From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #2216 Reply-To: canslim Sender: owner-canslim-digest@lists.xmission.com Errors-To: owner-canslim-digest@lists.xmission.com Precedence: bulk Content-Transfer-Encoding: quoted-printable X-No-Archive: yes canslim-digest Wednesday, March 20 2002 Volume 02 : Number 2216 In this issue: Re: [CANSLIM] Forbes Magazine? RE: [CANSLIM] SYK [CANSLIM] SMD Re: [CANSLIM] SYK Re: [CANSLIM] SYK Re: [CANSLIM] SMD Re: [CANSLIM] SMD [CANSLIM] CANSLIM Evaluation by cwhCharts.com Re: [CANSLIM] SYK RE: [CANSLIM] CANSLIM Evaluation by cwhCharts.com ---------------------------------------------------------------------- Date: Wed, 20 Mar 2002 13:14:21 -0500 From: "Leo Antons" Subject: Re: [CANSLIM] Forbes Magazine? This is a multi-part message in MIME format. - ------=_NextPart_000_0060_01C1D011.2600E9A0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable march 25th edition, page 6 ----- Original Message -----=20 From: Jeff Salisbury=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, March 20, 2002 9:36 AM Subject: [CANSLIM] Forbes Magazine? Hello Canslimers,=20 For those of you who are new, my name is Jeff Salisbury and I'm the = owner and admin of the canslim email discussion group. We've had a = surge of new members join us during the last 1-2 weeks. I understand = that our list was referenced in Forbes magazine. Can anyone tell me the = Forbes issue and page number were we were referenced?=20 Regards,=20 Jeff - -To subscribe/unsubscribe, email "majordomo@xmission.com" -In = the email body, write "subscribe canslim" or -"unsubscribe canslim". Do = not use quotes in your email. - ------=_NextPart_000_0060_01C1D011.2600E9A0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
march 25th edition, page = 6
 
----- Original Message -----
From:=20 Jeff Salisbury =
To: canslim@lists.xmission.com=
Sent: Wednesday, March 20, 2002 = 9:36=20 AM
Subject: [CANSLIM] Forbes = Magazine?

Hello Canslimers,=20

For those of you who are new, my name is Jeff Salisbury and I'm the = owner=20 and admin of the canslim email discussion group.  We've had a = surge of=20 new members join us during the last 1-2 weeks.  I understand that = our=20 list was referenced in Forbes magazine.  Can anyone tell me the = Forbes=20 issue and page number were we were referenced?=20

Regards,=20

Jeff - -To subscribe/unsubscribe, email "majordomo@xmission.com" = - -In the=20 email body, write "subscribe canslim" or -"unsubscribe canslim". Do = not use=20 quotes in your email.

- ------=_NextPart_000_0060_01C1D011.2600E9A0-- - - - -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: Wed, 20 Mar 2002 13:09:55 -0500 From: "Duke Miller" Subject: RE: [CANSLIM] SYK This is a multi-part message in MIME format. - ------=_NextPart_000_0033_01C1D010.879A6020 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: 7bit Katherine, et al: While WON says to avoid considering PE's when buying a stock, one of his sell rules (p117, 24 Essential Lessons) is to "consider" selling all or part of a stock when its PE increases 130%? The example Katherine provides below somewhat confirms this. To wit: I buy a stock with a PE of 20. 46 is a 130% increase in the PE. Using Katherine's example below, 2.25 * 20 = 45. I personally lean to selling at a conservative 100% gain in PE! Can I see a show of hands of people who are currently tussling with this issue at this time? Duke -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Katherine Malm Sent: Wednesday, March 20, 2002 12:04 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] SYK Oops... "trailing PE for great growth stocks at breakout was 20" ----- Original Message ----- From: Katherine Malm To: canslim@lists.xmission.com Sent: Wednesday, March 20, 2002 10:56 AM Subject: Re: [CANSLIM] SYK Hi Charley, WON's studies from 1953 to 1985 showed that the average trailing PE for great growth stocks was 20. When they peaked, they averaged a trailing PE of 45, 2.25 the original levels. They then screened the best stocks going into the market peak in March 2000 and found that the average PE when they broke out was 44.8. When they peaked, they averaged a PE of 99.6, surprisingly, 2.2 times their PE on breakout. (Investor's Corner 6/9/00) His conclusion is that this does give some range of expectation for PE expansion during the stock's run. One way I like to evaluate the industry is to look at the current PEs relative to 5 year highs and lows. 5 years is often enough to catch at least one and in some cases, more than one economic/market cycle. And I wholeheartedly agree with you that comparing forward and/or trailing PEs of a stock relative to its industry/direct competitors is a great way to see if expectations are already built into the current price. I also like to compare the stock's ROE against others in the same industry, as it gives a measure of their relative ability to generate return on capital employed. It would be great to see the results from your study. Katherine ----- Original Message ----- From: Duke Miller To: canslim@lists.xmission.com Sent: Wednesday, March 20, 2002 10:35 AM Subject: RE: [CANSLIM] SYK Charley, The results of your study would be very interesting to the group, I'm sure. Duke -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Chazmoore@aol.com Sent: Wednesday, March 20, 2002 7:00 AM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] SYK Tom: A few months ago one of the TV "bears" commented that a stock market recovery could not occur until the P/E ratio's fell significantly. In other words, stock prices are too high, or earnings too low. He noted that the S&P 500 Index P/E was (at the time) 28. Since I don't trust the S&P 500 Index averages I started to research the P/E ratio of Industry Groups, as defined by IBD. I am far from complete but my initial findings indicate that, with the exception of the technology sector, average P/E's really are not that high. Credit card companies like Capital One Finance (COF), and MBNA (KRB), have an average P/E of about 22; 8 points below the current S/P Index average. So, what is the point? I use this to determine if the stock P/E is in line with it's own industry. It could also be used to determine a target price to sell the stock in the future. While there are notable exceptions, (CSCO, QCOM, JDSU), most stocks get downgraded when they hit P/E ratios inconsistent with analyst projections, and this causes a price decline. (Maybe I have more time than sense.) Charley - ------=_NextPart_000_0033_01C1D010.879A6020 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Katherine, et=20 al:
 
While WON says = to=20 avoid considering PE's when buying a stock, one of his sell = rules=20 (p117, 24 Essential Lessons) is to "consider" selling all or part = of a=20 stock when its PE increases 130%?  The example Katherine provides = below=20 somewhat confirms this.  To wit:
 
I buy a stock = with a=20 PE of 20.  46 is a 130% increase in the PE.  Using Katherine's = example=20 below, 2.25 * 20 =3D 45. 
 
I personally lean to selling at a conservative 100% = gain in=20 PE!  Can I see a show of hands of people who are = currently tussling=20 with this issue at this time?
 
Duke   =20
-----Original Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of Katherine = Malm
Sent: Wednesday, March 20, 2002 12:04 PM
To:=20 canslim@lists.xmission.com
Subject: Re: [CANSLIM]=20 SYK

Oops... "trailing PE for great growth stocks at breakout = was=20 20"
----- Original Message -----
From:=20 Katherine=20 Malm
Sent: Wednesday, March 20, = 2002 10:56=20 AM
Subject: Re: [CANSLIM] = SYK

Hi Charley,
 
WON's studies from 1953 to 1985 showed that the average = trailing PE for=20 great growth stocks was 20. When they peaked, they averaged a = trailing PE of=20 45, 2.25 the original levels. They then screened the best stocks = going into=20 the market peak in March 2000 and found that the average PE when = they broke=20 out was 44.8. When they peaked, they averaged a PE of 99.6, = surprisingly,=20 2.2 times their PE on breakout. (Investor's Corner 6/9/00) His = conclusion is=20 that this does give some range of expectation for PE expansion = during the=20 stock's run.
 
One way I like to evaluate the industry is to look at the = current PEs=20 relative to 5 year highs and lows. 5 years is often enough to catch = at least=20 one and in some cases, more than one economic/market cycle. And I=20 wholeheartedly agree with you that comparing forward and/or trailing = PEs of=20 a stock relative to its industry/direct competitors is a great way = to see if=20 expectations are already built into the current price. I also like = to=20 compare the stock's ROE against others in the same industry, as it = gives a=20 measure of their relative ability to generate return on capital=20 employed.
 
It would be great to see the results from your study.
 
Katherine
----- Original Message ----- =
From:=20 Duke Miller
To: canslim@lists.xmission.com= =20
Sent: Wednesday, March 20, = 2002 10:35=20 AM
Subject: RE: [CANSLIM] = SYK

Charley,
 
The = results of your=20 study would be very interesting to the group, I'm=20 sure.
 
Duke
-----Original Message-----
From: owner-canslim@lists.xmis= sion.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of Chazmoore@aol.com
Sent:=20 Wednesday, March 20, 2002 7:00 AM
To: canslim@lists.xmission.com=
Subject:=20 Re: [CANSLIM] SYK

Tom: A few months ago one of the TV "bears" commented = that a=20 stock market recovery could not occur until the P/E ratio's fell = significantly. In other words, stock prices are too high, or = earnings=20 too low. He noted that the S&P 500 Index P/E was (at the = time) 28.=20 Since I don't trust the S&P 500 Index averages I started to = research=20 the P/E ratio of Industry Groups, as defined by IBD. I am far = from=20 complete but my initial findings indicate that, with the = exception of=20 the technology sector, average P/E's really are not that high. = Credit=20 card companies like Capital One Finance (COF), and MBNA (KRB), = have an=20 average P/E of about 22; 8 points below the current S/P Index = average.=20
So, what is the point? I use this to determine if the stock = P/E is=20 in line with it's own industry. It could also be used to = determine a=20 target price to sell the stock in the future. While there are = notable=20 exceptions, (CSCO, QCOM, JDSU), most stocks get downgraded when = they hit=20 P/E ratios inconsistent with analyst projections, and this = causes a=20 price decline.
(Maybe I have more time than sense.) =

Charley=20 =













- ------=_NextPart_000_0033_01C1D010.879A6020-- - - - -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: Wed, 20 Mar 2002 12:13:21 -0600 From: "Ricardo Bekin" Subject: [CANSLIM] SMD SMD is close to a new high today, on 1.5 times ADV, it just keeps humming along (sorry...) I liked the fundamentals and bought it earlier this month (before the split) Ricardo - - - -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: Wed, 20 Mar 2002 12:17:45 -0600 From: "Katherine Malm" Subject: Re: [CANSLIM] SYK This is a multi-part message in MIME format. - ------=_NextPart_000_00D2_01C1D009.3DB46480 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Duke, I don't worry about things like PE expansion and/or price as % above the = base/50/200 day moving averages unless the price/volume action itself is = also triggering a sell rule. I interpret the word "consider" in WON's = guidelines merely as "yellow warning flags" not sell rules in and of = themselves. If the money invested is better utilized elsewhere, then I = might take profits and reinvest in another stock, but that's the only = reason. Katherine ----- Original Message -----=20 From: Duke Miller=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, March 20, 2002 12:09 PM Subject: RE: [CANSLIM] SYK Katherine, et al: While WON says to avoid considering PE's when buying a stock, one of = his sell rules (p117, 24 Essential Lessons) is to "consider" selling all = or part of a stock when its PE increases 130%? The example Katherine = provides below somewhat confirms this. To wit: I buy a stock with a PE of 20. 46 is a 130% increase in the PE. = Using Katherine's example below, 2.25 * 20 =3D 45. =20 I personally lean to selling at a conservative 100% gain in PE! Can I = see a show of hands of people who are currently tussling with this issue = at this time? Duke =20 -----Original Message----- From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com]On Behalf Of Katherine Malm Sent: Wednesday, March 20, 2002 12:04 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] SYK Oops... "trailing PE for great growth stocks at breakout was 20" ----- Original Message -----=20 From: Katherine Malm=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, March 20, 2002 10:56 AM Subject: Re: [CANSLIM] SYK Hi Charley, WON's studies from 1953 to 1985 showed that the average trailing = PE for great growth stocks was 20. When they peaked, they averaged a = trailing PE of 45, 2.25 the original levels. They then screened the best = stocks going into the market peak in March 2000 and found that the = average PE when they broke out was 44.8. When they peaked, they averaged = a PE of 99.6, surprisingly, 2.2 times their PE on breakout. (Investor's = Corner 6/9/00) His conclusion is that this does give some range of = expectation for PE expansion during the stock's run. One way I like to evaluate the industry is to look at the current = PEs relative to 5 year highs and lows. 5 years is often enough to catch = at least one and in some cases, more than one economic/market cycle. And = I wholeheartedly agree with you that comparing forward and/or trailing = PEs of a stock relative to its industry/direct competitors is a great = way to see if expectations are already built into the current price. I = also like to compare the stock's ROE against others in the same = industry, as it gives a measure of their relative ability to generate = return on capital employed. It would be great to see the results from your study. Katherine ----- Original Message -----=20 From: Duke Miller=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, March 20, 2002 10:35 AM Subject: RE: [CANSLIM] SYK Charley, The results of your study would be very interesting to the = group, I'm sure. Duke -----Original Message----- From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com]On Behalf Of Chazmoore@aol.com Sent: Wednesday, March 20, 2002 7:00 AM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] SYK Tom: A few months ago one of the TV "bears" commented that a = stock market recovery could not occur until the P/E ratio's fell = significantly. In other words, stock prices are too high, or earnings = too low. He noted that the S&P 500 Index P/E was (at the time) 28. Since = I don't trust the S&P 500 Index averages I started to research the P/E = ratio of Industry Groups, as defined by IBD. I am far from complete but = my initial findings indicate that, with the exception of the technology = sector, average P/E's really are not that high. Credit card companies = like Capital One Finance (COF), and MBNA (KRB), have an average P/E of = about 22; 8 points below the current S/P Index average.=20 So, what is the point? I use this to determine if the stock = P/E is in line with it's own industry. It could also be used to = determine a target price to sell the stock in the future. While there = are notable exceptions, (CSCO, QCOM, JDSU), most stocks get downgraded = when they hit P/E ratios inconsistent with analyst projections, and this = causes a price decline.=20 (Maybe I have more time than sense.)=20 Charley=20 - ------=_NextPart_000_00D2_01C1D009.3DB46480 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Duke,
 
I don't worry about things like PE expansion and/or price as % = above the=20 base/50/200 day moving averages unless the price/volume action itself is = also=20 triggering a sell rule. I interpret the word "consider" in WON's = guidelines=20 merely as "yellow warning flags" not sell rules in and of themselves. If = the=20 money invested is better utilized elsewhere, then I might take profits = and=20 reinvest in another stock, but that's the only reason.
 
Katherine
----- Original Message -----
From:=20 Duke=20 Miller
Sent: Wednesday, March 20, 2002 = 12:09=20 PM
Subject: RE: [CANSLIM] = SYK

Katherine, et = al:
 
While WON = says to=20 avoid considering PE's when buying a stock, one of his sell = rules=20 (p117, 24 Essential Lessons) is to "consider" selling all or part = of a=20 stock when its PE increases 130%?  The example Katherine provides = below=20 somewhat confirms this.  To wit:
 
I buy a stock = with a=20 PE of 20.  46 is a 130% increase in the PE.  Using = Katherine's=20 example below, 2.25 * 20 =3D 45. 
 
I personally lean to = selling at=20 a conservative 100% gain in PE!  Can I see a show of hands = of people=20 who are currently tussling with this issue at this=20 time?
 
Duke   =20
-----Original Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of = Katherine=20 Malm
Sent: Wednesday, March 20, 2002 12:04 = PM
To:=20 canslim@lists.xmission.com
Subject: Re: [CANSLIM]=20 SYK

Oops... "trailing PE for great growth stocks at = breakout was=20 20"
----- Original Message ----- =
From:=20 Katherine=20 Malm
To: canslim@lists.xmission.com= =20
Sent: Wednesday, March 20, = 2002 10:56=20 AM
Subject: Re: [CANSLIM] = SYK

Hi Charley,
 
WON's studies from 1953 to 1985 showed that the average = trailing PE=20 for great growth stocks was 20. When they peaked, they averaged a = trailing=20 PE of 45, 2.25 the original levels. They then screened the best = stocks=20 going into the market peak in March 2000 and found that the = average PE=20 when they broke out was 44.8. When they peaked, they averaged a PE = of=20 99.6, surprisingly, 2.2 times their PE on breakout. (Investor's = Corner=20 6/9/00) His conclusion is that this does give some range of = expectation=20 for PE expansion during the stock's run.
 
One way I like to evaluate the industry is to look at the = current PEs=20 relative to 5 year highs and lows. 5 years is often enough to = catch at=20 least one and in some cases, more than one economic/market cycle. = And I=20 wholeheartedly agree with you that comparing forward and/or = trailing PEs=20 of a stock relative to its industry/direct competitors is a great = way to=20 see if expectations are already built into the current price. I = also like=20 to compare the stock's ROE against others in the same industry, as = it=20 gives a measure of their relative ability to generate return on = capital=20 employed.
 
It would be great to see the results from your study.
 
Katherine
----- Original Message ----- =
From:=20 Duke Miller
To: canslim@lists.xmission.com= =20
Sent: Wednesday, March = 20, 2002=20 10:35 AM
Subject: RE: [CANSLIM] = SYK

Charley,
 
The = results of your=20 study would be very interesting to the group, I'm=20 sure.
 
Duke
-----Original Message-----
From: owner-canslim@lists.xmis= sion.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of = Chazmoore@aol.com
Sent:=20 Wednesday, March 20, 2002 7:00 AM
To: canslim@lists.xmission.com=
Subject:=20 Re: [CANSLIM] SYK

Tom: A few months ago one of the TV "bears" commented = that a=20 stock market recovery could not occur until the P/E ratio's = fell=20 significantly. In other words, stock prices are too high, or = earnings=20 too low. He noted that the S&P 500 Index P/E was (at the = time) 28.=20 Since I don't trust the S&P 500 Index averages I started = to=20 research the P/E ratio of Industry Groups, as defined by IBD. = I am far=20 from complete but my initial findings indicate that, with the=20 exception of the technology sector, average P/E's really are = not that=20 high. Credit card companies like Capital One Finance (COF), = and MBNA=20 (KRB), have an average P/E of about 22; 8 points below the = current S/P=20 Index average.
So, what is the point? I use this to = determine if=20 the stock P/E is in line with it's own industry. It could also = be used=20 to determine a target price to sell the stock in the future. = While=20 there are notable exceptions, (CSCO, QCOM, JDSU), most stocks = get=20 downgraded when they hit P/E ratios inconsistent with analyst=20 projections, and this causes a price decline.
(Maybe I = have more=20 time than sense.)

Charley=20 =













- ------=_NextPart_000_00D2_01C1D009.3DB46480-- - - - -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: Wed, 20 Mar 2002 13:20:28 EST From: Chazmoore@aol.com Subject: Re: [CANSLIM] SYK - --part1_3b.23ca816c.29ca2cec_boundary Content-Type: text/plain; charset="US-ASCII" Content-Transfer-Encoding: 7bit Duke: Now I understand and it makes sense. Thanks to you and Katherine for your guidance. Charley - --part1_3b.23ca816c.29ca2cec_boundary Content-Type: text/html; charset="US-ASCII" Content-Transfer-Encoding: 7bit Duke: Now I understand and it makes sense. Thanks to you and Katherine for your guidance. Charley - --part1_3b.23ca816c.29ca2cec_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: Wed, 20 Mar 2002 10:29:54 -0800 From: "Bill Triffet" Subject: Re: [CANSLIM] SMD Ricardo, You might consider some of WON's selling rules. Since SMD is over 100% above the 200dma I'd keep an eye out for distribution signs. - -Bill Triffet - ----- Original Message ----- From: "Ricardo Bekin" To: "CANSLIM" Sent: Wednesday, March 20, 2002 10:13 AM Subject: [CANSLIM] SMD > SMD is close to a new high today, on 1.5 times ADV, it just keeps humming > along (sorry...) > > I liked the fundamentals and bought it earlier this month (before the split) > > Ricardo - - - -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: Wed, 20 Mar 2002 10:49:55 -0800 From: Ian Subject: Re: [CANSLIM] SMD I was eager to buy SMD in October when it broke out on a huge volume increase at $8 (pre-split). A good friend of mine spent 1/2 hour talking me out of buying it - saying that one-product-wonders never go anywhere. He was convinced that it was a fad stock that would quickly die. I had lost a little money on another fad stock earlier last year (a paintball company). He kept reminding me of it, and finally convinced me to look elsewhere. The flipping stock has had nary a pullback since, up almost 300% in 6 months. It has agitated me daily! Cheers, Ian - ----- Original Message ----- From: Ricardo Bekin To: CANSLIM Sent: Wednesday, March 20, 2002 10:13 AM Subject: [CANSLIM] SMD > SMD is close to a new high today, on 1.5 times ADV, it just keeps humming > along (sorry...) > > I liked the fundamentals and bought it earlier this month (before the split) > > Ricardo > > - > -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: Wed, 20 Mar 2002 14:18:45 EST From: Chazmoore@aol.com Subject: [CANSLIM] CANSLIM Evaluation by cwhCharts.com - --part1_151.ac82472.29ca3a95_boundary Content-Type: text/plain; charset="US-ASCII" Content-Transfer-Encoding: 7bit Sorry, but I misplaced the gentleman's name who posted the link to the Canslim evaluation chart. I have a question concerning the Institutional Sponsorship category. Would you explain the "measurement"? It appears to read that a value in the range of 5% to 50% needed. What does this mean? It apparently doesn't refer to the percentage of the company owned by institutions. Charley - --part1_151.ac82472.29ca3a95_boundary Content-Type: text/html; charset="US-ASCII" Content-Transfer-Encoding: 7bit Sorry, but I misplaced the gentleman's name who posted the link to the Canslim evaluation chart. I have a question concerning the Institutional Sponsorship category. Would you explain the "measurement"? It appears to read that a value in the range of 5% to 50% needed. What does this mean? It apparently doesn't refer to the percentage of the company owned by institutions.

Charley - --part1_151.ac82472.29ca3a95_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: Wed, 20 Mar 2002 14:30:38 EST From: Spencer48@aol.com Subject: Re: [CANSLIM] SYK Katherine: Your E-mail on P/E reminded me that WON sometimes uses the P/E ratio to= =20 guage when to sell the stock. Here is what he said June 4, 2001 in Ask WON=20 (on investors.com) regarding P/E vis =E0 vis selling: =20 "Your sell rules are the principal guide on when to take a profit. But=20 sometimes we use the price/earnings ratio to calculate a price where you may= =20 exit a stock. Basically, you may start considering selling when the stock's=20 PE ratio expands 130% from the time it broke out from a first-stage base.=20 Example: XYZ stock's PE (or p/e ) ratio is 45 when it breaks out. Calculatin= g=20 a 130% expansion, you get a PE of 103.5 [45*1.3 +original45PE]]. Next, you=20 take the next year's expected earnings per share and calculate the target=20 price from the estimated EPS. If the estimated EPS is $2, the target price=20 would be $207 ($2 x 103.5). However, you should use this method only with th= e=20 No.1 stock in a group and only in a first-stage base." jans=20 In a message dated 3/20/2002 11:55:41 AM Eastern Standard Time,=20 kmalm@earthlink.net writes: << WON's studies from 1953 to 1985 showed that the average trailing PE for=20 great growth stocks was 20. When they peaked, they averaged a trailing PE of= =20 45, 2.25 the original levels. They then screened the best stocks going into=20 the market peak in March 2000 and found that the average PE when they broke=20 out was 44.8. When they peaked, they averaged a PE of 99.6, surprisingly, 2.= 2=20 times their PE on breakout. (Investor's Corner 6/9/00) His conclusion is tha= t=20 this does give some range of expectation for PE expansion during the stock's= =20 run. >> - - - -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: Wed, 20 Mar 2002 09:54:40 -1000 From: "Mike Gibbons" Subject: RE: [CANSLIM] CANSLIM Evaluation by cwhCharts.com This is a multi-part message in MIME format. - ------=_NextPart_000_0178_01C1CFF5.4120F2A0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: 7bit Hi Charley, Yes, that's what it means. % shares owned by institutions as reported by yahoo.marketguide.com. Of course the 5-50% needed for a "pass" is our interpretation - WON is somewhat elastic in his definition - and you should use your own judgement. Aloha, Mike Gibbons Proactive Technologies, LLC http://www.proactech.com -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Chazmoore@aol.com Sent: Wednesday, March 20, 2002 9:19 AM To: canslim@lists.xmission.com Subject: [CANSLIM] CANSLIM Evaluation by cwhCharts.com Sorry, but I misplaced the gentleman's name who posted the link to the Canslim evaluation chart. I have a question concerning the Institutional Sponsorship category. Would you explain the "measurement"? It appears to read that a value in the range of 5% to 50% needed. What does this mean? It apparently doesn't refer to the percentage of the company owned by institutions. Charley - ------=_NextPart_000_0178_01C1CFF5.4120F2A0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Hi=20 Charley,
 
Yes,=20 that's what it means. % shares owned by institutions as reported by=20 yahoo.marketguide.com.
 
Of=20 course the 5-50% needed for a "pass" is our interpretation - WON is = somewhat=20 elastic in his definition - and you should use your own=20 judgement.
 
Aloha,
 
Mike Gibbons
Proactive Technologies, = LLC
http://www.proactech.com
-----Original Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of=20 Chazmoore@aol.com
Sent: Wednesday, March 20, 2002 9:19=20 AM
To: canslim@lists.xmission.com
Subject: = [CANSLIM]=20 CANSLIM Evaluation by cwhCharts.com

Sorry, but I misplaced the = gentleman's name=20 who posted the link to the Canslim evaluation chart. I have a question = concerning the Institutional Sponsorship category. Would you explain = the=20 "measurement"? It appears to read that a value in the range of 5% to = 50%=20 needed. What does this mean? It apparently doesn't refer to the = percentage of=20 the company owned by institutions.

Charley=20
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