From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #386 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 Wednesday, September 16 1998 Volume 02 : Number 386 In this issue: [CANSLIM] Buying Ex-Momentum Stocks Re: [CANSLIM] Breakout in AVEI [CANSLIM] The Long And The Short Of It [CANSLIM] Part Two - Dave Cameron [CANSLIM] Top 50 Financial Sites [CANSLIM] Top 50 Financial Sites Re: [CANSLIM] Cup and Handle Article [CANSLIM] Investment Advice - NonCANSLIM Re: [CANSLIM] Cup and Handle Article Re: [CANSLIM] The Long And The Short Of It Re: [CANSLIM] The Long And The Short Of It Re: [CANSLIM] The Long And The Short Of It [CANSLIM] Killer CASLI Scan Results Fw: [CANSLIM] Investment Advice - NonCANSLIM [CANSLIM] Killer CASLI Scan Results Re: Fw: [CANSLIM] Investment Advice - NonCANSLIM Re: [CANSLIM] Killer CASLI Scan Results Re: Fw: [CANSLIM] Investment Advice - NonCANSLIM How far back is the "high" (was Re: [CANSLIM] The Long And The Short Of It) ---------------------------------------------------------------------- Date: Tue, 15 Sep 1998 21:12:24 -0700 (PDT) From: dbphoenix Subject: [CANSLIM] Buying Ex-Momentum Stocks Ran across a very interesting two-part article on when and if and how to buy a trashed momentum stock. http://www.pathfinder.com/money/earnings/mstory3.html - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Wed, 16 Sep 1998 00:29:26 EDT From: Ssingh@aol.com Subject: Re: [CANSLIM] Breakout in AVEI In a message dated 9/15/98 12:32:08 AM Eastern Daylight Time, jo@koyote.com writes: << Subj: Re: [CANSLIM] Breakout in AVEI Date: 9/15/98 12:32:08 AM Eastern Daylight Time From: jo@koyote.com (Joe Scott) Sender: owner-canslim@lists.xmission.com Reply-to: canslim@lists.xmission.com To: canslim@lists.xmission.com no volume,, only 1,961K average is 1.729K just up on a good day.. looks to me anyway, joe >> good earnings!! good company to own. dont know a thing joe Surindra - - ------------------------------ Date: Tue, 15 Sep 1998 21:28:35 -0700 (PDT) From: dbphoenix Subject: [CANSLIM] The Long And The Short Of It OSTE looks like it might be getting ready to do something. Oddly enough, it's done almost the exact opposite of the market all year. And there appears to be an ascending right triangle (ooo). As for a potential short, LHSG seems to be choking. Comments? - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Wed, 16 Sep 1998 06:37:53 -0400 From: Jeffry White <"postwhit@sover.net"@sover.net> Subject: [CANSLIM] Part Two - Dave Cameron > Date: Mon, 14 Sep 1998 22:59:03 -0500 > From: Dave Cameron > Subject: Re: [CANSLIM] Part One - Group Strength; Part Two - NonCANSLIM > > Jeffry, old man, > > With all the comments this message generated, I can hardly WAIT to see > Part Two. How many parts are there? Is this a mini-series? Haven't the foggiest what you are talking about, Dave. Posted a comment/question to Tom W. under a heading which already existed, he responded...that's that. Old Man. - - ------------------------------ Date: Wed, 16 Sep 1998 07:46:55 -0500 (CDT) From: mckeener@ix.netcom.com Subject: [CANSLIM] Top 50 Financial Sites Thanks, Dan Musicant. Will peruse. Mary Keener - - ------------------------------ Date: Wed, 16 Sep 1998 07:49:42 -0500 (CDT) From: mckeener@ix.netcom.com Subject: [CANSLIM] Top 50 Financial Sites Thanks, Patrick, for the site. Will peruse. Mary Keener - - ------------------------------ Date: Wed, 16 Sep 1998 08:56:49 -0400 From: Peter Newell Subject: Re: [CANSLIM] Cup and Handle Article DB, How do you feel about the option of buying on having a buy stop limit so that you have a shot at it and then checking volume(or if your watching check volume and guess) the limit obviously protects you from big gaps. Peter - ---------- > From: dbphoenix > To: canslim@lists.xmission.com > Subject: Re: [CANSLIM] Cup and Handle Article > Date: Tuesday, September 15, 1998 11:41 PM > > < WON's > book is that the top of the right side of the cup is lower than the left > side and that the pivot point is 1/8 a point above this with a > breakout of > 50% increase in volume.>> > > Unfortunately, a breakout on a 50% increase in volume is likely to > blow through that 1/8 point in seconds. In fact, the stock may > already be extended before you even know the breakout has occurred > (assuming it didn't take place before the market even opened). If you > don't want to buy the handle before the breakout, it might be prudent > to wait till the handle is tested rather than buy too far into the > breakout. > > --Db > > > > > > _________________________________________________________ > DO YOU YAHOO!? > Get your free @yahoo.com address at http://mail.yahoo.com > > > - - - ------------------------------ Date: Wed, 16 Sep 1998 08:08:12 -0500 (CDT) From: mckeener@ix.netcom.com Subject: [CANSLIM] Investment Advice - NonCANSLIM Dean Edwards, Excellent post. Much needed by me and possibly others. Does O'Neil mention the books he finds the best, besides Baruch's autobiography? Mary Keener - - ------------------------------ Date: Wed, 16 Sep 1998 06:16:34 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] Cup and Handle Article <> Depends on how much service your broker is willing or able to provide. If you can tell him at what point you want to buy on what kind of volume, this is a plan that several people I correspond with have suggested and/or use. But if you like the volume pattern in the handle, you can also take a partial position with a tight sell-stop. I didn't see the IBD article, but if the stock has retraced at least half its descent and is within 10-15% of the left rim and is in a minimum three-week handle, I don't see the handle as particularly perilous if the wind is at your back. - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Wed, 16 Sep 1998 09:23:21 -0400 From: Craig Griffin Subject: Re: [CANSLIM] The Long And The Short Of It Db-- Agreed LHSG looks like a beautiful short to me based on its chart. It formed a double top, broke below the 50dma, bounced from a break below the 200dma, and is now breaking lower after hitting the 50dma from the underside. Also 50dma is now in a downtrend. Note well, all of the above is from someone with almost no experience in shorting. But I have done a bit of thinking about what a chart should look like and this one seems like the textbook. OSTE, trying to move up but handle seems too low in "cup". Needs to move up 15% from here before threatening new high ground. I think it needs a while to finish out its formation. Too low in the formation, even for one of my "low level breakouts". Although it is on my "close" watchlist (ie. nearly ready). Best Regards, Craig At 09:28 PM 9/15/98 -0700, you wrote: > > >OSTE looks like it might be getting ready to do something. Oddly >enough, it's done almost the exact opposite of the market all year. >And there appears to be an ascending right triangle (ooo). > >As for a potential short, LHSG seems to be choking. Comments? > >--Db > > >_________________________________________________________ >DO YOU YAHOO!? >Get your free @yahoo.com address at http://mail.yahoo.com > > >- > > - - ------------------------------ Date: Wed, 16 Sep 1998 07:05:06 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] The Long And The Short Of It <> Depends on where you place the left rim of the cup, if this is a cup. Before I left AOL, there was some discussion about what constitutes the "old high", that is, whether it is an all-time high, 52-week high, or YTD high. Hardly anyone advanced the case of the all-time high, particularly if it was years in the past. But there was an interesting debate between the 52-week and YTD advocates, the latter proposing that--largely due to tax-selling--much of the overhead supply may no longer be there if the high was before January. In the case of OSTE, this would put the "high" at 27.5, not 32.5. There are also the 200 and 50d MAs to consider. I'm also not particularly crazy about the slope in July, but I do like that selling climax at the bottom. As far as the volume pattern goes, particularly the up volume and the volume in the handle, it looks much better on a weekly chart. Food for thought. - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Wed, 16 Sep 1998 10:15:25 -0400 From: Craig Griffin Subject: Re: [CANSLIM] The Long And The Short Of It Db- At 07:05 AM 9/16/98 -0700, you wrote: >In the >case of OSTE, this would put the "high" at 27.5, not 32.5. I agree, I would be inclined to buy a breakout at 27.5 with 150%adv. >I'm also not particularly crazy about the slope in July, but I do like >that selling climax at the bottom. As far as the volume pattern goes, >particularly the up volume and the volume in the handle, it looks much >better on a weekly chart. Agree completely. Nice selling climax. Weekly volume looks very constructive. Best Regards, Craig - - ------------------------------ Date: Tue, 15 Sep 1998 19:40:41 -0700 From: Tim Fisher Subject: [CANSLIM] Killer CASLI Scan Results Here's my results based on August data. They look best in HTML; I will not send in text anymore. I ignored shares out - only two biggies cut the mustard anyway. The rest of the criteria more or less follow Db's reinterpretation of HTMMIS to include D/E and ROE.



COMPANYTickExchIndustryTREND EPGRQEPS 0/-4QEPS -1/-524WK PCHG%SHARES OUT% INSTITUT% INSIDERS20D AVEVOLQEPS -2/-6QEPS -2/-7ROED/EquityEPS GR %0Q %-1Q %24wk %    GRSRSTotal Score
   Thq Inc        THQI      NSDQ  COMP-SOFTWARE199164617-311541732222334254510.098%92%99%85%85%92%
   Symix Systems  SYMX      NSDQ  COMP-SOFTWARE9238125362338597553333200.094%68%88%88%90%85%
   Timberline SoftTMBS      NSDQ  COMP-SOFTWARE5862233-117291745380133250460.085%78%95%79%76%83%
   Gemstar Intl   GMSTF     NSDQ  ELEC PRODS-MISC66443794736327015155601900620.088%71%62%90%93%81%
   Anchor Gaming  SLOT      NSDQ  LEISURE&REC/GMG4682111-15134255145305100105360.088%88%88%67%69%80%
   Jack Henry AsscJKHY      NSDQ  COMP-INTEGT SYS326129241935281392153015350.065%77%57%95%97%78%
   Paychex Inc    PAYX      NSDQ  COMP-SERVICES36343314163581172588538350.071%66%59%92%95%76%
   First Years IncKIDD      NSDQ  CON PRD-MISC DISCREC432838-15104820515504826200.087%63%71%68%70%72%
   Labor Ready IncLBOR      NSDQ  BUS SVCS47145126-3628401616767752075141170.176%96%92%41%35%68%
   Peoplesoft Inc PSFT      NSDQ  COMP-SOFTWARE806786-382275724515926188109320.092%79%79%47%32%66%
   Pac Gateway ExcPGEX      NSDQ  UTIL-TELEPHONE1395669-391942222910154642200.2100%90%94%13%30%65%
   Imperial Bcp   IMP       NYSE  BANKS-WEST1055060-373943141158956564180.999%89%91%12%32%65%
   Buckle Inc     BKE       NYSE  RETAIL-APP/SHOE3370113-36222935720806860270.082%83%90%30%35%64%
   Rexall Sundown RXSD      NSDQ  MED-DRUGS599360-5272484974598573260.087%89%80%27%15%60%
   Fastenal       FAST      NSDQ  BLDG PRD-RT/WHL343243-353845274183552930280.083%69%74%32%36%59%


Tim Fisher, 1995 President, Pacific Fishery Biologists
Ore-ROCK-On Rockhounding Web Site
PFB Information
WWW http://OreRockOn.com - - ------------------------------ Date: Thu, 17 Sep 1998 03:33:31 +1200 From: "Dean Edwards" Subject: Fw: [CANSLIM] Investment Advice - NonCANSLIM Some of the the books that O'Neil has mentioned and that I have commited to memory as having read them, for that reason: The Battle for Investment Survival by Gerald M. Loeb One up on Wall Street by Peter Lynch How to Trade in Stocks by Jesse Livermore Reminiscences of a Stock Operator by Jesse LeFevere Read every book by traders to study where they lost money. You will learn nothing relevant from their profits. (the markets adjust). You will learn from their losses. It never ceases to amaze me when someone comes forward and claims they have discover a new "magic trading formula" indicator for the stock market. The best thing you can do, is keep it to yourself! Just an interesting footnote: A lot of people think that Jesse LeFevere was just a pseudonym for Jesse Livermore. According to the book "Crashes" it is not! Quoting the author's book: "My good friend J.M had seen it all. He was one of the old-timers, who had operated in the Chicago grain 'pits' with Jesse Livermore. In his breast pocket J.M always carried a small book called Reminiscences of a Stock Operator. The author was Jesse LeFevere, who became a close friend of Jesse Livermore's, and the book was a tribute to Livermore and his biography. Inside J.M's copy was the inscription: " To John, the best trader I have ever known.' It was signed Jesse L. Livermore' An example of the market wisdom of this trader. Author: "You don't seem to have entered the price you paid for those shares in your book. Or when.' JM: 'No! Never, never! As soon as I buy a share, I try to forget what I paid for it. The last thing in the world I ever want to do is think about what I paid for these things. If I do, it might influence my judgement. The stock market isn't interested in what I paid for those shares. The only thing that counts is how the shares are behaving now!" "There are many who claim years of experience. In most cases those years of experience represent little more than a few months experience repeated again and again over the years. Twenty years experience equal to one years experience repeated twenty times is par for the course." What I'm trying to illustrate is that investment books are produced to fool the public. There is another book that escapes me for the moment but its called something like "How I made a Million Dollars in the Stock Market" well just on that title alone, it would sell like hot cakes. I am now expressing my opinion. This fraud/con man wrote a book to fool the masses! Don't believe everything you read on the market. Like the stock market its a jungle out there. The role of the public is to be eaten. - -----Original Message----- From: mckeener@ix.netcom.com To: canslim@xmission.com Date: Thursday, September 17, 1998 1:09 AM Subject: [CANSLIM] Investment Advice - NonCANSLIM >Dean Edwards, > >Excellent post. Much needed by me and possibly >others. > >Does O'Neil mention the books he finds the best, >besides Baruch's autobiography? > >Mary Keener > > > > > > > > >- > - - ------------------------------ Date: Sun, 13 Sep 1998 09:08:54 -0700 From: Tim Fisher Subject: [CANSLIM] Killer CASLI Scan Results Here's my results based on August data. They look best in HTML; I will not send in text anymore. I ignored shares out - only two biggies cut the mustard anyway. The rest of the criteria more or less follow Db's reinterpretation of HTMMIS to include D/E and ROE.



COMPANYTickExchIndustryTREND EPGRQEPS 0/-4QEPS - -1/-524WK PCHG%SHARES OUT% INSTITUT% INSIDERS20D AVEVOLQEPS - -2/-6QEPS - -2/-7ROED/EquityEPS GR %0Q %-1Q %24wk %    GRSRSTotal Score
   Thq Inc        THQI      NSDQ  COMP-SOFTWARE199164617-311541732222334254510.098%92%99%85%85%92%
   Symix Systems  SYMX      NSDQ  COMP-SOFTWARE9238125362338597553333200.094%68%88%88%90%85%
   Timberline SoftTMBS      NSDQ  COMP-SOFTWARE5862233-117291745380133250460.085%78%95%79%76%83%
   Gemstar Intl   GMSTF     NSDQ  ELEC PRODS-MISC66443794736327015155601900620.088%71%62%90%93%81%
   Anchor Gaming  SLOT      NSDQ  LEISURE&REC/GMG4682111-15134255145305100105360.088%88%88%67%69%80%
   Jack Henry AsscJKHY      NSDQ  COMP-INTEGT SYS326129241935281392153015350.065%77%57%95%97%78%
   Paychex Inc    PAYX      NSDQ  COMP-SERVICES36343314163581172588538350.071%66%59%92%95%76%
   First Years IncKIDD      NSDQ  CON PRD-MISC DISCREC432838-15104820515504826200.087%63%71%68%70%72%
   Labor Ready IncLBOR      NSDQ  BUS SVCS47145126-3628401616767752075141170.176%96%92%41%35%68%
   Peoplesoft Inc PSFT      NSDQ  COMP-SOFTWARE806786-382275724515926188109320.092%79%79%47%32%66%
   Pac Gateway ExcPGEX      NSDQ  UTIL-TELEPHONE1395669-391942222910154642200.2100%90%94%13%30%65%
   Imperial Bcp   IMP       NYSE  BANKS-WEST1055060-373943141158956564180.999%89%91%12%32%65%
   Buckle Inc     BKE       NYSE  RETAIL-APP/SHOE3370113-36222935720806860270.082%83%90%30%35%64%
   Rexall Sundown RXSD      NSDQ  MED-DRUGS599360-5272484974598573260.087%89%80%27%15%60%
   Fastenal       FAST      NSDQ  BLDG PRD-RT/WHL343243-353845274183552930280.083%69%74%32%36%59%


Tim Fisher, 1995 President, Pacific Fishery Biologists
Ore-ROCK-On Rockhounding Web Site
PFB Information
WWW http://OreRockOn.com - - ------------------------------ Date: Wed, 16 Sep 1998 19:06:34 +0200 From: Johan Van Houtven Subject: Re: Fw: [CANSLIM] Investment Advice - NonCANSLIM >What I'm trying to illustrate is that investment books are produced to fool >the public. >There is another book that escapes me for the moment but its called >something like "How I made a Million Dollars in the Stock Market" well just >on that title alone, it would sell like hot cakes. I am now expressing my >opinion. This fraud/con man wrote a book to fool the masses! Don't believe >everything you read on the market. Like the stock >market its a jungle out there. The role of the public is to be eaten. 'How I made $2,000,000 in the stock market' is the title of an excellent book written by Nicolas Darvas. When I read the book I recognized several 'rules' that are also found in WON's book. Since Darvas' book is older than WON's, I assume O'Neil got these ideas from Darvas. Here's William O'Neil's recommended reading list: How To Make Money In Stocks - William O'Neil The Battle For Investment Survival - G.M. Loeb Tape Reading And Market Tactics - H. Neill How To Trade In Stocks - J. Livermore Reminiscences Of A Stock Operator - E. Lefevre The Sophisticated Investor - Burton Crane How I Made Two Million Dollars In The Stock Market - N. Darvas My Own Story - Bernard Baruch One Up On Wall Street - Peter Lynch How To Buy Stocks - Louis Engel Johan Van Houtven / CLICK! N.V. - - ------------------------------ Date: Wed, 16 Sep 1998 11:31:40 -0600 From: jeff@scrooge.csd.sdl.usu.edu (Jeff Salisbury) Subject: Re: [CANSLIM] Killer CASLI Scan Results Canslim'ers, I just reposted Tim Fisher's message. I think this one I reposted is formatted as Tim desire's it -- at least it worked for me when I received the message from the canslim list software. Tim has made a herculean effort to share this information with the group. Usually, I don't permit HTML postings to the group. However, I am going to experiment a bit. I suspect that most of you non-digest subscribers will be able to read Tim's message just fine. However, I also suspect that non of you digest readers will be able to read it. I will appreaciate any feed-back. If Tim's message appears badly formated to you, try loading the following URL in your browser: ftp://ftp.xmission.com/pub/users/m/mcjathan/canslim/fisher.html Best Regards, Jeff - canslim list admin/owner - - ------------------------------ Date: Wed, 16 Sep 1998 20:46:17 -0800 From: "Patrick Wahl" Subject: Re: Fw: [CANSLIM] Investment Advice - NonCANSLIM > Reminiscences of a Stock Operator > by Jesse LeFevere Actually, its by Edwin Lefevre. > Just an interesting footnote: A lot of people think that Jesse LeFevere > was just a pseudonym for Jesse Livermore. According to the book "Crashes" > it is not! I think it is generally agreed that Reminiscences... is about Jesse Livermore. - - ------------------------------ Date: Wed, 16 Sep 1998 21:07:33 -0400 From: "Tom Worley" Subject: How far back is the "high" (was Re: [CANSLIM] The Long And The Short Of It) FWIW, the only high I subscribe to or consider is the 52 wk high. Several reasons: every computer system I have ever used as a broker also uses this, thus a client asking what is the high will be given the 52 wk high as an answer; second, who would trust a YTD high in Feb, Mar, or even April given the volatility and seasonality of that period; third, most websites I have used online also use 12 months vs any other time period; fourth, if the latest high was achieved during the previous fall, just before the tax related selling occurred, it still says something about the stock's strength, and I wouldn't want to disregard that until I got to a comparative period, which would be 12 months later. Likewise, any high past a year ago is just too historic for me to be worried about. How many investors in this mkt do you know that are holding on to most of their growing stocks, or volatile ones, for more than a year? In this climate, a lot can happen to a company's earnings and sales in much less than a year, forget several years. As I said, FWIW. Tom W - -----Original Message----- From: dbphoenix To: canslim@lists.xmission.com Date: Wednesday, September 16, 1998 10:05 AM Subject: Re: [CANSLIM] The Long And The Short Of It >Before I left AOL, there was some discussion about what constitutes >the "old high", that is, whether it is an all-time high, 52-week high, >or YTD high. Hardly anyone advanced the case of the all-time high, >particularly if it was years in the past. But there was an >interesting debate between the 52-week and YTD advocates, the latter >proposing that--largely due to tax-selling--much of the overhead >supply may no longer be there if the high was before January - - ------------------------------ End of canslim-digest V2 #386 ***************************** 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.