chart patterns

From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #1579 Reply-To: canslim Sender: owner-canslim-digest@lists.xmission.com Errors-To: owner-canslim-digest@lists.xmission.com Precedence: bulk Content-Transfer-Encoding: quoted-printable X-No-Archive: yes canslim-digest Thursday, July 26 2001 Volume 02 : Number 1579 In this issue: [CANSLIM] Markets up? down? Re: [CANSLIM] Markets up? down? RE: [CANSLIM] Weekly Watch List - SRZ [CANSLIM] chart patterns RE: [CANSLIM] Weekly Watch List - SRZ Re: [CANSLIM] chart patterns Re: [CANSLIM] chart patterns [CANSLIM] ELTE - possible CANSLIM-in-the-making Re: [CANSLIM] ELTE - possible CANSLIM-in-the-making Re: [CANSLIM]OFF TOPIC(was ELTE - possible CANSLIM-in-the-making) Re: [CANSLIM] ELTE - possible CANSLIM-in-the-making Re: [CANSLIM] ELTE - possible CANSLIM-in-the-making ---------------------------------------------------------------------- Date: Wed, 25 Jul 2001 08:26:33 -0500 From: "Rich Weinhold" Subject: [CANSLIM] Markets up? down? This is a multi-part message in MIME format. - ------=_NextPart_000_0052_01C114E3.83580500 Content-Type: multipart/alternative; boundary="----=_NextPart_001_0053_01C114E3.83580500" - ------=_NextPart_001_0053_01C114E3.83580500 Content-Type: text/plain; charset="Windows-1252" Content-Transfer-Encoding: quoted-printable What is the thinking from this group for the next 3 months, and 6 = months. Will the NASDAQ test the low? - ------=_NextPart_001_0053_01C114E3.83580500 Content-Type: text/html; charset="Windows-1252" Content-Transfer-Encoding: quoted-printable

What is the thinking from this group for the next 3 months, and 6=20 months.

Will the NASDAQ test the low?

- ------=_NextPart_001_0053_01C114E3.83580500-- - ------=_NextPart_000_0052_01C114E3.83580500 Content-Type: image/gif; name="tech.gif" Content-Transfer-Encoding: base64 Content-ID: <005101c1150d$6c2e0d00$9db3fc9e@library> R0lGODlhFAAUAPcAAP//////zP//mf//Zv//M///AP/M///MzP/Mmf/MZv/MM//MAP+Z//+ZzP+Z mf+ZZv+ZM/+ZAP9m//9mzP9mmf9mZv9mM/9mAP8z//8zzP8zmf8zZv8zM/8zAP8A//8AzP8Amf8A Zv8AM/8AAMz//8z/zMz/mcz/Zsz/M8z/AMzM/8zMzMzMmczMZszMM8zMAMyZ/8yZzMyZmcyZZsyZ M8yZAMxm/8xmzMxmmcxmZsxmM8xmAMwz/8wzzMwzmcwzZswzM8wzAMwA/8wAzMwAmcwAZswAM8wA AJn//5n/zJn/mZn/Zpn/M5n/AJnM/5nMzJnMmZnMZpnMM5nMAJmZ/5mZzJmZmZmZZpmZM5mZAJlm /5lmzJlmmZlmZplmM5lmAJkz/5kzzJkzmZkzZpkzM5kzAJkA/5kAzJkAmZkAZpkAM5kAAGb//2b/ zGb/mWb/Zmb/M2b/AGbM/2bMzGbMmWbMZmbMM2bMAGaZ/2aZzGaZmWaZZmaZM2aZAGZm/2ZmzGZm mWZmZmZmM2ZmAGYz/2YzzGYzmWYzZmYzM2YzAGYA/2YAzGYAmWYAZmYAM2YAADP//zP/zDP/mTP/ ZjP/MzP/ADPM/zPMzDPMmTPMZjPMMzPMADOZ/zOZzDOZmTOZZjOZMzOZADNm/zNmzDNmmTNmZjNm MzNmADMz/zMzzDMzmTMzZjMzMzMzADMA/zMAzDMAmTMAZjMAMzMAAAD//wD/zAD/mQD/ZgD/MwD/ AADM/wDMzADMmQDMZgDMMwDMAACZ/wCZzACZmQCZZgCZMwCZAABm/wBmzABmmQBmZgBmMwBmAAAz /wAzzAAzmQAzZgAzMwAzAAAA/wAAzAAAmQAAZgAAMwAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAACwAAAAAFAAUAEAIQwBJCBxI sKBBAAgTKlyYUCDDhwsdQpwoceLDihYjksh4cSNHjR9BhmzocSQAjCFRflTJkWVGlxZhUiw5UiZE gzhzBgQAOw== - ------=_NextPart_000_0052_01C114E3.83580500-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 25 Jul 2001 07:58:26 -0700 (PDT) From: Kent Norman Subject: Re: [CANSLIM] Markets up? down? For what its worth, I think it will be flat till October and then take off. Kent Norman - --- Rich Weinhold wrote: > What is the thinking from this group for the next 3 > months, and 6 months. > Will the NASDAQ test the low? > > __________________________________________________ Do You Yahoo!? Make international calls for as low as $.04/minute with Yahoo! Messenger http://phonecard.yahoo.com/ - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 25 Jul 2001 10:05:05 -0400 From: Jerry Sparrow Subject: RE: [CANSLIM] Weekly Watch List - SRZ Where did you find the Sponsorship rating and the Q4 2001 vs. Q4 2000 information? - -----Original Message----- From: Jeff Chen [mailto:mc_ib@yahoo.com] Sent: Monday, July 23, 2001 8:23 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] Weekly Watch List - SRZ I bought it about .30 above the pivot point. Like you said, the volume was strong today. However, I always worry when stocks close below my buy point the day I bought it. I will watch it closely tomorrow. However, I do have my stop loss order in already, as I always do right after I buy. Jeff - --- Norman wrote: > Jeff, > > I think maybe the SRZ pivot point was penetrated > today on good volume before > it pulled back. How do you interpret that? > > Good summaries! > > Norman > > ----- Original Message ----- > From: "Jeff Chen" > To: > Sent: Monday, July 23, 2001 6:51 PM > Subject: [CANSLIM] Weekly Watch List > > > > Hi all, here is my watch list for this week. > > Please note that I took position today in GMCR and > > SRZ. > > > > AEOS: > > Pivot Point: 41.32 > > Average Volume: 1,747,300 > > EPS Rating: 96 > > RS Rating: 96 > > Industry Rating: B > > Industry Rank: 76 > > SMR Rating: A > > A/D Rating: B > > Sponsorship Rating: B > > 3 Year EPS Rate: 42% > > 3 Year Sales Rate: 37% > > Q4. 2001 VS. Q4. 2000: 33% > > Shares Outstanding: 71.5 million > > % Own By Institution: 73% > > Profit Margin: 8.3% > > R.O.E.: 30.34% > > P/E Ratio: 27.99 > > > > DGX: > > Pivot Point: 75.875 > > Average Volume: 629,400 > > EPS Rating: 99 > > RS Rating: 91 > > Industry Rating: A > > Industry Rank: 4 > > SMR Rating: A > > A/D Rating: B > > Sponsorship Rating: B > > 3 Year EPS Rate: 78% > > 3 Year Sales Rate: 44% > > Q1. 2001 VS. Q1. 2000: 90% > > Shares Outstanding: 94 million > > % Own By Institution: 52% > > Profit Margin: 3.6% > > R.O.E.: 12.40% > > P/E Ratio: 56.81 > > > > EBAY: > > Pivot Point: 71.40 > > Average Volume: 5,647,100 > > EPS Rating: 93 > > RS Rating: 82 > > Industry Rating: A > > Industry Rank: 24 > > SMR Rating: A > > A/D Rating: B > > Sponsorship Rating: B > > 3 Year EPS Rate: 80% > > 3 Year Sales Rate: 116% > > Q1. 2001 VS. Q1. 2000: 267% > > Shares Outstanding: 270.2 million > > % Own By Institution: 35% > > Profit Margin: 14.3% > > R.O.E.: 8.18% > > P/E Ratio: 213.25 > > > > GMCR: > > Pivot Point: 36.3125 > > Average Volume: 64,800 > > EPS Rating: 95 > > RS Rating: 99 > > Industry Rating: B > > Industry Rank: 58 > > SMR Rating: A > > A/D Rating: B > > Sponsorship Rating: A > > 3 Year EPS Rate: 277% > > 3 Year Sales Rate: 22% > > Q2. 2001 VS. Q2. 2000: 89% > > Shares Outstanding: 6.44 million > > % Own By Institution: 23% > > Profit Margin: 5.6% > > R.O.E.: 45.53% > > P/E Ratio: 37.62 > > > > MDC: > > Pivot Point: 46.08 > > Average Volume: 176,000 > > EPS Rating: 98 > > RS Rating: 92 > > Industry Rating: A > > Industry Rank: 25 > > SMR Rating: A > > A/D Rating: B > > Sponsorship Rating: B > > 3 Year EPS Rate: 55% > > 3 Year Sales Rate: 19% > > Q2. 2001 VS. Q2. 2000: 30% > > Shares Outstanding: 24.2 million > > % Own By Institution: 65% > > Profit Margin: 7.4% > > R.O.E.: 30.46% > > P/E Ratio: 7.73 > > > > SRZ: > > Pivot Point: 30.12 > > Average Volume: 243,000 > > EPS Rating: 98 > > RS Rating: 93 > > Industry Rating: A > > Industry Rank: 2 > > SMR Rating: B > > A/D Rating: A > > Sponsorship Rating: B > > 3 Year EPS Rate: 24% > > 3 Year Sales Rate: 49% > > Q1. 2001 VS. Q1. 2000: 189% > > Shares Outstanding: 21.6 million > > % Own By Institution: 89% > > Profit Margin: 9.7% > > R.O.E.: 9.5% > > P/E Ratio: 20.47 > > > > TKCI: > > Pivot Point: 24.13 > > Average Volume: 105,400 > > EPS Rating: 99 > > RS Rating: 99 > > Industry Rating: A > > Industry Rank: 13 > > SMR Rating: A > > A/D Rating: C > > Sponsorship Rating: > > 3 Year EPS Rate: 83% > > 3 Year Sales Rate: 40% > > Q1. 2001 VS. Q1. 2000: 60% > > Shares Outstanding: 7.41 million > > % Own By Institution: 16% > > Profit Margin: 9.3% > > R.O.E.: 31.96% > > P/E Ratio: 20.39 > > > > __________________________________________________ > > Do You Yahoo!? > > Make international calls for as low as $.04/minute > with Yahoo! Messenger > > http://phonecard.yahoo.com/ > > > > - > > -To subscribe/unsubscribe, email > "majordomo@xmission.com" > > -In the email body, write "subscribe canslim" or > > -"unsubscribe canslim". Do not use quotes in your > email. > > > > > > > - > -To subscribe/unsubscribe, email > "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. __________________________________________________ Do You Yahoo!? Make international calls for as low as $.04/minute with Yahoo! Messenger http://phonecard.yahoo.com/ - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ************************************************************************************************** The Firelan(tm) Virus Scanning Service has scanned this email for viruses, vandals and malicious content. http://www.firelan.net ************************************************************************************************** - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 25 Jul 2001 09:21:29 -0700 From: "DiFabio, Nancy" Subject: [CANSLIM] chart patterns This message is in MIME format. Since your mail reader does not understand this format, some or all of this message may not be legible. - ------_=_NextPart_001_01C11525.A567B036 Content-Type: text/plain; charset=iso-8859-1 Content-Transfer-Encoding: 7bit When looking for chart patterns, ie. head and shoulders, c&h, etc. is it preferable to analyze a daily chart or weekly chart? Thanks. Nancy "WorldSecure " made the following annotations on 07/25/01 09:20:59 - ------------------------------------------------------------------------------ PLEASE NOTE: This message, including any attachments, may include privileged, confidential and/or inside information. Any distribution or use of this communication by anyone other than the intended recipient(s) is strictly prohibited and may be unlawful. If you are not the intended recipient, please notify the sender by replying to this message and then delete it from your system. Thank you. ============================================================================== - ------_=_NextPart_001_01C11525.A567B036 Content-Type: text/html; charset=iso-8859-1 Content-Transfer-Encoding: quoted-printable chart patterns

When looking for chart = patterns, ie. head and shoulders, c&h, etc. is it preferable to = analyze a daily chart or weekly chart?

Thanks.
Nancy

"WorldSecure <irell.com>" made the following
annotations on 07/25/01 09:20:59
- ---------------------------------------------------------------------------= - ---
PLEASE NOTE: This message, including any attachments, may include = privileged, confidential and/or inside information. Any distribution or us= e= of this communication by anyone other than the intended recipient(s) is = strictly prohibited and may be unlawful. If you are not the intended = recipient, please notify the sender by replying to this message and then = delete it from your system. Thank you.

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- ------_=_NextPart_001_01C11525.A567B036-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 25 Jul 2001 09:32:37 -0700 (PDT) From: Jeff Chen Subject: RE: [CANSLIM] Weekly Watch List - SRZ Sponsorship rating was in IBD and earning in Baseline Profiles - --- Jerry Sparrow wrote: > Where did you find the Sponsorship rating and the Q4 > 2001 vs. Q4 2000 > information? > > -----Original Message----- > From: Jeff Chen [mailto:mc_ib@yahoo.com] > Sent: Monday, July 23, 2001 8:23 PM > To: canslim@lists.xmission.com > Subject: Re: [CANSLIM] Weekly Watch List - SRZ > > > I bought it about .30 above the pivot point. Like > you > said, the volume was strong today. However, I > always > worry when stocks close below my buy point the day I > bought it. I will watch it closely tomorrow. > However, I do have my stop loss order in already, as > I > always do right after I buy. > > Jeff > > > > > --- Norman wrote: > > Jeff, > > > > I think maybe the SRZ pivot point was penetrated > > today on good volume before > > it pulled back. How do you interpret that? > > > > Good summaries! > > > > Norman > > > > ----- Original Message ----- > > From: "Jeff Chen" > > To: > > Sent: Monday, July 23, 2001 6:51 PM > > Subject: [CANSLIM] Weekly Watch List > > > > > > > Hi all, here is my watch list for this week. > > > Please note that I took position today in GMCR > and > > > SRZ. > > > > > > AEOS: > > > Pivot Point: 41.32 > > > Average Volume: 1,747,300 > > > EPS Rating: 96 > > > RS Rating: 96 > > > Industry Rating: B > > > Industry Rank: 76 > > > SMR Rating: A > > > A/D Rating: B > > > Sponsorship Rating: B > > > 3 Year EPS Rate: 42% > > > 3 Year Sales Rate: 37% > > > Q4. 2001 VS. Q4. 2000: 33% > > > Shares Outstanding: 71.5 million > > > % Own By Institution: 73% > > > Profit Margin: 8.3% > > > R.O.E.: 30.34% > > > P/E Ratio: 27.99 > > > > > > DGX: > > > Pivot Point: 75.875 > > > Average Volume: 629,400 > > > EPS Rating: 99 > > > RS Rating: 91 > > > Industry Rating: A > > > Industry Rank: 4 > > > SMR Rating: A > > > A/D Rating: B > > > Sponsorship Rating: B > > > 3 Year EPS Rate: 78% > > > 3 Year Sales Rate: 44% > > > Q1. 2001 VS. Q1. 2000: 90% > > > Shares Outstanding: 94 million > > > % Own By Institution: 52% > > > Profit Margin: 3.6% > > > R.O.E.: 12.40% > > > P/E Ratio: 56.81 > > > > > > EBAY: > > > Pivot Point: 71.40 > > > Average Volume: 5,647,100 > > > EPS Rating: 93 > > > RS Rating: 82 > > > Industry Rating: A > > > Industry Rank: 24 > > > SMR Rating: A > > > A/D Rating: B > > > Sponsorship Rating: B > > > 3 Year EPS Rate: 80% > > > 3 Year Sales Rate: 116% > > > Q1. 2001 VS. Q1. 2000: 267% > > > Shares Outstanding: 270.2 million > > > % Own By Institution: 35% > > > Profit Margin: 14.3% > > > R.O.E.: 8.18% > > > P/E Ratio: 213.25 > > > > > > GMCR: > > > Pivot Point: 36.3125 > > > Average Volume: 64,800 > > > EPS Rating: 95 > > > RS Rating: 99 > > > Industry Rating: B > > > Industry Rank: 58 > > > SMR Rating: A > > > A/D Rating: B > > > Sponsorship Rating: A > > > 3 Year EPS Rate: 277% > > > 3 Year Sales Rate: 22% > > > Q2. 2001 VS. Q2. 2000: 89% > > > Shares Outstanding: 6.44 million > > > % Own By Institution: 23% > > > Profit Margin: 5.6% > > > R.O.E.: 45.53% > > > P/E Ratio: 37.62 > > > > > > MDC: > > > Pivot Point: 46.08 > > > Average Volume: 176,000 > > > EPS Rating: 98 > > > RS Rating: 92 > > > Industry Rating: A > > > Industry Rank: 25 > > > SMR Rating: A > > > A/D Rating: B > > > Sponsorship Rating: B > > > 3 Year EPS Rate: 55% > > > 3 Year Sales Rate: 19% > > > Q2. 2001 VS. Q2. 2000: 30% > > > Shares Outstanding: 24.2 million > > > % Own By Institution: 65% > > > Profit Margin: 7.4% > > > R.O.E.: 30.46% > > > P/E Ratio: 7.73 > > > > > > SRZ: > > > Pivot Point: 30.12 > > > Average Volume: 243,000 > > > EPS Rating: 98 > > > RS Rating: 93 > > > Industry Rating: A > > > Industry Rank: 2 > > > SMR Rating: B > > > A/D Rating: A > > > Sponsorship Rating: B > > > 3 Year EPS Rate: 24% > > > 3 Year Sales Rate: 49% > > > Q1. 2001 VS. Q1. 2000: 189% > > > Shares Outstanding: 21.6 million > > > % Own By Institution: 89% > > > Profit Margin: 9.7% > > > R.O.E.: 9.5% > > > P/E Ratio: 20.47 > > > > > > TKCI: > > > Pivot Point: 24.13 > > > Average Volume: 105,400 > > > EPS Rating: 99 > > > RS Rating: 99 > > > Industry Rating: A > > > Industry Rank: 13 > > > SMR Rating: A > > > A/D Rating: C > > > Sponsorship Rating: > > > 3 Year EPS Rate: 83% > > > 3 Year Sales Rate: 40% > > > Q1. 2001 VS. Q1. 2000: 60% > > > Shares Outstanding: 7.41 million > > > % Own By Institution: 16% > > > Profit Margin: 9.3% > > > R.O.E.: 31.96% > > > P/E Ratio: 20.39 > > > > > > > __________________________________________________ > > > Do You Yahoo!? > > > Make international calls for as low as > $.04/minute > > with Yahoo! Messenger > > > http://phonecard.yahoo.com/ > > > > > > - > > > -To subscribe/unsubscribe, email > > "majordomo@xmission.com" > > > -In the email body, write "subscribe canslim" or > > > -"unsubscribe canslim". Do not use quotes in > your > > email. > > > > > > > > > > > === message truncated === __________________________________________________ Do You Yahoo!? Make international calls for as low as $.04/minute with Yahoo! Messenger http://phonecard.yahoo.com/ - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 25 Jul 2001 10:15:14 -0700 (PDT) From: Kent Norman Subject: Re: [CANSLIM] chart patterns Nancy WON mainly uses weekly charts. I use weekly 1 year for the big picture and then go to daily 3 month for closer analysis. Kent Norman - --- "DiFabio, Nancy" wrote: > When looking for chart patterns, ie. head and > shoulders, c&h, etc. is it > preferable to analyze a daily chart or weekly chart? > Thanks. > Nancy > > "WorldSecure " made the following > annotations on 07/25/01 09:20:59 > - ------------------------------------------------------------------------------ > PLEASE NOTE: This message, including any > attachments, may include privileged, confidential > and/or inside information. Any distribution or use > of this communication by anyone other than the > intended recipient(s) is strictly prohibited and may > be unlawful. If you are not the intended recipient, > please notify the sender by replying to this message > and then delete it from your system. Thank you. > > > ============================================================================== > __________________________________________________ Do You Yahoo!? Make international calls for as low as $.04/minute with Yahoo! Messenger http://phonecard.yahoo.com/ - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 25 Jul 2001 14:35:58 EDT From: Spencer48@aol.com Subject: Re: [CANSLIM] chart patterns Nancy, In looking at chart patterns, it depends on your time frame of investing. In a short time frame of Momentum Investing (as CANSLIM, I believe, subscribes to) the daily patterns would be more appropriate in signaling short term movements in the stock. However, WON says that one must also look at the weekly charts, particularly to check to see how the volume has reacted when the stock has advanced for the week (when going long, you'd want to see more volume on weekly stock rises, and a contracting volume when the weekly stock price falls). (Also, I've observed, that a weekly chart will show you the stock is in-for instance- an uptrend; meanwhile, the daily will portray a C&H or Double Bottom formation. This should confirm to you that when the stock breaks out from the C&H or Double Bottom, that the weekly uptrend should-in all likelihood-continue.) jans In a message dated 7/25/2001 12:20:15 PM Eastern Daylight Time, NDiFabio@irell.com writes: << When looking for chart patterns, ie. head and shoulders, c&h, etc. is it preferable to analyze a daily chart or weekly chart? Thanks. Nancy >> - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 25 Jul 2001 12:37:23 -0700 From: "Ian" Subject: [CANSLIM] ELTE - possible CANSLIM-in-the-making Hi all: ELTE is a small software company that recently reported 27% y-o-y revenue growth and 1500% y-o-y EPS growth to $0.16/share. THeir margins improved dramatically as well. I just listened to their conference call, and really, really liked what I heard. They claim that "their pipeline is enough to increase revenues in the near term". So it looks like their turnaround from a weak 2000 is sustainable. The company used to be traded in reasonable volume, while their numbers were still very good through 1999. They stumbled badly last year. They are currently trading within 5 cents of a 52-week high on a significant increase in volume since the conference call. The valuation is compelling - $2.70/share in cash, a market cap of $61,000,000 and quarterly revenues of over $17,000,000. There is a significant 'N' component as they are entering new verticals and geographies. They expect the new verticals to be "much higher than the current 5% of gross revenues next year". Volume has been non-existant since January this year, and the stock is too 'cheap' for traditional CANSLIM. Also, the yearly EPS growth was interrupted last year, although management expects their 'traditional' growth in the 20-30% range to resume. This is my favourite type of setup: growth, strong recent EPS change, great outlook, trading at/near 52-week highs, increasing volume and extremely low valuation relative to their peers. If the volume stays high, my experience tells me that it will have nowhere to go but up - it will all depend upon volume - I may be 4 months early here (I often am - it would be better to be breaking out from $11 from a much higher ADV - perhaps that will happen in October???). ELTE is definitely NOT a CANSLIM stock. I just thought that 1 or 2 of you may be interested. Cheers, Ian - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 25 Jul 2001 20:30:07 -0700 From: Harvey Brion Subject: Re: [CANSLIM] ELTE - possible CANSLIM-in-the-making Just for the record, DGO ratings are 57/91/B/D/A, timeliness C, ROE 3%, last 4 years earnings have resembled a roller coaster, ADV 11,100 shares, closing price today $7.43, definitely not for the faint of heart. Notable on the positive side: insider buying early May, then again 3 weeks later; repurchasing up to 1M of 9.4M outstanding shares. (Don't know if repurchase is from the 7.4M float... anyone else know?) Anyone got any mad money left? Ian wrote: > Hi all: > > ELTE is a small software company that recently reported 27% y-o-y revenue > growth and 1500% y-o-y EPS growth to $0.16/share. THeir margins improved > dramatically as well. > > I just listened to their conference call, and really, really liked what I > heard. They claim that "their pipeline is enough to increase revenues in the > near term". So it looks like their turnaround from a weak 2000 is > sustainable. The company used to be traded in reasonable volume, while their > numbers were still very good through 1999. They stumbled badly last year. > > They are currently trading within 5 cents of a 52-week high on a significant > increase in volume since the conference call. > > The valuation is compelling - $2.70/share in cash, a market cap of > $61,000,000 and quarterly revenues of over $17,000,000. > > There is a significant 'N' component as they are entering new verticals and > geographies. They expect the new verticals to be "much higher than the > current 5% of gross revenues next year". > > Volume has been non-existant since January this year, and the stock is too > 'cheap' for traditional CANSLIM. Also, the yearly EPS growth was interrupted > last year, although management expects their 'traditional' growth in the > 20-30% range to resume. > > This is my favourite type of setup: growth, strong recent EPS change, great > outlook, trading at/near 52-week highs, increasing volume and extremely low > valuation relative to their peers. If the volume stays high, my experience > tells me that it will have nowhere to go but up - it will all depend upon > volume - I may be 4 months early here (I often am - it would be better to be > breaking out from $11 from a much higher ADV - perhaps that will happen in > October???). ELTE is definitely NOT a CANSLIM stock. I just thought that 1 > or 2 of you may be interested. > > Cheers, > > Ian > > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Thu, 26 Jul 2001 07:09:55 -0500 From: "walter nusbaum" Subject: Re: [CANSLIM]OFF TOPIC(was ELTE - possible CANSLIM-in-the-making) - ----- Original Message ----- From: "Harvey Brion" To: Sent: Wednesday, July 25, 2001 10:30 PM Subject: Re: [CANSLIM] ELTE - possible CANSLIM-in-the-making (Snip) > > Notable on the positive side: insider buying early May, then again 3 weeks > later; repurchasing up to 1M of 9.4M outstanding shares. (Don't know if > repurchase is from the 7.4M float... anyone else know?) > Anyone got any mad > money left? (Snip) "Never let your money get mad". Jerry Jones, owner Dallas Cowboys (Snip) - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Thu, 26 Jul 2001 08:52:15 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] ELTE - possible CANSLIM-in-the-making correction, Harvey. Insiders do not "repurchase", only the company. And the repurchase of one million shares to which you refer did not occur "3 weeks later", it is a board resolution from last November with a deadline of Nov 8, 2001 and is a buyback, or repurchase, by the company from the float with no requirement that they buy a single share. It is simply an authorization by the Board that they CAN buy those shares. I have not researched to see if, in fact, they have bought back any shares to date. Buybacks are usually seen as a positive, even tho it uses up cash that could otherwise be spent on acquisitions, research and development, marketing, and other important business development. Important to how you weigh a repurchase is what will be done with those shares. In some cases, they are retired, thus reducing the total issue as well as the float, and enhancing earnings per share in the future. In other cases, they are held in Treasury, and used for ESOP (Employee Stock Option Plans) or other employee option plans (such as options given as a hiring incentive). In these cases, the quantity issued remains unchanged but the float is temporarily reduced. They can also be held in Treasury and used later to pay in part or full for a future acquisition, thus avoiding a later increase in the issue and float. Or they can be sold back to the market later, as well. Bottom line, a Board authorization to buy back shares does not commit the company to completing that buyback. On ELTE, I would add the comment that three of the past four quarters showed a decline in earnings on a year to year basis. Tom Worley stkguru@netside.net AIM: TexWorley - ----- Original Message ----- From: Harvey Brion To: Sent: Wednesday, July 25, 2001 11:30 PM Subject: Re: [CANSLIM] ELTE - possible CANSLIM-in-the-making Just for the record, DGO ratings are 57/91/B/D/A, timeliness C, ROE 3%, last 4 years earnings have resembled a roller coaster, ADV 11,100 shares, closing price today $7.43, definitely not for the faint of heart. Notable on the positive side: insider buying early May, then again 3 weeks later; repurchasing up to 1M of 9.4M outstanding shares. (Don't know if repurchase is from the 7.4M float... anyone else know?) Anyone got any mad money left? Ian wrote: > Hi all: > > ELTE is a small software company that recently reported 27% y-o-y revenue > growth and 1500% y-o-y EPS growth to $0.16/share. THeir margins improved > dramatically as well. > > I just listened to their conference call, and really, really liked what I > heard. They claim that "their pipeline is enough to increase revenues in the > near term". So it looks like their turnaround from a weak 2000 is > sustainable. The company used to be traded in reasonable volume, while their > numbers were still very good through 1999. They stumbled badly last year. > > They are currently trading within 5 cents of a 52-week high on a significant > increase in volume since the conference call. > > The valuation is compelling - $2.70/share in cash, a market cap of > $61,000,000 and quarterly revenues of over $17,000,000. > > There is a significant 'N' component as they are entering new verticals and > geographies. They expect the new verticals to be "much higher than the > current 5% of gross revenues next year". > > Volume has been non-existant since January this year, and the stock is too > 'cheap' for traditional CANSLIM. Also, the yearly EPS growth was interrupted > last year, although management expects their 'traditional' growth in the > 20-30% range to resume. > > This is my favourite type of setup: growth, strong recent EPS change, great > outlook, trading at/near 52-week highs, increasing volume and extremely low > valuation relative to their peers. If the volume stays high, my experience > tells me that it will have nowhere to go but up - it will all depend upon > volume - I may be 4 months early here (I often am - it would be better to be > breaking out from $11 from a much higher ADV - perhaps that will happen in > October???). ELTE is definitely NOT a CANSLIM stock. I just thought that 1 > or 2 of you may be interested. > > Cheers, > > Ian > > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Thu, 26 Jul 2001 08:13:20 -0700 From: "Ian" Subject: Re: [CANSLIM] ELTE - possible CANSLIM-in-the-making MTON just put in only their 4th quarter of outstanding y-o-y EPS growth. The stock is up from $12 to $60 (400%) already. By the time they had just 1 year of these gains, the huge returns are long, long gone. During the conference call for MTON's 3rd quarter 2000 (October 2000), they announced structural changes that appeared to insure the continuation of their new results - IMHO, that was the time to buy, as there was huge leverage in the company based on P/S. IMHO, ELTE presents a similar situation, albeit the growth is not nearly as high as MTON, so the final multiple will not be as high - but they did claim that they can get their margins up another 50%. That, along with new accounting rules for amortization, and new verticals compounding at much higher rates, EPS could easily be near $0.30/share quarterly, looking 12 months out. If this turns out to be true, I suspect the stock will be trading around $30 by then, and the big returns will be long gone. That is the risk I am willing to take - volume over the coming months will tell me if I am correct/early etc... Cheers, Ian - ----- Original Message ----- From: Tom Worley To: Sent: Thursday, July 26, 2001 5:52 AM Subject: Re: [CANSLIM] ELTE - possible CANSLIM-in-the-making > correction, Harvey. Insiders do not "repurchase", only the > company. And the repurchase of one million shares to which you > refer did not occur "3 weeks later", it is a board resolution > from last November with a deadline of Nov 8, 2001 and is a > buyback, or repurchase, by the company from the float with no > requirement that they buy a single share. It is simply an > authorization by the Board that they CAN buy those shares. > > I have not researched to see if, in fact, they have bought back > any shares to date. > > Buybacks are usually seen as a positive, even tho it uses up cash > that could otherwise be spent on acquisitions, research and > development, marketing, and other important business development. > > Important to how you weigh a repurchase is what will be done with > those shares. In some cases, they are retired, thus reducing the > total issue as well as the float, and enhancing earnings per > share in the future. In other cases, they are held in Treasury, > and used for ESOP (Employee Stock Option Plans) or other > employee option plans (such as options given as a hiring > incentive). In these cases, the quantity issued remains unchanged > but the float is temporarily reduced. They can also be held in > Treasury and used later to pay in part or full for a future > acquisition, thus avoiding a later increase in the issue and > float. Or they can be sold back to the market later, as well. > > Bottom line, a Board authorization to buy back shares does not > commit the company to completing that buyback. > > On ELTE, I would add the comment that three of the past four > quarters showed a decline in earnings on a year to year basis. > > Tom Worley > stkguru@netside.net > AIM: TexWorley > > ----- Original Message ----- > From: Harvey Brion > To: > Sent: Wednesday, July 25, 2001 11:30 PM > Subject: Re: [CANSLIM] ELTE - possible CANSLIM-in-the-making > > > Just for the record, DGO ratings are 57/91/B/D/A, timeliness C, > ROE 3%, last 4 > years earnings have resembled a roller coaster, ADV 11,100 > shares, closing price > today $7.43, definitely not for the faint of heart. > > Notable on the positive side: insider buying early May, then > again 3 weeks > later; repurchasing up to 1M of 9.4M outstanding shares. (Don't > know if > repurchase is from the 7.4M float... anyone else know?) Anyone > got any mad > money left? > > Ian wrote: > > > Hi all: > > > > ELTE is a small software company that recently reported 27% > y-o-y revenue > > growth and 1500% y-o-y EPS growth to $0.16/share. THeir margins > improved > > dramatically as well. > > > > I just listened to their conference call, and really, really > liked what I > > heard. They claim that "their pipeline is enough to increase > revenues in the > > near term". So it looks like their turnaround from a weak 2000 > is > > sustainable. The company used to be traded in reasonable > volume, while their > > numbers were still very good through 1999. They stumbled badly > last year. > > > > They are currently trading within 5 cents of a 52-week high on > a significant > > increase in volume since the conference call. > > > > The valuation is compelling - $2.70/share in cash, a market cap > of > > $61,000,000 and quarterly revenues of over $17,000,000. > > > > There is a significant 'N' component as they are entering new > verticals and > > geographies. They expect the new verticals to be "much higher > than the > > current 5% of gross revenues next year". > > > > Volume has been non-existant since January this year, and the > stock is too > > 'cheap' for traditional CANSLIM. Also, the yearly EPS growth > was interrupted > > last year, although management expects their 'traditional' > growth in the > > 20-30% range to resume. > > > > This is my favourite type of setup: growth, strong recent EPS > change, great > > outlook, trading at/near 52-week highs, increasing volume and > extremely low > > valuation relative to their peers. If the volume stays high, my > experience > > tells me that it will have nowhere to go but up - it will all > depend upon > > volume - I may be 4 months early here (I often am - it would be > better to be > > breaking out from $11 from a much higher ADV - perhaps that > will happen in > > October???). ELTE is definitely NOT a CANSLIM stock. I just > thought that 1 > > or 2 of you may be interested. > > > > Cheers, > > > > Ian > > > > - > > -To subscribe/unsubscribe, email "majordomo@xmission.com" > > -In the email body, write "subscribe canslim" or > > -"unsubscribe canslim". Do not use quotes in your email. > > > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. > > > > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ End of canslim-digest V2 #1579 ****************************** 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.