.

I have a friend who = routinely=20 averages down in what we both agree are
quality tech 'blue chip' = companies=20 with good revenue growth and earnings.
He is trading 9-10 stocks in = an=20 IRA account.

I am still learning CANSLIM and how to apply = the=20 method, but as I understand it WON's method is
primarily = short/intermediate=20 term investing. If an investors time horizon
is long (say 5 = years)=20 how does a buy-at-52-week-lows method compare = with
CANSLIM?

My=20 friend and I have 'compared' CANSLIM vs buy-n-hold tech blue chips=20 at
length. My delimma is that I find both mehtods 'logical' = when used=20 in the
right type of account: CANSLIM in any type account, = and b-n-h=20 in a long term account such as retirement money. I am not=20 particularly drawn to b-n-h, but the way
he is doing it, it seems = logical,=20 especially in the current market. Has any one else thought about = this:=20 CANSLIM vs buy-n-hold in a long-term account?

Norman Boyd
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