From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #2792 Reply-To: canslim Sender: owner-canslim-digest@lists.xmission.com Errors-To: owner-canslim-digest@lists.xmission.com Precedence: bulk Content-Transfer-Encoding: quoted-printable X-No-Archive: yes canslim-digest Tuesday, August 13 2002 Volume 02 : Number 2792 In this issue: [CANSLIM] Re:Entry purchase Re: [CANSLIM] analysts Re: [CANSLIM] Re: WTW (was: Which One Is Better - Updated) Re: Pearl of Wisdom (was [CANSLIM] CCR - I offer this up for dissection) Re: [CANSLIM] cup-without-handle; "tightness" questions ---------------------------------------------------------------------- Date: Tue, 13 Aug 2002 21:24:07 EDT From: E2moskow@aol.com Subject: [CANSLIM] Re:Entry purchase - --part1_ad.21bd8d5e.2a8b0b37_boundary Content-Type: text/plain; charset="US-ASCII" Content-Transfer-Encoding: 7bit Hi Canslim Pros: Assuming the M is going to turn, ( it didn't look that way today), what are good parameters to consider when making an entry purchase. How many shares is it wise to buy. This is a subject that hasn't been discussed, what is WON's idea as an entry? Morris - --part1_ad.21bd8d5e.2a8b0b37_boundary Content-Type: text/html; charset="US-ASCII" Content-Transfer-Encoding: 7bit Hi Canslim Pros:
Assuming the M is going to turn, ( it didn't look that way today), what are good parameters to consider when making an entry purchase. How many shares is it wise to buy. This is a subject that hasn't been discussed, what is WON's idea as
an entry?
Morris - --part1_ad.21bd8d5e.2a8b0b37_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: Tue, 13 Aug 2002 21:47:58 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] analysts I totally disagree, will be glad to argue the pertinence, or accuracy, of this author's books in today's markets in private, but will not waste further time here on it. - ----- Original Message ----- From: "jch" To: Sent: Tuesday, August 13, 2002 10:56 AM Subject: Re: [CANSLIM] analysts Tom NYSE specialists have a hand in this too--When you experience 7% stop loss execute at LOD 15% loss you begin to look toward Level II trading on NASDAQ where you are under electronic control--no humanoids--read the following: Richard Ney on the Role of the Specialist "The story is told that after he had been deported to Italy, Lucky Luciano granted an interview in which he described a visit to the floor of the New York Stock Exchange. When the operations of floor specialists had been explained to him, he said, 'A terrible thing happened. I realized I'd joined the wrong mob'" (1Ney, 8). It was with these words that Richard Ney began his first of three books on the nature of the New York Stock Exchange. Ney wrote over 20 years ago, a time when a 750 Dow was high and today's volumes were beyond imagining. Some of his material is dated, and must be read in the light in which it was written. But the main premise of his books is still true: that the specialist exists not to ensure the free and orderly trade of stock in a particular company, but to fatten upon the innocence and ignorance of the small investor. The New York Stock Exchange is not an auction market (2Ney, 86), though many investors still hold onto that image. It is a rigged market. Volume is an effect of price. Prices are controlled absolutely by the specialists, the 'market makers' in individual stocks. It was this discovery that led Mr. Ney to eventually give us small investors a priceless gift: enlightenment. "Studying the transactions in each stock, I became immediately conscious that, on too many occasion to be a coincidence, a stock would advance from its morning low and then, often during the afternoon, would show an up-tick of a half-point or more on a large block of anywhere from 1,500 to 5,000 or more shares. This transaction seemed to herald a transformation in what was taking place, for immediately thereafter the stock would begin to drop like Newton's apple. Before I could find out what caused this, another question presented itself: What caused the same thing to happen at the low point in that stock's decline? For it was also apparent that a block of stock of the same size often appeared on a down-tick of a half-point or more, after which the stock quickly rallied. Together these two facts seemed to give a stock's pattern continuity. At the end of several days of investigation, I discovered that these transactions at the top and bottom of a stock's price pattern were for the specialist's own account. ... Clod that I was, I had at last recognized that, although the study of human nature may not be fashionable among economists, it is never out of season" (2Ney, 9)." John Heiman >guess I am too jaded from too many years inside the securities industry, I >am not even shocked by all this, I presumed all of this was still happening, >just like it always has, at the major wirehouses > >----- Original Message ----- >From: "Duke Miller" >To: >Sent: Monday, August 12, 2002 4:44 PM >Subject: RE: [CANSLIM] analysts > > >This is incredible. > >I pulled up the story, and was further shocked by this revelation: > >In a discussion with (his boss) Mr. Kim about his progress on the >report, Mr. Boss made clear his doubts on the sector. He said Mr. Kim >began to fret. Mr. Boss, who sat within earshot of Mr. Kim, said his >superior called the investment bankers and discussed the report, but was >careful to do so on his cellphone. Mr. Boss said that Mr. Kim had told >him to be careful to limit conversations with investment banking to >cellphones because Mr. Spitzer's release of the now infamous Merrill >Lynch e-mail messages had been so damaging to that firm. Furthermore, >internal phone lines, which might be taped, were not to be used. > >And near the end of the article: > >"In an affidavit that Mr. Boss submitted to Salomon and the New York >attorney general, he said investment bankers at the firm regularly told >Mr. Kim of pending banking assignments and merger and acquisition >activities involving companies in his sector. "In violation of the >rules, Steve issued favorable research reports on the companies involved >(homebuilders) after he became knowledgeable of the transactions," Mr. >Boss said in his affidavit. > >"Mr. Boss also said in his statement that shortly after the Masco >Corporation, a maker of building products, sold 22 million shares to the >public in an underwriting co-managed by Salomon this spring, and after >Mr. Kim had raised his estimates for the company, Mr. Kim asked Masco >management to help with the installation of a new kitchen in his >Westchester home. According to Mr. Boss's affidavit, Masco spent more >than $10,000 sending materials and two high-level managers from Michigan >to Mr. Kim's home for several days." > >And this is a subsidiary of Citigroup? > >With all that's gone on, these guys are either brain-dead, or totally >brain-washed. > >Duke > > > >-----Original Message----- >From: owner-canslim@lists.xmission.com >[mailto:owner-canslim@lists.xmission.com] On Behalf Of Patrick Wahl >Sent: Monday, August 12, 2002 12:05 PM >To: canslim@lists.xmission.com >Subject: [CANSLIM] analysts > > >Well, those Wall Street weasels are still weasels, even after promising >reform. >Here is the link, since it requires registration, some people will >probably not be able >to get there or wish to register, so I've excerpted a couple of >passages below - > >http://www.nytimes.com/2002/08/11/business/yourmoney/11BROK.html > > >The two executives boasted that Salomon, Citigroup's investment bank >subsidiary, had been the first to adopt reforms suggested by Eliot >Spitzer, the >New York attorney general, who is investigating Wall Street research. >They >also proposed additional moves that regulators might take to prevent a >firm's >investment bankers from exerting improper influence on its research >analysts ..... As Mr. Boss tells the tale, in late June, after spending >weeks on a report >analyzing three office furniture companies, he was lukewarm about the >stocks' >prospects and assigned them a neutral and high-risk rating. He argued >that >until the overall business climate improved, demand for these companies' > >products would be lackluster. When two Salomon investment bankers and >Mr. >Boss's immediate supervisor saw the draft report, they demanded that he >revise it to be more upbeat. Mr. Boss refused. A few days later, on June >27, he >was fired. Mr. Boss, 33, was offered $24,230 in severance from Salomon, >which he refused. > >Beginning on June 3, for example, the firm said that any fact checking >by the >investment banking division of draft research reports would be limited >to the >first research written about an initial public offering. Moreover, the >rules said >that any draft research sent to investment banking for fact checking >"must >omit the rating and target price as well as the investment thesis and >valuation >analysis sections." > >According to Mr. Boss, two Salomon investment bankers, Richard Moriarty >and Marc Schneider, flouted those rules the week of June 23, demanding >to >see Mr. Boss's report, which was in draft form on his laptop computer. > >Stephen S. Kim, the analyst covering home-building stocks at Salomon and > >Mr. Boss's immediate supervisor, told him to put the report on the >firm's >internal network so it could be reviewed by the investment bankers. Mr. >Boss >protested, noting the firm's new rules. Nevertheless, Mr. Schneider soon >went >to the research department and reviewed the report on Mr. Boss's laptop. >Two >of the three office furnishings stocks that Mr. Boss had advised >investors to be >cautious of " Interface and Steelcase " had recently issued bonds that >were >underwritten by Salomon. > > > > >- >-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. > > > > >- >-To subscribe/unsubscribe, email "majordomo@xmission.com" >-In the email body, write "subscribe canslim" or >-"unsubscribe canslim". Do not use quotes in your email. > > >--- >Incoming mail is certified Virus Free. >Checked by AVG anti-virus system (http://www.grisoft.com). >Version: 6.0.381 / Virus Database: 214 - Release Date: 8/2/2002 - ---------------------------------------------------------------------------- - ---- - --- Outgoing mail is certified Virus Free. Checked by AVG anti-virus system (http://www.grisoft.com). Version: 6.0.381 / Virus Database: 214 - Release Date: 8/2/2002 - - - -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: Tue, 13 Aug 2002 19:06:20 -0700 From: "NANCY POLCARO" Subject: Re: [CANSLIM] Re: WTW (was: Which One Is Better - Updated) - ------=_NextPart_001_0002_01C242FC.82212FC0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Can you explain something for me? On the IBD wtw chart points 2 and 3. = I would have seen volumn dropping and the stock moving sideway and though= t it was about to take a dive. Instead, in this chart they said it was g= ood action. Am I wrong? I know in hindsite I can see what the chart did= , but not as it happened. Also it's group is D, its got an acc/dist. o= f D and its 5 of the top 5 stocks. Would this keep you from entering eve= n though it has a breakout on high volumn? =20 =20 - ----- Original Message ----- From: Katherine Malm Sent: Tuesday, August 13, 2002 7:33 AM To: canslim@lists.xmission.com Subject: [CANSLIM] Re: WTW (was: Which One Is Better - Updated) =20 Hi Mike, WTW didn't have the smoothest base, but it was a 12 week base nonetheless= . That's not unusual given the gyrations of the market as it's been groping for this latest bottom. So that you can see my personal take on it, I've annotated the chart at: http://WallStreet-LLC.com/canslim/WTW081302.jpg Gene noted that WTW is also featured in IBD's weblink today. They have al= so annotated a chart, so you can see their interpretation at: http://www.investors.com/weblink/ Katherine - ----- Original Message ----- From: To: Sent: Tuesday, August 13, 2002 8:50 AM Subject: Re: [CANSLIM] Which One Is Better - Updated Katherine, Can you expound on the statement that WTW broke out? In looking at the chart, I can sorta see a v shaped cwh, but in the handle, the volume did NOT dry up.....what would you say the pivot point was? Thanks Mike Niemotka , PE Sr. Principal Engineer Baxter Healthcare Corporation Route 120 & Wilson Road Round Lake, IL 60073 Tel (847) 270-4075 Fax (847) 270-4525 michael_niemotka@baxter.com "Katherine Malm" To: canslim@lists.xmission.com Sent by: cc: owner-canslim@lists.xm Subject: Re: [CANSL= IM] Which One Is Better - Updated ission.com 08/12/2002 08:02 PM Please respond to canslim You know, I have a simple solution for this kind of dilemma....don't use the numbers. I know it's tempting to use a number like this, as it seems to "tell you everything" about the stock. But I think once you summarize summary numbers, you're asking for trouble. I rank the composite score as "mildly useful." Here's an example. I'll select a couple of stocks that have come up for discussion here in the last few months: WTW and TOL. Scores? WTW =3D 96 TOL =3D 95 Yet, look at the charts. WTW broke out today, TOL is rolling over and playing dead. Doesn't sound like a score of 95/96 "tells" me everything I need to know about the stocks. Katherine - ----- Original Message ----- From: Gene Ricci To: canslim@lists.xmission.com Sent: Monday, August 12, 2002 7:41 PM Subject: Re: [CANSLIM] Which One Is Better - Updated Arghhh! Same definition Same data base Same company different numbers! - ----- Original Message ----- From: Bill Triffet To: canslim@lists.xmission.com Sent: Monday, August 12, 2002 6:58 PM Subject: Re: [CANSLIM] Which One Is Better - Updated Either way, it appears that the IBD data paints a prettier picture of the stocks. - -Bill - ----- Original Message ----- From: "Gene Ricci" To: Sent: Monday, August 12, 2002 4:50 PM Subject: Re: [CANSLIM] Which One Is Better - Updated I just had today's update figures for DGO sent to me. The 3 columns are 8/9 DGO data 8/12 IBD readings 30 minutes ago 8/12 DGO just received today's download Hi Katherine, I hadn't checked today and after reading your note, I 'thought' I was in error. However, I just went and checked several stocks: 8/9 8/12 8/12 DGO IBD DGO AAON 85 86 83 AIR 38 55 32 ABCB 89 90 90 ABM 77 85 75 ABN 58 67 58 ACE 69 86 71 ACMR 92 95 92 AES 24 30 25 AFCE 72 79 74 AFL 92 95 91 The first ten (10) I checked showed different numbers. My question still stands, which one is better? Gene - ----- Original Message ----- From: Katherine Malm To: canslim@lists.xmission.com Sent: Monday, August 12, 2002 5:47 PM Subject: Re: [CANSLIM] Which One Is Better Hi Gene, There seems to be conflicting information on this...See DGO's reply to my recent inquiry (7/31) about the very same thing: Hi Katherine, Thank you for your recent email to Daily Graphs Online. I apologize, but the recent additions to our services have not yet been reflected in our Image Maps resource. We plan on making the update soon. TO address your question, I would like to confirm that the Composite Rating you see on our service is the same SmartSelect=AE Composite Rating that i= s provided by the Investor's Business Daily and investors.com. Please write back if you have any questions or need assistance. Best regards, Dan Daily Graphs Online www.dailygraphs.com - ----- Original Message ----- From: Gene Ricci To: canslim@lists.xmission.com Sent: Monday, August 12, 2002 4:06 PM Subject: [CANSLIM] Which One Is Better Let's see, IBD provides an Overall Rating and now DGO provides a Composit= e Rating. Has anyone determined which one is better? Gene The new SmartSelect=AE Composite Rating in Investor's Business Daily and the Stock Checkup Overall Rating found on investors.com are based on different formulas. The SmartSelect=AE Composite Rating combines all 5 SmartSelect Ratings into one easy-to-use rating. More weight is placed on EPS and RS Rating, and the stock's percent off its 52-week high is also included in the formula. Results are then compared to all other companies, and each company is assigned a rating from 1-99 with 99 being the best. This rating is designed to help you get a quick feel for how a company's SmartSelect=AE Ratings compare to all other stocks in our database. This is intended to be an additional tool to help you find the stocks with the highest SmartSelect=AE Ratings, quickly and easily. The Overall Rating in the Stock Checkup is determined by a proprietary formula incorporating all five of the Stock Checkup ratings. These are the Technical Rating, Fundamental Rating, Attractiveness Rating, Group's Technical Rating and Group's Fundamental Rating. The Stock Checkup uses over 30 different variables including all the SmartSelect=AE Ratings to calculate the Overall Rating. When using the Stock Checkup, focus not only on the Overall Rating but all 6 of the Checkup Ratings. Also study how the stock compares to its group within the individual Checkup Ratings. - - - -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. - - - -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. - ------=_NextPart_001_0002_01C242FC.82212FC0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable

Can you explai= n something for me? On the IBD wtw chart points 2 and 3. I wo= uld have seen volumn dropping and the stock moving sideway and thought it= was about to take a dive. Instead, in this chart they said it was = good action. Am I wrong? I know in hindsite I can see what th= e chart did, but not as it happened. Also it's group&nb= sp;is D, its got an acc/dist. of D and its 5 of the top 5 stocks. W= ould this keep you from entering even though it has a breakout on high vo= lumn?

----- Original = Message -----

From: Katherine Malm

Sent: Tuesday, August 13, 2002 7:33 AM

To: canslim@lists.xmission.com

Subject: [CANSLIM] Re: WTW (was: Which One Is B= etter - Updated)

Hi Mike,

WTW didn't have t= he smoothest base, but it was a 12 week base nonetheless.
That's not u= nusual given the gyrations of the market as it's been groping
for this= latest bottom. So that you can see my personal take on it, I've
annot= ated the chart at:

http://WallStreet-LLC.com/canslim/WTW081302.jpg=

Gene noted that WTW is also featured in IBD's weblink today. = They have also
annotated a chart, so you can see their interpretation = at:

http://www.investors.com/weblink/

Katherine

----= - - Original Message -----
From: <michael_niemotka@baxter.com>
= To: <canslim@lists.xmission.com>
Sent: Tuesday, August 13, 2002 = 8:50 AM
Subject: Re: [CANSLIM] Which One Is Better - Updated

Katherine,

Can you expound on the statement that WTW broke o= ut? In looking at the
chart, I can sorta see a v shaped cwh, but= in the handle, the volume did
NOT dry up.....what would you say the p= ivot point was?

Thanks

Mike Niemotka , PE
Sr. Principal = Engineer
Baxter Healthcare Corporation
Route 120 & Wilson Road<= BR>Round Lake, IL 60073
Tel (847) 270-4075
Fax (847) 270-4525
mi= chael_niemotka@baxter.com

     &n= bsp;           &nb= sp; "Katherine Malm"
       &= nbsp;            &= lt;kmalm@earthlink.net>        = ; To:
canslim@lists.xmission.com
     &nbs= p;            = ; Sent by:         &nb= sp;            cc:=
           &nb= sp;        owner-canslim@lists.xm = ;       Subject:     Re= : [CANSLIM]
Which One Is Better - Updated
    &= nbsp;           &n= bsp;   ission.com

     &nbs= p;            = ; 08/12/2002 08:02 PM
       =              = Please respond to
        &nbs= p;           canslim

You know, I have a simple solution for this kind= of dilemma....don't use
the numbers.

I know it's tempting to u= se a number like this, as it seems to "tell you
everything" about the = stock. But I think once you summarize summary
numbers, you're asking f= or trouble. I rank the composite score as "mildly
useful."

Here= 's an example. I'll select a couple of stocks that have come up for
di= scussion here in the last few months: WTW and TOL.

Scores?
WTW = =3D 96
TOL =3D 95

Yet, look at the charts. WTW broke out today,= TOL is rolling over and
playing dead. Doesn't sound like a score of 9= 5/96 "tells" me everything I
need to know about the stocks.

Kat= herine
----- Original Message -----
From: Gene Ricci
To: canslim= @lists.xmission.com
Sent: Monday, August 12, 2002 7:41 PM
Subject: = Re: [CANSLIM] Which One Is Better - Updated

Arghhh!
Same defini= tion
Same data base
Same company
different numbers!
----- Ori= ginal Message -----
From: Bill Triffet
To: canslim@lists.xmission.c= om
Sent: Monday, August 12, 2002 6:58 PM
Subject: Re: [CANSLIM] Whi= ch One Is Better - Updated

Either way, it appears that the IBD dat= a paints a prettier picture of the
stocks.

-Bill

----- O= riginal Message -----
From: "Gene Ricci" <genr@swbell.net>
To= : <canslim@lists.xmission.com>
Sent: Monday, August 12, 2002 4:5= 0 PM
Subject: Re: [CANSLIM] Which One Is Better - Updated

I= just had today's update figures for DGO sent to me.
The 3 columns are= 8/9 DGO data
8/12 IBD readings 30 minutes ago
8/12 DGO just receiv= ed today's download

Hi Katherine, I hadn't checked today and a= fter reading your note, I
'thought' I was in error.

However, I = just went and checked several stocks:
     &n= bsp;          8/9 8/12= 8/12
         &nbs= p;       DGO IBD DGO
AAON&nb= sp;    85     86   &nbs= p; 83
AIR          = 38     55      32
ABCB&nb= sp;      89     90 &nbs= p;   90
ABM         = 77    85      75
ABN &nbs= p;       58    67  = ;     58
ACE      &n= bsp; 69    86      &nb= sp; 71
ACMR     92     95 = ;      92
AES     &n= bsp;   24     30    &nb= sp; 25
AFCE      72   &n= bsp; 79       74
AFL   &n= bsp;     92     95  &nb= sp;    91

The first ten (10) I checked showed d= ifferent numbers.

My question still stands, which one is better?
Gene

----- Original Message -----
From: Katherine= Malm
To: canslim@lists.xmission.com
Sent: Monday, August 12, 2002 = 5:47 PM
Subject: Re: [CANSLIM] Which One Is Better

Hi Gene,=

There seems to be conflicting information on this...See DGO's rep= ly to my
recent inquiry (7/31) about the very same thing:

<= BR>
Hi Katherine,

Thank you for your recent email to Daily Grap= hs Online.

I apologize, but the recent additions to our services h= ave not yet been
reflected in our Image Maps resource. We plan o= n making the update soon.
TO address your question, I would like to co= nfirm that the Composite
Rating
you see on our service is the same = SmartSelect=AE Composite Rating that is
provided by the Investor's Bus= iness Daily and investors.com.

Please write back if you have any q= uestions or need assistance.

Best regards,
Dan
Daily Graphs = Online
www.dailygraphs.com

----- Original Message -----
From= : Gene Ricci
To: canslim@lists.xmission.com
Sent: Monday, August 12= , 2002 4:06 PM
Subject: [CANSLIM] Which One Is Better

Let's= see, IBD provides an Overall Rating and now DGO provides a Composite
= Rating. Has anyone determined which one is better?

Gene

The= new SmartSelect=AE Composite Rating in Investor's Business Daily and
= the Stock Checkup Overall Rating found on investors.com are based on
d= ifferent formulas.

The SmartSelect=AE Composite Rating combines al= l 5 SmartSelect Ratings
into one easy-to-use rating. More weight= is placed on EPS and RS
Rating, and the stock's percent off its 52-we= ek high is also included in
the formula. Results are then compar= ed to all other companies, and each
company is assigned a rating from = 1-99 with 99 being the best. This
rating is designed to help you= get a quick feel for how a company's
SmartSelect=AE Ratings compare t= o all other stocks in our database. This
is intended to be an ad= ditional tool to help you find the stocks with
the highest SmartSelect= =AE Ratings, quickly and easily.

The Overall Rating in the Stock C= heckup is determined by a proprietary
formula incorporating all five o= f the Stock Checkup ratings. These are
the Technical Rating, Fundament= al Rating, Attractiveness Rating, Group's
Technical Rating and Group's= Fundamental Rating. The Stock Checkup uses
over 30 different va= riables including all the SmartSelect=AE Ratings to
calculate the Over= all Rating. When using the Stock Checkup, focus not
only on the = Overall Rating but all 6 of the Checkup Ratings. Also study
how = the stock compares to its group within the individual Checkup
Ratings.=

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

-
-To su= bscribe/unsubscribe, email "majordomo@xmission.com"
-In the email body= , write "subscribe canslim" or
-"unsubscribe canslim". Do not us= e quotes in your email.

-
-To subscribe/unsubsc= ribe, email "majordomo@xmission.com"
-In the email body, write "subscr= ibe canslim" or
-"unsubscribe canslim". Do not use quotes in you= r email.

-
-To subscribe/unsubscribe, email "majordomo@xmis= sion.com"
-In the email body, write "subscribe canslim" or
-"unsubs= cribe canslim". Do not use quotes in your email.

- ------=_NextPart_001_0002_01C242FC.82212FC0-- - - - -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: Tue, 13 Aug 2002 22:05:50 -0400 From: "Tom Worley" Subject: Re: Pearl of Wisdom (was [CANSLIM] CCR - I offer this up for dissection) I disagree, Harvey, we are talking about a snapshot in time, doesn't matter for that purpose if the forecasts prove to be real or imaginary. If the investing community, right now, perceive them to be real (or even likely) and they are far superior to the rest of the industry group, or the market at large, then they can create an expectation. If those expectations later start to be questioned, then the charts will warn you with other companies reducing forecasts, reporting below expectations, price lines on charts trending down, etc. While I don't give any weight to trailing PEs, I do look at the actual earnings for apparent trends (especially sequentially), and also take note where forecasts were then available how they compare to what was then expected. I also apply the "logical" test to any forecasts, including seeing what they must do for the remainder of the year just to make forecasts. - ----- Original Message ----- From: "Harvey Brion" To: Sent: Tuesday, August 13, 2002 4:18 PM Subject: Re: Pearl of Wisdom (was [CANSLIM] CCR - I offer this up for dissection) A caution here, it's good to keep in mind that trailing PE ratios at least are "real," while projected PE ratios are only as good as the earnings forecasts and can be way off, especially beyond the current quarter and FY. This risk is reduced somewhat for older/larger companies that have a history of making or exceeding the quarterly earnings forecasts, so called "positive surprises." That said, I consider both trailing and projected PEs in my stock selection. > > And that's why looking at trailing PE ratios is a waste of time, they are > merely history, no one is likely to react to them. On the other hand, > forecasts / projected PE ratios can create a sense of expectation, hence > drive the price to where the stock trades at a premium based on that > expectation. > - - - -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: Tue, 13 Aug 2002 19:10:42 -0700 From: "NANCY POLCARO" Subject: Re: [CANSLIM] cup-without-handle; "tightness" questions - ------=_NextPart_001_0003_01C242FD.1E314620 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable can you explain your statement. Why would it mean this? nancy =20 =20 - ----- Original Message ----- From: Tom Worley Sent: Tuesday, August 13, 2002 7:54 AM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] cup-without-handle; "tightness" questions =20 on the downside, often suggests the point where institutional support exists, but only on the larger more liquid stocks. - ----- Original Message ----- From: To: Sent: Tuesday, August 13, 2002 10:50 AM Subject: Re: [CANSLIM] cup-without-handle; "tightness" questions Katherine: Couldn't "churning" also identify a stock which has been weak (ie. i= n a downtrend), but then does not make any more headway down-and does this on heavy volume. Wouldn't this indicate the end of the downtrend (or at least-the beginning of a consolidation, perhaps leading to the stock garnering strength?). Moreover, as distribution (as you pointed out) is likely at the top = (as indicated by the hi volume and stalling); wouldn't accumulation be likely= at the churning point in the downtrend (ie. since the stock is not falling anymore and it is not doing it on hi volume-wouln't this signify that someone is buying up all the stock that someone else is selling) I bring up this question because I'm not sure of the answer. I thou= ght WON has said (or perhaps it was in an IBD Investors Corner article) that "churning" can take place on the upside (to indicate future weakness) or = on the downside (to indicate future strength). In any event, what is your experience or observation or comments and conclusions on my churning conundrum. jans In a message dated Wed, 7 Aug 2002 11:33:26 AM Eastern Standard Time, kmalm@earthlink.net writes: > Long story short, churning/stalling is in reference to action *after* a > stock or index has been rising, nears its highs, then starts acting odd= . > That is, large volume is no longer accompanied by significant upward pr= ice > movement. In that sense, it is subtle distribution and is a > sign that the > stock may be topping and/or beginning a consolidating period - - - -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. - ------=_NextPart_001_0003_01C242FD.1E314620 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable

can you explai= n your statement. Why would it mean this? nancy

&n= bsp;

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

From: Tom Wo= rley

Sent: Tuesday, August 1= 3, 2002 7:54 AM

To: canslim@= lists.xmission.com

Subject: = Re: [CANSLIM] cup-without-handle; "tightness" questions

=
on the downside, often suggests the point where institutional suppo= rt
exists, but only on the larger more liquid stocks.

----- Ori= ginal Message -----
From: <Spencer48@aol.com>
To: <canslim= @lists.xmission.com>
Sent: Tuesday, August 13, 2002 10:50 AM
Sub= ject: Re: [CANSLIM] cup-without-handle; "tightness" questions

= Katherine:

     Couldn't "churning" also ident= ify a stock which has been weak (ie. in a
downtrend), but then does no= t make any more headway down-and does this on
heavy volume. Woul= dn't this indicate the end of the downtrend (or at
least-the beginning= of a consolidation, perhaps leading to the stock
garnering strength?)= .

     Moreover, as distribution (as you point= ed out) is likely at the top (as
indicated by the hi volume and stalli= ng); wouldn't accumulation be likely at
the churning point in the down= trend (ie. since the stock is not falling
anymore and it is not doing = it on hi volume-wouln't this signify that
someone is buying up all the= stock that someone else is selling)

     I br= ing up this question because I'm not sure of the answer. I thought<= BR>WON has said (or perhaps it was in an IBD Investors Corner article) th= at
"churning" can take place on the upside (to indicate future weaknes= s) or on
the downside (to indicate future strength).

&nbs= p;   In any event, what is your experience or observation or co= mments and
conclusions on my churning conundrum.

&nbs= p;            = ;            = jans

In a message dated Wed, 7 Aug 2002 11:33:26 AM Eastern S= tandard Time,
kmalm@earthlink.net writes:

> Long story short= , churning/stalling is in reference to action *after* a
> stock or = index has been rising, nears its highs, then starts acting odd.
> T= hat is, large volume is no longer accompanied by significant upward price=
> movement. In that sense, it is subtle distribution and is a
&= gt; sign that the
> stock may be topping and/or beginning a consoli= dating period

-
-To subscribe/unsubscribe, email "major= domo@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"<= BR>-In the email body, write "subscribe canslim" or
-"unsubscribe cans= lim". Do not use quotes in your email.

- ------=_NextPart_001_0003_01C242FD.1E314620-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ End of canslim-digest V2 #2792 ****************************** 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.