From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #853 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 Tuesday, March 21 2000 Volume 02 : Number 853 In this issue: Re: [CANSLIM] HOTT [CANSLIM] Re: LDP again [CANSLIM] LDP [CANSLIM] WON - Cup & Handle [CANSLIM] NAZ F/T day? [CANSLIM] follow through ---------------------------------------------------------------------- Date: Mon, 20 Mar 2000 23:06:01 -0000 From: "Marc Laniado" Subject: Re: [CANSLIM] HOTT Hi Ziggy, Cups or double bottoms - I know it can be difficult and I tend to look at weekly as well as daily charts which can turn double bottoms into cups. Nevertheless, it is near a new high, and would be great if it declines by up to 15% for a couple of weeks. Although tech is out at the moment, why don't you inspect MCSW? My bets for coming out of bottoms are FFIV and JNIC. I believe both of these are potential greats for the next tech ascent with wounderful fundamentals. FFIV is increasingly being bought by institutions inspite of being in a base building formation. It is, of course, to be watched and not bought at the moment. Good luck, Marc - ----- Original Message ----- From: To: Sent: Monday, March 20, 2000 2:02 PM Subject: Re: [CANSLIM] HOTT > Hi Marc, > > Thanks for the heads-up on HOTT...the chart and volume looks good. What I see > though is not a cup but rather a "double bottom" or "W" pattern with a B/O that > occurred last Thursday. I see the pivot point to be at 23 3/4 (1/8 of a point > above the middle of the "W" high of 23 5/8 reached on 2/4). > > The current price of 25 1/8 is slightly higher than the 24 15/16 price I > calculate as 5% above the pivot price. > > As you mentioned the IBD group strength is only C, but it has been moving up > from 128 three months ago to the current 90...about another 10 positions will > move that IBD ranking to B. > > Current IBD ranking is 99 82 CAB. > > One interesting thing I noticed when checking into this stock was the extremely > high Short interest... > 1.35M or 29.4% of the 4.6M share float is shorted. I'm not sure how to read > this...on one hand I view this as a strong positive because all those people > have to buy back those shares which would cause upward price pressure...on the > other hand, does somebody know something, like what is going to happen to MSTR > today with them restating earnings for last year due to an SEC investigation. > > In any event, I am going to add this one to my watchlist and may decide to > nibble if we get a Nasdaq > Follow Thru day this week...today is day 3 of the current rally attempt. > > Have a great day, > > Ziggy > > Marc Laniado wrote: > > > Take a look at HOTT > > Retailers have been out of favour as we know (industry RS C), but this stock > > appears to be near the front of its group (RS 80) with great fundamentals > > and has just made a cup. It might make a handle in the next few days - who > > knows!? > > Best, > > Marc > > > > - > > > - > > - - ------------------------------ Date: Mon, 20 Mar 2000 20:37:37 -0800 From: han.26@osu.edu Subject: [CANSLIM] Re: LDP again Yes Tom, I did some homework on LDP, and not only is the P/E significantly higher than that posted in IBD [something I find surprisingly often], but many of the gains are as a result of LDP investing in other companies [i.e. simply buying shares of momentum stocks]. Their so-called core business is insurance. A very cursory study of LDP made me leery enough to stop considering it. Indeed there is no substitute for thorough homework. Thanks for the reply. From: "Tom Worley" There's usually a reason why a market only values a stock at 6 or 7 times its earnings, and for me is a sign of caution and further research, rather than a red flag to buy. In this case, I note that the past two qtrs show a sudden gain in both earnings and sales from $1.48 tp 7.73 in earnings, and from 30.6 to 125.0 in sales. CANSLIM data is good, RS 96, EPS 93, A/D Timeliness and SMR are all A, however ROE is only 8%. Earnings growth over five years is 20%, but like so much of the other earnings related data, it is distorted by the 1999 earnings of over $18 compared to its normal $2.40 or so. There are no earnings forecasts for 2000 at DGO, meaning there are not three or more analysts following it, so I don't know if the exceptional earnings of the past six months are expected to continue. However, the PE of 6 suggests that it won't. I would encourage some homework into what happened in June/July '99 to so affect earnings and sales, and whether it will continue. - - ------------------------------ Date: Mon, 20 Mar 2000 22:11:56 EST From: SKutney@aol.com Subject: [CANSLIM] LDP London-Pacific Investments also got my attention when I was using my trial subscription to daily graphs. I was looking for stocks that may be standouts in a sector rotation. They say that Financials and Retail stocks were up. Financial have been in a long term downtrend for some time. A low PE would not be out of step for this group. Yahoo had the PE listed as 7 last week in the profile. It is now listed as 62 in the profile but is still listed as less than 7 if you display basic information. CBS.Marketwatch.com lists it at 25. IBD lists it at 7. The Financial Management group was in the 130+ range 6 months ago. In the 70s three months ago and was in the 60s last time I looked. I believe the earnings increased because of investment in Internet Stocks. Steve Kutney In last Wednesdays paper - - ------------------------------ Date: Tue, 21 Mar 2000 11:52:42 -0500 From: David Bojanowski Subject: [CANSLIM] WON - Cup & Handle http://cbs.marketwatch.com/archive/20000309/news/current/invest.htx?source=h tx/http2_mw I found this useful. - - ------------------------------ Date: Tue, 21 Mar 2000 14:54:17 -0700 From: Subject: [CANSLIM] NAZ F/T day? Today was day 4 of the current Nasdaq rally that began with last thursday's turn-around. Today the Naz was up 100.71 points (+ 2.1%) on volume (1.749B shares) that increased from yesterday's volume (1.526B shares). Because today's Nasdaq low of 4467.53 did not undercut last thursday's low of 4455.10, I think this was a valid Naz Follow Thru ( F/T) day. Do others concur or disagree? Thanks, Ziggy - - ------------------------------ Date: Wed, 22 Mar 2000 01:26:56 +0100 From: " Makara Tamás" Subject: [CANSLIM] follow through Hi Ziggy, According to Kevin Marder at TradingMarkets.com it was an O'Neil follow through. Regards, Tamas > From: > Subject: [CANSLIM] NAZ F/T day? > Date: 21 Mar 2000 14:54:17 -0700 > > Today was day 4 of the current Nasdaq rally that began with > last thursday's turn-around. > > Today the Naz was up 100.71 points (+ 2.1%) on volume > (1.749B shares) that increased from yesterday's volume > (1.526B shares). > > Because today's Nasdaq low of 4467.53 did not undercut last > thursday's low of 4455.10, I think this was a valid Naz > Follow Thru ( F/T) day. > > Do others concur or disagree? > > Thanks, > Ziggy > - - ------------------------------ End of canslim-digest V2 #853 ***************************** To unsubscribe to canslim-digest, send an email to "majordomo@xmission.com" with "unsubscribe canslim-digest" in the body of the message. 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