From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #3431 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 Thursday, July 17 2003 Volume 02 : Number 3431 In this issue: Re: [CANSLIM] Slightly Off Topic - Mutual Fund Newsletters [CANSLIM] What works in this market? RE: [CANSLIM] Market Wizards RE: RE: [CANSLIM] Market Wizards Re: Trailing stops and taking profits (was: RE: [CANSLIM] AAII letter to the ... RE: [CANSLIM] What works in this market? Re: Trailing stops and taking profits (was: RE: [CANSLIM] AAII letter to the editor) RE: Trailing stops and taking profits (was: RE: [CANSLIM] AAII letter to the editor) [CANSLIM] BCGI big dip [CANSLIM] auth 726e8520 subscribe canslim-digest Bernard.Ressler@anritsu.co m Re: [CANSLIM] BCGI big dip ---------------------------------------------------------------------- Date: Wed, 16 Jul 2003 19:39:12 -0700 From: "Chris Mc" Subject: Re: [CANSLIM] Slightly Off Topic - Mutual Fund Newsletters This is a multi-part message in MIME format. - ------=_NextPart_000_000E_01C34BD1.EEBA7130 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable You may also want to take a look at NoLoad FundX at www.fundx.com. They = use an upgrading system of following market leadership and I have had = good results. They are not strictly Fidelity but do list Fidelity funds = and show their 3 top picks. Chirs Mc ----- Original Message -----=20 From: John P=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, July 16, 2003 3:47 PM Subject: [CANSLIM] Slightly Off Topic - Mutual Fund Newsletters Forgive me for getting off topic but I value the opinion of this = group. I am not confortable enough with CANSLIM to use it for all my = investments so I keep some money in Mutual Funds. Does any use/recommend = a good newsletter for Fidelity Funds, preferably something with a little = market timing. Thanks John P. - ------=_NextPart_000_000E_01C34BD1.EEBA7130 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
You may also want to = take a look at=20 NoLoad FundX at www.fundx.com.  They use=20 an upgrading system of following market leadership and I have had good=20 results.  They are not strictly Fidelity but do list Fidelity funds = and=20 show their 3 top picks.
 
Chirs Mc
----- Original Message -----
From:=20 John = P
To: canslim@lists.xmission.com=
Sent: Wednesday, July 16, 2003 = 3:47=20 PM
Subject: [CANSLIM] Slightly Off = Topic -=20 Mutual Fund Newsletters

Forgive me for getting off topic but = I value the=20 opinion of this group. I am not confortable enough with CANSLIM to use = it for=20 all my investments so I keep some money in Mutual Funds. Does any=20 use/recommend a good newsletter for Fidelity Funds, preferably = something with=20 a little market timing.
 
Thanks
 John=20 P.
- ------=_NextPart_000_000E_01C34BD1.EEBA7130-- - - - -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: Thu, 17 Jul 2003 12:48:22 -0400 From: "Pritish Shah" Subject: [CANSLIM] What works in this market? I was going through and reviewing all my successful buys and I found the = following 1) These are micro to mid cap companies (Notice: none of them were large = cap) 2) They are hitting all-time highs (this is becoming a key factor for me = to buy anything) Example stocks: TCHC, TARO, APPX, WFSI, ANSI, ESI, FWHT For some odd reason, I was expecting the big winners to be in the top 50 = industry sectors. WFSI, AMHC, TCHC etc are examples of such stocks that = are not in the top industries. ANSI, APPX, TARO, FWHT, ESI are in the top = 20. Has anybody else seen such commonalities? If yes, please share. One of = WONs recommendation is to consider only buying stocks that are no more = than 8 years old and coming out with new products. Pritish - - - -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: Thu, 17 Jul 2003 10:03:09 -0700 (PDT) From: Dave Cameron Subject: RE: [CANSLIM] Market Wizards I own all 4 of these books; would highly recommend all from the psychology standpoint. In the "New Market Wizards", Blair Hull was interviewed. I interviewed for a position with his company. I was rejected for a position. Didn't have the right mindset. In retrospect, I agree. - --- Katherine Malm wrote: > > Market Wizards books (Jack Schwager): > > http://www.amazon.com/exec/obidos/ASIN/0887306101/qid=1058397229/sr=2-2/ref=sr_2 > _2/103-9921310-1178225 > > http://www.amazon.com/exec/obidos/ASIN/0887306675/qid=1058397229/sr=2-3/ref=sr_2 > _3/103-9921310-1178225 > > http://www.amazon.com/exec/obidos/ASIN/0066620597/qid=1058397229/sr=2-1/ref=sr_2 > _1/103-9921310-1178225 > > Also mentioned today in the discussion on money management (Van > Tharp): > > http://www.amazon.com/exec/obidos/ASIN/0070647623/qid=1058397390/sr=2-1/ref=sr_2 > _1/103-9921310-1178225 > > -----Original Message----- > From: owner-canslim@lists.xmission.com > [mailto:owner-canslim@lists.xmission.com]On Behalf Of Roger > Sent: Wednesday, July 16, 2003 5:01 PM > To: canslim@lists.xmission.com > Subject: Re: RE: [CANSLIM] Market Wizards > > > I missed something about the 3 books I got the Market w\Wizard > by David Ryan > (I believe) but dont know what the titles of the other 2 are. > Would someone > help? > ----- Original Message ----- > From: David Taggart > To: canslim@lists.xmission.com > Sent: Wednesday, July 16, 2003 10:02 AM > Subject: RE: RE: [CANSLIM] Market Wizards > > > All three Market Wizard books are excellent I dont know of a > good trader > that doesnt reccomend them. You can get all 3 in paperback for > like 15 a book. > -----Original Message----- > From: owner-canslim@lists.xmission.com > [mailto:owner-canslim@lists.xmission.com]On Behalf Of France > Sent: Wednesday, July 16, 2003 1:40 PM > To: canslim@lists.xmission.com; canslim@lists.xmission.com > Subject: Re: RE: [CANSLIM] Market Wizards > > > David, > > What is the "Market Wizards" you refer to? Is this a book and > if so, could > you send me a link with more information on it. Has anyone else in > the group > read this book that could offer opinions on its value? > > Kelly > -----Original Message----- > From: Dave Stem [mailto:canslimdave2003@yahoo.com] > Sent: Wednesday, July 16, 2003 2:18 AM > To: canslim@lists.xmission.com > Subject: RE: [CANSLIM] Market Trend Charts > > > Pritish... > > A good idea is to focus almost solely on risk and let the > profits take > care of themselves... which is what the 2% or less risk rule allows > you to do. > In his book, WON talks about how if you are alert, you will > actually be out of > many stocks before the 7-8% loss because you will be able to tell > when a stock > is not acting right. The 7-8% loss is the maximum. It's not a > blind rule to > follow. > > David Ryan, in Market Wizards, said he would sell half of > any position > that fell back to the pivot point. I highly recommend the > interview with him. > He talks very specifically about how to trade using CANSLIM. And > he won some > sort of investing championship 3 years in a row... which is not > bad. Returns > well over 100 percent each year. > > Personally, I think if you just buy breakouts and blindly > use a 7-8% > stop over the next few years, there is a good chance your portfolio > will be > eaten away... particularly if you are so naive as I was last > year... to buy many > stocks simultaneously without waiting for profits to show up first. > > Dave > > > Pritish Shah wrote: > I am still learning and the idea of "8% loss in a stock > should not be > greater than 2% of total portfolio" is a great. So at minimum, I > should not > invest more than 1/12th of my total portfolio in any individual > stock. > > - ------------------------------------------------------------------------ > Do you Yahoo!? > SBC Yahoo! DSL - Now only $29.95 per month! > ===== Dave Cameron dfcameron@yahoo.com __________________________________ Do you Yahoo!? SBC Yahoo! DSL - Now only $29.95 per month! http://sbc.yahoo.com - - - -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: Thu, 17 Jul 2003 10:04:23 -0700 (PDT) From: Dave Cameron Subject: RE: RE: [CANSLIM] Market Wizards Actually, Patrick makes a good point. I agree that the 3rd is the weakest of the three. The best is the initial "Market Wizards". "The New Market Wizards" runs a close second. I'd get Van Tharp's book before moving on to book #3. - --- Patrick Wahl wrote: > > > On 16 Jul 2003 at 14:02, David Taggart wrote: > > > All three Market Wizard books are excellent I dont know of a good > trader > > that doesnt reccomend them. You can get all 3 in paperback for > like 15 a > > book. > > (this is a repeat of what I said a couple years ago, but probably a > new > person or two on the list since then ) > > I liked the first two, by the third one, Stock Market Wizards, I > found it was > getting very familiar and I didn't get anything out of it. People > talk > primarily about general investing rules - cut your losses, don't > take a big > loss, the stuff that was discussed in the first two. One of the > guys he > interviewed, if I remember correctly, uses a few patterns, but not > only > would this stiff not describe the patterns, he would not give out > the names > he has for the patterns for fear of misleading people. > > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. ===== Dave Cameron dfcameron@yahoo.com __________________________________ Do you Yahoo!? SBC Yahoo! DSL - Now only $29.95 per month! http://sbc.yahoo.com - - - -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: Thu, 17 Jul 2003 13:18:05 -0400 From: Hong Hsu Subject: Re: Trailing stops and taking profits (was: RE: [CANSLIM] AAII letter to the ... jans, Many thanks. This group is great group, especially having several very experienced and knowledgeable peoples on board like you, Katherine and others. -Hong Spencer48@aol.com wrote: >Hong: > > I just want to add two comments to Katherine's reply. 1) Comparitive RS >gives a history of how the stock is doing compared to the market. The >strength of the stock as compared to the market can be seen in its graphic RS line. > 2) WON puts a lot of value in the comparitive RS line (it is featured on >his DGO graphs). He has said in IBD before that the comparitive RS line can >give you a clue to the strength of a leading stock. For instance, you have 2 >leading stocks, one of which you are considering buying, and both are >beginning to consoidate. "A" stock's RS line is consolidating along with the stock; >but "B"'s RS line is rising. Choose to purchase the latter. > >jans > > > >In a message dated 7/16/2003 12:41:47 PM Eastern Daylight Time, >kmalm@earthlink.net writes: > ><< Your question: > "Isn't the Comparative RS just mimic price/volume action? So it doesn't > give any new info." > > Answer: > Absolutely not. First, the comparative RS does not consider volume, just > price. The comparative RS calculation takes the stock's price on any one day > and divides it by the value of the SPX (S&P500 index) on that same day. This > is the reason why the RSLine (comparative RS) does not have a scale. This > ratio is then viewed over time to see how this particular stock is doing > against the market as a whole. For example, you can have a stock rising in > price and still have a declining RSLine. Why? Because the stock is not > rising as quickly as the market. Conversely, you can have a stock falling > in price and still have a rising RSLine. Why? Because the stock may be > falling at a slower rate than the market is falling. This is a very powerful > tool and I place far more importance on it than the RSRank itself, as it is > not muddied by the weird behavior inherent in ranking systems. >> > >- >-To subscribe/unsubscribe, email "majordomo@xmission.com" >-In the email body, write "subscribe canslim" or >-"unsubscribe canslim". Do not use quotes in your email. > > > - -- < As a computer I find your faith in technology amusing. - - - -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: Thu, 17 Jul 2003 12:25:23 -0500 From: "Katherine Malm" Subject: RE: [CANSLIM] What works in this market? Hi Pritish, My general observation on industry groups is that mining specifically in "top" industry groups misses the move in the leadership in the group itself. This is particularly important during market periods where leadership is changing (sideways markets). That's primarily because the same general monies are staying in the market, but are rotating from one group to another as the underlying attractiveness of that particular group changes. During secular bulls, where more and more money is constantly being pumped into the market (for example, late 90's), the leadership tends not to change as often, so mining only among the top groups isn't as problematic. I view industry action as a means for (1) assessing the overall risk in the group itself based on the action of the current leaders and (2) supplementing a bottoms-up approach to mining which looks first for technical strength in the stock itself, independent of group action. I never use it to restrict my initial pass at candidates. All in all, I consider the most important factor in mining for CANSLIM candidates is to find strength in the stock and in the business itself. These leaders may (and often do) come from industries that have lower rankings, but the action of the leaders *pulls* the remainder of the group along for the ride. This happens even in non-CANSLIM groups such as cyclicals, etc., so it's still up to us to use selection criteria to also find those new leaders that possess the strongest CANSLIM characteristics. Underlying all the fundamental numbers and technical attributes is a company with a growth "story." This company has strong competitive advantage, unique products/services, a fresh perspective on an old market, a knack for translating invested resources into profits, and a management team that does this relentlessly over long periods of time. Sometimes, there is something unique in world events that creates these growth opportunities in a particular industry. For example, the sudden need for heightened security around the world. Sometimes it's something unique about the business itself that drives the change within the industry. For example, the manner in which Home Depot redefined the home improvements retail business or the way MacDonald's created the "technological hamburger" and the fast food industry. That's why newer companies tend to be good CANSLIM candidates. They tend to be fresh faces with a fresh spin on the industry, the markets they serve, the products/services they offer, etc. These also tend to be small to mid-cap companies. That doesn't mean that a big cap company can't possess these characteristics. It happens every now and then when a big behemoth reinvents themselves. There are also times in the market where large cap is favored for it's apparent lower risk and/or for the dividends that often accompany these investment vehicles. Technicals such as high RSRanks or stocks making new highs are simply ways of getting one's eyeballs on the stocks that are showing outperformance to the market. Reading the chart itself gives one a clearer view of price/volume action, reflecting the manner in which the market is perceiving value in the stock. Due diligence lets one determine what makes the business tick and whether it stacks up against the CANSLIM yardstick in a way that is acceptable. Katherine - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Pritish Shah Sent: Thursday, July 17, 2003 10:48 AM To: canslim@lists.xmission.com Subject: [CANSLIM] What works in this market? I was going through and reviewing all my successful buys and I found the following 1) These are micro to mid cap companies (Notice: none of them were large cap) 2) They are hitting all-time highs (this is becoming a key factor for me to buy anything) Example stocks: TCHC, TARO, APPX, WFSI, ANSI, ESI, FWHT For some odd reason, I was expecting the big winners to be in the top 50 industry sectors. WFSI, AMHC, TCHC etc are examples of such stocks that are not in the top industries. ANSI, APPX, TARO, FWHT, ESI are in the top 20. Has anybody else seen such commonalities? If yes, please share. One of WONs recommendation is to consider only buying stocks that are no more than 8 years old and coming out with new products. Pritish - - - -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: Thu, 17 Jul 2003 13:45:11 -0400 From: Hong Hsu Subject: Re: Trailing stops and taking profits (was: RE: [CANSLIM] AAII letter to the editor) > On prices, WON suggests you stick with more liquid issues that attract institutional >interest, but there is no reason why one cannot dip below these prices and find >perfectly acceptable candidates. Katherrine, Thanks a lot for helping me. A additional question. I thought that the liquid of a stock reflects the daily trading volume or total float of the stock, not price of the stock. Am I right? An example of this is LU which is below $2 now, but a lot of liquidity. I agree with you completely that some big winners had low price when they had their first B/O. Two examples of them are BLUD, CHTT back to Jan. 2002. I even think $10 low price stocks would have higher % gain than $80 high price stock. Does it hold true in general? - -Hong Katherine Malm wrote: >Hi Hong, > >Your question: >"Isn't the Comparative RS just mimic price/volume action? So it doesn't >give any new info." > >Answer: >Absolutely not. First, the comparative RS does not consider volume, just >price. The comparative RS calculation takes the stock's price on any one day >and divides it by the value of the SPX (S&P500 index) on that same day. This >is the reason why the RSLine (comparative RS) does not have a scale. This >ratio is then viewed over time to see how this particular stock is doing >against the market as a whole. For example, you can have a stock rising in >price and still have a declining RSLine. Why? Because the stock is not >rising as quickly as the market. Conversely, you can have a stock falling >in price and still have a rising RSLine. Why? Because the stock may be >falling at a slower rate than the market is falling. This is a very powerful >tool and I place far more importance on it than the RSRank itself, as it is >not muddied by the weird behavior inherent in ranking systems. > >Here's a tutorial on the RSLine you may find helpful: >http://www.breakoutwatch.com/katherine/RSLineTutorial.zip (this is a zipped >MS Word document) > >There is some additional information on the RSRank and RSLine in our chart >help file at: >http://www.breakoutwatch.com/html/chart_help.htm > >Also be sure to do a search on these subjects at investors.com. I have an >entire folder dedicated to RS and RSLine in my CANSLIM binder, collected >from years' worth of Investor's Corners and Ask Bill columns. > >Your question: >"...CMTL was under $10 with 78/93/A+. It wouldn't convince me to buy it at >that time until the end of May with noticeable volume surge. How can > you find a big winner early in general?" > >Answer: >Guidelines for mining for CANSLIM stocks are often misused in my opinion. On >prices, WON suggests you stick with more liquid issues that attract >institutional interest, but there is no reason why one cannot dip below >these prices and find perfectly acceptable candidates. However, the less the >liquidity, the more likely you are to be whipsawed with price action. You >have to be very selective about picking very good stocks if you're going to >do this. Next, on RS/EPS/SMR rankings. WON suggests that RS<70 is a laggard >stock, but there is nothing to prevent you from mining for stocks with lower >RSRankings, performing due diligence, and reading the price/volume action to >determine if these are healthy, buyable stocks. I think the IBD does a >disservice to its readers to suggest that one stick to mining for stocks at >RS>=80 or 85, as this is not what WON teaches. RSRanks jump all over the >map and can change from RS=53 to RS=80 in a matter of days. It's a chunky >measurement, so take it with a grain of salt. The RSLine will often tell you >far more about the stock's relative strength. EPS and SMR are also ranking >tools. I haven't used EPS in years and only give a nod to the SMR ranking, >instead favoring a "preponderance of evidence" look at the raw fundamentals >themselves. I want to know where the stock's strengths and weaknesses are >and evaluate them against the desirable qualities in a CANSLIM/growth >candidate. That takes a bit more work, but doesn't lock you up in the >EPS/SMR measurement shortcomings. If you choose to use them, just set the >bar lower so that you can get a look-see at possible candidates. > >Katherine > > >-----Original Message----- >From: owner-canslim@lists.xmission.com >[mailto:owner-canslim@lists.xmission.com]On Behalf Of Hong Hsu >Sent: Wednesday, July 16, 2003 9:18 AM >To: canslim@lists.xmission.com >Subject: Re: Trailing stops and taking profits (was: RE: [CANSLIM] AAII >letter to the editor) > > >Katherine, > >I really appreciate all of your effect. The explanation with the >example gave me very clear view. I bought CMTL on 5/27. Seeing price >drooping continually lead me rethink and ask my initial question. I >didn't have good sleep two days because of dropping price. > >A couple of questions: > >Isn't the Comparative RS just mimic price/volume action? So it doesn't >give any new info. > >Secondly because CANSLIM uses EPS rating, back to the end of March, the >CMTL was under $10 with 78/93/A+. It wouldn't convince me to buy it at >that time until the end of May with noticeable volume surge. How can > you find a big winner early in general? > >Many thanks, >-Hong > > > > >- >-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. > > > - -- < As a computer I find your faith in technology amusing. - - - -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: Thu, 17 Jul 2003 13:13:10 -0500 From: "Katherine Malm" Subject: RE: Trailing stops and taking profits (was: RE: [CANSLIM] AAII letter to the editor) Hi Hong, The minimum price, while not a direct reflection of liquidity, is related, according to WON. He believes that most institutions are limited to purchasing stocks $10 and above. Theoretically, you are more likely to be in stocks that are *effectively* more liquid, as the big guys are helping bid the price up. I honestly have never seen any real evidence that $10 is a cutoff for a substantial portion of the institutional investing community, so I don't know how realiable this particular guideline is. I did an interesting study this weekend that relates to your question on lower priced stocks. I took the stocks that were the best fundamentally/technically at the market low 10/10/02 (I used our "green" CE Zone to determine this, that is each stock has to have both fundamental and technical scores in the top half of all possible scores), then I looked at their performance to date. I split the group into stocks that were <$10 on 10/10 and those that were >=$10. The lower priced stocks had about 2x the performance *on average* as the >=$10 group. The group itself was comprised of a large number of stocks, so, the average was not necessarily skewed by a few super performers. I did the same thing by choosing green stocks as of the 3/17/03 follow-through day and found that once again, the <$10 stock group outperformed by about 1.5x. However, these kinds of studies are useful as a means of drawing a bead on the market, but unless done over long periods of time and under all types of market cycles, one can't draw any generalized conclusions. For the most part, in strong Bull markets, WON is correct that cheap stocks are cheap for a reason. That is, they're stinky stocks that don't attract any buying action. Coming off the bottom of a secular Bear (or in a rally within a secular Bear), I imagine that the lower prices are more reflective of the toss-em-at-any-cost attitute than they are of the underlying attractiveness of the stock and/or the business. Katherine - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Hong Hsu Sent: Thursday, July 17, 2003 11:45 AM To: canslim@lists.xmission.com Subject: Re: Trailing stops and taking profits (was: RE: [CANSLIM] AAII letter to the editor) > On prices, WON suggests you stick with more liquid issues that attract institutional >interest, but there is no reason why one cannot dip below these prices and find >perfectly acceptable candidates. Katherrine, Thanks a lot for helping me. A additional question. I thought that the liquid of a stock reflects the daily trading volume or total float of the stock, not price of the stock. Am I right? An example of this is LU which is below $2 now, but a lot of liquidity. I agree with you completely that some big winners had low price when they had their first B/O. Two examples of them are BLUD, CHTT back to Jan. 2002. I even think $10 low price stocks would have higher % gain than $80 high price stock. Does it hold true in general? - -Hong Katherine Malm wrote: >Hi Hong, > >Your question: >"Isn't the Comparative RS just mimic price/volume action? So it doesn't >give any new info." > >Answer: >Absolutely not. First, the comparative RS does not consider volume, just >price. The comparative RS calculation takes the stock's price on any one day >and divides it by the value of the SPX (S&P500 index) on that same day. This >is the reason why the RSLine (comparative RS) does not have a scale. This >ratio is then viewed over time to see how this particular stock is doing >against the market as a whole. For example, you can have a stock rising in >price and still have a declining RSLine. Why? Because the stock is not >rising as quickly as the market. Conversely, you can have a stock falling >in price and still have a rising RSLine. Why? Because the stock may be >falling at a slower rate than the market is falling. This is a very powerful >tool and I place far more importance on it than the RSRank itself, as it is >not muddied by the weird behavior inherent in ranking systems. > >Here's a tutorial on the RSLine you may find helpful: >http://www.breakoutwatch.com/katherine/RSLineTutorial.zip (this is a zipped >MS Word document) > >There is some additional information on the RSRank and RSLine in our chart >help file at: >http://www.breakoutwatch.com/html/chart_help.htm > >Also be sure to do a search on these subjects at investors.com. I have an >entire folder dedicated to RS and RSLine in my CANSLIM binder, collected >from years' worth of Investor's Corners and Ask Bill columns. > >Your question: >"...CMTL was under $10 with 78/93/A+. It wouldn't convince me to buy it at >that time until the end of May with noticeable volume surge. How can > you find a big winner early in general?" > >Answer: >Guidelines for mining for CANSLIM stocks are often misused in my opinion. On >prices, WON suggests you stick with more liquid issues that attract >institutional interest, but there is no reason why one cannot dip below >these prices and find perfectly acceptable candidates. However, the less the >liquidity, the more likely you are to be whipsawed with price action. You >have to be very selective about picking very good stocks if you're going to >do this. Next, on RS/EPS/SMR rankings. WON suggests that RS<70 is a laggard >stock, but there is nothing to prevent you from mining for stocks with lower >RSRankings, performing due diligence, and reading the price/volume action to >determine if these are healthy, buyable stocks. I think the IBD does a >disservice to its readers to suggest that one stick to mining for stocks at >RS>=80 or 85, as this is not what WON teaches. RSRanks jump all over the >map and can change from RS=53 to RS=80 in a matter of days. It's a chunky >measurement, so take it with a grain of salt. The RSLine will often tell you >far more about the stock's relative strength. EPS and SMR are also ranking >tools. I haven't used EPS in years and only give a nod to the SMR ranking, >instead favoring a "preponderance of evidence" look at the raw fundamentals >themselves. I want to know where the stock's strengths and weaknesses are >and evaluate them against the desirable qualities in a CANSLIM/growth >candidate. That takes a bit more work, but doesn't lock you up in the >EPS/SMR measurement shortcomings. If you choose to use them, just set the >bar lower so that you can get a look-see at possible candidates. > >Katherine > > >-----Original Message----- >From: owner-canslim@lists.xmission.com >[mailto:owner-canslim@lists.xmission.com]On Behalf Of Hong Hsu >Sent: Wednesday, July 16, 2003 9:18 AM >To: canslim@lists.xmission.com >Subject: Re: Trailing stops and taking profits (was: RE: [CANSLIM] AAII >letter to the editor) > > >Katherine, > >I really appreciate all of your effect. The explanation with the >example gave me very clear view. I bought CMTL on 5/27. Seeing price >drooping continually lead me rethink and ask my initial question. I >didn't have good sleep two days because of dropping price. > >A couple of questions: > >Isn't the Comparative RS just mimic price/volume action? So it doesn't >give any new info. > >Secondly because CANSLIM uses EPS rating, back to the end of March, the >CMTL was under $10 with 78/93/A+. It wouldn't convince me to buy it at >that time until the end of May with noticeable volume surge. How can > you find a big winner early in general? > >Many thanks, >-Hong > > > > >- >-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. > > > - -- < As a computer I find your faith in technology amusing. - - - -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: Thu, 17 Jul 2003 11:28:15 -0700 (PDT) From: Tomas Subject: [CANSLIM] BCGI big dip Hi All, I recently bought BCGI at BO on 07/08 for $18.89. Good fundies and good CwH. No real yellow flags that I can see. Yesterday on after hour trading, it went down about 33% due to news on a potential lost of a big customer (51% of revenue). Also, earnings release yesterday was very good. So, my question is should I know this coming? Maybe I missed some big warning signs. Maybe I should have noticed the active insider selling the last few months. Another other warning signs that I would have noticed? Or is this something that you cannot protect from? I am think there should be enough warning signs for this king of thing. Is might be another dumb question, should I just sell it now (you might be thinking "What! You have not sold it yet"). Or wait for a few days to see what happens and maybe I can get some of my loss back? Am I just been "hopeful when I should be fearful" (ie, sell and get out ASAP)? Regards, tomas __________________________________ Do you Yahoo!? SBC Yahoo! DSL - Now only $29.95 per month! http://sbc.yahoo.com - - - -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: Thu, 17 Jul 2003 11:33:49 -0700 From: "Ressler, Bernard" Subject: [CANSLIM] auth 726e8520 subscribe canslim-digest Bernard.Ressler@anritsu.co m This message is in MIME format. Since your mail reader does not understand this format, some or all of this message may not be legible. - ------_=_NextPart_001_01C34C91.F7332940 Content-Type: text/plain - ------_=_NextPart_001_01C34C91.F7332940 Content-Type: text/html Message
 
- ------_=_NextPart_001_01C34C91.F7332940-- - - - -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: Thu, 17 Jul 2003 13:37:30 -0500 From: "Gene Ricci" Subject: Re: [CANSLIM] BCGI big dip This is a multi-part message in MIME format. - ------=_NextPart_000_066E_01C34C68.921782F0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Hi Tomas, sorry to hear of your bad luck. I have to caution you to not = trade with a hard stop of some limit or another.... I see it's now down = to a 39% drop.... when does benign become terminal? Gene ----- Original Message -----=20 From: Tomas=20 To: canslim canslim=20 Sent: Thursday, July 17, 2003 1:28 PM Subject: [CANSLIM] BCGI big dip Hi All, I recently bought BCGI at BO on 07/08 for $18.89.=20 Good fundies and good CwH. No real yellow flags that I can see. Yesterday on after hour trading, it went down about 33% due to news on a potential lost of a big customer (51% of revenue). Also, earnings release yesterday was very good. So, my question is should I know this coming? Maybe I missed some big warning signs. Maybe I should have noticed the active insider selling the last few months. Another other warning signs that I would have noticed? Or is this something that you cannot protect from? I am think there should be enough warning signs for this king of thing. Is might be another dumb question, should I just sell it now (you might be thinking "What! You have not sold it yet"). Or wait for a few days to see what happens and maybe I can get some of my loss back? Am I just been "hopeful when I should be fearful" (ie, sell and get out ASAP)? Regards, tomas=20 __________________________________ Do you Yahoo!? SBC Yahoo! DSL - Now only $29.95 per month! http://sbc.yahoo.com - -To subscribe/unsubscribe, email "majordomo@xmission.com" -In the email body, write "subscribe canslim" or -"unsubscribe canslim". Do not use quotes in your email. - ------=_NextPart_000_066E_01C34C68.921782F0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Hi Tomas, sorry to hear of your bad = luck. I have=20 to caution you to not trade with a hard stop of some limit or = another.... I see=20 it's now down to a 39% drop.... when does benign become = terminal?
 
Gene
 
----- Original Message -----
From:=20 Tomas
Sent: Thursday, July 17, 2003 = 1:28=20 PM
Subject: [CANSLIM] BCGI big = dip

Hi All,

I recently bought BCGI at BO on 07/08 = for=20 $18.89.
Good fundies and good CwH.  No real yellow flags = that
I=20 can see.  Yesterday on after hour trading, it went
down about = 33% due=20 to news on a potential lost of a
big customer (51% of = revenue).  Also,=20 earnings release
yesterday was very good.  So, my question is = should=20 I
know this coming?  Maybe I missed some big = warning
signs. =20 Maybe I should have noticed the active insider
selling the last few = months.  Another other warning
signs that I would have = noticed? =20 Or is this something
that you cannot protect from?  I am think = there=20 should
be enough warning signs for this king of thing.

Is = might be=20 another dumb question, should I just sell
it now (you might be = thinking=20 "What! You have not sold
it yet"). Or wait for a few days to see = what=20 happens
and maybe I can get some of my loss back?  Am I = just
been=20 "hopeful when I should be fearful" (ie, sell and
get out=20 ASAP)?


Regards,
tomas=20

__________________________________
Do you Yahoo!?
SBC = Yahoo! DSL=20 - Now only $29.95 per month!
http://sbc.yahoo.com

-
-To = subscribe/unsubscribe, email "majordomo@xmission.com"
-In= the=20 email body, write "subscribe canslim" or
-"unsubscribe = canslim".  Do=20 not use quotes in your email.
- ------=_NextPart_000_066E_01C34C68.921782F0-- - - - -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 #3431 ****************************** 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.