From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #1557 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 1557 In this issue: Re: [CANSLIM] My opinion on M Re: [CANSLIM] Tom's posts [CANSLIM] MTH and ACF Re: [CANSLIM] IGT Re: [CANSLIM] HGS Investor vs. IBD [CANSLIM] Chart site question Re: [CANSLIM] Hey Ron ---------------------------------------------------------------------- Date: Sun, 8 Jul 2001 12:38:37 -0400 From: "Dan Forant" Subject: Re: [CANSLIM] My opinion on M We just can't beat a market that goes down more than up. I have been staying above board by *the quick trigger* I also have the opportunity to watch my stocks most of the day. Must be difficult otherwise. DanF - ----- Original Message ----- From: "Dave Cameron" To: Sent: Sunday, July 08, 2001 11:46 AM Subject: [CANSLIM] My opinion on M > I'm not looking to invest on Monday - or until I see some change in > the market. A key indicator for me is the section that shows the > stocks moving up on the highest percentage of ADV. The number of > stocks listed has been very small over the last 2 weeks. In the > past, this has been a good indicator that the market is not behaving > well. > > Of course, take this all with a grain of salt - this is from a man > who is getting creamed this year... > > > > ===== > Dave Cameron > dfcameron@yahoo.com > > __________________________________________________ > Do You Yahoo!? > Get personalized email addresses from Yahoo! Mail > http://personal.mail.yahoo.com/ > > - > -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 10:35:36 -0700 From: "Perry Stanfield" Subject: Re: [CANSLIM] Tom's posts This is a multi-part message in MIME format. - ------=_NextPart_000_004B_01C10799.B9949E00 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Ditto from me. I'd encourage some tolerance of others on the board = please. Perry ----- Original Message -----=20 From: Patti Curry=20 To: canslim@lists.xmission.com=20 Sent: Sunday, July 08, 2001 9:32 AM Subject: Re: [CANSLIM] Tom's posts Guys, please give Tom the credit he is due. Before you get upset = please consider that Tom is known as the moderator of the board because = he is a charter member, is very knowledgeable about CANSLIM, and freely = shares his time so that we can learn. Although he has his own style of = investing, he only shares the pure form which is what we are about in = this forum. He is only trying to maintain the integrity of the board. = I know that if he wasn't here in this capacity we would no doubt be way = off topic more often than not to the point that the forum would = gradually fall apart. We should be thanking him often for the time he = puts in daily answering e-mails and working up the invaluable DGO List = each week. He doesn't have to do any of this. "Thanks, Tom!" All the best, Patti ----- Original Message -----=20 From: Jay Oken=20 To: canslim@lists.xmission.com=20 Cc: Rbrown@acton.com=20 Sent: Sunday, July 08, 2001 10:17 AM Subject: Re: [CANSLIM] Small cap, low trading volume Ron,=20 Tom does not regularly adhere to Canslim by his own account either, = yet he comes down on those who offer other investment advice. In = addition, he acts like he is the owner of the board and seldom allows = for opinions other than his own. When I first joined this board it was = active with many postings and quite a bit of varied discussion. As Tom = has taken over, and felt the need to respond to EVERY post on the board, = it has become less active with less lively discussions.=20 I thank all of you who have responded to my posts in the past and = who have taken the time post insightful information here. I will be = signing off from the Tom Worley show as well. Regards. - ------=_NextPart_000_004B_01C10799.B9949E00 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Ditto from me.   I'd = encourage some=20 tolerance of others on the board please.
 
Perry
 
 
 
----- Original Message -----
From:=20 Patti = Curry
Sent: Sunday, July 08, 2001 = 9:32 AM
Subject: Re: [CANSLIM] Tom's = posts

Guys, please give Tom the credit = he is=20 due.  Before you get upset please consider that Tom is known = as the=20 moderator of the board because he is a charter member, = is very=20 knowledgeable about CANSLIM, and freely shares his time so that we can = learn.  Although he has his own style of investing, he only = shares=20 the pure form which is what we are about in this forum.  He is = only=20 trying to maintain the integrity of the board.  I know that if he = wasn't=20 here in this capacity we would no doubt be way off topic more = often than=20 not to the point that the forum would gradually fall apart.  We = should be=20 thanking him often for the time he puts in daily answering = e-mails and=20 working up the invaluable DGO List each week.  He doesn't have to = do any=20 of this.  "Thanks, Tom!"
 
All the best, Patti
----- Original Message -----
From:=20 Jay=20 Oken
Sent: Sunday, July 08, 2001 = 10:17=20 AM
Subject: Re: [CANSLIM] Small = cap, low=20 trading volume

Ron,
 
Tom does not regularly adhere to = Canslim by his=20 own account either, yet he comes down on those who offer other = investment=20 advice. In addition, he acts like he is the owner of the board and = seldom=20 allows for opinions other than his own. When I first joined this = board it=20 was active with many postings and quite a bit of varied discussion. = As Tom=20 has taken over, and felt the need to respond to EVERY post on the = board, it=20 has become less active with less lively discussions.
 
I thank all of you who have = responded to my=20 posts in the past and who have taken the time post insightful = information=20 here. I will be signing off from the Tom Worley show as = well.
 
Regards.
 
 
- ------=_NextPart_000_004B_01C10799.B9949E00-- - - - -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, 08 Jul 2001 12:42:02 -0500 From: Gene Ricci Subject: [CANSLIM] MTH and ACF This is a multi-part message in MIME format. - ------=_NextPart_000_02D5_01C107AB.62EA2A40 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable I'm sitting here ready to buy MTH and ACF...... any advice on going long = Monday versus waiting for a further move? I've got a terrible itch to = buy. Thanks, Gene P.S. Tom, thanks for all of your hard work...... and the constant = reminders to stay focused. You're helping me learn about CANSLIM and the = power of discipline.=20 - ------=_NextPart_000_02D5_01C107AB.62EA2A40 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
I'm sitting here ready to buy MTH and ACF...... = any advice=20 on going long Monday versus waiting for a further move? I've got a = terrible=20 itch to buy.
 
Thanks,
Gene
 
P.S. Tom, thanks for all of your hard work...... = and the=20 constant reminders to stay focused. You're helping me learn about = CANSLIM and=20 the power of discipline. 
- ------=_NextPart_000_02D5_01C107AB.62EA2A40-- - - - -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 13:44:46 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] IGT Since I was not able to provide this info earlier in one of my discussion dominating, group takeover posts, I will complete my earlier comment. Earnings Whisper shows a consensus earnings of 70 cents, with a whisper at 72 cents. The news from Harrah's would suggest that future growth will be more difficult. I have seen other comments that gambling has slowed as the market went lower in the past months. Tom Worley stkguru@netside.net AIM: TexWorley - ----- Original Message ----- From: Dave Cameron To: Sent: Sunday, July 08, 2001 11:32 AM Subject: Re: [CANSLIM] IGT Harrah's (the elephant in this sector) reported an earnings warning - dropped 17% on Friday - took the rest of the sector with it to a lesser degree. - --- david wrote: > 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. ===== Dave Cameron dfcameron@yahoo.com __________________________________________________ Do You Yahoo!? Get personalized email addresses from Yahoo! Mail http://personal.mail.yahoo.com/ - - - -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, 08 Jul 2001 10:47:57 -0700 From: Harvey Brion Subject: Re: [CANSLIM] HGS Investor vs. IBD Tom, I think this post is being a lot harder on Ron than you've been on our other new member, Bill Staton. I think it's a good to hear about alternative sources for CANSLIM data and tools. Ron did not start this thread. Who better to answer questions about a product/service than the provider himself? I for one did not think Ron's posts were over commercialized but rather informative and to the point. I would welcome further input from users of HGSI software and data service in the form of comments and questions (including cost issues) and hope Ron will continue to post appropriately, certainly to correct any inaccuracies that may be posted by others. We do this regularly on DGO and I didn't think this listserver was limited to addressing WON products/services exclusively. I do not get the feeling that Ron is hard selling his product/service with every post as I do with Bill's posts. P.S. I'm a DGO subscriber and like the service but I'm looking forward to significant improvements soon with the upgrade. Tom Worley wrote: > 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 ----- > From: Ron Brown > To: canslim@lists.xmission.com > Sent: Saturday, July 07, 2001 1:56 PM > Subject: Re: [CANSLIM] HGS Investor vs. IBD > Good, Gene, 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. 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. 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. Sincerely, Ron > > ----- Original Message ----- > From: Gene Ricci > To: canslim@lists.xmission.com > 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. Is there a HGSI group in > Dallas? > > Gene > - - - -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 10:50:06 -0700 (PDT) From: Dave Cameron Subject: [CANSLIM] Chart site question Trying again - majordomo intercepted it with the word: 'h-e-l-p' in the title. - --- Dave Cameron wrote: > Does anyone know a site where you can specify an end date for > charts? > > Since I'm doing poorly this year, I want to be able to re-create > the > charts as they were when I bought and when I sold - rather than > looking at how they are today. > > Stockmaster.com used to give this flexibility; you could enter a > start date and an end date, and it would give you a daily chart for > all dates in between. > > Thanks, > > ===== > Dave Cameron > dfcameron@yahoo.com > > __________________________________________________ > Do You Yahoo!? > Get personalized email addresses from Yahoo! Mail > http://personal.mail.yahoo.com/ > ===== Dave Cameron dfcameron@yahoo.com __________________________________________________ Do You Yahoo!? Get personalized email addresses from Yahoo! Mail http://personal.mail.yahoo.com/ - - - -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, 08 Jul 2001 12:58:20 -0500 From: Ernie Hill Subject: Re: [CANSLIM] Hey Ron - --------------3ED9E07A5775089224DDEA0E Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Ron, I for one am glad you brought up the HGS software. I am not ready to try it because I am comfortable with my methodology for finding stocks and don't have any extra time to learn some new software, but I am now aware of another good source from which to mine stocks if I ever get the time to add some new tools. Also don't stop injecting your observations and opinions. Tom himself admits that he does not adhere to the gospel of CANSLIM. I suspect most of us on this board do not. I haven't seen a pure 100% CANSLIM trade in months. Your opinion is just as valuable as anyone's. This is a good way for all of us to learn to become better traders/investors, by exchanging our trading styles and opinions and picking up little valuable gems of knowledge from others. As for Tom he is an excellent sounding board. He is knowledgeable and experienced and will often point out the weaknesses in your argument. Don't be offended, and please don't retreat from the board. E Ron Brown wrote: > Tom, I am not adhering to CANSLIM in the strictest definition of the > word. I am talking opportunity, and if you have been in this market, > the opportunities have been in the small caps. I believe I said > consider getting into small caps early if they have the right > credentials. Since I can't adhere strictly to the gospel, I will keep > my opinions to myself in the future. Anyone out there holding large > cap tech stocks can tell us where the real risk has been in the market > for the last 1 1/2 years. Liquidity is a two-edged sword if you are > on the wrong side of the elephants as they head for the exits. With > the advent of internet trading the game has changed, and you had > better be nimble with either small or large cap stocks, or you are > dead. In a market like this, the true risks are waiting to buy > extended breakouts, then getting your head handed to you. > Inexperienced traders who do not have the discipline to pull the > trigger either getting in or getting out had better be in cash. The > ONLY way to play a market like this is to be in strong stocks in > strong group, and many of the winners have been in small cap > groups. I'm sorry I invaded your territory. See you, Ron > > ----- Original Message ----- > From: Tom Worley > To: canslim@lists.xmission.com > Sent: Sunday, July 08, 2001 8:14 AM > Subject: Re: [CANSLIM] Small cap, low trading volume > 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 ----- > From: Ron Brown > To: canslim@lists.xmission.com > Sent: Sunday, July 08, 2001 8:53 AM > Subject: Re: [CANSLIM] Small cap, low trading > volume > 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. 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. 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. 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 ----- > From: Tom Worley > To: canslim@lists.xmission.com > 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 ----- > From: Jwpowers1@aol.com > To: canslim@lists.xmission.com > 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 > 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 > - --------------3ED9E07A5775089224DDEA0E Content-Type: text/html; charset=us-ascii Content-Transfer-Encoding: 7bit Ron,

I for one am glad you brought up the HGS software. I am not ready to try it because I am comfortable with my methodology for finding stocks and don't have any extra time to learn some new software, but I am now aware of another good source from which to mine stocks if I ever get the time to add some new tools.

Also don't stop injecting your observations and opinions. Tom himself admits that he does not adhere to the gospel of CANSLIM. I suspect most of us on this board do not. I haven't seen a pure 100% CANSLIM trade in months. Your opinion is just as valuable as anyone's. This is a good way for all of us to learn to become better traders/investors, by exchanging our trading styles and opinions and picking up little valuable gems of knowledge from others.

As for Tom he is an excellent sounding board. He is knowledgeable and experienced and will often point out the weaknesses in your argument. Don't be offended, and please don't retreat from the board.

E

Ron Brown wrote:

Tom, I am not adhering to CANSLIM in the strictest definition of the word. I am talking opportunity, and if you have been in this market, the opportunities have been in the small caps.  I believe I said consider getting into small caps early if they have the right credentials.  Since I can't adhere strictly to the gospel, I will keep my opinions to myself in the future. Anyone out there holding large cap tech stocks can tell us where the real risk has been in the market for the last 1 1/2 years.  Liquidity is a two-edged sword if you are on the wrong side of the elephants as they head for the exits. With the advent of internet trading the game has changed, and you had better be nimble with either small or large cap stocks, or you are dead.  In a market like this, the true risks are waiting to buy extended breakouts, then getting your head handed to you.  Inexperienced traders who do not have the discipline to pull the trigger either getting in or getting out had better be in cash.  The ONLY way to play a market like this is to be in strong stocks in strong group, and many of the winners have been in small cap groups. I'm sorry I invaded your territory. See you, Ron  
----- Original Message -----
Sent: Sunday, July 08, 2001 8:14 AM
Subject: Re: [CANSLIM] Small cap, low trading volume
 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 -----
From: Ron Brown
Sent: Sunday, July 08, 2001 8:53 AM
Subject: Re: [CANSLIM] Small cap, low trading volume
 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. 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. 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. 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 -----
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 -----
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
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

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