From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #308 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 Saturday, June 27 1998 Volume 02 : Number 308 In this issue: Re: [CANSLIM] Todays list of HGS candidates [CANSLIM] Date: Sat, 27 Jun 1998 10:07:43 -0400 [CANSLIM] CDWI Re: [CANSLIM] CDWI [CANSLIM] CDWI [CANSLIM] Glossary for the HGS fille (as of 6-26-96) Re: [CANSLIM] Stock lists - To Tom Worley Re: [CANSLIM] buying/selling tactics Re: [CANSLIM] Greg CDWI Re: [CANSLIM] Greg CDWI RE: [CANSLIM] HGS file URL location Re: [CANSLIM] Stock lists - To Tom Worley [CANSLIM] Greg and CDWI [CANSLIM] No More IBD - Hard Lesson Learned Re: [CANSLIM] Date: Sat, 27 Jun 1998 07:48:19 -0400 Re: [CANSLIM] Greg CDWI [CANSLIM] Greg CDWI Re: [CANSLIM] Todays list of HGS candidates Re: [CANSLIM] No More IBD - Hard Lesson Learned Re: [CANSLIM] No More IBD - Hard Lesson Learned Re: [CANSLIM] CDWI Re: [CANSLIM] No More IBD - Hard Lesson Learned ---------------------------------------------------------------------- Date: Sat, 27 Jun 1998 09:58:02 -0400 From: "Frank V. Wolynski" Subject: Re: [CANSLIM] Todays list of HGS candidates Forgot one other little tidbit. #1 group last week: Computer Software-Internet +15.1% #2 group : Media-Cable TV +11.1% #3 group : Bldg-Resident/Commrcl + 9.3% and so on and so forth....... However, volume has been declining for 3 consecutive weeks. But this from a very big spike (2 weeks in a row) of accumulation as the group moved above the 50day MOV and back to the old high set in mid April. Frank Wolynski At 09:49 6/27/98 -0400, you wrote: >Of worthy mention is that 4 of the stocks you list below are Home Builders. >DHOM, MTH, DHI & MHO. > >Group is currently ranked #41, +9.3% move last week and a ranking change of >+33. Currently up 23.8% for the year. Last year did 47.5%. > >Haven't looked at any technically, and this is not a recommendation. > >Just the facts, Thanks for the list, >Frank Wolynski > >At 06:41 AM 6/26/98 -0600, you wrote: >>Here are a few top HGS candidates from last nights TELESCAN run. This search >>is different than the previously posted Weekend Review scan because it >>searches for earnings growth, relative strength and EPS rank, and several >>other CANSLIM/HGS criteria. The list is sorted by ERG. These are TELESCAN >>numbers NOT IBD's and they are different. Also, I won't post the entire file >>because it has 35 criteria and I don't have time to messa round with the >>columd formatting. >> >>Symbol Grp Price ERG EPSRk $Rank >>CRBO N/A 34.8 N/A 95 106.5 >>ANF .RAP 43 98 99 121.5 >>BKE .RAP 33.6 98 99 121.4 >>MLT .TES 14.8 97.8 98 128.9 >>AEOS .RAP 35.5 97.6 95 153.1 >>USNA .COD 31.8 97.6 98 121.9 >>RXSD .COD 36.6 97.1 98 118.5 >>CHCS .RAP 16.5 97 93 145.6 >>CHTT .COD 26.3 96.8 97 119 >>CCSC .TES 48 96.5 97 117.3 >>ATI .TMC 58.3 96.3 99 120.5 >>PAWN .FPA 11.6 96.1 93 124.5 >>ERICY .TES 28.3 95.8 98 112.9 >>XETA .TES 19.6 95.3 97 112.3 >>SNTL .INS 22.6 94.3 98 116.8 >>VSAT .TES 19 94.1 93 113.1 >>DHOM .BHO 14.3 93.8 97 132.2 >>CBIZ .INS 18 93.1 96 114.3 >>MTH .BHO 18.8 93 97 120.2 >>SCVL .RSP 12.9 92.8 95 112.1 >>SHOO .LEA 11.3 92.6 93 122.9 >>RCII .RSP 28.9 92.6 96 110.6 >>THQI .LTG 28.9 92.5 97 132.4 >>DHI .BHO 20.5 92 96 116 >>MNMD .MED 49.9 91.8 99 117.3 >>GRDG .RSP 17.9 91.8 98 107.6 >>QCOM .TES 56.4 91.8 97 106.2 >>ATLPA .DSE 25.3 91.6 98 141.6 >>TBAC .LLE 18.1 91.6 92 114.1 >>MHO .BHO 21.1 91.3 96 113.2 >>INSS .DSE 40.5 91.1 99 121.1 >>JAKK .LTG 12 91 93 128 >>MVSN .DCS 23 91 93 115.9 >>CMDL .TES 12.6 90.8 85 111.2 >> >> >>- >> >> > >- > > - - ------------------------------ Date: Sat, 27 Jun 1998 08:14:15 -0600 From: "Deral Rackley" Subject: [CANSLIM] Date: Sat, 27 Jun 1998 10:07:43 -0400 FYI I performed an interesting exercise using Ian Woodwards HGS Stocks scan at http://members.aol.com/RANord/reports/PUMSTK1.HTM (E: 80-99, R: 80-99, G: 80-99, A?D: AB). I reduced this list to my top four and next four for further research. My criteria for reducing the list was EPS Rank>95; RS Rank >90; GS Rank >90, A/D=AB. Next I will research other Canslim criteria, TA, and news. My first four: APCO, TMBS,SYNT, INSS My next four: FFTI, HBOC, LGTO, SELAY Woodwards scans could be useful to me because I uncovered two stocks that I hadn't identified previously: SELAY & INSS. I wished that the list was more current (Dated June 12, 1998). Deral - - ------------------------------ Date: Sat, 27 Jun 1998 09:26:13 -0500 (CDT) From: mckeener@ix.netcom.com Subject: [CANSLIM] CDWI Hi Db, You wrote, "Why would you call this a CS stock, Mary? It's been trading for only a year and a half and there's nothing proprietary about its products or services that I know of. Just wondering what it is you're looking at." Good points! I didn't realize it had only been trading a year and a half. An oversight on my part. Something I'll remember to look at in the future. The proprietary aspect is another part I should have considered. Thanks for pointing these out. Regards, Mary - - ------------------------------ Date: Sat, 27 Jun 1998 10:29:57 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] CDWI Jeffry, You are correct, CDWI does not show any "I" at this time. I have commented on the difficulty of accurate reporting on "I" many times in the past. The data is usually weeks to months old before we can get it. By then, you may have missed your best entry on most CS stocks that otherwise fit the bill and are worth adding to a watch list. On the other hand, I have seen many other members in this group also note that they do not use one or more letters of CANSLIM in picking stocks, and they don't get criticized regularly for it or told they are not practicing canslim. Yes, I have read HTMMIS many times. I started taking the time to find and add the the specific page since apparently what I say is only valid if I can cite the reference, while others can simply allude to seminars, conferences and other "non HTMMIS" sources. I believe in the book enough that as an active broker, I purchased copies and gave them to all my canslim trading clients. I wanted us to both be on the same page. And I'm afraid if we restrict this group to only mentioning or posting stocks that clearly meet all seven elements of CANSLIM, there will be very few stocks ever posted. Frankly I see few that achieve this, they all have some failing or other. For example, many lately completely exceed anything WON put into print on "S". Doesn't bother me, I make allowances for HTMMIS being 10 years old, tho still consider it pertinent. And I realize that institutional clients of WON require liquidity. They're just not going to be buying a stock trading 50,000 shares a day if they will own a qtr million shares and want to be able to move them all at once. But as for condemning my microcaps as "not canslim", I would suggest you go back and reread all he wrote on "S" (page 28 and 218 for starters). Besides which, not everything I buy or watch is small, take a look at the issue and float on GCABY, for example, which made me a nice profit and continues to do well (up about 30% in the past month or so since I first posted on it, not a bad performance considering "M" - can't find the page I'm looking for on a comment about stocks going up in a down mkt). In terms of adjusting what WON said in his book ten years ago to how to apply it today, I rely heavily on my first hand experience with receiving his picks by fax for over five years. I routinely would look at every one added to better understand "why this one, why now?". I did the same on the ones he removed. Gave me a much better understanding of what WON was saying to his institutional clients, vs what he might say in a seminar to several thousand individual investors, many of whom lacked investing experience, much less experience or understanding of CANSLIM. I also note WON's caveat on buying new issues that are only several months old. That's one reason why I won't buy one till it's a year old. I want all the dust shaken out and settled, and want to see how well the issue is being accepted and treated by the marketplace. Has nothing to do with my experience with new issues, I have helped bring many companies into public ownership, and done a lot of trading successfully for clients in those first several months, but it is riskier and usually far more volatile. Tom W - -----Original Message----- From: Jeffry White <"postwhit@sover.net"@sover.net> To: canslim@mail.xmission.com Date: Saturday, June 27, 1998 8:23 AM Subject: [CANSLIM] CDWI >"Once an initial public offering has been trading in the marketplace for >two or three months or more, you have additional valuable market price >and volume action data on which to judge the situation. Stocks that >have formed proper bases should definitely be considered by experienced >investors who understand correct selection and timing techniques. This >can be a great source for new ideas." HTTMIS, 2d Ed. at page 123. > >Note the caveat: "experienced investors". That's not me, I don't think, >but I can't fault one for dabbling in newer issues. > >Now, it's nice to see Tom W. actuallly reading HTMMIS, again. But, >unless I missed something on CDWI...where's the "I"? That's Chapter 6, >and it's only 4 pages long. Sorry if I overlooked someone's comment on >this, haven't researched the stock, myself. > >To those of the group who have only read HTMMIS once or twice, I think >this "debate" on CDWI really points up the importance of reading the >book almost to the point of memorization, or at least until a short scan >turns up a brief passage that is on point with a group member's comments >that may be an opinion or misguided recollectoin and somewhat off the >CANSLIM mark. It happens to the best of us, however, which is why I >read the book during every correction and refer to it daily. Like I >said, this group helps me avoid reading it every day by raising issues >that may be imbedded in my skull with some inappropriate slant to it. > >Maybe when Tom W. gets finished with his re-reading (actually the first >time in almost a year of membership that I can remember him citing >chapter and verse, or even mentioning that he's read the book), he'll >have a new perspective on his micro-cap focus, maybe even consider >looking at price and volume signals in the "M". Maybe, he'll no longer >have to rely on bluster about his "wha-wha involvement with WON's staff, >blah, blah." > >Really Tom, you have enough knowlege and experience that you don't have >to qualify yourself with that squawk every time you are questioned or >challenged. Unbecoming, at best. Just like that 40 years of investment >experience stuff. > >Jeffry > >- > - - ------------------------------ Date: Sat, 27 Jun 1998 09:42:53 -0500 (CDT) From: mckeener@ix.netcom.com Subject: [CANSLIM] CDWI Hello Tom, You wrote, "Just goes to show you can get more than one opinion on a stock. And no, I don't own a share nor have ever traded it." I treasure different opinions, because it forces me to dig deeper, AND reassess what I am really doing rather than mechanically follow steps. Thanks so much for your explanation. Frankly, the combination of everyone's insights just gives me more reason to find where I want to be withing CANSLIM. Regards, Mary - - ------------------------------ Date: Sat, 27 Jun 1998 09:57:05 -0500 (CDT) From: mckeener@ix.netcom.com Subject: [CANSLIM] Glossary for the HGS fille (as of 6-26-96) Dan Sutton, THANKS for the glossary. A great help! Regards, Mary - - ------------------------------ Date: Sat, 27 Jun 1998 08:03:39 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] Stock lists - To Tom Worley <> As before, I doubt that this is protected by copyright, but then I'm not an attorney. Whether it is or not, I can understand your concern over losing your access to the service. However, if all this information is proprietary and protected by copyright, that means you can't mention even one stock on the list. Sounds silly, but that's the way it is if you're correct in DGO' position. If, on the other hand, you can mention one, you can mention two. If you can mention two, you can mention 30. Or 262. - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Sat, 27 Jun 1998 07:51:54 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] buying/selling tactics <> According to O'N, the point at which the stock breaks out of the handle is the buypoint, wherever that handle may be. He does allow, however, that "some" small-cap stocks move through this point (the "handle-forming area", which is the upper-half of the cup) successfully without forming a handle at all. Over the past ten years, I'd change that to "quite a few" or even "many". In any case, there seem to be an awful lot of stocks of all caps that are barely pausing in the cup before moving ahead to new highs. Given, therefore, that at least some stocks move right along without forming a handle at all, I'd begin looking for signs of a volume breakout at any spot between the 50%R and the lip of the cup. If it just ambles along, I might wait for the new high. Parly it would depend on the group and the leaders in the group, along with the market and the stock's own fundies. O'N doesn't give any guidance in this regard. <> As far as I know, O'N doesn't get this specific. If you're referring to the psychological aspects, the closer you get to the old high before forming a handle, the messier it gets. If the handle forms at or just above the 50%R, at least you have some room before the old high is reached, which makes the distance between the breakout and the old high worth shooting for (and if the old high doesn't present much resistance, then you're way ahead). OTOH, if the handle forms very near the old high, it's likely that whatever resistance the old high may present is offset at least somewhat by the support represented by the handle and the formidable demand it took to get the stock that far. It's the inbetween that's problematic, forcing you to decide whether to buy the handle breakout or the new high breakout. Some would solve the problem by buying half at the handle breakout and the other half at the new high. Others might find different ways of dealing with the bind. I would probably go the half-and-half route. It's also worth looking at what led to the cup in the first place. Did the lip form as the result of a climax run or did the stock just amble up there? Did it pause at that level for a few days? A couple of weeks? Is there any reason to think that the confidence of the people who bought at that level is so shaken that they'll dump their shares at the first sign of being able to get out anywhere near even? Or have events occurred which make the stock's story so compelling that nobody in his right mind would sell it and the "overhead resistance" at the old high will present no resistance at all? - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Sat, 27 Jun 1998 08:11:52 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] Greg CDWI <> I'm so glad you said this, because it is essential Do Your Homework Know What You're Talking About CANSLIM. Of course if you have that much background, experience, and specialized knowledge, you're going to be able to evaluate these companies more competently and objectively than someone who's just reading somebody's "picks". Ditto with IPOs. If you have intimate knowledge of the company, why on earth shouldn't you go outside CANSLIM to buy it? And as far as Mindspring, I'm glad you're happy with it. When I left AOL, I tried practically every national ISP and they all disappointed me except for Concentric. MCI was by far the worst (Yahoo made a HUGE misstep IMO). What I really want is a cable modem, but Cox wants $175 just to install the da*n thing. Your response will be of great benefit, not only to Mary and Greg, but to anyone who chooses to read it. - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Sat, 27 Jun 1998 08:17:16 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] Greg CDWI <> I think it's probably worth pointing out with regard to these stocks we've been discussing such as CSCO, CDWI and MSPG, that at the beginning of their runs, when all the technical indicators were screaming BUY!!, their RS ranks were probably nothing to wake the neighbors for. Which makes the knowing-the-company part of CS even more important. Just something to chew on over the weekend. - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Sat, 27 Jun 1998 09:16:02 -0600 From: "Dan Sutton" Subject: RE: [CANSLIM] HGS file URL location The High Growth Stock file is now located at the following URL. It is in EXCEL 97 format ftp://ftp.xmission.com/pub/users/m/mcjathan/canslim/hgs0626.xls This will make it a heck of a lot easier to analyze than trying to use the tables posted in e-mail messages - - ------------------------------ Date: Sat, 27 Jun 1998 11:18:50 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Stock lists - To Tom Worley Maybe Jeffry can give me legal advice on this, but what I understand is that I cannot post the list in its entirety, nor major portions of it, without permission as per my contract with them. On the other hand, if the list is simply one of many "tools" I use in building my own "watch list", with some stocks having been derived from multiple sources, including DGO's list, then the results of my "system" gives me "my" watch list and its my own. I am free to put it into the public domain if I so choose. Stock symbols and corp names are not copyrighted, or else we're all in trouble here. But if I take a list from somewhere else, and post it as my own, then I am guilty of plagarism at the least, and contract or copyright violations as other possibilities. I don't work that way. Tom W - -----Original Message----- From: dbphoenix To: canslim@lists.xmission.com Date: Saturday, June 27, 1998 11:00 AM Subject: Re: [CANSLIM] Stock lists - To Tom Worley ><periodically post this list (which is updated throughout the week, >using the prior Friday's 52 wk high and the latest trading day's >closing high, RS and EPS). It is protected by copyright and posting it >would violate my agreement with DGO, risking me losing the service.>> > >As before, I doubt that this is protected by copyright, but then I'm >not an attorney. Whether it is or not, I can understand your concern >over losing your access to the service. > >However, if all this information is proprietary and protected by >copyright, that means you can't mention even one stock on the list. >Sounds silly, but that's the way it is if you're correct in DGO' >position. > >If, on the other hand, you can mention one, you can mention two. If >you can mention two, you can mention 30. Or 262. > >--Db > > > > > >_________________________________________________________ >DO YOU YAHOO!? >Get your free @yahoo.com address at http://mail.yahoo.com > > >- > - - ------------------------------ Date: Sat, 27 Jun 1998 10:28:42 -0500 (CDT) From: mckeener@ix.netcom.com Subject: [CANSLIM] Greg and CDWI Frank V. Wolynski, Thanks for your views on this stock. All these comments really helps me look at all angles here. This is GREAT! Regards, Mary - - ------------------------------ Date: Sat, 27 Jun 1998 11:26:11 -0400 From: "James Adams" Subject: [CANSLIM] No More IBD - Hard Lesson Learned CANSLIM friends, I have chosen not to renew my subscription to IBD, but rather use my local library's copy of Value Line along with the following Internet sites: MS Investor, Big Charts, Yahoo, Wall Street City, and Quicken.Com Stock alerts. Any other suggestions would be appreciated. Also, vis-a-vis earlier copyright postings, would it be illegal for me to ask someone on the list for a stock's EPS/RS as printed in IBD? Finally, just a note about a trading lesson I learned the hard way. I bot CADE @ 4.00 about 6 weeks ago on news of a strong quarterly report and excellent CANSLIM #s. Since them the stock has moved very little. This past week CADE announced that Rolls Royce has given them an 8million dollar contract, which is a big deal for CADE. But guess what, the stock only moved 1/4 point and then settled back down to it price before the announcement. I guess, and please correct me if I'm wrong, in this market environment, stocks with such a low price simply won't cut it because no big houses are allowed to buy it. I guess I can hope for them to be a buyout target, (wishful thinking). Is the lesson I've learned correct? Or am I misreading this? James Adams......................Maysville, KY USA http://www.cris.com/~jimadams/ Internet Pager 1343361@pager.mirabilis.com - - ------------------------------ Date: Sat, 27 Jun 1998 08:37:12 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] Date: Sat, 27 Jun 1998 07:48:19 -0400 <> Roger won't care. I just hope whoever finds something of value here will e-mail him and let him know. He does all this by himself for nothing more than a desire to share information and make the investing process easier for others. I don't know where he finds the time. I think he ought to get some sort of prize. - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Sat, 27 Jun 1998 08:28:55 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] Greg CDWI <> Of course they can, but the pressures with regard to earnings performance on a publicly-traded company are considerably different from those it feels while it is private. One of the reasons why BET decided to go back to being private. <> Why do you do that? <> "Seems to meet "C" and "A" by WON's guidelines and criteria. Maybe you're using data from someone other than Wm O'Neill of IBD, HTMMIS, etc. I figure if this data is good enough for him and his institutional clients, then its good enough for me." My mistake. Your comment led me to believe that "this data" referred to CDWI, not IBD. <> Let's not go too far, Tom. You haven't been physically assaulted. <> If I gave the impression that I was attacking Mary and Greg by asking why they were interested in the stock, my apologies. I didn't see CANSLIM here and was puzzled. We often get posts for stocks that begin "This isn't CANSLIM, but . . ." and I thought this might be another. Of course, the This Isn't CANSLIM But goes on on every CS message board or forum of any kind, except for Delphi perhaps. Which I've never really understood, considering the hundreds of excellent CS stocks out there waiting for someone to take them home. Guess it springs from a desire to prove that one can conquer adversity or something. - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Sat, 27 Jun 1998 10:48:13 -0500 (CDT) From: mckeener@ix.netcom.com Subject: [CANSLIM] Greg CDWI Tom and Db, You are just terrific to make all these commeents on CDWI. I don't care whether you disagree with one another or with me. You have sharpened my skills and I THANK YOU. That's the beauty of this message board. We have this chance to air our thoughts, and be responsible for our research. It is by re-thinking, re-hashing that we improve, move forward and do better. Sure I've lost money on stocks, including some internet stocks. But you know what? I've made some money too and the difference between my losses and gains is beginning to move more towards the gain side. I wonder why? Partly because I'm doing more in-depth research, partly because I've been burned and partly because THIS MESSAGE BOARD HAS OPENED MY EYES. You are valued, Mary - - ------------------------------ Date: Sat, 27 Jun 1998 08:52:16 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] Todays list of HGS candidates <> I noticed on my group charts last night that a number of retail groups seem to be topping out. Are you noticing anything? - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Sat, 27 Jun 1998 09:02:07 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] No More IBD - Hard Lesson Learned <> I made a post not long ago on Free CANSLIM. Also posted it on the CS board at the online Motley Fool. If you didn't get it or have trouble finding it, let me know. <> Of course not. In fact, there are several places you can get extensive lists of such stocks. Those are in the post I referred to. <> Tom: No Jeffry: Yes <> Tom: Yes Jeffry: No - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Sat, 27 Jun 1998 09:15:31 -0700 From: Bill Subject: Re: [CANSLIM] No More IBD - Hard Lesson Learned Check http://messages.yahoo.com/?action=q&board=CADE to get some ideas why this purchase may not have worked. CADE appears to have a $86 million backlog and the $8 million order is subject to cancellation if they can't deliver. There are also rumors of a reverse split and some director systematically dumping her 5 million shares on the open market. Call investor relations at (517) 347-1333 to get the 'real' story. Bill-->> James Adams wrote: > > CANSLIM friends, > > I have chosen not to renew my subscription to IBD, but rather use my local > library's copy of Value Line along with the following Internet sites: MS > Investor, Big Charts, Yahoo, Wall Street City, and Quicken.Com Stock > alerts. Any other suggestions would be appreciated. Also, vis-a-vis earlier > copyright postings, would it be illegal for me to ask someone on the list > for a stock's EPS/RS as printed in IBD? > > Finally, just a note about a trading lesson I learned the hard way. I bot > CADE @ 4.00 about 6 weeks ago on news of a strong quarterly report and > excellent CANSLIM #s. Since them the stock has moved very little. This past > week CADE announced that Rolls Royce has given them an 8million dollar > contract, which is a big deal for CADE. But guess what, the stock only moved > 1/4 point and then settled back down to it price before the announcement. > I guess, and please correct me if I'm wrong, in this market environment, > stocks with such a low price simply won't cut it because no big houses are > allowed to buy it. I guess I can hope for them to be a buyout target, > (wishful thinking). > > Is the lesson I've learned correct? Or am I misreading this? > > James Adams......................Maysville, KY USA > http://www.cris.com/~jimadams/ > Internet Pager 1343361@pager.mirabilis.com > > - - - ------------------------------ Date: Sat, 27 Jun 1998 09:19:55 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] CDWI <> Who? I want names! Let me at 'em! <> You really do look forward to arguments, don't you Tom? Why the crack? Is it not OK to mention that O'N has changed his thinking with regard to an important point that he made ten years ago? And in what way are seminars led by O'N, conferences led by O'N, interviews with O'N, video tapes made by O'N, and articles written with the participation of O'N not "HTMMIS sources"? With all due respect otherwise, you're being a jerk. <> First, there are hundreds of stocks that meet CS requirements. But it takes more work to find them than it does to take a stock that one likes for some other reason and shoehorn it into CS. Dan's work is resulting in a number of these issues. And as far as putting it into print, why is that so important to you? Does he need to call you personally and tell you that he's raised his requirement for float? Do seminar attendees have to sign affidavits? Do his videos have to be analyzed in the event they've been digitally altered by conspirators of some sort? <> Forgive me, Tom, but if our only conduit to this secret knowledge is you, I'll stick with O'N's public pronouncements. All I know of you is what you've claimed for yourself. What O'N has said or written is verifiable. What you say he's said or written is not. No offense. - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Sat, 27 Jun 1998 13:03:27 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] No More IBD - Hard Lesson Learned James, if you are dropping IBD in favor of Value Line, does this mean you are no longer practicing canslim in favor of more conservative, big cap stocks? Are you now a "value" investor (often referred to as a "bottom fisher" looking for oversold stocks? I admit I haven't subscribed to VL in years, and they have cleaned up their act a lot, but the last time I looked at it seemed pretty conservative. On CADE, even if I were still buying stocks this cheap, this would not make my list. I see several things wrong with both the fundamentals and the chart. Market environment has nothing to do with it, these type stocks trade pretty independently of "M" because they are restrained by their price and investor interest, and trade mostly on rumor, story and innuendo. First, fundamentals. You are correct that the basic CS data is favorable, with an RS of 91 and an EPS of 97. However the profit margin sucks, to be blunt. They're doing better than a million dollars of sales per share and yet returning only several pennies a share to the bottom line. Find out where all the money is going, check the filings at the sec site, someone is either living high on the hog, or else mismanaging the corp, or they are in the wrong business with no reasonable profit margins. Next, insider selling - latest series was three sells at the 3.5 range. Before that it was two buys and one sell at the 2.5 range. Appears to be that some insiders are trading their own stock, and they or others are taking advantage of any strength to sell for a profit. And I also note that the trailing PE is a high 29 for such a low priced stock. Also a red warning flag. On the chart: many stocks in this price range languish due lack of interest from analysts and institutions. The favorable pattern to watch for (but not buy into) is a lengthy base, often 3 or 4 or more months long. If you want to trade low priced stocks (which are not the same as microcaps, this one has nearly 22 million shares outstanding and I like them with less than 10 million and strong management ownership) you have to be patient and wait for them "to be discovered". That's the time to buy, but with a quick selling trigger. Stocks like this are often manipulated or the victim of rumor, story, innuendo, etc now easily spread on the net. The chart itself suggests to me that it is trading on stories and rumors, not on fundamentals or "discovery". Add to all this, that stocks this low in price are not only outside the horizons of virtually the entire legitimate analyst's community, they are also beyond the interests of any institutionals (even the small cap funds won't touch them, and it's not really a microcap, questionable as a small cap). In addition they are not of interest generally to most investors. Thus you are left with a very small community of "potential" investors, mostly consisting of those like yourself who already are shareholders. When big news like the contract hits up, you are waiting for someone else to step in and buy the stock and make you a profit. But the reality is that about the only people following the stock and aware of the big news are already shareholders, and don't want to buy more. Despite my detractors, I will continue to support WON's concept of "S". But there is an art of sorts to buying small companies. They don't have to also have small prices. Down in this price range, you are removed from most of the investment community because of price alone and doesn't matter how good the company may be, and can only buy with very long term goals. In the meantime, the capital is tied up and may not be making you any money. Rather than asking for someone to post the RS/EPS data, why not just use the library's copy while you are checking out Value Line? You may find some sharp differences in how a CANSLIM approach (using things like RS and EPS) will view a stock versus VL. Good luck. Tom W - -----Original Message----- From: James Adams To: Canslim Date: Saturday, June 27, 1998 11:26 AM Subject: [CANSLIM] No More IBD - Hard Lesson Learned >CANSLIM friends, > >I have chosen not to renew my subscription to IBD, but rather use my local >library's copy of Value Line along with the following Internet sites: MS >Investor, Big Charts, Yahoo, Wall Street City, and Quicken.Com Stock >alerts. Any other suggestions would be appreciated. Also, vis-a-vis earlier >copyright postings, would it be illegal for me to ask someone on the list >for a stock's EPS/RS as printed in IBD? > >Finally, just a note about a trading lesson I learned the hard way. I bot >CADE @ 4.00 about 6 weeks ago on news of a strong quarterly report and >excellent CANSLIM #s. Since them the stock has moved very little. This past >week CADE announced that Rolls Royce has given them an 8million dollar >contract, which is a big deal for CADE. But guess what, the stock only moved >1/4 point and then settled back down to it price before the announcement. >I guess, and please correct me if I'm wrong, in this market environment, >stocks with such a low price simply won't cut it because no big houses are >allowed to buy it. I guess I can hope for them to be a buyout target, >(wishful thinking). > >Is the lesson I've learned correct? Or am I misreading this? > >James Adams......................Maysville, KY USA >http://www.cris.com/~jimadams/ >Internet Pager 1343361@pager.mirabilis.com > > >- > - - ------------------------------ End of canslim-digest V2 #308 ***************************** 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.