From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #254 Reply-To: canslim Sender: owner-canslim-digest@lists.xmission.com Errors-To: owner-canslim-digest@lists.xmission.com Precedence: bulk X-No-Archive: yes canslim-digest Tuesday, May 26 1998 Volume 02 : Number 254 In this issue: [CANSLIM] Book about the Markets for beginners... [CANSLIM] Selling into morning strength. Re: [CANSLIM] My current watch list Re: [CANSLIM] My current watch list Re: [CANSLIM] My current watch list [CANSLIM] Re: IGEN [CANSLIM] HTMMIS [CANSLIM] Second only to BigCharts [CANSLIM] For Canslim: Government indices & other economic items. [CANSLIM] Farmer [CANSLIM] Farmer Re: [CANSLIM] My current watch list Re: [CANSLIM] The beauty of 'M' Re: [CANSLIM] Farmer [CANSLIM] Intro: Thomas Worley Re: [CANSLIM] Farmer Re: [CANSLIM] In Defense of Jeffry Re: [CANSLIM] Lurking? Re: [CANSLIM] My current watch list Re: [CANSLIM] In Defense of Jeffry ---------------------------------------------------------------------- Date: Mon, 25 May 1998 20:11:41 +0200 From: Johan Van Houtven Subject: [CANSLIM] Book about the Markets for beginners... Nelson, I'm not Joe, but I'll throw in my $.02 if you don't mind. If my wife would ask me which book she should read to learn about investing in the markets I'd tell her: Investor's Business Daily Guide to the Markets. I have several other investment books for beginners, but they are not nearly as clear, concise or usefull as this book is. It clearly explains what one needs to know to make informed investment decisions. I picked it up @ Barnes & Noble. The ISBN nr. is 0-471-15482-2. Johan At 12:10 PM 24-05-98 -0400, you wrote: >Joe- > >You said the lurkers should start to contribute so here goes. My wife needs >to learn about stocks. She knows literally not one thing, and I fear that if >something ever happens to me she will be left in total ignorance on how to >proceed. > >Do you recommend she begin by reading HTMMIS or some other tome that might >be a preliminary to that, such as "Beating the Street" by Peter Lynch. > >BTW, it wouldn't be a bad idea for me to read whatever you suggest as well. > > >Nelson >"Know 10 times Less than Joe or Anyone Else" > > Johan Van Houtven CLICK! N.V. / Wilrijk, Belgium - - ------------------------------ Date: Tue, 26 May 1998 11:02:02 -0400 From: Connie Mack Rea Subject: [CANSLIM] Selling into morning strength. Members-- A few days ago I mentioned that looking at the Dow and the NASDAQ through OBV/MF/EMA/MACD/SloSto did not show a pretty sight. The view is still ugly. I have sold half of my stocks [five] this morning into the momentary strength. All had less than a point profit; one had a loss that had not yet triggered my stop; I chose to make the sell choice rather than have the stop do it for me. In a strong market opening such as this morning's, I use a market order. Don't get cute with limit orders when the most important thing is to get out. Selling into strength with a market order is much less dangerous than selling into weakness. My remaining stocks also have less than a point profit and none have a loss. That none of the five has even a point gain is testament to my having made an inauspicious entry. Having recognized the error, there is no reason to rationalize it. Just get out. There is tomorrow. To err may be human. But to rationalize the error is not only human but stupid. Be tough on yourself. You don't want the market to pass judgement and perform a penalty. The market makes no distinction among men, women, and children. To think that the market will take pity on you is as silly as saying that an early death is a moral affront to the insurance company. Two of my remaining five are getting close to my stops. Remember that you must have an extraordinary reason--just short of divine intervention--to ever take a loss on a stock that carries a profit. To do so is bad investing all around. Connie Mack - - ------------------------------ Date: Tue, 26 May 1998 09:53:50 -0500 From: "Joe Scott" Subject: Re: [CANSLIM] My current watch list Tom , welcome back, Tell me FTEC is a misspell, RS 15, EPS rank 6 - - ------------------------------ Date: Tue, 26 May 1998 09:53:50 -0500 From: "Joe Scott" Subject: Re: [CANSLIM] My current watch list Tom , welcome back, Tell me FTEC is a misspell, RS 15, EPS rank 6 - - ------------------------------ Date: Tue, 26 May 1998 15:28:12 EDT From: CA011667 Subject: Re: [CANSLIM] My current watch list Tom, Good to see you back, I missed all the ruckus but the only important thing to me is to see your posts again. You may want to check numbers on May and Speh (SPEH).EPS 95 RS 80 breaking out today on about six times avg. vol. With the market down big this was very impressive to me, I made a pilot buy today at 15 7/8. Curious to hear what you think about this company. Chris. - - ------------------------------ Date: Tue, 26 May 1998 12:57:17 -0700 (PDT) From: dbphoenix Subject: [CANSLIM] Re: IGEN <> It's worth noting that when buying a stock that has just broken through its 50d, either simple or exponential, it's best to wait and see if it holds there for at least a couple of days. Technically, resistance once breached becomes support. However, it ain't support until it's tested. It's also worth noting that unless one strives to become a trader, he or she should check the weekly chart on a stock as well as the daily. Most of the above indicators which seem to be working for you on the daily are working against you on the weekly. With that much negativity staring you in the face, I wouldn't call it a buy. Aside from the fact that, having no earnings, it is arguably not a CS stock. - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Tue, 26 May 1998 16:34:22 -0400 From: Jeffry White <"postwhit@sover.net"@sover.net> Subject: [CANSLIM] HTMMIS Chris Peek wrote: > Date: Mon, 25 May 1998 11:33:14 -0400 > From: "Chris Peek" > Subject: Re: [CANSLIM] Surgery > > Sure Jeffery, by all means, wait until you recover from surgery. > > As for all of the answers being in HTMMIS, I think your statement is > ignoring the obvious. One of the main purposes for this list is for the > discussion of the CANSLIM concept. Sorry to have offended you, Chris. I guess our respective purposes and expectations about this group are different. As I said to Tom over the weekend: > What I also said was that I tend to read only the posts to the group which feature explanations of basic(yours many times more than not) CANSLIM criteria/rules/analyses. That keeps me on the straight and narrow...kind of like re-reading HTMMIS everyday, but making sure I don't get stuck on one point that is my favorite at the moment. I read HTMMIS for the first time only after being tutored by teachers equal to Tom, so perhaps the pertinent provisions of the book rang true to me more quickly than they might otherwise have. I still think all the answers are there, and that's why I re-read it in full during every correction/consolidation, and resort to it daily to quiet my head concerning open position anxieties, etc. Good luck, Chris. Jeff - - ------------------------------ Date: Tue, 26 May 1998 17:39:23 -0400 From: Connie Mack Rea Subject: [CANSLIM] Second only to BigCharts Members-- This site has a good stock screen program: http://stocktools.com/asp/query.asp The site is not my discovery, but it looks as if it has been updated recently. This site is one put together by John Bollinger [Bollinger Bands]. It's really slick. Has a Money Flow indicator [click Supply/Demand tab at bottom of chart. Be sure to click all the tabs and the items in the left margin [Graphs, Groups, etc.] Site is second only to BigCharts for the technician. http://equitytrader.com Connie Mack - - ------------------------------ Date: Tue, 26 May 1998 16:44:29 -0400 From: Connie Mack Rea Subject: [CANSLIM] For Canslim: Government indices & other economic items. Members-- There is a fairly thorough site with several government indicies and economic items that might be of interest for CS. http://webcom.com/~yardeni/usecon.html#B5 Connie Mack - - ------------------------------ Date: Tue, 26 May 1998 16:35:55 -0400 From: Jeffry White <"postwhit@sover.net"@sover.net> Subject: [CANSLIM] Farmer > Date: Mon, 25 May 1998 09:05:26 -0700 > From: Dan Cash > Subject: Re: [CANSLIM] Farmer > > Jeffry, > > Your intended private message to Tom and unintended "virus" to the group is > for the most part, with slight exception, a open, respectful discussion > that I would be pleased to be able to follow in our open form; that I > could learn and benefit from. > Believe me, what was not posted was not pretty. Right, Tom? ;P Jeffry - - ------------------------------ Date: Mon, 25 May 1998 11:42:49 -0600 From: Kent Horne Subject: [CANSLIM] Farmer Jeffery, Now that we know you are a strong proponent or perhaps even a promoter of the Stock Farmer, and the NasBars System; and that you assume others do = not know of its existance, perhaps some of StockLogic Research Corporation's = own warnings should be presented to the members of this list. The following was extracted from StockLogic Research Corporation Inc., an= d presented in no "special" order. "Hypothetical Results For The NASBARS System Name of Advisor: StockLogic Research Corporation Inc. HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOU= NT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY A= RE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETIC= AL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECO= RD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS. THIS TRADING ADVISOR PREVIOUSLY HAS NOT DIRECTED ANY ACCOUNTS. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. PRINCIPAL RISK FACTORS Investing in commodity interests involves a high degree of risk. Although StockLogic Research Corporation, Inc. will attempt to reduce risk, there = can be no guarantee that substantial losses will not, in fact, be incurred. Drawdowns may approach 25% during the course of trading. Listed below are the principal risk factors associated with investing in managed futures i= n general and, in certain instances, with StockLogic Research Corporation, Inc. in particular. Prospective clients should carefully consider the ris= ks set forth below, and set forth in the Risk disclosure Statement in the forepart of this document. Investing in Commodity Interests is Speculative and Volatile Commodity interest prices and other contract prices are highly volatile. Price movements of commodity interests are influenced by, among other things, changing supply and demand relationships, governmental, agricultu= ral and trade programs and policies, climate and national and international political and economic events. Financial instruments and foreign currency futures and forward and spot contract prices are influenced by, among oth= er things, domestic and international rates of inflation, international trad= e restrictions and currency devaluations and revaluations. None of these factors can be controlled by the Advisor. Risk of Leverage The low margin requirements required when investing in commodity futures (typically between 2% and 15% of the value of the contracts traded) allow= s for a high degree of leverage. Hence, a relatively small price movement m= ay result in substantial losses to the client. In all leveraged investments there is always the risk that the losses can exceed the amount invested. = The Advisor may, at times, carry positions requiring up to 40% or more of the account equity for margin. Investments in Commodity Interests May be Illiquid Certain commodity exchanges limit fluctuations in commodity futures contr= act prices during a single day by regulations referred to as "daily price fluctuation limits" or "daily limits". During a single trading day no tra= des may be executed at prices beyond the daily limit. Once the price of a futures contract for a particular commodity has increased or decreased by= an amount equal to the daily limit, positions in the commodity cannot be tak= en or liquidated unless both a buyer and seller are willing to effect trades= at or within the limit. Commodity futures prices have moved the daily limit = for several consecutive days with little or no trading. Similar occurrences, = or regulatory intervention in the commodity markets, could prevent the Advis= or from promptly liquidating unfavorable positions and adversely affect investment activities and profitability. Possible Effects of Speculative Position Limits The CFTC and certain exchanges have established limits referred to as "speculative position limits" on the maximum net long or net short positi= on which any person may hold or control in particular commodities. All commodity accounts controlled by a Advisor will be combined for position limit purposes. It is possible that investment decision of the Advisor ma= y have to be modified and that positions held by a client=92s account could= have to be liquidated to avoid exceeding such limits. Fees and Expenses Clients may be subject to substantial brokerage commissions, management f= ees and incentive fees. Accordingly, a client=92s account will have to earn sufficient profits from investments in order to avoid depletion of assets due to such commissions and fees. It is possible that substantial brokera= ge commission fees may be generated by the Advisor=92s investment program, w= hich could negatively impact the profitability of a client=92s account. Also, = the Advisor receives a management fee regardless of account profitability. The charts were prepared with the TradeStation program by Omega Research With some reluctance we've included the System Report (also prepared with the TradeStation program). But the numbers shown here must be taken with = a grain of salt. First, there is no accounting for for fees and expenses. A= nd second, the long-term contract data contains artificial price "jumps" sometimes where the contracts would have been "rolled over" in real life.= It thinks we get to keep the jumps! " And Jeffery, as long as you are disclosing some information; I'll take your advice under consideration, but I would like to know for certain if: 1. you are recommending "Investments in Commodity Interests", 2. if you are a "REP" for these folks, and 3. if you have them managing any money of yours. True, they do use IBD, DGO, WON, CANSLIM, and other data and they do also state the importance of M. They, like most of the members of this list I= 've seen posting, look to many sources. If memory serves me, they have a reading list of 10 or more books by various authors. I guess if you're playing with commodity "interests", you'd really want t= o watch "M" much more than the equity investor. I think I'm starting to see more of the picture now. I realize now that part of your "approach" to others may be driven by you= r own fears that you have others making your investement decisions for you. Since they are charging you a high fee for their services, perhaps you fe= ar you are being taken, or are not in control of your own decisions. If tho= se paramaters fit at all it is likely that you would lash out at individuals with knowledge, skills, and abilities in equity investments. Thanks, kent - - ------------------------------ Date: Tue, 26 May 1998 10:02:07 EDT From: SACADS Subject: Re: [CANSLIM] My current watch list Sure you don't mean FTIC? - - ------------------------------ Date: Tue, 26 May 1998 14:01:21 GMT From: musicant@autobahn.org (Dan Musicant) Subject: Re: [CANSLIM] The beauty of 'M' Thanks, Johan, for this excellent post. I am printing it out for reference. You have (in it) clarified a statement of WON's that heretofore was a mystery to me (page 58, 2nd edition): "You do not need to know what the market is going to do! All you need to know is what the market has actually done! This is the key! Think about it for a minute. There is a fortune in this paragraph." I never got that until I read your post. Dan On Sun, 24 May 1998 00:12:34 +0200, you wrote: :Just wanted to share something I've come to appreciate: : :If you want to invest the CANSLIM way, :determining what 'M' is doing is an important part. :(ref: WON's HTMMIS 2nd ed. p. 44) : :What I have come to appreciate about how WON :takes care of 'M' is that you do not need to make :predictions about what the market is going to do. :You do not need to guess what the market will be :doing 1, 6 or 24 months from now. You do not :need to have a crystal ball. : :You just determine what the market is doing now. :There have been times when I thought that if I wanted :to become a succesfull investor I had to find a way to :predict what the market was going to do. Sometimes I :still get the urge to try just that. But luckily the urge :disappears quite fast, as I prove to myself, time and time :again, that I can not do that. : :What I have come to realize during the last year or so, is :that I need not worry about what the market will do in the future. :CANSLIM has techniques to get me in and out of the market at :what have proven to be pretty good entry and exit points (for :buying and selling CANSLI-worthy stocks that is). : :I'm glad that I finally came to appreciate and trust the way :WON handles market direction in his book. : :And I wanted to thank the members of this mailing list for all :the terrific posts about 'M' that have helped to reach that conclusion. : : : : : :Johan Van Houtven :CLICK! N.V. / Wilrijk, Belgium : : :- - - ------------------------------ Date: Tue, 26 May 1998 19:10:33 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Farmer Actually, I thought it was quite civilized. Reasonably respectful, don't recall much if any sarcasm, shows a dialogue is possible, altho don't think either of us changed our position or opinion or stock selecting strategies. Tom W - -----Original Message----- From: Jeffry White <"postwhit@sover.net"@sover.net> To: canslim@mail.xmission.com Date: Tuesday, May 26, 1998 6:56 PM Subject: [CANSLIM] Farmer >> Date: Mon, 25 May 1998 09:05:26 -0700 >> From: Dan Cash >> Subject: Re: [CANSLIM] Farmer >> >> Jeffry, >> >> Your intended private message to Tom and unintended "virus" to the group is >> for the most part, with slight exception, a open, respectful discussion >> that I would be pleased to be able to follow in our open form; that I >> could learn and benefit from. >> > >Believe me, what was not posted was not pretty. Right, Tom? ;P > >Jeffry > >- > - - ------------------------------ Date: Mon, 25 May 1998 12:48:29 -0400 From: Tom Worley Subject: [CANSLIM] Intro: Thomas Worley Hi Honey, I'm homeeeeee!!!! OK, I'm back and in the full version. Decided I'm too impatient to wait for the digest. And I want to state for the record, let's get back to picking some CANSLIM stocks, from all the email I have been receiving (and I appreciate it all and hopefully responded to everyone), the topic of my departure and my discourse with Jeffry has preempted the purpose of this group. So, please, let's not make it worse by posting stuff to the group mail list about my return. If you want to say something, send it privately to stkguru@netside.net, good, bad, or indifferent (altho nice is appreciated and helps inflate my ego). As a result of all the comments over the past ten days, I feel it is important that I introduce/reintroduce myself to this great group. As I have mentioned many times in the past, I think intros are important, they are a part of what holds this group together, part of its vitality. If you haven't posted an intro here and at www.shango.net/canslim, then I encourage you to do so. If you are a newcomer to this group, and/or to investing or CANSLIM, this "intro" site provides a resource for you to judge the background and experience of the members posting here. But even if you don't think you have a "background or experience", post an intro anyway, it helps all of us know who we are talking to. INTRODUCTION: 50 years old widower resident of Miami, Fl for past 15 years, native of Florida as well 17 years in the US Coast Guard, including Vietnam service, most of my career spent in intelligence operations, primarily narcotics interdiction and fisheries enforcement ten years as a licensed registered representative (stock broker) of which the first seven were active, managing over 200 client portfolios was referred to WON/CANSLIM about 8 years ago by a client, began studying CANSLIM and reading/studying HTMMIS then. Second firm I went to work for as a broker chosen specifically because they followed CANSLIM and were paying for access to WON's institutional picks, third firm chosen for mostly the same reasons, thus giving me over 5 years of experience with WON's actual real time institutional picks and the ability to compare them with his charts at the same time. Spent the past three years, since I stopped managing portfolios, running the "back office" of a broker dealer, giving me further insight into how the business operates. In this capacity, I was also the "trader" for my firm, handling order execution and dealing with a number of market makers Now working for a German bank in Securities Operations, giving me a further exposure to European issues, as well as handling foreign currency transactions, along with continued Latin American experience that builds on what I acquired at my last firm WARNING: I am not a pure CANSLIMer. My background is too diversified for purity. I have a strong bent towards fundamentals of a company (for which CANSLIM helps provide a balance), and a personal bias in favor of small cap and micro cap stocks (based on experience, as well as "birthing" many thru their IPO. My finances presently have led me towards stocks under $20 (WON usually recommends only stocks over $12/share), however I would still be interested in this sector because of my past experience with start up and young companies. I also have a strong interest in economics and how it affects the stock market, along with an effort to follow and interpret the global markets, and how they will influence the US stock markets. While I consider all of this to be a part of WON's description of "M" in Chapter 7, others consider it simply to be "noise". If you disagree, or are not interested, then please simply hit your delete button on these topics. I will try to clearly identify them in the subject line of any posts I make on these topics. I have been a past member of this group since its early days, and an active participant. I do not "own" the list, that is Jeff Salisbury's exclusive domain. Nor am I a "moderator", "leader" or any other role model or person of authority. I am simply an investor just like all other members with the same status as any of you reading this, with an opinion shaped by many factors. I do not consider myself an "expert" at either investing in general or CANSLIM in particular, altho I do have a certain amount of experience at both. My opinions are not sacred cows, they can be challenged or questioned, all I ask is that they not be demeaned or ridiculed. They are, after all, my opinions on what has been working for me (nearly tripled my IRA acct in the past eight months and not had a single CANSLIM stock cost me money in the past six months, as two examples) thus demeaning or ridiculing my opinions (vs challenging or questioning) is also demeaning and ridiculing me, and that I take personally and seriously. I am willing to answer questions from "newbies" (whether new to investing or new to CANSLIM) as are many other members, but do ask that you read HTMMIS first as most questions are answered there. I select stocks primarily from lists of stocks hitting new highs. My basic CS parameters are RS over 90 and EPS over 75, with recent earnings doing much better. I prefer stocks with only a few million shares in the float, and want a strong management ownership (over 50% doesn't scare me off due to my past experience with young companies). I prefer stocks with a small funds ownership (single digit percentages) but am not stopped by stocks with no reported funds ownership as I recognize the lengthy delays in this reporting. And if I have a good small cap stock, sooner or later the funds will notice and buy into it if they haven't already, and I want to already own it by the time that happens. My initial target when I buy a stock is for a 20% gain, if I don't see this potential, I won't buy it. But I will routinely hold it well past this level so long as it continues to perform. I am currently holding EDAC with a 60+% profit in less than 7 weeks, it's real extended right now, but giving me no reason to sell other than to lock in profits (which isn't a bad reason). My primary source of data and charts is Daily Graphs (right now by the book version but hope shortly to again be getting the online version, esp if we can negotiate a group rate). This gives me a wealth of original WON based CANSLIM data in a single site. Takes me about 30 seconds of looking at a DG chart to decide to study it further or to dismiss it. If I don't comment on one of your picks, it should not be interpreted as either negative or positive, just means I had nothing to say, or add to present discussion. Nothing I say or comment on in this forum should be interpretated as a specific buy, sell or hold recommendation. Nor should anything I say on "M" be taken as gospel or even accurate, all of it is what suits me, works for me, and I find comfortable, which is the beauty of CANSLIM. Each investor can tailor it to fit their own comfort level, risk tolerance, finances, investment goals, etc. Please save this "intro" or print it out, I really don't want to have to include most of it in a "signature block". Nothing I say or do should be used as your decision maker, I manage my own investments, make my own decisions. You have to do the same. Tom W - - ------------------------------ Date: Mon, 25 May 1998 21:39:35 -0400 From: bamend Subject: Re: [CANSLIM] Farmer Tom, Thanks for coming back to the group. I look forward to your input and knowledge. Bob Amend - -----Original Message----- From: Tom Worley To: canslim@lists.xmission.com Date: Monday, May 25, 1998 12:12 PM Subject: Re: [CANSLIM] Farmer >I guess discussion isn't ended until both parties agree it's ended, >and you had made some comments on how I viewed your approach to >CANSLIM picks. I simply wanted to point out I can only "presume" based >on what you post. >> >> Large posting trimmed... >> >- - - ------------------------------ Date: Mon, 25 May 1998 21:58:33 -0500 (CDT) From: John Subject: Re: [CANSLIM] In Defense of Jeffry speaking as a lunker! I am not a novis at investing but not doing poorly. Let him rebound and find a good position and I bet he will return. If not we learned a lot and all gained even if he never posts again. Now about canslim.I donot feel the hi erg is enough to protect anyone in a down market. I feel the graph is about the only thing that cant be manipulated and is the most importaint element. Fundamentals look good but in most cases wont pay the rent xjadair At 06:30 PM 5/23/98 -0700, you wrote: > >Some of you were here when I was part of this list before. Many of >you have joined since I left. Therefore, many of you don't have the >slightest idea who I am. And may not care to find out. I go through >this prelude only to make it clear that I didn't just get off the bus. > This neighborhood is familiar to me. > >I've observed and participated in many CS forums over the last couple >of years. I initiated some of them. Message boards, websites, e-mail >groups open and closed, etc. And not one of them--after a few weeks, >anyway--was appropriate for newbies (or, for that matter, for anyone >wanting to adhere to anything approaching the straight and narrow). >Why? Because no one was willing to assume the role of gate-keeper and >maintain that discipline. Actually, that's not true. There have been >volunteers foolhardy enough to try, but they were invariably tarred, >feathered, and run out of town on a rail for being too tight-assed >about the whole thing. Thus there are no forums of which I'm aware >which are devoted solely to CS, CS stocks, and CS discussions. And >that's a shame. > >The great strength and the great weakness of CS are that it's >flexible. If you're experienced and if you truly undestand what it is >that CS is trying to do for you, it is adaptable to your particular >goals and psychology. However, if you--experienced or not--do not >take the time to understand CS and are instead determined to bend it >to your will, you can quite easily stretch and pull and moosh it into >something that's barely recognizable as CS. > >It often begins with an individual being seduced by the siren call of >Relative Strength and the RS Rank. This, it seems clear, is the road >to riches. What difference do the "C" and the "A" make? Clearly, >investors don't care. They're bidding it up to the stratosphere. As >far as that goes, who the hell cares about "I"? And "N"? That's a >sucker bet. "M" is obviously irrelevant. Chips may be sinking like >stones, but internet stocks are absolute rockets. So what do you have >left? "L". Maybe "S". > >Or perhaps there's someone who claims that there are all sorts of ways >to make money in the stock market and CS is hardly the only way or >perhaps even the best way. "I've been trading options for years", >they'll say. "Forget fundamentals and fundamental research--it's all >in the charts", someone else will offer. "Penny and Dollar >Stocks--That's the Ticket!" And all of these people are correct, at >least in part, at least in some circumstances. One can make a lot of >money in options. Or futures. Or by following TA alone and never >cracking open an annual report. He can also lose a great deal of >money these ways. > >But none of this has anything to do with CANSLIM or CANSLIM investing. > It is also terribly confusing to a great many newbies and a not >inconsequential number of experienced investors as well. >"Eclecticism!", the grey-beards and hot-doggers alike proclaim. But >they neglect to point out that an eclectic approach works only when >one thoroughly understands each element of the eclecticism. >Otherwise, one winds up with an investing strategy which is held >together with band-aids and chewing gum. > >I've never really understood why anyone who knows that a particular >stock is not a CS stock would ever bring it up in a supposedly CS >forum. Granted, O'N gives you considerable rein in deciding what kind >of earnings growth you will require for your own selections. But he >never says that it's OK to ignore it altogether. By the same token, >it's not OK to ignore earnings history. It's not OK to buy penny and >dollar stocks. It's not OK to buy laggards and hope for the best. >Doing these things may result in untold riches, but they have nothing >to do with CANSLIM. If one wants to discuss cheap stocks or options >or commodities or exoteric technical strategies or Bethlehem Steel, he >is free to do so, and there are many forums that would welcome his >comments. But they have no place in a CS forum, anymore than a >discussion on shorting cocoa would be appropriate for a forum devoted >to dividend reinvestment plans. > >Having said all that, it's time for me to ask just what kind of forum >the members of this group want. If you want to be a general >investment forum in which everyone is welcome, regardless of his or >her investment philosophy, strategy, methods, or goals, terrific. In >that case, nothing that anyone says is inappropriate and is immune to >criticism. On the other hand, if you want a CS forum, it's up to each >individual member to exercise some vigilance with regard to the >subjects introduced and discussed, regarless of how obnoxious or >venerated the individual introducing the subject may be. > >The statement that "nobody uses pure CS" is a cop-out. It is almost >always a means whereby an individual introduces a stock which doesn't >even begin to qualify as a CS stock, regardless of how far afield one >has wandered. Not long ago, someone tried to bring up a >field-services stock and was told in no uncertain terms that that >subject was inappropriate for this forum. But it's perfectly OK to >bring up stocks which cost only a few dollars or to discuss the >crossings of 3-minute exponential moving averages. > >This group will be whatever you want it to be. What do you want it to >be? Until you decide that, your criticisms of Jeff, Tom, or any other >member are uncalled-for. > >--Db > > > > > > > >_________________________________________________________ >DO YOU YAHOO!? >Get your free @yahoo.com address at http://mail.yahoo.com > > > > >- > > > - - ------------------------------ Date: Tue, 26 May 1998 13:47:37 GMT From: musicant@autobahn.org (Dan Musicant) Subject: Re: [CANSLIM] Lurking? On Mon, 25 May 1998 12:05:08 -0500, you wrote: : :PS: I'm usually a lurker, but in Tom's absence, I would encourage :everyone :to take up the slack. : Personally, I would encourage everyone to take up the slack, always...Tom IS back, however it is a mistake to let/make any one individual do the lion's share of the work, have the power, etc. ...here and elsewhere. Isn't that what the turmoil in Indonesia is about? Isn't that what democracy is about?=20 Dan - - ------------------------------ Date: Tue, 26 May 1998 09:39:15 -0400 From: Connie Mack Rea Subject: Re: [CANSLIM] My current watch list Morning Tom-- Let's get back to the old salt lick and make some money. Four of your picks [INSUA, MDLK, TMBS, and VARL] have varying degrees of OBV/MF characteristics. The more conjunction between CS and OBV/MF, the better for members. VARL: MF: Is PD and SAR went buy. OBV: Is PD. MACD: Is ambiguous and weak but occurring well above the trigger line; probably no problem. SloSto: Went sell Friday. Might want more conjunction among all indicators before moving. TMBS: MF: modestly positive. OBV: very strong. MACD: Both red and blue lines in declination; doesn't look good. SloSto: Went sell on Friday. EMA: Would ignore any EMA buy until MACD and SloSto turn positive. INSUA: This has very very marginally OBV/MF positive divergence. It is, however, a strong stock. The SloSto is buy; the MACD is ambiguous, but to be ambiguous at a high level above the trigger line is not dangerous, for the MACD is receiving influence from other indicators; it would be unusual for it to react against OBV/MF and the SloSto except for the short term. More likely it will fall in line as long as the other indicators hold. The EMA gave an entry about three weeks ago. Have a good reason to enter now. There is resistance at 13 or so; once through this, the existing strength should manifest itself. MDLK: Both OBV/MF are PD for five weeks; good strength here. SloSto: Don't like the looks of this. EMA is jerky. MACD: Is at turning point; might want to see which way it will go. Need to see more work before moving in, but there is good underlying OBV/MF strength. Connie Mack Tom Worley wrote: > For some reason, my "re-introduction" doesn't want to post so have > sent it to Jeff. It's got all my warnings and stuff, so anyone that is > not familiar with how I pick stocks should ignore this post at least > till you read my "intro". > > Still on my list: > CAER, EDAC (not as a buy, but still holding), EPIQ, FTEC, GCABY, > ILOGY, INSUA, MDII, MCON, MDLK, MINI, RENG, SHOO, SNHY, TMBS (altho > shaky), TXCC, VARL > > Added: > RUSH, SUPI, RIMG (again). > > I have done no TA on any of these, just the CS elements and charts > looked favorable. > > Tom W > > - - - ------------------------------ Date: Mon, 25 May 1998 21:58:33 -0500 (CDT) From: John Subject: Re: [CANSLIM] In Defense of Jeffry speaking as a lunker! I am not a novis at investing but not doing poorly. Let him rebound and find a good position and I bet he will return. If not we learned a lot and all gained even if he never posts again. Now about canslim.I donot feel the hi erg is enough to protect anyone in a down market. I feel the graph is about the only thing that cant be manipulated and is the most importaint element. Fundamentals look good but in most cases wont pay the rent xjadair At 06:30 PM 5/23/98 -0700, you wrote: > >Some of you were here when I was part of this list before. Many of >you have joined since I left. Therefore, many of you don't have the >slightest idea who I am. And may not care to find out. I go through >this prelude only to make it clear that I didn't just get off the bus. > This neighborhood is familiar to me. > >I've observed and participated in many CS forums over the last couple >of years. I initiated some of them. Message boards, websites, e-mail >groups open and closed, etc. And not one of them--after a few weeks, >anyway--was appropriate for newbies (or, for that matter, for anyone >wanting to adhere to anything approaching the straight and narrow). >Why? Because no one was willing to assume the role of gate-keeper and >maintain that discipline. Actually, that's not true. There have been >volunteers foolhardy enough to try, but they were invariably tarred, >feathered, and run out of town on a rail for being too tight-assed >about the whole thing. Thus there are no forums of which I'm aware >which are devoted solely to CS, CS stocks, and CS discussions. And >that's a shame. > >The great strength and the great weakness of CS are that it's >flexible. If you're experienced and if you truly undestand what it is >that CS is trying to do for you, it is adaptable to your particular >goals and psychology. However, if you--experienced or not--do not >take the time to understand CS and are instead determined to bend it >to your will, you can quite easily stretch and pull and moosh it into >something that's barely recognizable as CS. > >It often begins with an individual being seduced by the siren call of >Relative Strength and the RS Rank. This, it seems clear, is the road >to riches. What difference do the "C" and the "A" make? Clearly, >investors don't care. They're bidding it up to the stratosphere. As >far as that goes, who the hell cares about "I"? And "N"? That's a >sucker bet. "M" is obviously irrelevant. Chips may be sinking like >stones, but internet stocks are absolute rockets. So what do you have >left? "L". Maybe "S". > >Or perhaps there's someone who claims that there are all sorts of ways >to make money in the stock market and CS is hardly the only way or >perhaps even the best way. "I've been trading options for years", >they'll say. "Forget fundamentals and fundamental research--it's all >in the charts", someone else will offer. "Penny and Dollar >Stocks--That's the Ticket!" And all of these people are correct, at >least in part, at least in some circumstances. One can make a lot of >money in options. Or futures. Or by following TA alone and never >cracking open an annual report. He can also lose a great deal of >money these ways. > >But none of this has anything to do with CANSLIM or CANSLIM investing. > It is also terribly confusing to a great many newbies and a not >inconsequential number of experienced investors as well. >"Eclecticism!", the grey-beards and hot-doggers alike proclaim. But >they neglect to point out that an eclectic approach works only when >one thoroughly understands each element of the eclecticism. >Otherwise, one winds up with an investing strategy which is held >together with band-aids and chewing gum. > >I've never really understood why anyone who knows that a particular >stock is not a CS stock would ever bring it up in a supposedly CS >forum. Granted, O'N gives you considerable rein in deciding what kind >of earnings growth you will require for your own selections. But he >never says that it's OK to ignore it altogether. By the same token, >it's not OK to ignore earnings history. It's not OK to buy penny and >dollar stocks. It's not OK to buy laggards and hope for the best. >Doing these things may result in untold riches, but they have nothing >to do with CANSLIM. If one wants to discuss cheap stocks or options >or commodities or exoteric technical strategies or Bethlehem Steel, he >is free to do so, and there are many forums that would welcome his >comments. But they have no place in a CS forum, anymore than a >discussion on shorting cocoa would be appropriate for a forum devoted >to dividend reinvestment plans. > >Having said all that, it's time for me to ask just what kind of forum >the members of this group want. If you want to be a general >investment forum in which everyone is welcome, regardless of his or >her investment philosophy, strategy, methods, or goals, terrific. In >that case, nothing that anyone says is inappropriate and is immune to >criticism. On the other hand, if you want a CS forum, it's up to each >individual member to exercise some vigilance with regard to the >subjects introduced and discussed, regarless of how obnoxious or >venerated the individual introducing the subject may be. > >The statement that "nobody uses pure CS" is a cop-out. It is almost >always a means whereby an individual introduces a stock which doesn't >even begin to qualify as a CS stock, regardless of how far afield one >has wandered. Not long ago, someone tried to bring up a >field-services stock and was told in no uncertain terms that that >subject was inappropriate for this forum. But it's perfectly OK to >bring up stocks which cost only a few dollars or to discuss the >crossings of 3-minute exponential moving averages. > >This group will be whatever you want it to be. What do you want it to >be? Until you decide that, your criticisms of Jeff, Tom, or any other >member are uncalled-for. > >--Db > > > > > > > >_________________________________________________________ >DO YOU YAHOO!? >Get your free @yahoo.com address at http://mail.yahoo.com > > > > >- > > > - - ------------------------------ End of canslim-digest V2 #254 ***************************** 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.