From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #754 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 Friday, November 26 1999 Volume 02 : Number 754 In this issue: Re: RE:[CANSLIM]Huge Volume Screen Re: RE:[CANSLIM]How much time do you spend? Re: [CANSLIM]How much time do you spend? [CANSLIM] Divergence Re: [CANSLIM] CANSLIM Screening Approach Question Re: [CANSLIM] Has anyone set an investment goal? Brokerage House Comments (was Re: [CANSLIM] CANSLIM Screening Approach Question) Re: RE:[CANSLIM] (Tom) How much time do you spend? Re: RE:[CANSLIM] (Tom) How much time do you spend? ---------------------------------------------------------------------- Date: Fri, 26 Nov 1999 20:51:08 -0500 From: "Tom Worley" Subject: Re: RE:[CANSLIM]Huge Volume Screen Chris, Why would you ignore, in fact exclude, recent "new high" stocks? That is virtually the only group I look at (I tend to ignore industry/sector issues). A stock that has hit a high, then consolidates and bases very near the high, is a prime candidate for a breakout if its other CS characterics are also in place. There is virtually no overhead resistance, has been sufficient continued buying to offset the impatient profit takers, and all it then needs is to exhaust the supply from the sellers. One danger of focusing on stocks with heavy, single day volume is that it is often directly linked to truly surprising news. And news is a one time event, far less likely to sustain a move compared to quality fundies. Also, by requiring both a 1% move up, and that the move be at least 5/8s of a point, you are excluding all stocks that started the day below $61.375. This excludes a huge universe of stocks, esp on Nasdaq where most of the tech stocks are found. Tom Worley stkguru@netside.net chat with me at ICQ # 5568838 get ICQ software at http://www.icq.com/icqhomepage.html - -----Original Message----- From: chris dempsey To: canslim@lists.xmission.com Date: Friday, November 26, 1999 8:58 AM Subject: RE:[CANSLIM]Huge Volume Screen Rolatzi, I like your idea of screening high volume days. I only buy on high volume days. I have not been able to differentiate between 2X and 10X days. I think if you adjust the characteristics you may get a little different answer. None of us would buy into a 10X extended top because we have all read WON's book HTMMIS. Please run the following: 1. Stock >$12 before huge volume 2. ADV >90,000 3. RS 80+ 4. There could not be a new high in the past five days. (Also try this with not a new high in the past five weeks). The day of huge volume could be a new high but it does not have to be. 5. Price movement on day of huge volume must be up one % or more with a minimum of up 5/8 point. 6. Earning projections for two years out must be positive and an increase from the current year. (Can this be added). 7. Group rank should be rising or high. (Can this be added). I look forward to seeing the answers to this screen. Thanks Chris __________________________________________________ FREE Email for ALL! Sign up at http://www.mail.com - - - - ------------------------------ Date: Fri, 26 Nov 1999 21:20:45 -0500 From: "Tom Worley" Subject: Re: RE:[CANSLIM]How much time do you spend? Chris, I apologize for my delay in responding to your earlier post, but got home several hours earlier than my usual 14 or more hour day, so got some time tonight. My typical day is about 1.5 hours in the morning before work. This includes reading any email received since I got off the net around midnite or later the nite before; checking various regional mkts (principally Asia and Europe); checking current trading on my one European stock; checking futures several times for trend checking; then going thru as many charts as I have time at DGO (Daily Graphs Online). I may also take a few minutes to check my 401, as well as my bank acct. In the evening, firing up the pea sea as soon as I walk in the door is standard, by the time I'm out of my work clothes, I am booted and ready for the net. The next several hours is spent reading email and, time and endurance permitting, checking out new sites I have found from my email. I will print a list of stocks that hit a new high that day, tho rarely this year have I had time and strength to check their charts then. That is usually a weekend project. These two sessions combined are 2.5 to 3 hours. Ideally, I would review all stocks on my owned/watch list at BigCharts daily for their technical analysis stuff I do, but I just don't have the time. This is the biggest reason I have been doing no trades. It's been at least six months since I did a trade now. During the day at work, I keep a live quotes site open for business reasons. But I also keep my portfolio and watch list there as well, and try to check on my owned stocks at least once or twice a day. On the weekend, I spend about an hour reviewing the list of new highs in the DG books, and posting my findings. I also spend about 3-4 hours checking the charts of stocks that hit new highs during the prior week (this is a list of all stocks, where the list from DGO is just those in the DG books), as well as all that are on my owned/watch list. After that, another half an hour to update my watch list at the three places I maintain it (one for timely news; one for automatic daily updates; one as a backup to my live quotes at work). Then it's on to BigCharts for at least a once a week Technical Analysis of every stock still on my watch list or owned. After that, I am free to go check out investment related sites I haven't had time to review. Or even to play a little, or do some personal email. I have mentioned this before. Anyone who has never looked at the extent of data available on Daily Graphs (book form) or DG Online really should spend the couple bucks and take the trial. My job requires a lot of hours from me, for which I am well compensated, but I used to spend an enormous amount of time at the SEC site reading thru 10Qs and 10Ks, and searching thru news stories, etc. I rarely do that now that I use DGO, nor would be able to. Its abundance of Canslim data, as well as consistency of chart presentation, affords me the luxury of relying virtually on that and TA stuff at BigCharts. NOTE PLEASE: I do not now have, nor have ever had, any relationship or employment with any affiliate of Wm O'Neil Co, despite the claims of one vocal member. I have used their products for well over a decade, but always paid for their services with the exception of the beta testing of DGO, which was free to all. In my personal investments, I am anything but conservative. Couldn't be, and do nothing but small and microcap stocks, all under $18 and most under $12. As to who's oldest, I figure in investor year's I'm about 112. With two grandkids, and over 40 years as an investor, with all the grey hairs to go with all of it, I am definitely old. Wise maybe can be argued, but not old. By the way, Chris, I would suggest you need to find the tools to pare your watch list down sharply. 200 is way too many. I am probably on the thin side, but my watch list varies between half a dozen and two dozen. And most of those that exit my watch list do so because they broke out too far, too fast, for me to chase them. I also heartily support the idea of regularly (at least weekly if not daily) monitoring the overall value of your portfolio. It's easy to get too focused on just one or two stocks, esp if you have many in the portfolio, and lose sight of the rest. Tom Worley stkguru@netside.net chat with me at ICQ # 5568838 get ICQ software at http://www.icq.com/icqhomepage.html - -----Original Message----- From: chris dempsey To: canslim@lists.xmission.com Date: Friday, November 26, 1999 8:53 AM Subject: RE:[CANSLIM]How much time do you spend? Thanks for all the answers from: How much time does every one spend on CANSLIM? Dave, I guess I'm very late but, congratulations on the birth of your daughter. My wife and I had our first, a daughter, however we have three others between the two of us. You say you trashed the market handily when you spent more time. Do you think it was the extra time or were we in a better market than when you spent less time? I was asked what I spend all my time on? In the morning I eat breakfast with CNBC on. Then I go to work early and look through a daily chart of the stocks that I own. I'll make a list of stocks that might need to be sold and a list of stocks that appear like they should move soon. This helps my lunch hour go smoother. I have a watch list that has over two hundred stocks. This is reduced each half month by only considering which stock groups are high our moving higher. This lowers it to maybe 150. At lunchtime I look at these stocks, looking for stocks up one % or more (at least 5/8 of a point) on above average volume. On average I will end up with a list of ten stocks. I then pull up a daily chart, to see where the stock is. I do not only buy CnH. There are other charts that are very good to buy. I probably average one purchase per day. This also forces some sells which I think is good. After work I will write down the value of my account. This is something that I really did not want to do, but I find that it helps. For example I am concerned that the NASD was higher Wed than it was Mon but my account and IRA account were not. I chart my account value once per week. I have been trying to chart as a line chart and the number of positions as a bar chart. I can get that on the same page but using the same scale. Using the same scale you cannot see the number of positions. Does anyone know how I could use two scales on the same graph one on the right and on the left. I believe this will help me have less positions as the market and my account are taking a dip and more positions as they rise. I also read the paper, by then it is two market days old. On the weekend I'll look for new ideas. I need to improve at taking stock off my list. I wish I had more time to look up earning projections and RS. Now add reading and posting with this group, and I am spending way more time than I have. I'm down to five hours sleep. Chris __________________________________________________ FREE Email for ALL! Sign up at http://www.mail.com - - - - ------------------------------ Date: Fri, 26 Nov 1999 21:25:23 -0600 From: Dave Cameron Subject: Re: [CANSLIM]How much time do you spend? chris dempsey wrote: > > You say you trashed the market handily when you spent more time. Do you > think it was the extra time or were we in a better market than when you > spent less time? > Good question. I suspect it is more a matter of consistency and focus. I had a very difficult time seriously cutting back on the time I spent studying stocks and the market. I found that I would spend evenings with my daughter - then try and play catchup with stocks on Saturday. The problem is that I was using the same method I'd used when I could spend hours a day. As such, I was losing some of the intuitive feel I had for the market. So... when I started losing money, I took time off, regrouped, and now I have made 2 adjustments. 1.) I follow and buy fewer stocks. This tightens the focus. Of course, I had one that gapped down - which is more of a killer - but this is rare. 2.) I have become more mechanical. For instance, I follow the rules closely. I need at least an 8-week base to buy (which takes nearly everything out now). etc... Does that help? Dave - - ------------------------------ Date: Fri, 26 Nov 1999 21:31:24 -0600 From: Dave Cameron Subject: [CANSLIM] Divergence There have been a couple posting which allude to the divergence between the NASDAQ and the other major indices. Specifically that the NASDAQ has seriously outperformed all the other highly followed indices. I've taken a look at this in some depth over the past few weeks. To me, this is interesting. About 2 years ago, I posted that the NASDAQ was seriously underperforming relative to most or all of the major indices. From this, whenever a CANSLIM stock passed my screen, I'd take a NASDAQ stock over any on the big board. What happened? The big board stocks did better than the NASDAQ stocks (at least in '97/first half of '98). It took much longer than I would have guessed for the NASDAQ to take a leadership role. Today I agree, the NASDAQ is running away from the field, and more due for a fall than the other indices. Of course, it could continue to climb and hit 4500 in the next 9 months before it falls. So... I wouldn't sell any big NASDAQ stocks. Of course there are few that I'd buy - but that's because most of the CANSLIM stocks are extended too far - not because the NASDAQ is diverging from the other indices. Dave Cameron - - ------------------------------ Date: Fri, 26 Nov 1999 22:23:40 -0500 From: "Tom Worley" Subject: Re: [CANSLIM] CANSLIM Screening Approach Question Hi Chris, One of the things that I learned from WON staffers some years ago was that a rising group, when it hits the top 40 groups, has only (statistically) made one third of its move. It still has the other two thirds to go. That is why he publishes a group list in both DG and DGO, which shows the top 100 groups and where they were last week and 3 months ago. I used to do CANSLIM for a living, as an active broker. Since then, I used it to augment my meager income, necessary since I lost my wife's income after her death. Now that my compensation from my current job has increased to what I'm worth, it's become more a hobby than a necessity. I would agree that it is difficult to have balanced performance in a portfolio of only four stocks. Then again, unless you have a staff of assistants, I would say it's hard to keep track of a portfolio with 20 or 30 stocks, unless you are truly buying them for a long term hold regardless of how they perform day to day and week to week. Keep on posting, you ask good questions and inspire the group. Next thing you know, maybe we'll again start hearing from a lot of lurker members in this group, who also have a lot to offer. Tom Worley stkguru@netside.net chat with me at ICQ # 5568838 get ICQ software at http://www.icq.com/icqhomepage.html - -----Original Message----- From: chris dempsey To: canslim@lists.xmission.com Date: Monday, November 22, 1999 6:44 AM Subject: Re: [CANSLIM] CANSLIM Screening Approach Question Tom, Thanks for the reply to my post. I enjoy reading your responses. I like your e-mail address. You seem to respond very quickly to many posts! Do you do CANSLIM full time? For a living? I tried for a long time and buying four stocks did not work for me. One of the things I realized when I was buying four stocks was that I was not participating in enough top groups. I have learned to put a lot of importance in high and improving group rank. There seems to always be 15 outstanding groups. When I started to buy more stocks participating in more groups it seamed like there were always top groups that did not have representation on the WER which is where I found many of my stocks. It took a long time for me to weed the better from the bad in these groups (of course there are no bests in them) that were not participating in the weekend review. What I found that helped me was using the 1-2-5 EP not only helped me find stocks in groups not participating in the WER but it also helped me toss out some of the weaker stocks that are listed on that page. Maybe I shouldn't have said that I totally ignore the EPS #, because I do write down the five rankings from IBD when I make a stock purchase or sell. What I haven't written down is the 1-2-5 EP, I think that I need to start. A recent example is the Internet software group. It has moved from #48 at the beginning of September to #6 in mid October to #1 at the beginning of November. This is also the internet group of the four that fell the least. I've learned not to ask questions just do what the market is telling me. The market was telling me to buy a stock in this group. I scanned the group in late October and only found four stocks using the criteria I explained. They were ACRU, ALLR, FFIV, & QSFT. Incredibly in late October FFIV (16 99 AXA) traded with huge volume allowing me to get in and make nearly 50% in just a couple of days. Just two trading days later, ALLR (57 88 ADA) traded on increasing volume and allowed me to enter that position and in 10 market days I sold this for nearly a 50% gain. Normally what happens when I narrow a selection down to two is, after I buy one I watch the other choice go up. Of course we do have the big bold M working for us right now. I have had difficulty with QSFT probably because of its low volume. That's what the seven % limit is for, often times I don't even wait for the seven %. I still like this industry group and am looking for the next entry point into a stock from this group. WON says you must have a reason to buy a stock, not just that you sold it and it has gone down. I agree with his statement. I would not touch a stock like AMZN, they have no earnings in sight. I did recently notice that ALLR was moved to a computer group as listed in the new highs. Do you know which one? By no means am I saying that what you are doing is wrong, there is a lot to be said in consistency, but I have found something that works for me and I like it. As I said before find something your comfortable with and use it, and always look for ideas to improve it. The first thing I did in early November in my IRA account was sell CSCO & MSFT, to make room for better performers during the stampede. I hope to increase everyone's thought process and investment results, including my own, through the use of this group. The few people I run into that have an interest in talking about the stock market are all waiting for the stocks they own that are down to come back or they talk about the ones they wish they had bought. I'm glad to be able to communicate with people using a similar but slightly tailored version of CANSLIM. *** Thanks for the post, Chris, and glad you not only found the group but overcame your posting problems. It's a great group, and very helpful, please keep on posting. I would disagree with you on disregarding EPS nrs. Granted, they are historical in nature, but one thing they do that you are missing in looking at earnings projections is tell you how the earnings growth compares with all other companies.......... __________________________________________________ FREE Email for ALL! Sign up at http://www.mail.com - - - - ------------------------------ Date: Fri, 26 Nov 1999 22:28:38 -0500 From: "Tom Worley" Subject: Re: [CANSLIM] Has anyone set an investment goal? Chris, I don't buy a stock that I don't believe doesn't have the potential to at least double. My overall goal for my IRA is an annual 100% goal. But that is just a goal, and I realize I would be doing well just to average in double digits (still well ahead of leaving the cash in a CD). Last year I did 76%, this year I'm barely staying even (but that's largely due my neglect of the acct due time constraints at work). Overall for the past five years, I'm close to an annualized 100%, and content with how it's gone. I also think it's important to measure how you're doing against a broader yardstick. It there's an index that closely matches your portfolio, by all means use it as a guage. I only do small and micro cap stocks, so I regularly compare to the Russell 2000. Tom Worley stkguru@netside.net chat with me at ICQ # 5568838 get ICQ software at http://www.icq.com/icqhomepage.html - -----Original Message----- From: chris dempsey To: canslim@lists.xmission.com Date: Monday, November 22, 1999 6:50 AM Subject: [CANSLIM] Has anyone set an investment goal? Has anyone set an investment goal? WON & Ryan, on one of the tapes IBD has, say they won an investment challenge with a 3400% return in five years. Annualized this is 101% per year. Of course that was their job working in the brokarage industry. Is it realistic to think we could do half that good (50%) each year for five years. Or would taking two years to do what they have done in one be more realistic (42%). Or other=85. Or would it make more sense to base our performance against an index. Double a chosen index? I would like to hear other thoughts and comments. __________________________________________________ FREE Email for ALL! Sign up at http://www.mail.com - - - - ------------------------------ Date: Fri, 26 Nov 1999 23:10:05 -0500 From: "Tom Worley" Subject: Brokerage House Comments (was Re: [CANSLIM] CANSLIM Screening Approach Question) Hi Chris, Having worked for a number of different broker-dealers over the years, I have some personal insight on this issue. I have shared it with the group before, but rather than search back thru the archives for my last response, will do it free form. First, you should understand that a major broker dealer has some pretty big conflicts of interest. At a major wire house, such as Merrill or Paine Webber as just two examples, they typically have "in house" mutual funds. While "in house", these funds represent clients to the house. At the same time, they also have major institutional clients, which can be mutual funds, pension plans, major corporate accts, or other retirement type accounts such as teachers pension funds. Meanwhile, looking at things just at a particular mutual fund family, such as AIM or Fidelity or any other of the large families, it is not uncommon for them to have the same stock held in two or three, or even more, different funds at the same family. Thus, if the "wisdom of the day" is that a particular stock is no longer the "stock du jeur", then it's not just one client of the wire house, or just one fund of one family, that is bailing. Secondly, it's at least as important to understand why a wire house may lower or raise its rating on a stock as to anticipate the formal announcement. At any decent and disciplined wire house, the brokers are expected to be at their desks well before the mkt opens. That provides an opportunity to brief them, via a firm wide conference, on whatever the house analysts have to tell them. In turn, that is supposed to focus them on what to sell (or buy) that day. Bear in mind that those analyst's salaries are paid by the house, and usually on the basis of their skills and insight. The house has no obligation to share their thoughts with the general marketplace, tho they do have a fiduciary responsibility to share it with their clients. At the institutional level, a manager (whether of a fund or a pension plan or whatever) can make an instant decision to sell - or to buy - without consulting anyone, and when he does, a qtr million or more shares may be involved. At the retail level, a broker if he's following the rules may need to make ten, or a hundred, phone calls to pass on what he just learned from his house analyst before he can present orders for even a hundred thousand shares. As a result, the contents of what that house analyst are not routinely released to the general public for hours, or even a day, after the broadcast. So the "knee jerk" to a house analyst's comments can be measured in the millions of shares traded, up or down, just by that wire house alone, forget all the other houses that may have caught an inside tip that "so and so" just raised estimates, or lowered their rating. It's become a self fullfilling prophecy. And when an analyst downgrades his rating on a particular stock because it reached his price target too soon, does that mean that the stock is ahead of itself, or the analyst underrated the potential? Did he fail to anticipate or account for the effect of a booming "M", or of a sector suddenly in favor? That's left to the individual (whether institutional or retail) to decide. Encouragingly, of late I have seen more analysts willing to reconsider their earlier targets, and raise them on booming stocks that have shown unanticipated superior earnings growth and potential, rather than simply take their "home run" and gut the rating. A number of members in this group in the past have suggested that major wire houses deliberately downgrade a stock simply to scare holders out of shares, so that they can buy them more cheaply. While I can't dispute that possibility, and it may even be true in some cases, I don't believe it's the industry practice. On the other hand, it's also important to consider the point of view of the analyst. What is he using for a business model, is he a fundamentalist, a momentum player, a CANSLIMer (rare), conservative or aggressive, how close a tie (and relationship) does he have to the company reported on, does he specialize in this industry sector, etc???? While every broker dealer thrives on trading volume, a major house also thrives on its relationship with each important client, esp the institutional ones. And no portfolio manager (be it a fund, pension plan, or just major corp acct) wants to be shaken out of a big position only to see it up three or five points a day later. Bottom line: I generally ignore a downgrade by a major firm if the downgrade is because the stock went up too high, too fast. On the other hand, I don't sell on a downgrade because of a cut in earnings forecast, but look at what other firms are saying (and my own judgement) while putting that stock on my "most likely to sell next on any rebound" list. The reason I don't sell immediately in the latter case is because by the time I get the reason for the downgrade, the damage is already overdone, and there is likely to be a brief rally as all the "value shoppers" rush in to pick up cheap stock. I likely won't be able to exit at the price before the house analyst spoke, but am likely to get better than current mkt price right after his comments are made public. Tom Worley stkguru@netside.net chat with me at ICQ # 5568838 get ICQ software at http://www.icq.com/icqhomepage.html - -----Original Message----- From: chris dempsey To: canslim@lists.xmission.com Date: Monday, November 22, 1999 8:01 AM Subject: RE: [CANSLIM] CANSLIM Screening Approach Question I was hoping that someone would pick up on my comment about brokerage firms. However I don't have an answer for this one yet. I have also thought about letting these ride but I'm not convinced that this is the right answer. How about selling and buying back at the next correct point? I'm still thinking about this one. You do bring up a good point though. Think about it. When they slam a stock that we own it's a good stock and they are probably wrong!!!!! When they slam a stock that we do not own there i s a good chance that they are right and they are just figuring out what we already new. The other problem that I have with brokerage firms is when they recommend a stock on my watch list causing me to buy it. They always seem to fade from there? Causing me a single digit % loss. Has anyone else had this problem? - - ------------------------------ Date: Fri, 26 Nov 1999 23:31:47 -0500 From: "Barry Marx" Subject: Re: RE:[CANSLIM] (Tom) How much time do you spend? Tom, You've probably already discussed this at some point, but could you talk about how you decide to put a stock on your watch list out of all those that you review? Also, am I understanding correctly that your potential watch list stocks come mainly from the new-highs and those that are within 5% of new-high from DGO that you post? Finally, do you have an online source for checking futures? I see it on CNBC, but have yet to find the same numbers on the net. Thanks, Barry - -----Original Message----- From: Tom Worley To: canslim@lists.xmission.com Date: Friday, November 26, 1999 9:23 PM Subject: Re: RE:[CANSLIM]How much time do you spend? :Chris, : :I apologize for my delay in responding to your earlier post, :but got home several hours earlier than my usual 14 or more :hour day, so got some time tonight. : :My typical day is about 1.5 hours in the morning before :work. This includes reading any email received since I got :off the net around midnite or later the nite before; :checking various regional mkts (principally Asia and :Europe); checking current trading on my one European stock; :checking futures several times for trend checking; then :going thru as many charts as I have time at DGO (Daily :Graphs Online). I may also take a few minutes to check my :401, as well as my bank acct. : :In the evening, firing up the pea sea as soon as I walk in :the door is standard, by the time I'm out of my work :clothes, I am booted and ready for the net. The next :several hours is spent reading email and, time and endurance :permitting, checking out new sites I have found from my :email. I will print a list of stocks that hit a new high :that day, tho rarely this year have I had time and strength :to check their charts then. That is usually a weekend :project. These two sessions combined are 2.5 to 3 hours. :Ideally, I would review all stocks on my owned/watch list at :BigCharts daily for their technical analysis stuff I do, but :I just don't have the time. This is the biggest reason I :have been doing no trades. It's been at least six months :since I did a trade now. : :During the day at work, I keep a live quotes site open for :business reasons. But I also keep my portfolio and watch :list there as well, and try to check on my owned stocks at :least once or twice a day. : :On the weekend, I spend about an hour reviewing the list of :new highs in the DG books, and posting my findings. I also :spend about 3-4 hours checking the charts of stocks that hit :new highs during the prior week (this is a list of all :stocks, where the list from DGO is just those in the DG :books), as well as all that are on my owned/watch list. :After that, another half an hour to update my watch list at :the three places I maintain it (one for timely news; one for :automatic daily updates; one as a backup to my live quotes :at work). Then it's on to BigCharts for at least a once a :week Technical Analysis of every stock still on my watch :list or owned. After that, I am free to go check out :investment related sites I haven't had time to review. Or :even to play a little, or do some personal email. : :I have mentioned this before. Anyone who has never looked at :the extent of data available on Daily Graphs (book form) or :DG Online really should spend the couple bucks and take the :trial. My job requires a lot of hours from me, for which I :am well compensated, but I used to spend an enormous amount :of time at the SEC site reading thru 10Qs and 10Ks, and :searching thru news stories, etc. I rarely do that now that :I use DGO, nor would be able to. Its abundance of Canslim :data, as well as consistency of chart presentation, affords :me the luxury of relying virtually on that and TA stuff at :BigCharts. NOTE PLEASE: I do not now have, nor have ever :had, any relationship or employment with any affiliate of Wm :O'Neil Co, despite the claims of one vocal member. I have :used their products for well over a decade, but always paid :for their services with the exception of the beta testing of :DGO, which was free to all. : :In my personal investments, I am anything but conservative. :Couldn't be, and do nothing but small and microcap stocks, :all under $18 and most under $12. : :As to who's oldest, I figure in investor year's I'm about :112. With two grandkids, and over 40 years as an investor, :with all the grey hairs to go with all of it, I am :definitely old. Wise maybe can be argued, but not old. : :By the way, Chris, I would suggest you need to find the :tools to pare your watch list down sharply. 200 is way too :many. I am probably on the thin side, but my watch list :varies between half a dozen and two dozen. And most of those :that exit my watch list do so because they broke out too :far, too fast, for me to chase them. : :I also heartily support the idea of regularly (at least :weekly if not daily) monitoring the overall value of your :portfolio. It's easy to get too focused on just one or two :stocks, esp if you have many in the portfolio, and lose :sight of the rest. : :Tom Worley :stkguru@netside.net :chat with me at ICQ # 5568838 :get ICQ software at http://www.icq.com/icqhomepage.html : - - ------------------------------ Date: Sat, 27 Nov 1999 00:24:02 -0500 From: "Tom Worley" Subject: Re: RE:[CANSLIM] (Tom) How much time do you spend? Hi Barry, The list that I try to post weekly, taken from my subjective and very rapid review of those stocks that made DGO's "new or close to" highs for that week, is intended to meet the basic parameter of an 80/80 on both RS and EPS. What I work with for my own personal watch list is designed to meet a higher RS (90 or better) with more tolerance on EPS ( I will occasionally consider a stock down into the 60s, but much prefer higher nrs). Since I can individually examine earnings, and why a co may have a low 5 yr EPS compared to what it's done lately, I feel I can make some exceptions to the EPS > 80 based on my experience. Yes, virtually every stock that is added to my watch list comes off one or more lists of new highs. A certain amount of that decision making is very subjective, and based on a lot of experience and consequences from that decision making. There are certain industry groups that I simply won't buy, regardless of any thing else, charts included. That is a result of my experience telling me I simply (despite all my smarts) don't understand the industry. These include virtually all bio tech and banking, as well as real estate (despite working for a bank and having bot and sold many homes). I also tend to stay out of commodity type industries, just cuz of their nature, tho did make some nice money on BS and a few others. I also avoid anything medical related generally, tho again have made money on tech stocks that are med related. I guess a lot of it has to do with whether I can read the press releases and understand just what is "N"ew about it. If I'm baffled, then I figure most other investors are also. I check futures at http://www.cme.com/cgi-bin/gflash.cgi It's five minutes delayed, or some such, but still useful for my purposes. And it's automatically updated as well, tho somewhat annoying the first time it updates as it jerks you back to it regardless of where you may be. But after that first (whoops, just took me back there even tho futures are closed), trip back, it leaves you alone but keeps updating. Tom Worley stkguru@netside.net chat with me at ICQ # 5568838 get ICQ software at http://www.icq.com/icqhomepage.html - -----Original Message----- From: Barry Marx To: canslim@lists.xmission.com Date: Friday, November 26, 1999 11:31 PM Subject: Re: RE:[CANSLIM] (Tom) How much time do you spend? Tom, You've probably already discussed this at some point, but could you talk about how you decide to put a stock on your watch list out of all those that you review? Also, am I understanding correctly that your potential watch list stocks come mainly from the new-highs and those that are within 5% of new-high from DGO that you post? Finally, do you have an online source for checking futures? I see it on CNBC, but have yet to find the same numbers on the net. Thanks, Barry - -----Original Message----- From: Tom Worley To: canslim@lists.xmission.com Date: Friday, November 26, 1999 9:23 PM Subject: Re: RE:[CANSLIM]How much time do you spend? :Chris, : :I apologize for my delay in responding to your earlier post, :but got home several hours earlier than my usual 14 or more :hour day, so got some time tonight. : :My typical day is about 1.5 hours in the morning before :work. This includes reading any email received since I got :off the net around midnite or later the nite before; :checking various regional mkts (principally Asia and :Europe); checking current trading on my one European stock; :checking futures several times for trend checking; then :going thru as many charts as I have time at DGO (Daily :Graphs Online). I may also take a few minutes to check my :401, as well as my bank acct. : :In the evening, firing up the pea sea as soon as I walk in :the door is standard, by the time I'm out of my work :clothes, I am booted and ready for the net. The next :several hours is spent reading email and, time and endurance :permitting, checking out new sites I have found from my :email. I will print a list of stocks that hit a new high :that day, tho rarely this year have I had time and strength :to check their charts then. That is usually a weekend :project. These two sessions combined are 2.5 to 3 hours. :Ideally, I would review all stocks on my owned/watch list at :BigCharts daily for their technical analysis stuff I do, but :I just don't have the time. This is the biggest reason I :have been doing no trades. It's been at least six months :since I did a trade now. : :During the day at work, I keep a live quotes site open for :business reasons. But I also keep my portfolio and watch :list there as well, and try to check on my owned stocks at :least once or twice a day. : :On the weekend, I spend about an hour reviewing the list of :new highs in the DG books, and posting my findings. I also :spend about 3-4 hours checking the charts of stocks that hit :new highs during the prior week (this is a list of all :stocks, where the list from DGO is just those in the DG :books), as well as all that are on my owned/watch list. :After that, another half an hour to update my watch list at :the three places I maintain it (one for timely news; one for :automatic daily updates; one as a backup to my live quotes :at work). Then it's on to BigCharts for at least a once a :week Technical Analysis of every stock still on my watch :list or owned. After that, I am free to go check out :investment related sites I haven't had time to review. Or :even to play a little, or do some personal email. : :I have mentioned this before. Anyone who has never looked at :the extent of data available on Daily Graphs (book form) or :DG Online really should spend the couple bucks and take the :trial. My job requires a lot of hours from me, for which I :am well compensated, but I used to spend an enormous amount :of time at the SEC site reading thru 10Qs and 10Ks, and :searching thru news stories, etc. I rarely do that now that :I use DGO, nor would be able to. Its abundance of Canslim :data, as well as consistency of chart presentation, affords :me the luxury of relying virtually on that and TA stuff at :BigCharts. NOTE PLEASE: I do not now have, nor have ever :had, any relationship or employment with any affiliate of Wm :O'Neil Co, despite the claims of one vocal member. I have :used their products for well over a decade, but always paid :for their services with the exception of the beta testing of :DGO, which was free to all. : :In my personal investments, I am anything but conservative. :Couldn't be, and do nothing but small and microcap stocks, :all under $18 and most under $12. : :As to who's oldest, I figure in investor year's I'm about :112. With two grandkids, and over 40 years as an investor, :with all the grey hairs to go with all of it, I am :definitely old. Wise maybe can be argued, but not old. : :By the way, Chris, I would suggest you need to find the :tools to pare your watch list down sharply. 200 is way too :many. I am probably on the thin side, but my watch list :varies between half a dozen and two dozen. And most of those :that exit my watch list do so because they broke out too :far, too fast, for me to chase them. : :I also heartily support the idea of regularly (at least :weekly if not daily) monitoring the overall value of your :portfolio. It's easy to get too focused on just one or two :stocks, esp if you have many in the portfolio, and lose :sight of the rest. : :Tom Worley :stkguru@netside.net :chat with me at ICQ # 5568838 :get ICQ software at http://www.icq.com/icqhomepage.html : - - - - ------------------------------ End of canslim-digest V2 #754 ***************************** 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.