From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #3180 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 Saturday, February 22 2003 Volume 02 : Number 3180 In this issue: RE: [CANSLIM] POSS [CANSLIM] Foreign Markets CANSLIM? Re: [CANSLIM] Foreign Markets CANSLIM? Re: [CANSLIM] Foreign Markets CANSLIM? ---------------------------------------------------------------------- Date: Sat, 22 Feb 2003 12:31:05 -0600 From: "Fred Richards" Subject: RE: [CANSLIM] POSS This is a multi-part message in MIME format. - ------=_NextPart_000_0073_01C2DA6E.482B9A30 Content-Type: text/plain; charset="us-ascii" Content-Transfer-Encoding: 7bit Actually, my CANSLIM performance as represented by the Conservative portfolio is shown on the public portion of the SI website. - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com] On Behalf Of david frank Sent: Saturday, February 22, 2003 11:46 AM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] POSS Tom, I wasn't looking for "recommendations", just facts. And I really appreciate your personal opinion, which was based on my statements. I have always noticed that your after-"recommendations" are rather different than CANSLIM standards. If you don't want to do the stock thing, you can tell us when "M" is "M". You know it could be next week-right? maybe, for the 16th time. Dave - ----- Original Message ----- From: Tom Worley To: canslim@lists.xmission.com Sent: Saturday, February 22, 2003 11:21 AM Subject: Re: [CANSLIM] POSS sorry David, but my contributions here stick strictly to mainstream CANSLIM. I work for a broker dealer again, that means that my activity is subject to scrutiny by the NASD and SEC. I don't post anything that can be taken as a "recommendation", if I did it would only be to clients paying for my services, and where I had the KYC (Know Your Customer) knowledge to be sure my comments, recommendations, etc. were appropriate and suitable for that client's particular financial condition, risk tolerance, investment goals, etc. If I ever manage to make the right connection, and find a job as a small cap growth fund manager, I will be glad to tell you what fund I would be running, and you could "participate" that way if you so choose. I do disclose in my weekly WWW column what stocks make that list where I have an interest. By no means does that show my total market interest, nor give insight into when or where I took that interest. But that list is constructed completely differently than my own personal buy or watch lists. And I am not here to lecture, I expressed my personal opinion, you don't have to agree with it, and are just as free to click on the Delete key as to read my posts. - ----- Original Message ----- From: david frank To: canslim@lists.xmission.com Sent: Saturday, February 22, 2003 12:11 PM Subject: Re: [CANSLIM] POSS Tom and Fred, Thank you for the standard CANSLIM lectures. To make things more interesting, for us that sweep floors for a living, why don't you tell us when "M" is "M". And, also, tell us which stock you are buying, what price you are paying, your stop, and where you will take profits. Then you are putting your money and words where your mouth is, wont cost you a dime, plus it will make an interesting read here, and I promise I will not front run you. Thank you very much. Dave - ----- Original Message ----- From: Fred Richards To: canslim@lists.xmission.com Sent: Saturday, February 22, 2003 5:34 AM Subject: RE: [CANSLIM] POSS Excellent . . . we must be on the same wave length. The only thing I would add to all those who think CANSLIM is not appropriate for bear markets is that it still identifies companies which beat the market, e.g., TSCO, AEM, GG, GFI, and MSN last year. Compared to all the other investors who don't follow CANSLIM, it has maintained the value of the investors portfolio by keeping you in cash probably as well as any system out there. While not great, our CANSLIM portfolio did show profits in each of the last three years. Compared to the show of hands in most investors group, that puts CANSLIM investors in a small minority. Can't be all bad! - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com] On Behalf Of Tom Worley Sent: Friday, February 21, 2003 9:38 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] POSS David, I have seen nothing in the markets over the past several years of a protracted bear market that would require a change in the concept, philosophy, or general rules of CANSLIM. As I perceive CANSLIM, it is a system / style / method / philosophy designed for investors, especially ones with mid to long term horizons. It certainly is not designed nor intended for short term / day trading. Many in this group have expressed the opinion that "M" is the single most important letter of the seven, I happen to completely agree with that, especially for less experienced investors / CANSLIMers. That is doubly true if their risk tolerance is average or lower. Money can and has been made, strictly on the long side, no options, no shorting, during the past several years by following one's own interpretation of CANSLIM. Without any argument, however, that meant taking greater risk, generally required more experience both with investing in general and CANSLIM in particular, and was certainly for me far greater work with less reward. "M" has been telling us to stay in cash, and that is what most have done, judging by the daily volume, as well as the amount of posting in this group. It has been at least 2 years since market conditions favored the CANSLIM style of investing, even more years since long term investors were handsomely rewarded for their patience and trust in a company. During that time we have had lots of reasons additionally to remain in cash, including the dot com bubble bursting, direct act of terrorism against the United States, recession, weak recovering economy, upcoming war with Iraq, threats by N. Korea, Japan in a major recession and with their financial infrastructure on a continual edge of total collapse, and not to ever be forgotten corporate governance issues including fraud, deceit, loss of trust, personal executive greed, etc. If you think about it, that's actually a lot for any market to simply survive in just a few years. It's amazing to me that there is still anyone left (besides me, that is) that will even still stick a few bucks in the market and take a chance. CANSLIM will again have its heyday, when "M" says its time, and this bear market finally retreats back into its cave for an extended hibernation. Until then, it will be CANSLIM hibernating, coming out occasionally to see if the weather has begun to thaw the ice, and going back into the cave if the answer is still no. The big lesson of CANSLIM is to preserve your capital so you survive to see better days. There's nothing "sick" about the system, it's doing exactly what it is designed and intended to do, preserve your capital until "M" favors the investors. - ----- Original Message ----- From: david frank To: canslim@lists.xmission.com Sent: Friday, February 21, 2003 6:01 PM Subject: Re: [CANSLIM] POSS Seems to me CANSLIM has come out of hibernation approximately 15 times in the past 3 years and got shot back in it's hole each time, thereby, making it a sick system. that is why I said it is pretty well dead. Even your personal target is not within CANSLIM guide-lines. Dave From: Chazmoore@aol.com To: canslim@lists.xmission.com Sent: Friday, February 21, 2003 4:48 PM Subject: Re: [CANSLIM] POSS By definition, CANSLIM is bull market investment method. If you follow CANSLIM to the letter you should be out of the market and in cash or fixed income. CANSLIM is not dead, it is in hibernation until the market improves. When will that be? My personal target is when the S&P 500 crosses the 200 DMA with vigor. Charley - ------=_NextPart_000_0073_01C2DA6E.482B9A30 Content-Type: text/html; charset="us-ascii" Content-Transfer-Encoding: quoted-printable Message
Actually, my CANSLIM performance as represented by the = Conservative=20 portfolio is shown on the public portion of the SI = website.
-----Original Message-----
From:=20 owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com]=20 On Behalf Of david frank
Sent: Saturday, February 22, = 2003=20 11:46 AM
To: canslim@lists.xmission.com
Subject: = Re:=20 [CANSLIM] POSS

Tom, I wasn't looking for = "recommendations", just=20 facts. And I really appreciate your personal opinion, which was based = on my=20 statements. I have always noticed that your = after-"recommendations" are=20 rather different than CANSLIM standards. If you don't want to do = the=20 stock thing, you can tell us when "M" is "M". You know it could be = next=20 week-right? maybe, for the 16th time. Dave
----- Original Message -----
From:=20 Tom=20 Worley
Sent: Saturday, February 22, = 2003 11:21=20 AM
Subject: Re: [CANSLIM] = POSS

sorry David, but my contributions here stick = strictly=20 to mainstream CANSLIM. I work for a broker dealer again, that means = that my=20 activity is subject to scrutiny by the NASD and SEC. I don't post = anything=20 that can be taken as a "recommendation", if I did it would only be = to=20 clients paying for my services, and where I had the KYC (Know Your = Customer)=20 knowledge to be sure my comments, recommendations, etc. were = appropriate and=20 suitable for that client's particular financial condition, risk = tolerance,=20 investment goals, etc.
 
If I ever manage to make the right = connection, and=20 find a job as a small cap growth fund manager, I will be glad to = tell you=20 what fund I would be running, and you could "participate" that way = if you so=20 choose.
 
I do disclose in my weekly WWW column what = stocks make=20 that list where I have an interest. By no means does that show my = total=20 market interest, nor give insight into when or where I took that = interest.=20 But that list is constructed completely differently than my own = personal buy=20 or watch lists.
 
And I am not here to lecture, I expressed my = personal=20 opinion, you don't have to agree with it, and are just as free to = click on=20 the Delete key as to read my posts.
 
----- Original Message -----=20
From: = david frank
Sent: Saturday, February 22, 2003 12:11 PM
Subject: Re: [CANSLIM] POSS

Tom and Fred, Thank you for the = standard=20 CANSLIM lectures. To make things more interesting, for us that sweep = floors=20 for a living, why don't you tell us when "M" is "M". And, also, = tell us which stock you are buying, what price you are = paying,=20 your stop, and where you will take profits. Then you are = putting your=20 money and words where your mouth is, wont cost you a dime, plus = it will=20 make an interesting read here, and I promise I will not front run = you. Thank=20 you very much. Dave
----- Original Message ----- =
From:=20 Fred=20 Richards
To: canslim@lists.xmission.com= =20
Sent: Saturday, February = 22, 2003=20 5:34 AM
Subject: RE: [CANSLIM] = POSS

Excellent . . . we must be on the same wave length.  = The only=20 thing I would add to all those who think CANSLIM is not = appropriate for=20 bear markets is that it still identifies companies which beat the = market,=20 e.g., TSCO, AEM, GG, GFI, and MSN last year.  Compared = to all=20 the other investors who don't follow CANSLIM, it has maintained = the value=20 of the investors portfolio by keeping you in cash probably as well = as any=20 system out there. 
 
While not great, our CANSLIM portfolio did show profits = in each of=20 the last three years.  Compared to the show of hands in most=20 investors group, that puts CANSLIM investors in a small = minority. =20 Can't be all bad!
-----Original = Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com] On Behalf Of = Tom=20 Worley
Sent: Friday, February 21, 2003 9:38 = PM
To:=20 canslim@lists.xmission.com
Subject: Re: [CANSLIM]=20 POSS

David,
 
I have seen nothing in the markets over = the past=20 several years of a protracted bear market that would require a = change in=20 the concept, philosophy, or general rules of CANSLIM. As I = perceive=20 CANSLIM, it is a system / style / method / philosophy designed = for=20 investors, especially ones with mid to long term horizons. It = certainly=20 is not designed nor intended for short term / day trading. Many = in this=20 group have expressed the opinion that "M" is the single most = important=20 letter of the seven, I happen to completely agree with that, = especially=20 for less experienced investors / CANSLIMers. That is doubly true = if=20 their risk tolerance is average or lower.
 
Money can and has been made, strictly on = the long=20 side, no options, no shorting, during the past several years by=20 following one's own interpretation of CANSLIM. Without any = argument,=20 however, that meant taking greater risk, generally required more = experience both with investing in general and CANSLIM in = particular, and=20 was certainly for me far greater work with less reward. "M" has = been=20 telling us to stay in cash, and that is what most have done, = judging by=20 the daily volume, as well as the amount of posting in this=20 group.
 
It has been at least 2 years since = market=20 conditions favored the CANSLIM style of investing, even more = years since=20 long term investors were handsomely rewarded for their patience = and=20 trust in a company. During that time we have had lots of reasons = additionally to remain in cash, including the dot com bubble = bursting,=20 direct act of terrorism against the United States, recession, = weak=20 recovering economy, upcoming war with Iraq, threats by N. Korea, = Japan=20 in a major recession and with their financial infrastructure on = a=20 continual edge of total collapse, and not to ever be forgotten = corporate=20 governance issues including fraud, deceit, loss of trust, = personal=20 executive greed, etc.
 
If you think about it, that's actually a = lot for=20 any market to simply survive in just a few years. It's amazing = to me=20 that there is still anyone left (besides me, that is) that will = even=20 still stick a few bucks in the market and take a = chance.
 
CANSLIM will again have its heyday, when = "M" says=20 its time, and this bear market finally retreats back into its = cave for=20 an extended hibernation. Until then, it will be CANSLIM = hibernating,=20 coming out occasionally to see if the weather has begun to thaw = the ice,=20 and going back into the cave if the answer is still no. The big = lesson=20 of CANSLIM is to preserve your capital so you survive to see = better=20 days. There's nothing "sick" about the system, it's doing = exactly what=20 it is designed and intended to do, preserve your capital until = "M"=20 favors the investors.
 
----- Original Message -----=20
From: david frank
Sent: Friday, February 21, 2003 6:01 PM
Subject: Re: [CANSLIM] POSS

Seems to me CANSLIM has come = out of=20 hibernation approximately 15 times in the past 3 years and got = shot back=20 in it's hole each time, thereby, making it a sick system. that = is why I=20 said it is pretty well dead. Even your personal target is not = within=20 CANSLIM guide-lines.  Dave
From:=20 Chazmoore@aol.com
To: canslim@lists.xmission.com= =20
Sent: Friday, February = 21, 2003=20 4:48 PM
Subject: Re: [CANSLIM] = POSS

By = definition,=20 CANSLIM is bull market investment method. If you follow = CANSLIM to the=20 letter you should be out of the market and in cash or fixed = income.=20 CANSLIM is not dead, it is in hibernation until the market = improves.=20 When will that be? My personal target is when the S&P 500 = crosses=20 the 200 DMA with vigor.
Charley=20 =
<= /BODY> - ------=_NextPart_000_0073_01C2DA6E.482B9A30-- - - - -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: Sat, 22 Feb 2003 14:08:06 -0500 From: "Jonathan Lobatto" Subject: [CANSLIM] Foreign Markets CANSLIM? This is a multi-part message in MIME format. - ------=_NextPart_000_004A_01C2DA7B.D2427B00 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable As has been discussed here for a very long time, "M" stinks. However, = there have been foreign markets (China and a few others) where "M" has = actually been pretty decent the past year or so. I'm wondering if anyone = has tried applying CANSLIM in a foreign market? After all, there's no = philosophical reason (as opposed to practical ones) that it wouldn't be = applicable to a non-US market. Now some will argue that foreign = accounting and reporting doesn't have the same kind of transparency that = our does, but after Enron (et al ad nauseum), what appears transparent = was in reality totally obscured anyway. If one wanted to try, the first thing that would be handy would be a = database that ranks the RS and EPS of foreign stocks. I know that it's = possible to get this info for ADRS, but I'm sure there are hundreds of = non-ADrs that would be suitable candidates also. Of course actually = purchasing the stocks presents other difficulties, but it may be worth = at least discussing. So, any ideas? Jon - ------=_NextPart_000_004A_01C2DA7B.D2427B00 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
As has been discussed here for = a very long=20 time, "M" stinks. However, there have been foreign markets (China = and a few=20 others) where "M" has actually been pretty decent the past year or so. = I'm=20 wondering if anyone has tried applying CANSLIM in a foreign market? = After all,=20 there's no philosophical reason (as opposed to practical ones) that it = wouldn't=20 be applicable to a non-US market. Now some will argue that foreign = accounting=20 and reporting doesn't have the same kind of transparency that our does, = but=20 after Enron (et al ad nauseum), what appears transparent was in=20 reality totally obscured anyway.
 
If one wanted to try, the = first thing that=20 would be handy would be a database that ranks the RS and EPS of foreign = stocks.=20 I know that it's possible to get this info for ADRS, but I'm sure there = are=20 hundreds of non-ADrs that would be suitable candidates also. Of course = actually=20 purchasing the stocks presents other difficulties, but it may be worth = at least=20 discussing. So, any ideas?
 
Jon
- ------=_NextPart_000_004A_01C2DA7B.D2427B00-- - - - -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: Sat, 22 Feb 2003 14:19:31 -0500 From: "Tom Worley" Subject: Re: [CANSLIM] Foreign Markets CANSLIM? This is a multi-part message in MIME format. - ------=_NextPart_000_0136_01C2DA7D.6AF28100 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Jonathan, I monitor daily all global exchanges, but have done little investing = outside the USA. My reasons are pretty basic, I have too little time to = keep up with politics, economics, exchange rates, etc. right here. = Trying to obtain and stay current on these matters (which I deem = important to me in assessing "M") in any foreign country, much less a = foreign region of many countries, many of which may be unstable and = subject to rapid political change, would be too much except as a full = time occupation. Additionally, DGO remains my data source of choice for the moment, and = they provide very little coverage of foreign stocks. The different = accounting systems as well deter me from foreign companies, as well as = the lack of regulation and financial reporting required. As you note, unless the company was listed on a US exchange, there are = the added difficulties of opening an account in another country (and = reporting it on your tax return as well), not to mention the additional = risk of foreign exchange rate changes. The US economy remains the = biggest (and I believe the strongest / healthiest / most likely to = recover first), and I would expect other economies to trail when true = recovery finally begins. I would not want to have my money trapped in = yen, or baht, or francs, or pounds, or whatever, while the US markets = finally take off. The decades of research that went into the development and refinement of = CANSLIM was mostly done on US stocks. While in theory I see no reason = why it could not be applied elsewhere, a lot of the tools are lacking = even for back testing, and the risks and difficulties are greater. - ----- Original Message -----=20 From: Jonathan Lobatto=20 To: canslim@lists.xmission.com=20 Sent: Saturday, February 22, 2003 2:08 PM Subject: [CANSLIM] Foreign Markets CANSLIM? As has been discussed here for a very long time, "M" stinks. However, = there have been foreign markets (China and a few others) where "M" has = actually been pretty decent the past year or so. I'm wondering if anyone = has tried applying CANSLIM in a foreign market? After all, there's no = philosophical reason (as opposed to practical ones) that it wouldn't be = applicable to a non-US market. Now some will argue that foreign = accounting and reporting doesn't have the same kind of transparency that = our does, but after Enron (et al ad nauseum), what appears transparent = was in reality totally obscured anyway. If one wanted to try, the first thing that would be handy would be a = database that ranks the RS and EPS of foreign stocks. I know that it's = possible to get this info for ADRS, but I'm sure there are hundreds of = non-ADrs that would be suitable candidates also. Of course actually = purchasing the stocks presents other difficulties, but it may be worth = at least discussing. So, any ideas? Jon - ------=_NextPart_000_0136_01C2DA7D.6AF28100 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Jonathan,
 
I monitor daily all global exchanges, but have = done little=20 investing outside the USA. My reasons are pretty basic, I have too = little time=20 to keep up with politics, economics, exchange rates, etc. right here. = Trying to=20 obtain and stay current on these matters (which I deem important to me = in=20 assessing "M") in any foreign country, much less a foreign region of = many=20 countries, many of which may be unstable and subject to rapid political = change,=20 would be too much except as a full time occupation.
 
Additionally, DGO remains my data source of = choice for the=20 moment, and they provide very little coverage of foreign stocks. The = different=20 accounting systems as well deter me from foreign companies, as well as = the lack=20 of regulation and financial reporting required.
 
As you note, unless the company was listed on a = US=20 exchange, there are the added difficulties of opening an account in = another=20 country (and reporting it on your tax return as well), not to mention = the=20 additional risk of foreign exchange rate changes. The US economy remains = the=20 biggest (and I believe the strongest / healthiest / most likely to = recover=20 first), and I would expect other economies to trail when true recovery = finally=20 begins. I would not want to have my money trapped in yen, or baht, or = francs, or=20 pounds, or whatever, while the US markets finally take off.
 
The decades of research that went into the = development and=20 refinement of CANSLIM was mostly done on US stocks. While in theory I = see no=20 reason why it could not be applied elsewhere, a lot of the tools are = lacking=20 even for back testing, and the risks and difficulties are = greater.
 
----- Original Message -----=20
From: Jonathan = Lobatto=20
Sent: Saturday, February 22, 2003 2:08 PM
Subject: [CANSLIM] Foreign Markets CANSLIM?

As has been discussed here for = a very long=20 time, "M" stinks. However, there have been foreign markets (China = and a few=20 others) where "M" has actually been pretty decent the past year or so. = I'm=20 wondering if anyone has tried applying CANSLIM in a foreign market? = After all,=20 there's no philosophical reason (as opposed to practical ones) that it = wouldn't=20 be applicable to a non-US market. Now some will argue that foreign = accounting=20 and reporting doesn't have the same kind of transparency that our does, = but=20 after Enron (et al ad nauseum), what appears transparent was in=20 reality totally obscured anyway.
 
If one wanted to try, the = first thing that=20 would be handy would be a database that ranks the RS and EPS of foreign = stocks.=20 I know that it's possible to get this info for ADRS, but I'm sure there = are=20 hundreds of non-ADrs that would be suitable candidates also. Of course = actually=20 purchasing the stocks presents other difficulties, but it may be worth = at least=20 discussing. So, any ideas?
 
Jon
- ------=_NextPart_000_0136_01C2DA7D.6AF28100-- - - - -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: Sat, 22 Feb 2003 14:56:51 -0500 From: "Jonathan Lobatto" Subject: Re: [CANSLIM] Foreign Markets CANSLIM? This is a multi-part message in MIME format. - ------=_NextPart_000_0064_01C2DA82.A1DCC900 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Tom, I agree with much of what you say. However, I might point out that = analysis of politics, economics and exchange rates is in my opinion of = minor value in determining "M", as it is mostly discounted (i.e. in the = market already). Those of us old enough to recall the mid 70s, or the = early 80s will remember that all the macro factors looked awful. If one = had made decisions based on the considerations you mention above, it = would have been easy to stay out of the market years past the bottoms. = If anyone states that they analyzed the macro sitaution back then and = decided to invest based on the economic and political outlook and = exchange rates, I'd be highly skeptical. I know things looked grim to = me. Yes, the U.S. is the biggest market, but the growth rates in the coming = decades will be highest in China, Asia (ex-Japan) and India and I'm just = looking ahead and wondering how a US based investor can benefit from = this. Jon ----- Original Message -----=20 From: Tom Worley=20 To: canslim@lists.xmission.com=20 Sent: Saturday, February 22, 2003 2:19 PM Subject: Re: [CANSLIM] Foreign Markets CANSLIM? Jonathan, I monitor daily all global exchanges, but have done little investing = outside the USA. My reasons are pretty basic, I have too little time to = keep up with politics, economics, exchange rates, etc. right here. = Trying to obtain and stay current on these matters (which I deem = important to me in assessing "M") in any foreign country, much less a = foreign region of many countries, many of which may be unstable and = subject to rapid political change, would be too much except as a full = time occupation. Additionally, DGO remains my data source of choice for the moment, and = they provide very little coverage of foreign stocks. The different = accounting systems as well deter me from foreign companies, as well as = the lack of regulation and financial reporting required. As you note, unless the company was listed on a US exchange, there are = the added difficulties of opening an account in another country (and = reporting it on your tax return as well), not to mention the additional = risk of foreign exchange rate changes. The US economy remains the = biggest (and I believe the strongest / healthiest / most likely to = recover first), and I would expect other economies to trail when true = recovery finally begins. I would not want to have my money trapped in = yen, or baht, or francs, or pounds, or whatever, while the US markets = finally take off. The decades of research that went into the development and refinement = of CANSLIM was mostly done on US stocks. While in theory I see no reason = why it could not be applied elsewhere, a lot of the tools are lacking = even for back testing, and the risks and difficulties are greater. ----- Original Message -----=20 From: Jonathan Lobatto=20 To: canslim@lists.xmission.com=20 Sent: Saturday, February 22, 2003 2:08 PM Subject: [CANSLIM] Foreign Markets CANSLIM? As has been discussed here for a very long time, "M" stinks. However, = there have been foreign markets (China and a few others) where "M" has = actually been pretty decent the past year or so. I'm wondering if anyone = has tried applying CANSLIM in a foreign market? After all, there's no = philosophical reason (as opposed to practical ones) that it wouldn't be = applicable to a non-US market. Now some will argue that foreign = accounting and reporting doesn't have the same kind of transparency that = our does, but after Enron (et al ad nauseum), what appears transparent = was in reality totally obscured anyway. If one wanted to try, the first thing that would be handy would be a = database that ranks the RS and EPS of foreign stocks. I know that it's = possible to get this info for ADRS, but I'm sure there are hundreds of = non-ADrs that would be suitable candidates also. Of course actually = purchasing the stocks presents other difficulties, but it may be worth = at least discussing. So, any ideas? Jon - ------=_NextPart_000_0064_01C2DA82.A1DCC900 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Tom,
 
I agree with much of what you = say.=20 However, I might point out that analysis of politics, economics and = exchange=20 rates is in my opinion of minor value in determining "M", as it is = mostly=20 discounted (i.e. in the market already). Those of us old enough to = recall=20 the mid 70s, or the early 80s will remember that all the macro factors = looked=20 awful. If one had made decisions based on the=20 considerations you mention above, it would have been easy to stay out of = the=20 market years past the bottoms. If anyone states that they analyzed the = macro=20 sitaution back then and decided to invest based on the economic and = political=20 outlook and exchange rates, I'd be highly skeptical. I know things = looked grim=20 to me.
 
Yes, the U.S. is the biggest = market, but=20 the growth rates in the coming decades will be highest in China, Asia = (ex-Japan)=20 and India and I'm just looking ahead and wondering how a US based = investor can=20 benefit from this.
 
Jon
----- Original Message -----
From:=20 Tom=20 Worley
Sent: Saturday, February 22, = 2003 2:19=20 PM
Subject: Re: [CANSLIM] Foreign = Markets=20 CANSLIM?

Jonathan,
 
I monitor daily all global exchanges, but have = done=20 little investing outside the USA. My reasons are pretty basic, I have = too=20 little time to keep up with politics, economics, exchange rates, etc. = right=20 here. Trying to obtain and stay current on these matters (which I deem = important to me in assessing "M") in any foreign country, much less a = foreign=20 region of many countries, many of which may be unstable and subject to = rapid=20 political change, would be too much except as a full time=20 occupation.
 
Additionally, DGO remains my data source of = choice for=20 the moment, and they provide very little coverage of foreign stocks. = The=20 different accounting systems as well deter me from foreign companies, = as well=20 as the lack of regulation and financial reporting = required.
 
As you note, unless the company was listed on = a US=20 exchange, there are the added difficulties of opening an account in = another=20 country (and reporting it on your tax return as well), not to mention = the=20 additional risk of foreign exchange rate changes. The US economy = remains the=20 biggest (and I believe the strongest / healthiest / most likely to = recover=20 first), and I would expect other economies to trail when true recovery = finally=20 begins. I would not want to have my money trapped in yen, or baht, or = francs,=20 or pounds, or whatever, while the US markets finally take = off.
 
The decades of research that went into the = development=20 and refinement of CANSLIM was mostly done on US stocks. While in = theory I see=20 no reason why it could not be applied elsewhere, a lot of the tools = are=20 lacking even for back testing, and the risks and difficulties are=20 greater.
 
----- Original Message -----=20
From: Jonathan=20 Lobatto
Sent: Saturday, February 22, 2003 2:08 PM
Subject: [CANSLIM] Foreign Markets CANSLIM?

As has been discussed here = for a very=20 long time, "M" stinks. However, there have been foreign markets = (China=20 and a few others) where "M" has actually been pretty decent the past = year or=20 so. I'm wondering if anyone has tried applying CANSLIM in a foreign = market?=20 After all, there's no philosophical reason (as opposed to practical = ones) that=20 it wouldn't be applicable to a non-US market. Now some will argue that = foreign=20 accounting and reporting doesn't have the same kind of transparency = that our=20 does, but after Enron (et al ad nauseum), what appears transparent was = in=20 reality totally obscured anyway.
 
If one wanted to try, the = first thing=20 that would be handy would be a database that ranks the RS and EPS of = foreign=20 stocks. I know that it's possible to get this info for ADRS, but I'm = sure=20 there are hundreds of non-ADrs that would be suitable candidates also. = Of=20 course actually purchasing the stocks presents other difficulties, but = it may=20 be worth at least discussing. So, any ideas?
 
Jon
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