From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #117 Reply-To: canslim Sender: owner-canslim-digest@lists.xmission.com Errors-To: owner-canslim-digest@lists.xmission.com Precedence: bulk canslim-digest Sunday, February 15 1998 Volume 02 : Number 117 In this issue: [CANSLIM] When do you sell a stock [CANSLIM] Best free internet site Re: [CANSLIM] When do you sell a stock Re: [CANSLIM] Breakouts - GX & HCFP Re: [CANSLIM] Best free internet site [CANSLIM] Breakouts: GART, BBRC, GLE [CANSLIM] various Re: [CANSLIM] Breakouts: GART, BBRC, GLE [CANSLIM] RE: canslim-digest V2 #116 [CANSLIM] SE [CANSLIM] Breakouts ANF/MLT Re: [CANSLIM] Breakouts - GX & HCFP Re: [CANSLIM] Breakouts: GART, BBRC, GLE Re: [CANSLIM] Breakouts: GART, BBRC, GLE Re: [CANSLIM] When do you sell a stock Re: [CANSLIM] GART (was Breakouts: GART, BBRC, GLE) [CANSLIM] OMQP Re: [CANSLIM] Breakouts ANF/MLT [CANSLIM] Options Re: [CANSLIM] Options Re: [CANSLIM] SE ---------------------------------------------------------------------- Date: Sat, 14 Feb 1998 07:40:12 -0700 From: carolreynolds@juno.com Subject: [CANSLIM] When do you sell a stock After you have bought a good stock and it has run up some, When do you sell. Decreased volume? Carol _____________________________________________________________________ You don't need to buy Internet access to use free Internet e-mail. Get completely free e-mail from Juno at http://www.juno.com Or call Juno at (800) 654-JUNO [654-5866] - - ------------------------------ Date: Sat, 14 Feb 1998 08:52:31 -0600 From: "Eric Boller" Subject: [CANSLIM] Best free internet site This is a multi-part message in MIME format. - ------=_NextPart_000_0023_01BD3925.E2AF89D0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Someone mentioned BigCharts.com as their favorite free website. Here is = another one that I don't think anyone has mentioned. = www.marketplayer.com. You have to register but it is free. You can do = very sophisticated screening with their screens or you can create your = own. There is industry screening, charting for industry and stock. I = think the charting at bigcharts is better but they don't have the = screening that marketplayer has. Nor do they have industry screens = which I think help alot. When you register you can also take part in a = stock market contest. You start with $1,000,000. Whoever has the = greatest percentage gain at the end of the month wins. It is good = practice. Try it out. Eric Boller - ------=_NextPart_000_0023_01BD3925.E2AF89D0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable

Someone mentioned BigCharts.com as = their=20 favorite free website. Here is another one that I don't think = anyone has=20 mentioned. www.marketplayer.com. = ; You=20 have to register but it is free. You can do very sophisticated = screening=20 with their screens or you can create your own. There is industry=20 screening, charting for industry and stock. I think the charting = at=20 bigcharts is better but they don't have the screening that marketplayer=20 has. Nor do they have industry screens which I think help = alot. When=20 you register you can also take part in a stock market contest. You = start=20 with $1,000,000. Whoever has the greatest percentage gain at the = end of=20 the month wins. It is good practice. Try it = out.

Eric = Boller

- ------=_NextPart_000_0023_01BD3925.E2AF89D0-- - - ------------------------------ Date: Sat, 14 Feb 1998 17:41:03 GMT From: musicant@autobahn.org (Dan Musicant) Subject: Re: [CANSLIM] When do you sell a stock On Sat, 14 Feb 1998 07:40:12 -0700, you wrote: :After you have bought a good stock and it has run up some, When do you :sell. Decreased volume? : :Carol : :_____________________________________________________________________ :You don't need to buy Internet access to use free Internet e-mail. :Get completely free e-mail from Juno at http://www.juno.com :Or call Juno at (800) 654-JUNO [654-5866] : Carol, Not necessarily on decreased volume. If you see increased volume and no price progress, that's not a good sign. Or worse, price depreciation -- that's "distribution". Best advice is to read the chapter in O'Neill's HTMMIS on the subject of when to sell. Dan - - ------------------------------ Date: Sat, 14 Feb 1998 18:08:01 GMT From: musicant@autobahn.org (Dan Musicant) Subject: Re: [CANSLIM] Breakouts - GX & HCFP On Thu, 12 Feb 1998 23:15:14 -0500, you wrote: :Peter Christiansen wrote: :>=20 :> ** Reply to note from Neil Himber Mon, 09 Feb = 1998 21:07:13 -0500 :>=20 :> > Several months ago you said that you thought Superior Telecom was = about :> > to breakout. I've been watching it since and it has done nothing. = Do :> > you have any idea why? :>=20 :> It did break out on 2/2, but the breakout appears to be failing. If I= had bought on the :> breakout, I would be selling on any further weakness. As for why it = is failing... I haven't a :> clue, and don't really care. I just let the price action tell me what= to do. Trying to come up :> with a rational explanation for a stock's price movement is an = exercise in futility. IMHO :>=20 :> Peter Christiansen :> Chiang Mai, Thailand :>=20 :> Connected with OS/2 Warp 3.0 & The Post Road Mailer :> = _________________________________________________________________________= ____________ :>=20 :> Sex is like a bridge game: If you don't have a good partner, you = better have a good hand. :>=20 :> - :Hi Pete: :Thanks for the reply to my inquiry about SUT's predicted breakout. I :don't really care whether you care if the breakout is failing or not. I :am trying to learn what led you, or what might lead me or anyone to :expect a breakout. What was it that you saw that led you to believe :that SUT was breaking out three months ago, when you made that post?=20 :What criteria should I look for, to indicate a breakout is probable, and :when should I conclude that the expected breakout has not, and probably :will not materialize? :Thanks, :Neil : I will certainly not speak for Peter, however I saw his post on 11/20/97 pointing out a stock (one of them SUT) that appeared to be breaking out on good volume that morning. I checked it out and decided that SUT looked good, and I opened a position. I watched it closely and determined that I felt the breakout was failing and I got out without too much damage (5%). That's just the way it goes sometimes. Like Peter said, you watch the action and don't try to determine the reasons. There's no time for that, and you always have to figure that there may be significant info you are not privy to. I don't (and didn't) feel that Peter predicted a breakout. He merely noted that the stock appeared to be *breaking out*. No prognostications offered, no guarantees made. What Peter saw, other than the basic CANSLIM criteria for the issues, was that the price on the stock was advancing considerably on significantly above average volume. To me, that is what a breakout constitutes in terms of what is sensorily available.... But, of course, I am but a rube compared to Connie Mack, no irony or sarcasm intended. Here's Peter's entire message (aside from his signature and customary quip at the bottom): "Superior Telecom (SUT) appears to be breaking out." This is hardly a "prediction". Dan - - ------------------------------ Date: Sat, 14 Feb 1998 13:39:27 -0500 From: Connie Mack Rea Subject: Re: [CANSLIM] Best free internet site - --------------3C178821530FA489F1AAE50F Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Eric-- My group at the university liked your site. Between yours and BigCharts, there's plenty to trade with. Connie Mack Eric Boller wrote: > Someone mentioned BigCharts.com as their favorite free website. Here > is another one that I don't think anyone has mentioned. > www.marketplayer.com. You have to register but it is free. You can > do very sophisticated screening with their screens or you can create > your own. There is industry screening, charting for industry and > stock. I think the charting at bigcharts is better but they don't > have the screening that marketplayer has. Nor do they have industry > screens which I think help alot. When you register you can also take > part in a stock market contest. You start with $1,000,000. Whoever > has the greatest percentage gain at the end of the month wins. It is > good practice. Try it out. Eric Boller - --------------3C178821530FA489F1AAE50F Content-Type: text/html; charset=us-ascii Content-Transfer-Encoding: 7bit

Eric--

My group at the university liked your site.

Between yours and BigCharts, there's plenty to trade with.

Connie Mack

Eric Boller wrote:

Someone mentioned BigCharts.com as their favorite free website. Here is another one that I don't think anyone has mentioned. www.marketplayer.com. You have to register but it is free. You can do very sophisticated screening with their screens or you can create your own. There is industry screening, charting for industry and stock. I think the charting at bigcharts is better but they don't have the screening that marketplayer has. Nor do they have industry screens which I think help alot. When you register you can also take part in a stock market contest. You start with $1,000,000. Whoever has the greatest percentage gain at the end of the month wins. It is good practice. Try it out. Eric Boller

- --------------3C178821530FA489F1AAE50F-- - - ------------------------------ Date: Sat, 14 Feb 1998 11:34:59 -0700 From: Tim Fisher Subject: [CANSLIM] Breakouts: GART, BBRC, GLE These three broke out last week. My numbers (different from IBD!) for them are: EPS GRS RS GART 99 94 90 BBRC 94 63 51 GLE 96 43 40 Any suggestions? Also, UVSGA beat estimates by 3 cents after the close on Friday, may be time for it to break the (short) handle of it's C&H. While I'm at it, I really like HBCCA (EPS: 86, GRS: 85, RS: 90) but am scared of the 957:1 debt:equity I get from Zacks. Can someone look this up on DG or similar service and confirm/deny that number? Tim Fisher, 1995 President, Pacific Fishery Biologists Ore-ROCK-On Rockhounding Web Site PFB Information tfish@spiritone.com WWW http://www.spiritone.com/~tfish -- See naked fish and rocks! - - ------------------------------ Date: Sat, 14 Feb 1998 15:23:22 -0500 From: "Tom Worley" Subject: [CANSLIM] various Just finished spending some serious hours at www.bigcharts.com, it's everything our members have been saying about it. For those that have been reading Connie's commentaries on various indicators, and trying to learn, it's a great place to visit. On Pure World (PURW), it's back in the Daily Graphs books, probably because of the increased volume last week. DG Online indicates earnings due 3/18 for Q4 and the fiscal year, I spoke with the company on Friday and they expect to report "about the first of March". This makes me believe the action and volume on Thursday and Friday may be due to leaks on preliminary results of Q4. Just a hunch on my part, I didn't have the time to be my usual inquisitive self, so just spoke to the Investor Relations person (who was the one that answered the phone, so may be the receptionist). If I get the chance, I will try to talk to the CFO before earnings are reported. Monday is a holiday for the exchanges for those that didn't know this. I will be on vacation all next week, but likely to be on the net for a good part of the time. I will try to post the economic calendar by Tuesday afternoon, may post some of it sooner. By the time the US mkt opens on Tuesday, Asia will have had two trading days, and Europe 1.5, so worth keeping an eye on what they do. It is also options expiration week, and a shortened week at that, so could be very volatile. The Dow 30 closed virtually unchanged on Friday (up 0.5 pt). I recall clearly the last time the Dow closed unchanged, and it marked a short term top. In this case, I am hoping it is simply fear of holding positions over a long weekend combined with a very strong week, leading to profit taking. Both NYSE and NASDAQ appear ready for some consolidation. I continue to see strength in the small caps, personally I had a decent week with three of five stocks up 10% or better, one down nearly 10%, and one just ahead of the Dow 30 with a gain of 2.5%. And both funds in my 401 matched or beat the S&P500. However, I am planning to go to substantial cash this next week, partly because I will be relying on delayed quotes. Any statements or opinions are strictly my own and not that of my employer. My comments should not be interpreted as a recommendation of any kind. I am a licensed (inactive) broker and an active investor. All investors should do their own research prior to any investment, especially one learned about on the Internet. Hopefully my comments will better inform and educate all investors. tom w - - ------------------------------ Date: Sat, 14 Feb 1998 15:46:01 -0500 From: "Tom Worley" Subject: Re: [CANSLIM] Breakouts: GART, BBRC, GLE Sorry, Tim, but don't like any of the ones you mentioned. GART - declining volume after a move up, no close base, could pull back if decreasing vol continues BBRC - no base here, strictly a momentum play GLE - already 20% extended, there's a short base at 25 UVSGA - not a breakout, DG Online shows debt of 957% (I assume Zack's is a percent not a ratio). Also funds already own 36%, earnings growth for five years only 1%, Return on Equity (ROE) of 5% and 144 times book value. Looks to me to be overpriced. Any statements or opinions are strictly my own and not that of my employer. My comments should not be interpreted as a recommendation of any kind. I am a licensed (inactive) broker and an active investor. All investors should do their own research prior to any investment, especially one learned about on the Internet. Hopefully my comments will better inform and educate all investors. tom w - -----Original Message----- From: Tim Fisher To: canslim@mail.xmission.com Date: Saturday, February 14, 1998 2:33 PM Subject: [CANSLIM] Breakouts: GART, BBRC, GLE >These three broke out last week. My numbers (different from IBD!) for them are: > EPS GRS RS >GART 99 94 90 >BBRC 94 63 51 >GLE 96 43 40 > >Any suggestions? Also, UVSGA beat estimates by 3 cents after the close on >Friday, may be time for it to break the (short) handle of it's C&H. While >I'm at it, I really like HBCCA (EPS: 86, GRS: 85, RS: 90) but am scared of >the 957:1 debt:equity I get from Zacks. Can someone look this up on DG or >similar service and confirm/deny that number? > >Tim Fisher, 1995 President, Pacific Fishery Biologists >Ore-ROCK-On Rockhounding Web Site >PFB Information >tfish@spiritone.com >WWW http://www.spiritone.com/~tfish -- See naked fish and rocks! > > >- > - - ------------------------------ Date: Sat, 14 Feb 1998 13:56:05 -0800 From: Komkit Tukovinit Subject: [CANSLIM] RE: canslim-digest V2 #116 A more capable filtering service that is still free is at www.marketplayer.com. It will let you scan for breakouts on high volume on stocks with good fundamentals (Revenues, EPS, and ROE). The available values are pre-canned: you can't specify parameters as you would be able to with Quotes-Plus. However, it's still free and it does let you scan for a few fundamentals, which QP 1.0 doesn't let you do. The rumor (or facts) has it that QP 2.0 will let you scan for the fundamentals, and I am still waiting. A really good site with the technical data, as discussed by Connie Mack recently, can be found at www.bigcharts.com. I don't own any scanning software nor subscribe to any filtering service, so I am scavenging for all the information that is free. So far, those two sites are my most favorites. If you are trying to learn what all the technical indicators mean, the demo version of Quotes-Plus gives very precise definitions. www.bigcharts.com also gives you the definitions, although the definitions are more conceptual. kom Date: Thu, 12 Feb 1998 22:57:21 -0700 From: "Joe J." Subject: [CANSLIM] filters that cost money? Craig Hogan posted the following: > > How much more do you get for filters that cost money? I've been using > the free filter here: > > http://w3.one.net/~stod/ > > Is there something wrong with that? Nothing wrong with that. However, I checked out the site and it seems that you are limited to the pre-canned data categories. For example, I didn't see anything letting you scan for new highs on increased volume, with rel. strenth of > 85, etc. This is what you can do with QuotesPlus (i.e., write your own custom scans - which can also include some basic technical analysis features such as 21 day Moneyflow Oscillators, Moving averages, etc.). Also, I have Metastock which requires data to be downloaded onto my hard drive. QuotesPlus (and many other pay services) will do this. You might want to check out their web-site for more info. Good Luck. Joe J. - - ------------------------------ Date: Sat, 14 Feb 1998 14:30:42 -0800 From: Komkit Tukovinit Subject: [CANSLIM] SE This stock seems to be in the third day of its break out, which may make it too extended. kom - - ------------------------------ Date: Sat, 14 Feb 1998 18:56:21 -0500 From: Peter Newell Subject: [CANSLIM] Breakouts ANF/MLT ANF EPS 99 RS 96 Acc/Dis A GS 75 Vol 5x Float 7mil MLT EPS 97 RS 96 Acc/Dis A GS ? Vol 4x Float 150 mil little extended vol increasing no fundamentals not sure why. Peter Newell - - ------------------------------ Date: Sat, 14 Feb 1998 21:30:57 -0500 From: Neil Himber Subject: Re: [CANSLIM] Breakouts - GX & HCFP Dan Musicant wrote: > > On Thu, 12 Feb 1998 23:15:14 -0500, you wrote: > > :Peter Christiansen wrote: > :> > :> ** Reply to note from Neil Himber Mon, 09 Feb 1998 21:07:13 -0500 > :> > :> > Several months ago you said that you thought Superior Telecom was about > :> > to breakout. I've been watching it since and it has done nothing. Do > :> > you have any idea why? > :> > :> It did break out on 2/2, but the breakout appears to be failing. If I had bought on the > :> breakout, I would be selling on any further weakness. As for why it is failing... I haven't a > :> clue, and don't really care. I just let the price action tell me what to do. Trying to come up > :> with a rational explanation for a stock's price movement is an exercise in futility. IMHO > :> > :> Peter Christiansen > :> Chiang Mai, Thailand > :> > :> Connected with OS/2 Warp 3.0 & The Post Road Mailer > :> _____________________________________________________________________________________ > :> > :> Sex is like a bridge game: If you don't have a good partner, you better have a good hand. > :> > :> - > :Hi Pete: > :Thanks for the reply to my inquiry about SUT's predicted breakout. I > :don't really care whether you care if the breakout is failing or not. I > :am trying to learn what led you, or what might lead me or anyone to > :expect a breakout. What was it that you saw that led you to believe > :that SUT was breaking out three months ago, when you made that post? > :What criteria should I look for, to indicate a breakout is probable, and > :when should I conclude that the expected breakout has not, and probably > :will not materialize? > :Thanks, > :Neil > : > I will certainly not speak for Peter, however I saw his post on > 11/20/97 pointing out a stock (one of them SUT) that appeared to be > breaking out on good volume that morning. I checked it out and decided > that SUT looked good, and I opened a position. I watched it closely > and determined that I felt the breakout was failing and I got out > without too much damage (5%). That's just the way it goes sometimes. > Like Peter said, you watch the action and don't try to determine the > reasons. There's no time for that, and you always have to figure that > there may be significant info you are not privy to. > > I don't (and didn't) feel that Peter predicted a breakout. He merely > noted that the stock appeared to be *breaking out*. No > prognostications offered, no guarantees made. What Peter saw, other > than the basic CANSLIM criteria for the issues, was that the price on > the stock was advancing considerably on significantly above average > volume. To me, that is what a breakout constitutes in terms of what is > sensorily available.... But, of course, I am but a rube compared to > Connie Mack, no irony or sarcasm intended. > > Here's Peter's entire message (aside from his signature and customary > quip at the bottom): "Superior Telecom (SUT) appears to be breaking > out." This is hardly a "prediction". > > Dan > > - Hi Dan: Thanks for helping me understand what constitutes a breakout and a failed breakout. The more I learn about this IBD CANSLIM method the less suitable it seems to be for me. It seems to require a high degree of technical alalysis skill, and the ability to act very quickly. I don't have access to an online computer at work during the day, and I travel on business about one week a month so a stock could drop past the 8% sell point before I knew it. I subscribe to IBD, and I've watched the videos and read HTMMIS and I've attended the seminar, but I've made more money following the Beating the Dow method as described in Michael O'Higgins book by the same name. - -- SLTG - - ------------------------------ Date: Sat, 14 Feb 1998 21:03:56 -0800 From: "Patrick Wahl" Subject: Re: [CANSLIM] Breakouts: GART, BBRC, GLE > Date: Sat, 14 Feb 1998 11:34:59 -0700 > To: > These three broke out last week. My numbers (different from IBD!) for them are: > EPS GRS RS > GART 99 94 90 > BBRC 94 63 51 > GLE 96 43 40 > I have been watching GART, I think it looks pretty good. I would read the chart as a breakout from a base to a new high on heavy volume. Looks like a person would risk about 3 1/2 points, down to 35 1/2. I think you can call the period from June to Feb a C&H, handle forming in the last few weeks. (I did see Tom's comments, goes to show how subjective this chart reading is, no wonder a few people have questions about applying Canslim accurately.) - - ------------------------------ Date: Sun, 15 Feb 1998 00:49:09 -0500 (EST) From: Zoran Mitrovski Subject: Re: [CANSLIM] Breakouts: GART, BBRC, GLE I agree with Patrick and I like the looks of GART too. I even bought me some on Friday. Few things to pay attention to: 1. It has been pulling back towards the top of the base on steadily decreasing volume. 2. The cup that Patrick mentions is not really a cup but to me is sonething even better since it is a double bottom formation with the second bottom being higher than the first one. 3. In the handle of this big cup there is a smaller cup nested as well. 4. A 2 year chart would show the importance of 42 as a significant old resistance point. But if it breaks above that one, good things can happen. I love buying on pull-backs because the waters are calmer, because the decreasing volume speaks volumes, and because I am closer to the "something's wrong" point. In GART's case, if it goes up, I would sell half just below 42, expecting it to pull back down after that. If the volume dries up on the pull-back again, I'll be ready for another entry and waiting for the 42+ move. (I don't have the chart in front of me so I hope the above numbers are OK) Zoran > > Date: Sat, 14 Feb 1998 11:34:59 -0700 > > To: > > > These three broke out last week. My numbers (different from IBD!) for them are: > > EPS GRS RS > > GART 99 94 90 > > BBRC 94 63 51 > > GLE 96 43 40 > > > > > I have been watching GART, I think it looks pretty good. I would > read the chart as a breakout from a base to a new high on heavy > volume. Looks like a person would risk about 3 1/2 points, down to > 35 1/2. I think you can call the period from June to Feb a C&H, > handle forming in the last few weeks. (I did see Tom's comments, > goes to show how subjective this chart reading is, no wonder a few > people have questions about applying Canslim accurately.) > > > > > - > > - - ------------------------------ Date: Sun, 15 Feb 1998 12:26:35 +0200 From: "David S. Pinhasik" Subject: Re: [CANSLIM] When do you sell a stock Hi Carol, I am no expert, but WON has a very important chapter on selling= in HTMMIS. In short, sell after you have made 20% (don't be greedy) unless t= he stock has gone the 20% in less than 8 weeks in which case hold on to it f= or the full 8 weeks. He has several other suggestions, so it's a good idea t= o study that chapter. David - -----Original Message----- From: carolreynolds@juno.com To: canslim@lists.xmission.com Date: =F9=E1=FA 14 =F4=E1=F8=E5=E0=F8 1998 16:48 Subject: [CANSLIM] When do you sell a stock >After you have bought a good stock and it has run up some, When do you >sell. Decreased volume? > >Carol > >_____________________________________________________________________ >You don't need to buy Internet access to use free Internet e-mail. >Get completely free e-mail from Juno at http://www.juno.com >Or call Juno at (800) 654-JUNO [654-5866] > > >- > > - - ------------------------------ Date: Sun, 15 Feb 1998 07:16:51 -0500 From: "Tom Worley" Subject: Re: [CANSLIM] GART (was Breakouts: GART, BBRC, GLE) I agree that GART did breakout, and on excellent volume. However it failed to follow thru on Thursday, vol decreasing (altho still over avg daily vol) and a small price decline. Then on Friday the price dropped another 50 cents, but vol dropped to less than half of ADV. This may simply be due to a long weekend ahead, but suggests to me that the breakout may be failing and it's returning to its base around 36. If so, a buy on it while this extended means hitting an 8% stop by just returning to the base. I also note that 1997 was a relatively easy easy year for year to year comparisons, however only the Q4 showed sig growth sequentially in either earnings or revenues. Earnings sequentially for the first three qtrs were essentially flat. Trailing PE high at 49, about 40 on projected basis, altho five year earnings growth rate does exceed both at 93%, but this is so high in part because 1993 and 1994 only earned a total of 24 cents combined, thus the measure is from a very low nr. I also noted that funds already own 39%, so while they may do some additional buying, it will be limited. It's got potential, but I would want to wait and be sure it can build a base at least over 39, and then wait for a further attempt to move higher on volume. Any statements or opinions are strictly my own and not that of my employer. My comments should not be interpreted as a recommendation of any kind. I am a licensed (inactive) broker and an active investor. All investors should do their own research prior to any investment, especially one learned about on the Internet. Hopefully my comments will better inform and educate all investors. tom w - -----Original Message----- From: Patrick Wahl To: canslim@lists.xmission.com Date: Sunday, February 15, 1998 12:02 AM Subject: Re: [CANSLIM] Breakouts: GART, BBRC, GLE > Date: Sat, 14 Feb 1998 11:34:59 -0700 > To: > These three broke out last week. My numbers (different from IBD!) for them are: > EPS GRS RS > GART 99 94 90 > BBRC 94 63 51 > GLE 96 43 40 > I have been watching GART, I think it looks pretty good. I would read the chart as a breakout from a base to a new high on heavy volume. Looks like a person would risk about 3 1/2 points, down to 35 1/2. I think you can call the period from June to Feb a C&H, handle forming in the last few weeks. (I did see Tom's comments, goes to show how subjective this chart reading is, no wonder a few people have questions about applying Canslim accurately.) - - - - ------------------------------ Date: Sun, 15 Feb 1998 07:37:45 -0500 From: Jeffry White <"postwhit@sover.net"@sover.net> Subject: [CANSLIM] OMQP > Date: Wed, 11 Feb 1998 23:12:32 -0500 > From: "Connolly Family" > Subject: Re: [CANSLIM] OMQP > > I'm new to this forum and... > I'm curious... what "screen" did OMQP come up on? I'm still looking for a > program to scan for canslim candidates... What are you using? > I've played OMQP before, just after the IPO. So, I've kept my eye on it, off and on since. However, I noticed it a couple of weeks ago in the IBD Weekly Graphs. I don't have a program to scan for CANSLIM candidates, other than my two eyes. :0) BTW, I should update my OMQP "experiment" using Connie Mack's slow stochastics and 3/6/9 EMA crossovers. I took a position on 2/2 at 23 1/4. The stochs and EMA crossed on 1/30. My hope was 23 (Friday's low on 15% average daily volume) was the bottom of that little "handle". My stop went in at 21 1/2. Things worked well, until we approached the old high of 27 and, as Dave Cameron noted, we started "churning". I sold half my position on 2/11 at 25 5/8 when things looked grim. My stop held by a tick (low was 21 5/8 on Thursday) and I sold the rest on Friday near the close at 24 3/8. Overall, not a bad play. I wouldn't touch the stock now, unless it breaks out to a new high. But I'm satisfied with the entry point that I took and the stop placement it allowed. This is not my only effort to capture a pre-breakout entry point using Connie Mack's indicators, but it is the most recent. I sure feel better playing a stock like OMQP with the indicators, however. Most would buy the stock as it broke above the pivot point at 24 1/2. If so, and you set an appropriate stop, you lost money. When this stock moved above the pivot, it looked like the Real McCoy. I've lost a lot of money buying that way, or actually waiting for the stock to make a new high. These two indicators seem to work best for me on LLUR patterns, on stocks that have just broken out from good bases on huge volume, or stocks that have made a good run, but need a rest before moving on. The LLUR stocks invariably come back to oversold conditions near the bottom of a trend line or the 50 day moving average. Safe entry points can be had with the slow stochs and 3/6/9 EMA crossovers on LLUR stocks. One I've been playing this way with in the money calls 4-6 months out is WFMI. Cashed out this one last week and am waiting for oversold conditions to reappear. On the huge breakouts (that don't go immediately to the moon), low volume correction back toward the base will often show the same crossovers just before the move resumes. Low risk entry points can be obtained using these two indicators. I used to guess where this point was, but the slow stochs and EMA crossover have helped confirm those "guesses". A couple I have on my watch list of these types are SYNT and THRX. Jeffry - - ------------------------------ Date: Sun, 15 Feb 1998 07:37:00 -0500 From: "Tom Worley" Subject: Re: [CANSLIM] Breakouts ANF/MLT ANF appears to have nicely consolidated the gains made from mid Dec to mid Jan. One problem I note is that they need to have done 50 cents for Q4 ended Jan to meet full year forecasts, this looks difficult. The rest of the CS elements look strong however. Chart appears to be channeling, lower side around 33 and upper around 38.5 to 39. I suspect MLT is in the Telecom-Equip group which has a GRS of 56. I'm a little surprised with such high CS elements it's not in the book, and have sent an email to CustServ at DGO asking why, altho suspect the answer lies in the ADV of 60,500, and possibly the price of just under $12. It appears analysts have not been updating their full year or next year forecasts on this one, as it only needs 6 cents to beat the full year forecast, and that appears to be a lay down unless there's been a huge nr of new shares issued since (year ends March). Altho sharply extended at this price, trailing PE still quite low at 17. Any statements or opinions are strictly my own and not that of my employer. My comments should not be interpreted as a recommendation of any kind. I am a licensed (inactive) broker and an active investor. All investors should do their own research prior to any investment, especially one learned about on the Internet. Hopefully my comments will better inform and educate all investors. tom w - -----Original Message----- From: Peter Newell To: canslim@lists.xmission.com Date: Saturday, February 14, 1998 8:26 PM Subject: [CANSLIM] Breakouts ANF/MLT >ANF EPS 99 RS 96 Acc/Dis A GS 75 Vol 5x Float 7mil >MLT EPS 97 RS 96 Acc/Dis A GS ? Vol 4x Float 150 mil little extended vol >increasing no fundamentals not sure why. > >Peter Newell > > > >- > - - ------------------------------ Date: Sun, 15 Feb 1998 07:44:42 -0500 From: Jeffry White <"postwhit@sover.net"@sover.net> Subject: [CANSLIM] Options Tom: I recently began using in the money Calls on CANSLIM stocks priced over 30 bucks with good results. It has eliminated what I always considered one of the biggest psychological impediments to my speculation efforts. That is, I always sought out the cheaper stocks because my account lacked the capital to hold higher priced issues. I also have had a hard time actually setting that important stop loss order. In the money Call buying solves both of these problems. They feed the "greed bug" a bit, but that is usually less of a problem for me than lack of capital and stop loss placement. In light of our similar tendencies on price and stop loss placement (sorry, but I think you agree), have you tried options as an alternative to the issue itself? Jeffry - - ------------------------------ Date: Sun, 15 Feb 1998 08:23:39 -0500 From: "Tom Worley" Subject: Re: [CANSLIM] Options In 1995, while my wife was still working, I felt able to take some greater risks and played a number of options, all on CANSLIM type stocks starting to breakout. Took my trading acct from $6000 to over $20,000, largely due to the options plays, altho some gains also came from equities. I also did a little covered call writing on the only NYSE stock I was holding. I ended up riding several too long at the end of the summer and early fall, and ended up netting only about $15K before I had to liquidate the acct to pay bills after my wife couldn't work, but still an excellent 9 month return. I had one broker in the office (since terminated with extreme prejudice) who more recently used in the money long calls on CS type stocks. Did well so long as he was willing to cut the loss on the ones not working out. It's easy to be down 50% real fast, and you have to be tough in accepting that and taking the loss and salvaging what's left. Too often he would gamble on what was left and it would end up expiring worthless for a 100% loss. Since my wife died, I have felt too financially insecure to play options unemotionally (and you must play them that way), altho have played a nr on paper. Lately the mkt has become more favorable towards CS type stocks (VIX down to around 20) so may risk a small amount of capital on options in the next month or two, altho am expecting the mkt to weaken by the end of the month and remain so thru April 15. One thing that helped make options work for me was that I was not investing, I was gambling. I was not a shareholder, so didn't get so attached to the stock or do as much investigating on fundamentals, I was playing it purely on technicals. I usually bot options at least a month out, and never more than three months out, always on tech stocks despite the high premiums. Options are always, by definition, high risk, and not suitable for that many investors (unfortunately they are used by far more than are suitable). Truth is, had I the capital, I would prefer buying the tech stocks with high premiums and playing covered calls instead. Who knows, I haven't checked my lottery tickets yet this weekend!!!??? Any statements or opinions are strictly my own and not that of my employer. My comments should not be interpreted as a recommendation of any kind. I am a licensed (inactive) broker and an active investor. All investors should do their own research prior to any investment, especially one learned about on the Internet. Hopefully my comments will better inform and educate all investors. tom w - -----Original Message----- From: Jeffry White <"postwhit@sover.net"@sover.net> To: canslim@mail.xmission.com Date: Sunday, February 15, 1998 7:42 AM Subject: [CANSLIM] Options >Tom: > >I recently began using in the money Calls on CANSLIM stocks priced over >30 bucks with good results. It has eliminated what I always considered >one of the biggest psychological impediments to my speculation efforts. >That is, I always sought out the cheaper stocks because my account >lacked the capital to hold higher priced issues. I also have had a hard >time actually setting that important stop loss order. In the money Call >buying solves both of these problems. They feed the "greed bug" a bit, >but that is usually less of a problem for me than lack of capital and >stop loss placement. > >In light of our similar tendencies on price and stop loss placement >(sorry, but I think you agree), have you tried options as an alternative >to the issue itself? > > >Jeffry > >- > - - ------------------------------ Date: Sun, 15 Feb 1998 08:54:33 -0500 From: "Tom Worley" Subject: Re: [CANSLIM] SE RS of 74 would keep this off my watch list even more than the extended condition. Any statements or opinions are strictly my own and not that of my employer. My comments should not be interpreted as a recommendation of any kind. I am a licensed (inactive) broker and an active investor. All investors should do their own research prior to any investment, especially one learned about on the Internet. Hopefully my comments will better inform and educate all investors. tom w - -----Original Message----- From: Komkit Tukovinit To: 'canslim@lists.xmission.com' Date: Saturday, February 14, 1998 5:43 PM Subject: [CANSLIM] SE >This stock seems to be in the third day of its break out, which may make >it too extended. > >kom > > >- > - - ------------------------------ End of canslim-digest V2 #117 ***************************** 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.