From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #1553 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 Sunday, July 8 2001 Volume 02 : Number 1553 In this issue: Re: [CANSLIM] Another Sign of the Times Re: [CANSLIM] HGS Investor vs. IBD Re: [CANSLIM] New Leaders Re: [CANSLIM] Chart test [CANSLIM] Off topic - personal request [CANSLIM] Small cap, low trading volume Re: [CANSLIM] Small cap, low trading volume Re: [CANSLIM] Chart test [CANSLIM] IGT Re: [CANSLIM] IGT Re: [CANSLIM] Small cap, low trading volume Re: [CANSLIM] Small cap, low trading volume ---------------------------------------------------------------------- Date: Sat, 7 Jul 2001 20:49:50 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Another Sign of the Times Alliance Bancorp (ABCL) was bought out by Charter Finance (CF) effective last Monday. Ravenswood Winery (RVWD) was bought out by Constellation (STZ), also effective on Monday. The buyout of Doncasters (DCS) by RCG Holdings went effective on Tuesday. What is strange is that IBD would bother featuring stocks under any buyout or acquisition scenario, much less companies that as of printing no longer even existed. I would have expected a little more human thought in preparing the Weekend Review. But bottom line, buyouts are generally viewed as a positive, not a negative, as they usually occur at a premium to the prior trading price, and often reduce the number of shares in the market place, offsetting the new shares coming in from IPOs. Tom Worley stkguru@netside.net AIM: TexWorley - ----- Original Message ----- From: Norman To: Sent: Saturday, July 07, 2001 3:46 PM Subject: [CANSLIM] Another Sign of the Times As I was inputting the IBD Weekend Review list into a portfolio at clearstation for tracking another bad omen was revealed. When I hit the Set Default Values button it came up with 3 stocks on the list that were delisted last week: DCS, ABCL and RVWD. I have been doing these weekend portfolios since February this year and don't recall seeing more than 1 delisting appearing in the Weekend Review before. Another leak in the hull? Norman Boyd - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Sat, 7 Jul 2001 20:56:47 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] HGS Investor vs. IBD This is a multi-part message in MIME format. - ------=_NextPart_000_0034_01C10727.56BF9680 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Thanks, Ron, I already have MAGS on watch, and the other small caps = didn't appeal. Tom Worley stkguru@netside.net AIM: TexWorley ----- Original Message -----=20 From: Ron Brown=20 To: canslim@lists.xmission.com=20 Sent: Saturday, July 07, 2001 2:42 PM Subject: Re: [CANSLIM] HGS Investor vs. IBD Here try this list, you might find something you like. =20 MAGS MOVI DGX EDMC PRX COCO HKF EFTD CNTL MIMS PECS =20 Ron ----- Original Message -----=20 From: Tom Worley=20 To: canslim@lists.xmission.com=20 Sent: Saturday, July 07, 2001 1:20 PM Subject: Re: [CANSLIM] HGS Investor vs. IBD and now I hope we can interrupt this series of commercials, and get = back to CANSLIM stocks. I haven't seen a single mention of a stock all = day, with the exception of my list. BTW, commercials are forbidden here, in case you forgot. Tom Worley stkguru@netside.net AIM: TexWorley ----- Original Message -----=20 From: Ron Brown=20 To: canslim@lists.xmission.com=20 Sent: Saturday, July 07, 2001 1:56 PM Subject: Re: [CANSLIM] HGS Investor vs. IBD Good, Gene, =20 I hope you like it, because I certainly do. HGSI is still = evolving, and it gets better as time passes. There are several = improvements on the horizon in charting, and in other areas. =20 There are several users in Dallas, but I don't know how strong the = users group is. San Antonio has a great users group. If you need a = contact name, I can supply it for you. =20 =20 After you try HGSI, and if you like it, I will send you names of a = few users in Dallas so you can make contact to see when the users group = meets. =20 Sincerely, =20 Ron ----- Original Message -----=20 From: Gene Ricci=20 To: canslim@lists.xmission.com=20 Sent: Saturday, July 07, 2001 12:35 PM Subject: Re: [CANSLIM] HGS Investor vs. IBD Ron (Brown), thank you for taking the time to compare your new = HGSI software version versus the older IRL version. Your description = sounds too enticing to pass up. I ordered the free trial and will re-run = our evaluation. I'll use your post as a feature guideline. =20 Is there a HGSI group in Dallas? Gene =20 - ------=_NextPart_000_0034_01C10727.56BF9680 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Thanks, Ron, I already have MAGS on watch, and the = other small=20 caps didn't appeal.
 
Tom Worley
stkguru@netside.net
AIM:=20 TexWorley
----- Original Message -----
From:=20 Ron = Brown
To: canslim@lists.xmission.com =
Sent: Saturday, July 07, 2001 = 2:42=20 PM
Subject: Re: [CANSLIM] HGS = Investor vs.=20 IBD

Here try this list, you might find = something you=20 like.
 
MAGS
MOVI
DGX
EDMC
PRX
COCO
HKF
EFTD
CNT= L
MIMS
PECS
 
Ron
----- Original Message -----
From:=20 Tom=20 Worley
To: canslim@lists.xmission.com =
Sent: Saturday, July 07, 2001 = 1:20=20 PM
Subject: Re: [CANSLIM] HGS = Investor vs.=20 IBD

and now I hope we can interrupt this series of=20 commercials, and get back to CANSLIM stocks. I haven't seen a single = mention=20 of a stock all day, with the exception of my list.
 
BTW, commercials are forbidden here, in case you = forgot.
 
Tom Worley
stkguru@netside.net
AIM:=20 TexWorley
----- Original Message ----- =
From:=20 Ron = Brown=20
To: canslim@lists.xmission.com =
Sent: Saturday, July 07, = 2001 1:56=20 PM
Subject: Re: [CANSLIM] HGS = Investor=20 vs. IBD

Good, Gene,
 
I hope you like it, because I certainly = do. =20 HGSI is still evolving, and it gets = better as time=20 passes.   There are several improvements on the horizon = in=20 charting, and in other areas.
 
There are several users in Dallas, but I = don't know=20 how strong the users group is.  San = Antonio=20 has a great users group.  If you need a contact name, I can=20 supply it for you. 
 
After you try HGSI, and if you like it, I = will send=20 you names of a few users in Dallas so you can make contact to see = when the=20 users group meets.
 
Sincerely,
 
Ron
----- Original Message ----- =
From:=20 Gene = Ricci=20
To: canslim@lists.xmission.com
Sent: Saturday, July 07, = 2001 12:35=20 PM
Subject: Re: [CANSLIM] = HGS Investor=20 vs. IBD

Ron (Brown), thank you for = taking the=20 time to compare your new HGSI software version versus the older = IRL=20 version. Your description = sounds too=20 enticing to pass up. I ordered the free trial and will re-run = our=20 evaluation. I'll use your post as a feature = guideline.
 
Is there a HGSI group in=20 Dallas?

Gene
 
- ------=_NextPart_000_0034_01C10727.56BF9680-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Sat, 7 Jul 2001 22:06:45 EDT From: Vanchee1@aol.com Subject: Re: [CANSLIM] New Leaders - --part1_3b.170e7ca7.28791a35_boundary Content-Type: text/plain; charset="US-ASCII" Content-Transfer-Encoding: 7bit Tom, on SSSS I see a cup forming from about March 8 to May 21 with a handle a few point higher from May 8 to today, yes it is a slight declining handle and needs to be watched or sold if it drops below about 30. WMS, I agree totally Fridays action looks bad and if it drops any on Mon. IM out. Thanks for the feedback. Chris - --part1_3b.170e7ca7.28791a35_boundary Content-Type: text/html; charset="US-ASCII" Content-Transfer-Encoding: 7bit Tom, on SSSS I see a cup forming from about March 8 to May 21 with a handle a
few point higher from May 8 to today, yes it is a slight declining handle and
needs to be watched or sold if it drops below about 30.

WMS, I agree totally Fridays action looks bad and if it drops any on Mon. IM
out.

Thanks for the feedback.

Chris - --part1_3b.170e7ca7.28791a35_boundary-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Sat, 7 Jul 2001 23:40:14 EDT From: Spencer48@aol.com Subject: Re: [CANSLIM] Chart test Jw: It's a nice touch. Thanks for alerting me to it. jans In a message dated 7/7/2001 6:31:42 PM Eastern Daylight Time, Jwpowers1@aol.com writes: << Can anyone click this link and see the charts? Note you can change time frame up to a year and add one indicator and scan 10 charts at a time. >> - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Sat, 7 Jul 2001 23:55:19 -0400 From: "Tom Worley" Subject: [CANSLIM] Off topic - personal request This is a multi-part message in MIME format. - ------=_NextPart_000_0067_01C10740.475775A0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable If anyone knows of a good job offering for a hard working computer = technician (hardware, networking) willing to relocate, please let me = know. My 31 year old son needs to move from Asheville, NC, and will = consider anything. I know his work ethics, and abilities (he has his own = repair service there), so any employer will be getting a good worker. Please respond privately to stkguru@netside.net Tom Worley stkguru@netside.net AIM: TexWorley - ------=_NextPart_000_0067_01C10740.475775A0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
If anyone knows of a good job offering for a hard = working=20 computer technician (hardware, networking) willing to relocate, please = let me=20 know. My 31 year old son needs to move from Asheville, NC, and will = consider=20 anything. I know his work ethics, and abilities (he has his own repair = service=20 there), so any employer will be getting a good worker.
 
Please respond privately to stkguru@netside.net
 
Tom Worley
stkguru@netside.net
AIM:=20 TexWorley
- ------=_NextPart_000_0067_01C10740.475775A0-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Sun, 8 Jul 2001 00:10:59 EDT From: Jwpowers1@aol.com Subject: [CANSLIM] Small cap, low trading volume - --part1_103.5c178b3.28793753_boundary Content-Type: text/plain; charset="US-ASCII" Content-Transfer-Encoding: 7bit I have avoided trading stocks under $10 and with under $1,000,000 trading a day, price * 50 day volume., I really like $2,000,000 I don't want to be more than a ripple going in or out. What % of daily trading volume does O'Neil recommend as a max? Or what do you use? My other choice would be to carry a lot more uncorrelated smaller positions. Is anyone doing this? 20 stocks vs 6-8? Thanks for any input. Joe - --part1_103.5c178b3.28793753_boundary Content-Type: text/html; charset="US-ASCII" Content-Transfer-Encoding: 7bit I have avoided trading stocks under $10 and with under $1,000,000 trading a
day, price * 50 day volume., I really like $2,000,000  I don't want to be
more than a ripple going in or out.

What % of daily trading volume does O'Neil recommend as a max?  Or what do
you use?

My other choice would be to carry a lot more uncorrelated smaller positions.  
Is anyone doing this?  20 stocks vs 6-8?

Thanks for any input.
Joe
- --part1_103.5c178b3.28793753_boundary-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Sun, 8 Jul 2001 00:20:49 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Small cap, low trading volume This is a multi-part message in MIME format. - ------=_NextPart_000_00AC_01C10743.D764DF40 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Hi Joe, I differ sharply from some of the guidelines of CANSLIM. With my = background and experience, it works for me, but likely would not work = for most. Thus I agree with you that most CANSLIMers should avoid either = low priced stocks, or stocks with low ADV. Several years ago, it seemed = that WON recommended stocks of at least $12 per share. More recently, it = seems he leans more towards a minimum price of $15 to $17. As to ADV, I = don't recall any specific recommendations from WON, but some of the = seminar attendees may have heard something. An ADV of 40 to 50 thousand = seems to be a fairly widely accepted minimum among CANSLIMers. For me personally, most stocks I buy are well under $10 / share, and = 10,000 ADV. But then, I break a lot of rules in trying to get in early. Tom Worley stkguru@netside.net AIM: TexWorley ----- Original Message -----=20 From: Jwpowers1@aol.com=20 To: canslim@lists.xmission.com=20 Sent: Sunday, July 08, 2001 12:10 AM Subject: [CANSLIM] Small cap, low trading volume I have avoided trading stocks under $10 and with under $1,000,000 = trading a=20 day, price * 50 day volume., I really like $2,000,000 I don't want to = be=20 more than a ripple going in or out.=20 What % of daily trading volume does O'Neil recommend as a max? Or = what do=20 you use?=20 My other choice would be to carry a lot more uncorrelated smaller = positions. =20 Is anyone doing this? 20 stocks vs 6-8?=20 Thanks for any input.=20 Joe=20 - ------=_NextPart_000_00AC_01C10743.D764DF40 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Hi Joe,
 
I differ sharply from some of the guidelines of = CANSLIM. With=20 my background and experience, it works for me, but likely would not work = for=20 most. Thus I agree with you that most CANSLIMers should avoid either low = priced=20 stocks, or stocks with low ADV. Several years ago, it seemed that WON=20 recommended stocks of at least $12 per share. More recently, it seems he = leans=20 more towards a minimum price of $15 to $17.  As to ADV, I don't = recall any=20 specific recommendations from WON, but some of the seminar attendees may = have=20 heard something. An ADV of 40 to 50 thousand seems to be a fairly widely = accepted minimum among CANSLIMers.
 
For me personally, most stocks I buy are well under = $10 /=20 share, and 10,000 ADV.
 
But then, I break a lot of rules in trying to get in = early.
 
Tom Worley
stkguru@netside.net
AIM:=20 TexWorley
----- Original Message -----
From:=20 Jwpowers1@aol.com
To: canslim@lists.xmission.com =
Sent: Sunday, July 08, 2001 = 12:10=20 AM
Subject: [CANSLIM] Small cap, = low trading=20 volume

I have avoided trading stocks under $10 and with = under=20 $1,000,000 trading a
day, price * 50 day volume., I really like = $2,000,000=20  I don't want to be
more than a ripple going in or out. =

What=20 % of daily trading volume does O'Neil recommend as a max?  Or = what do=20
you use?

My other choice would be to carry a lot more = uncorrelated=20 smaller positions.  
Is anyone doing this?  20 stocks vs = 6-8?=20

Thanks for any input.
Joe
- ------=_NextPart_000_00AC_01C10743.D764DF40-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Sat, 7 Jul 2001 21:33:23 -0700 From: "Perry Stanfield" Subject: Re: [CANSLIM] Chart test This is a multi-part message in MIME format. - ------=_NextPart_000_0035_01C1072C.7342D600 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable A very cool way to propose up to 10 canslim stocks to the group if one = wanted to. BTW, how did you do that? I've never done it but wouldn't mind = learning how......... Perry - ------=_NextPart_000_0035_01C1072C.7342D600 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
A very cool way to propose up to = 10  canslim=20 stocks to the group if one wanted to.
 
BTW, how did you  do that?  = I've never=20 done it but wouldn't mind learning how.........
 
Perry
 
 
- ------=_NextPart_000_0035_01C1072C.7342D600-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Sun, 8 Jul 2001 11:37:10 +0200 From: "david" Subject: [CANSLIM] IGT Fell 6% on Friday on over 2X ADV. Couldn't find any news. Maybe just M. In the past, it usually bounces off the 50 DMA and on Friday, it pierced it. It has not hit my stop yet, but the high volume makes me nervous. I guess I could wait to see if it rebounds, but would like to hear your comments, thanks DSP - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Sun, 8 Jul 2001 08:15:26 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] IGT Hi David, This would not be the first time that IGT not only pierced, but traded under, the 50 DMA. Look back at the 3/19 to 4/4 period. It responded well once "M" headed north. While Friday's drop may only be a response to "M" and Friday's nearly 4% drop on Naz (reflecting poor sentiment on tech stocks), I don't see a lot of reason for any sharp rebound on Monday. I use Israel's market index as an early tech indicator, as the index is heavy with tech and biotech stocks. It was strong on Friday, but down 1.2% on Sunday. May be just a delayed reaction to our drop on Friday, or may signal continued weakness. I was unable to get into my favorite earnings whisper site, so don't know if something new might have developed there. Thru the first two quarters, however, they appear on track to meet the forecast of earnings growth over 50% this year. Tom Worley stkguru@netside.net AIM: TexWorley - ----- Original Message ----- From: david To: CANSLIM Sent: Sunday, July 08, 2001 5:37 AM Subject: [CANSLIM] IGT Fell 6% on Friday on over 2X ADV. Couldn't find any news. Maybe just M. In the past, it usually bounces off the 50 DMA and on Friday, it pierced it. It has not hit my stop yet, but the high volume makes me nervous. I guess I could wait to see if it rebounds, but would like to hear your comments, thanks DSP - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Sun, 8 Jul 2001 07:53:42 -0500 From: "Ron Brown" Subject: Re: [CANSLIM] Small cap, low trading volume This is a multi-part message in MIME format. - ------=_NextPart_000_004C_01C10783.1BB45D80 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Hi Joe and Tom, I would like to put my two cents in here if you don't mind. I agree = with Tom that an investor who is going to play in this market cannot = afford to overlook low priced stocks. Clearly, the long term relative strength in the markets since early = April has been in the small caps. In recent weeks, the RUT has = faltered, and is trading at support, and is in danger of breaking the = 200 DMA. If so, the run for the RUT may be over. The market itself is = at a critical juncture, and if the gap is filled on the Nasdaq, I fear = we may be in for a retest of the April 4th low in the Nasdaq. Personally, I buy stocks from $5 up trading at least 40,000 shares per = day based on a 50 DMA. My biggest winners this year began their run in = the $6 to $10 range. If a person ignores this category of stock, you = will miss out on many huge winners like ALLY, which is featured in = Monday's IBD and was finally mentioned on CNBC last week. =20 One year ago, it was a $2.50 stock, and it closed Friday at $38.26, over = a 1600% increase for the year. It came up on our radar screens around = $12 in a strong leisure-gaming group. Finally, the media is taking = notice. ALLY probably has some gas left in the tank, but the publicity = comes after the huge run up, and at a point when the market is facing a = potential melt down. =20 I believe the key is the group, and if it breaks down, ALLY will = probably go with it. The story in IBD should give it a boost, but watch = the quality of the trading. It is still a leader in the group, but it = moved up Thursday on light volume, then sold off Friday on heavier = volume. I am out of ALLY now, but if the group holds up, and if it = bounces, I will considering getting back into it. =20 I am trying to reinforce Tom's point that if you find a stocks with all = the right credentials, you should consider getting in early. If you do, = scale in; buy a small quantity then add to your position as the stocks = heads higher. Know your stop, and pull the trigger if your trade goes = against you. Ron ----- Original Message -----=20 From: Tom Worley=20 To: canslim@lists.xmission.com=20 Sent: Saturday, July 07, 2001 11:20 PM Subject: Re: [CANSLIM] Small cap, low trading volume Hi Joe, I differ sharply from some of the guidelines of CANSLIM. With my = background and experience, it works for me, but likely would not work = for most. Thus I agree with you that most CANSLIMers should avoid either = low priced stocks, or stocks with low ADV. Several years ago, it seemed = that WON recommended stocks of at least $12 per share. More recently, it = seems he leans more towards a minimum price of $15 to $17. As to ADV, I = don't recall any specific recommendations from WON, but some of the = seminar attendees may have heard something. An ADV of 40 to 50 thousand = seems to be a fairly widely accepted minimum among CANSLIMers. For me personally, most stocks I buy are well under $10 / share, and = 10,000 ADV. But then, I break a lot of rules in trying to get in early. Tom Worley stkguru@netside.net AIM: TexWorley ----- Original Message -----=20 From: Jwpowers1@aol.com=20 To: canslim@lists.xmission.com=20 Sent: Sunday, July 08, 2001 12:10 AM Subject: [CANSLIM] Small cap, low trading volume I have avoided trading stocks under $10 and with under $1,000,000 = trading a=20 day, price * 50 day volume., I really like $2,000,000 I don't want = to be=20 more than a ripple going in or out.=20 What % of daily trading volume does O'Neil recommend as a max? Or = what do=20 you use?=20 My other choice would be to carry a lot more uncorrelated smaller = positions. =20 Is anyone doing this? 20 stocks vs 6-8?=20 Thanks for any input.=20 Joe=20 - ------=_NextPart_000_004C_01C10783.1BB45D80 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Hi Joe and Tom,
 
I would like to put my two cents in = here if you=20 don't mind.  I agree with Tom that an investor who is going to = play in=20 this market cannot afford to overlook low priced stocks.
 
Clearly, the long term relative = strength in the=20 markets since early April has been in the small caps.  In recent = weeks, the=20 RUT has faltered, and is trading at support, and is in danger of = breaking the=20 200 DMA.  If so, the run for the RUT may be over.  The market = itself=20 is at a critical juncture, and if the gap is filled on the Nasdaq, I = fear we may=20 be in for a retest of the April 4th low in the Nasdaq.
 
Personally, I buy stocks from $5 up = trading at=20 least 40,000 shares per day based on a 50 DMA.  My biggest winners = this=20 year began their run in the $6 to $10 range.  If a person ignores = this=20 category of stock, you will miss out on many huge winners like ALLY, = which is=20 featured in Monday's IBD and was finally mentioned on CNBC last = week. =20
 
One year ago, it was a $2.50 stock, and = it closed=20 Friday at $38.26, over a 1600% increase for the year.  It came up = on our=20 radar screens around $12 in a strong leisure-gaming group.  = Finally, the=20 media is taking notice.  ALLY probably has some gas left in the = tank, but=20 the publicity comes after the huge run up, and at a point when the = market is=20 facing a potential melt down. 
 
I believe the key is the group, and if = it breaks=20 down, ALLY will probably go with it.  The story in IBD should give = it a=20 boost, but watch the quality of the trading.  It is still a leader = in the=20 group, but it moved up Thursday on light volume, then sold off Friday on = heavier=20 volume.  I am out of ALLY now, = but if the=20 group holds up, and if it bounces, I will considering getting back into=20 it. 
 
I am trying to reinforce Tom's point = that if you=20 find a stocks with all the right credentials, you should consider = getting in=20 early.  If you do, scale in; buy a small quantity then add to your = position=20 as the stocks heads higher.  Know your stop, and pull the trigger = if your=20 trade goes against you.
 
Ron
 
 
 
 
 
----- Original Message -----
From:=20 Tom = Worley=20
Sent: Saturday, July 07, 2001 = 11:20=20 PM
Subject: Re: [CANSLIM] Small = cap, low=20 trading volume

Hi Joe,
 
I differ sharply from some of the guidelines of = CANSLIM.=20 With my background and experience, it works for me, but likely would = not work=20 for most. Thus I agree with you that most CANSLIMers should avoid = either low=20 priced stocks, or stocks with low ADV. Several years ago, it seemed = that WON=20 recommended stocks of at least $12 per share. More recently, it seems = he leans=20 more towards a minimum price of $15 to $17.  As to ADV, I don't = recall=20 any specific recommendations from WON, but some of the seminar = attendees may=20 have heard something. An ADV of 40 to 50 thousand seems to be a fairly = widely=20 accepted minimum among CANSLIMers.
 
For me personally, most stocks I buy are well = under $10 /=20 share, and 10,000 ADV.
 
But then, I break a lot of rules in trying to get = in=20 early.
 
Tom Worley
stkguru@netside.net
AIM:=20 TexWorley
----- Original Message -----
From:=20 Jwpowers1@aol.com
Sent: Sunday, July 08, 2001 = 12:10=20 AM
Subject: [CANSLIM] Small cap, = low=20 trading volume

I have avoided trading stocks under $10 and = with under=20 $1,000,000 trading a
day, price * 50 day volume., I really like=20 $2,000,000  I don't want to be
more than a ripple going in = or out.=20

What % of daily trading volume does O'Neil recommend as a = max?=20  Or what do
you use?

My other choice would be to = carry a=20 lot more uncorrelated smaller positions.  
Is anyone doing = this?=20  20 stocks vs 6-8?

Thanks for any input. =
Joe=20
- ------=_NextPart_000_004C_01C10783.1BB45D80-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Sun, 8 Jul 2001 09:14:55 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Small cap, low trading volume This is a multi-part message in MIME format. - ------=_NextPart_000_001A_01C1078E.74559200 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Ron, I must disagree on this. In no way do I encourage CANSLIMers to invest / = trade small cap stocks, regardless of price or ADV. A small cap stock, = by definition, means the higher the price, the less the ADV (and = institutional involvement and liquidity). And inversely, the higher the = ADV, the lower the price and higher the risk. On Friday, the Russell 2000 slipped back into a loss for 2001, the last = index to do so. Whether that marks the end of the small cap run remains = to be seen, it certainly shows that even the strongest of the indexes = have risk, and the risks are increasing as "M" deteriorates. Bottom line, small cap stocks have not been mainstream investing, much = less mainstream CANSLIM, for a number of years. And that did not change = this year. What changed briefly is that small and micro cap stocks = offered the only remaining source of earnings growth year to year. Anytime you try to get in early, whether it is on a big cap stock still = basing or a small cap stock suggesting a double or triple, you are = increasing your risks. There has been for over a century an unchanging rule in the markets: the = higher the return, the higher the risk. And that rule remains inviolate = regardless of "M", the system you use, and works in both bear and bull = markets. Tom Worley stkguru@netside.net AIM: TexWorley ----- Original Message -----=20 From: Ron Brown=20 To: canslim@lists.xmission.com=20 Sent: Sunday, July 08, 2001 8:53 AM Subject: Re: [CANSLIM] Small cap, low trading volume Hi Joe and Tom, =20 I would like to put my two cents in here if you don't mind. I agree = with Tom that an investor who is going to play in this market cannot = afford to overlook low priced stocks. =20 Clearly, the long term relative strength in the markets since early = April has been in the small caps. In recent weeks, the RUT has = faltered, and is trading at support, and is in danger of breaking the = 200 DMA. If so, the run for the RUT may be over. The market itself is = at a critical juncture, and if the gap is filled on the Nasdaq, I fear = we may be in for a retest of the April 4th low in the Nasdaq. =20 Personally, I buy stocks from $5 up trading at least 40,000 shares per = day based on a 50 DMA. My biggest winners this year began their run in = the $6 to $10 range. If a person ignores this category of stock, you = will miss out on many huge winners like ALLY, which is featured in = Monday's IBD and was finally mentioned on CNBC last week. =20 =20 One year ago, it was a $2.50 stock, and it closed Friday at $38.26, = over a 1600% increase for the year. It came up on our radar screens = around $12 in a strong leisure-gaming group. Finally, the media is = taking notice. ALLY probably has some gas left in the tank, but the = publicity comes after the huge run up, and at a point when the market is = facing a potential melt down. =20 =20 I believe the key is the group, and if it breaks down, ALLY will = probably go with it. The story in IBD should give it a boost, but watch = the quality of the trading. It is still a leader in the group, but it = moved up Thursday on light volume, then sold off Friday on heavier = volume. I am out of ALLY now, but if the group holds up, and if it = bounces, I will considering getting back into it. =20 =20 I am trying to reinforce Tom's point that if you find a stocks with = all the right credentials, you should consider getting in early. If you = do, scale in; buy a small quantity then add to your position as the = stocks heads higher. Know your stop, and pull the trigger if your trade = goes against you. =20 Ron =20 =20 =20 =20 =20 ----- Original Message -----=20 From: Tom Worley=20 To: canslim@lists.xmission.com=20 Sent: Saturday, July 07, 2001 11:20 PM Subject: Re: [CANSLIM] Small cap, low trading volume Hi Joe, =20 I differ sharply from some of the guidelines of CANSLIM. With my = background and experience, it works for me, but likely would not work = for most. Thus I agree with you that most CANSLIMers should avoid either = low priced stocks, or stocks with low ADV. Several years ago, it seemed = that WON recommended stocks of at least $12 per share. More recently, it = seems he leans more towards a minimum price of $15 to $17. As to ADV, I = don't recall any specific recommendations from WON, but some of the = seminar attendees may have heard something. An ADV of 40 to 50 thousand = seems to be a fairly widely accepted minimum among CANSLIMers. For me personally, most stocks I buy are well under $10 / share, and = 10,000 ADV. =20 But then, I break a lot of rules in trying to get in early. Tom Worley stkguru@netside.net AIM: TexWorley ----- Original Message -----=20 From: Jwpowers1@aol.com=20 To: canslim@lists.xmission.com=20 Sent: Sunday, July 08, 2001 12:10 AM Subject: [CANSLIM] Small cap, low trading volume I have avoided trading stocks under $10 and with under $1,000,000 = trading a=20 day, price * 50 day volume., I really like $2,000,000 I don't = want to be=20 more than a ripple going in or out.=20 What % of daily trading volume does O'Neil recommend as a max? Or = what do=20 you use?=20 My other choice would be to carry a lot more uncorrelated smaller = positions. =20 Is anyone doing this? 20 stocks vs 6-8?=20 Thanks for any input.=20 Joe=20 - ------=_NextPart_000_001A_01C1078E.74559200 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Ron,
 
I must disagree on this. In no way do I encourage = CANSLIMers=20 to invest / trade small cap stocks, regardless of price or ADV. A small = cap=20 stock, by definition, means the higher the price, the less the ADV (and=20 institutional involvement and liquidity). And inversely, the higher the = ADV, the=20 lower the price and higher the risk.
 
On Friday, the Russell 2000 slipped back into a loss = for 2001,=20 the last index to do so. Whether that marks the end of the small cap run = remains=20 to be seen, it certainly shows that even the strongest of the indexes = have risk,=20 and the risks are increasing as "M" deteriorates.
 
Bottom line, small cap stocks have not been = mainstream=20 investing, much less mainstream CANSLIM, for a number of years. And that = did not=20 change this year. What changed briefly is that small and micro cap = stocks=20 offered the only remaining source of earnings growth year to = year.
 
Anytime you try to get in early, whether it is on a = big cap=20 stock still basing or a small cap stock suggesting a double or triple, = you are=20 increasing your risks.
 
There has been for over a century an unchanging rule = in the=20 markets: the higher the return, the higher the risk. And that rule = remains=20 inviolate regardless of "M", the system you use, and works in both bear = and bull=20 markets.
 
Tom Worley
stkguru@netside.net
AIM:=20 TexWorley
----- Original Message -----
From:=20 Ron = Brown
To: canslim@lists.xmission.com =
Sent: Sunday, July 08, 2001 = 8:53 AM
Subject: Re: [CANSLIM] Small = cap, low=20 trading volume

Hi Joe and Tom,
 
I would like to put my two cents in = here if you=20 don't mind.  I agree with Tom that an investor who is going = to play=20 in this market cannot afford to overlook low priced = stocks.
 
Clearly, the long term relative = strength in the=20 markets since early April has been in the small caps.  In recent = weeks,=20 the RUT has faltered, and is trading at support, and is in danger of = breaking=20 the 200 DMA.  If so, the run for the RUT may be over.  The = market=20 itself is at a critical juncture, and if the gap is filled on the = Nasdaq, I=20 fear we may be in for a retest of the April 4th low in the=20 Nasdaq.
 
Personally, I buy stocks from $5 up = trading at=20 least 40,000 shares per day based on a 50 DMA.  My biggest = winners this=20 year began their run in the $6 to $10 range.  If a person ignores = this=20 category of stock, you will miss out on many huge winners like ALLY, = which is=20 featured in Monday's IBD and was finally mentioned on CNBC last = week. =20
 
One year ago, it was a $2.50 stock, = and it closed=20 Friday at $38.26, over a 1600% increase for the year.  It came up = on our=20 radar screens around $12 in a strong leisure-gaming group.  = Finally, the=20 media is taking notice.  ALLY probably has some gas left in the = tank, but=20 the publicity comes after the huge run up, and at a point when the = market is=20 facing a potential melt down. 
 
I believe the key is the group, and = if it breaks=20 down, ALLY will probably go with it.  The story in IBD should = give it a=20 boost, but watch the quality of the trading.  It is still a = leader in the=20 group, but it moved up Thursday on light volume, then sold off Friday = on=20 heavier volume.  I am out of = ALLY now, but=20 if the group holds up, and if it bounces, I will considering getting = back into=20 it. 
 
I am trying to reinforce Tom's point = that if you=20 find a stocks with all the right credentials, you should consider = getting in=20 early.  If you do, scale in; buy a small quantity then add to = your=20 position as the stocks heads higher.  Know your stop, and pull = the=20 trigger if your trade goes against you.
 
Ron
 
 
 
 
 
----- Original Message -----
From:=20 Tom=20 Worley
To: canslim@lists.xmission.com =
Sent: Saturday, July 07, 2001 = 11:20=20 PM
Subject: Re: [CANSLIM] Small = cap, low=20 trading volume

Hi Joe,
 
I differ sharply from some of the guidelines of = CANSLIM.=20 With my background and experience, it works for me, but likely would = not=20 work for most. Thus I agree with you that most CANSLIMers should = avoid=20 either low priced stocks, or stocks with low ADV. Several years ago, = it=20 seemed that WON recommended stocks of at least $12 per share. More = recently,=20 it seems he leans more towards a minimum price of $15 to $17.  = As to=20 ADV, I don't recall any specific recommendations from WON, but some = of the=20 seminar attendees may have heard something. An ADV of 40 to 50 = thousand=20 seems to be a fairly widely accepted minimum among = CANSLIMers.
 
For me personally, most stocks I buy are well = under $10 /=20 share, and 10,000 ADV.
 
But then, I break a lot of rules in trying to = get in=20 early.
 
Tom Worley
stkguru@netside.net
AIM:=20 TexWorley
----- Original Message ----- =
From:=20 Jwpowers1@aol.com
To: canslim@lists.xmission.com =
Sent: Sunday, July 08, 2001 = 12:10=20 AM
Subject: [CANSLIM] Small = cap, low=20 trading volume

I have avoided trading stocks under $10 and = with under=20 $1,000,000 trading a
day, price * 50 day volume., I really = like=20 $2,000,000  I don't want to be
more than a ripple going = in or=20 out.

What % of daily trading volume does O'Neil recommend = as a=20 max?  Or what do
you use?

My other choice would = be to=20 carry a lot more uncorrelated smaller positions.  
Is = anyone=20 doing this?  20 stocks vs 6-8?

Thanks for any input.=20
Joe=20 =
- ------=_NextPart_000_001A_01C1078E.74559200-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ End of canslim-digest V2 #1553 ****************************** To unsubscribe to canslim-digest, send an email to "majordomo@xmission.com" with "unsubscribe canslim-digest" in the body of the message. For information on digests or retrieving files and old messages send "help" to the same address. Do not use quotes in your message.