From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #204 Reply-To: canslim Sender: owner-canslim-digest@lists.xmission.com Errors-To: owner-canslim-digest@lists.xmission.com Precedence: bulk X-No-Archive: yes canslim-digest Wednesday, April 22 1998 Volume 02 : Number 204 In this issue: DELL BO volume (was "[CANSLIM] DELL breaking out now") Re: [CANSLIM] NVAL Re: [CANSLIM]OBV/MF/Vol--Was EPIQ - ProForma [CANSLIM] APCO - LLUR? RE: [CANSLIM] Is CANSLIM quantifiable? Re: DELL BO volume (was "[CANSLIM] DELL breaking out now") Re: [CANSLIM] NVAL Re: [CANSLIM]OBV/MF/Vol--Was EPIQ - ProForma Re: [CANSLIM] "M" Re: [CANSLIM] Your Weekend Review - Re: [CANSLIM] Re: ADSL (Was BELF) Re: [CANSLIM] APCO - LLUR? [CANSLIM] When to buy? [CANSLIM] Non-Canslim: STLTF Re: DELL BO volume (was "[CANSLIM] DELL breaking out now") Re: [CANSLIM] When to buy? [CANSLIM] BigCharts MF calculation Re: [CANSLIM] When to buy? Re: [CANSLIM] Re: ADSL (Was BELF) [CANSLIM] Re. ZOMX Re: [CANSLIM] Re. ZOMX Re: [CANSLIM] When to buy? [CANSLIM] Graphs in HTMMIS Re: [CANSLIM] BigCharts MF calculation, Tim, Connie [CANSLIM] Thoughts on PGA [CANSLIM] The "L" in CANSLIM (was: Thoughts on PGA) [CANSLIM] The Visual Investor; Your Weekend Review ---------------------------------------------------------------------- Date: Tue, 21 Apr 1998 23:26:13 -0600 (MDT) From: cando@highfiber.com Subject: DELL BO volume (was "[CANSLIM] DELL breaking out now") >72 3/8 x 72 1/2 > >I'm in. > > > >Johan Van Houtven >CLICK! N.V. / Wilrijk, Belgium > Hi Johan, What do you make of the volume? It seems like a nice dry up over the last 5 weeks of the base but my software (Dow Jones Market Analyzer Plus) shows todays breakout was on less that average daily volume. James Coburn Albuquerque, NM - - ------------------------------ Date: Wed, 22 Apr 1998 03:30:37 -0400 From: "James Adams" Subject: Re: [CANSLIM] NVAL From: Tom Worley wrote: > Obviously tho, you don't want to own stock in any company >that does not closely scrutinize and restrict their insiders trading >in company stock since they might be selling ahead of publicly >released bad news. This not only screws the shareholders, it is a >virtual guarantee of a future class action lawsuit. That makes sense. >The main point I was trying to make on NVAL was that using insider >buying as any part of a fresh buy decision was too late. Insiders were >buying at a price equal to about 60% of the current price. Agreed. Would it make a significant difference if the dates of the transactions were actual purchase dates or when the SEC filing was done? >Personally, insider buys and sells is not even considered in my buy >and sell decision making. I understand. I think I will simply use the info as another bit of info on a company rather than a key factor in buying/selling. TIA James Adams......................Maysville, KY USA http://www.cris.com/~jimadams/ Internet Pager 1343361@pager.mirabilis.com - - ------------------------------ Date: Wed, 22 Apr 1998 03:49:51 -0400 From: "James Adams" Subject: Re: [CANSLIM]OBV/MF/Vol--Was EPIQ - ProForma From: Tom Worley >This is entirely appropriate and correctly done, as far as I can >see. All the "pro forma" means in this case is that this would have >been the actual results had the company been a publicly owned corp for >the entire qtr. Tom, thanks once again for your help. BTW, what did you think of EPIQ's report? Since EPIQ has been trading at or below it 20ema for the past week, I wonder if this will give it a significant bounce at the open? From looking at the Volumn accumulation indicator at BigCharts, when the stock shot up at the end of February there was much more selling at that level than buying. Profit taking I assume? After the stock began moving down the accumulation picked up and has pretty much remained flat since them, however slightly positive. The money flow turned positive, even while the stock continued to decline, in late march and has continued up. I assume that investors found it attractive at that level? I'm not sure if I'm reading the chart correctly, and if so, exactly if I'm interpreting correctly. But I would like to learn, if you care to offer you 2cents. James Adams......................Maysville, KY USA http://www.cris.com/~jimadams/ Internet Pager 1343361@pager.mirabilis.com - - ------------------------------ Date: Wed, 22 Apr 1998 03:56:09 -0400 From: "James Adams" Subject: [CANSLIM] APCO - LLUR? I mentioned APCO this morning 4/21 and went ahead and bot 1000 shares. The stock broke and stayed above its 20day ema and was up 1/2 on 411,600 vol vs ADV 275,590. I've learned that the c/h pattern should be longer than the 3 1/2 weeks indicated on the chart. However, does the LLUR have a recommended time frame? If not would the chart being showing that? James Adams......................Maysville, KY USA http://www.cris.com/~jimadams/ Internet Pager 1343361@pager.mirabilis.com James Adams......................Maysville, KY USA http://www.cris.com/~jimadams/ Internet Pager 1343361@pager.mirabilis.com - - ------------------------------ Date: Wed, 22 Apr 1998 01:17:15 -0700 From: Mike Lucero Subject: RE: [CANSLIM] Is CANSLIM quantifiable? I used Quotes Plus to study breakouts from 8 week basing periods in historical data, and record Quotes Plus Relative Strength, %change the day of the breakout, volume, average daily volume, up/down ratio, and other indicators, to compare against how high the stock went in the next 6-8 weeks. I recall that selling at the highest close would have given an average profit around 20%. So, it looked to me like one could make money. Mike On Tuesday, April 21, 1998 8:30 PM, Paul Altman [SMTP:paltman@ziplink.net] wrote: > Hi CANSLIM Folks: > > I'm somewhat new to the list, so please forgive me if I've missed a similar > thread... > > I was originally electrified by reading WON's book. I had fantasies of > boldly ignoring the "prevailing wisdom", and making returns of 100% > annually, as some of WON's associates seemed to do. I subscribed to IBD > and pored over it every night and weekend, looking for patterns and > substantiation of WON's ideas. For awhile, I was living under stacks of > old IBD's and tables of manually entered data. > > I finally came to the conclusion that I simply would never muster the > stomach to take CANSLIM-style risks, because I couldn't prove to myself > that CANSLIM had a reasonable chance of being profitable. Yes, the CANSLIM > ideas are common-sense, and therefore appealing, but without a database to > objectively backtest on, I just couldn't convince myself to risk real money. > > Of course, I approached IBD several times and complained of the lack of > electronic historical data, but they didn't seem interested in > distributing. I suppose it's because they have a profitable consulting > business, and they don't want to dilute that business. But I was left with > the distinct impression that WON had gotten me very excited about playing a > game that he wasn't really prepared to share with me. After all, WON is > definitely a computerized type of guy! Although he was pleading with me to > ignore the "conventional wisdom" and think and test out ideas for myself, > he was depriving me of the ability to follow that advice when it came to > thinking about CANSLIM. Don't get me wrong. I have a lot of respect for > WON, and I've learned a lot from him. I just don't see how I can > comfortably risk money on CANSLIM. > > I'm sure these sentiments are not news to anybody on this list. I'm just > curious as to how others have made their peace with them. I suppose some > of you are "discretionary" CANSLIM players, but I don't have the stomach > for that. I'm a "boring", computerized, system-trading type of guy. > > In summary, I'd really like to play CANSLIM, and I've put a lot of time > into thinking about CANSLIM, but I think I'd need a database to play off > of. Ironically, that's obviously how WON feels about his own risk capital, > too. > > Any comments or referrals to substitute databases much appreciated. > > Thanks, > > Paul > > > > - - ------------------------------ Date: Wed, 22 Apr 1998 12:13:56 +0200 From: Johan Van Houtven Subject: Re: DELL BO volume (was "[CANSLIM] DELL breaking out now") James wrote: >What do you make of the volume? It seems like a nice dry up over the last >5 weeks of the base but my software (Dow Jones Market Analyzer Plus) shows >todays breakout was on less that average daily volume. > >James Coburn >Albuquerque, NM Very good question James. Why did I buy it even though ADV (av daily vol) is ca. 16M? In short: It broke resistance. I remember missing a similar beakout of a high volume (>5M ADV) stock like DELL/MSFT/CSCO last time I wanted buy it because I was not happy at all about the volume compared to ADV. I missed that breakout back then because I was looking at the ADV based on 30 days. So this time I decided to not work with the ADV per Daily Graphs (or Yahoo). I looked at the chart and decided to work with an ADV of 7.5M. Av Daily Volume is dependant upon the number of days you want to use to calculate your average volume anyway. DELL had been consolidating for over 7 weeks. During this consolidation, or base-building period, volume was drying up. I bought an initial position @ 69 3/8 a few days ago when it tried to break 69 on the highest volume in 2 weeks. I did not sell when prices reversed the next 3 days as volume was lower each day and because of options expiration. Notice how volume and price started to increase after last Friday's option expiration. That looked bullish to me. From Monday onward the 10-day intraday chart: http://www.tscn.com/wsc/timespan.html?TSym=dell?146,18 started to look better and better. When Peter posted his breakout list I noticed his breakout point for DELL was 72 1/8. 72 1/8 was just 1/8 above a resistance trendline for the last 2 weeks and a new high (old high was 71.94). That prompted me to put in a stop buy at 72 1/8 yesterday. You got ample opportunity to get in at that point. It even backed down under 72 for a little while. (With 'cheap' average 50K ADV stocks, you often do not get that much time to buy in!) Besides that I also saw next potential resistance was in the 77 area (for Wednes 4/22). A nice upside *if* this turns out to be short term trade. (Drawing a long term (months) resistance trendline.) - --- Johan Van Houtven - - ------------------------------ Date: Wed, 22 Apr 1998 08:24:03 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] NVAL Consider how good your decision making and timing on a particular stock would be if you were only able to buy or sell it during a one month window over each calendar quarter (e.g. during the other two months you could only grit your teeth, couldn't buy calls or puts elsewhere, etc). This is what typically happens at a company that closely manages its insider trading. Thus the actual insider transactions often appear to make little sense at the time. The SEC requires insider transactions to be reported on a monthly basis (I think by 10 days after the close of the month). Thus it is not timely whether the report date or the transaction date is used. I don't ignore insider activity, but it has never altered or weighed in any of my investment decisions. I simply note it, along with a lot of other data. Tom W - -----Original Message----- From: James Adams To: canslim@lists.xmission.com Date: Wednesday, April 22, 1998 3:31 AM Subject: Re: [CANSLIM] NVAL > >Agreed. Would it make a significant difference if the dates of the >transactions were actual purchase dates or when the SEC filing was done? > - - ------------------------------ Date: Wed, 22 Apr 1998 08:25:36 -0400 From: "Tom Worley" Subject: Re: [CANSLIM]OBV/MF/Vol--Was EPIQ - ProForma I like the report, and will be watching the action this morning to see if I want to jump back in. Haven't looked at BC charts yet today, but Connie is the expert on that. Tom W - -----Original Message----- From: James Adams To: canslim@lists.xmission.com Date: Wednesday, April 22, 1998 3:52 AM Subject: Re: [CANSLIM]OBV/MF/Vol--Was EPIQ - ProForma >From: Tom Worley >>This is entirely appropriate and correctly done, as far as I can >>see. All the "pro forma" means in this case is that this would have >>been the actual results had the company been a publicly owned corp for >>the entire qtr. > > >Tom, thanks once again for your help. BTW, what did you think of EPIQ's >report? Since EPIQ has been trading at or below it 20ema for the past week, >I wonder if this will give it a significant bounce at the open? From looking >at the Volumn accumulation indicator at BigCharts, when the stock shot up at >the end of February there was much more selling at that level than buying. >Profit taking I assume? After the stock began moving down the accumulation >picked up and has pretty much remained flat since them, however slightly >positive. The money flow turned positive, even while the stock continued to >decline, in late march and has continued up. I assume that investors found >it attractive at that level? > > I'm not sure if I'm reading the chart correctly, and if so, exactly if I'm >interpreting correctly. But I would like to learn, if you care to offer you >2cents. > >James Adams......................Maysville, KY USA >http://www.cris.com/~jimadams/ >Internet Pager 1343361@pager.mirabilis.com > > >- > - - ------------------------------ Date: Wed, 22 Apr 1998 09:24:34 EDT From: DCSquires Subject: Re: [CANSLIM] "M" In a message dated 98-04-21 21:22:29 EDT, you write: << Anybody offer me some feedback, straighten me out, give me some comfort here. The last thing I want is my head in the game "figuring out" the "M", but something's different. Is it my head, or am I seeing something different? >> Jeffry, Your are right, the turkey's are flying like eagles in this windstorm. KTEL is a great example. IMO, YHOO and several others search engines are not poor quality stocks. They are building brand names in markets that have massive potential and a premium is definitely acceptable. That said, the premium is now ridiculous and the technicals are saying short (climax top) but you have to be willing to get stopped out several times to catch the top and this can test your nerves. As for the market, the froth you are seeing is definitely there but it seems to me the technicals are still saying up on the Nas and neutral on the NYSE. And the market has been responding great to generally bad news....a trend that I want to be on the right side of. So I am long until the market shows more distribution or a volume reversal on good news. I will be quick to liquidate also as a frothly market get take your profits quickly. It seems your short positions are making it hard for you to not have an opinion on the market except for what it tells you. DSquires - - ------------------------------ Date: Wed, 22 Apr 1998 09:28:41 -0400 From: Peter Newell Subject: Re: [CANSLIM] Your Weekend Review - Larry, Thanks a bunch Peter Newell - ---------- > From: Larry Horn > To: CANSLIM (E-mail) > Subject: [CANSLIM] Your Weekend Review > Date: Tuesday, April 21, 1998 10:03 PM > > Frank Wolynski said he would be interested in seeing a web page with the stocks I pull from "Your Weekend Review". I'm sure most of you know "Your Weekend Review" is listed every Friday in IBD and lists all stocks above $7, within 15% of the 52 week high, with EPS and RS => 85, and it is ranked by group strength. The stocks I take from "Your Weekend Review" have A/D=A or B, a rank of A-, A, or A+ for the highest performing mutual fund with a large investment in the stock, and Group Strength=A. I then get Shares Outstanding, Float and ROE from Yahoo!. And for some of the stocks, I get %Institution from Waterhouse. > > I thought this might be helpful for people that don't have better screening tools. Each week lists about 120 stocks. 120 is too many for me to think about but you can copy and paste them into your spreadsheet or database, and then sort them however you like. Unfortunately, I don't know how to make a site that allows you to sort on it. But if others find this useful, perhaps another member who is better at html can copy the data from my site and make a better site. > > The web site is www.duke.edu/~clhorn/canslim > > Larry > > > - - - ------------------------------ Date: Wed, 22 Apr 1998 06:53:03 -0700 From: Tim Fisher Subject: Re: [CANSLIM] Re: ADSL (Was BELF) Exactly. The Baby Bells (would you buy ANY of their stock?), to borrow from another member, are Frequently Wrong, so Plan Accordingly. By the time they get their act together on ADSL, Gates & Co. will have blown their hopes away with their whiz-bang-speed-of-light-over-copper gizmo. At 10:16 PM 4/21/98 -0500, you wrote: >Bill wrote: >> >> ADSL is nothing more than warmed over ISDN with the major difference being >> is that at the Central Office (CO) the ISP doesn't use existing switching >> equipment to compete with voice services. New switches are added at the COs >> and theirin lies the rub - they are at the mercy of the telcos for access >> and floor space. > >Not necessarily, a number of RBOC (Regional Bell Operating Companies) are >putting big investment into ADSL... > 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: Wed, 22 Apr 1998 06:53:06 -0700 From: Tim Fisher Subject: Re: [CANSLIM] APCO - LLUR? Typically months. An LLUR should not correct more than your comfort level (pick one - 7%, 10%, 15%, etc.) for a period of months to a year depending on how picky you are. It should also not go sideways for very long (pick one - - 2 weeks, 4 weeks, etc.). It should also not go vertical before you are in, I take this as a bad sign for LLURs and look to sell should the rocket turn around and crash, which they seem to want to do often. At 03:56 AM 4/22/98 -0400, you wrote: >I mentioned APCO this morning 4/21 and went ahead and bot 1000 shares. The >stock broke and stayed above its 20day ema and was up 1/2 on 411,600 vol vs >ADV 275,590. >I've learned that the c/h pattern should be longer than the 3 1/2 weeks >indicated on the chart. However, does the LLUR have a recommended time >frame? If not would the chart being showing that? > >James Adams......................Maysville, KY USA >http://www.cris.com/~jimadams/ >Internet Pager 1343361@pager.mirabilis.com >James Adams......................Maysville, KY USA >http://www.cris.com/~jimadams/ >Internet Pager 1343361@pager.mirabilis.com > > >- > > > 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: Wed, 22 Apr 1998 10:02:03 -0400 From: "James Adams" Subject: [CANSLIM] When to buy? My investing partner has a rule of thumb that it isn't wise to buy before 10:00 a.m. Does anyone else have the same thought. The reason I'm asking is that we bought EPIQ early this morning, around 9:40 a.m. at 14 /58. Any thoughts from the group would be appreciated. James Adams......................Maysville, KY USA http://www.cris.com/~jimadams/ Internet Pager 1343361@pager.mirabilis.com - - ------------------------------ Date: Wed, 22 Apr 1998 10:29:49 -0400 From: Connie Mack Rea Subject: [CANSLIM] Non-Canslim: STLTF Members-- My OBV/MF scan turned up two stocks: STLTF and RITTF. My preference is for STLTF. Too, the 3/7/10 is giving a first level buy. I will try to buy this morning after the market shows me some numbers. The 3/7/10 on RITTF is approaching a first level buy. A couple of upticks would result in a buy. Watch the stock on a 2-day 15 minute chart for these upticks. Connie Mack - - ------------------------------ Date: Wed, 22 Apr 1998 10:31:51 -0400 From: Craig Griffin Subject: Re: DELL BO volume (was "[CANSLIM] DELL breaking out now") Nice post Johan. Some excellent thoughts here, especially regarding high volume stocks. They often do breakout on lower relative volume than more typical stocks. Johan wrote: >Very good question James. > >Why did I buy it even though ADV (av daily vol) is ca. 16M? > >In short: It broke resistance. > >I remember missing a similar beakout of a high volume (>5M ADV) stock like >DELL/MSFT/CSCO last time I wanted buy it because I was not happy at all >about the volume compared to ADV. > >I missed that breakout back then because I was looking at the ADV based on >30 days. So this time I decided to not work with the ADV per Daily Graphs >(or Yahoo). I looked at the chart and decided to work with an ADV of 7.5M. >Av Daily Volume is dependant upon the number of days you want to use to >calculate your average volume anyway. > >DELL had been consolidating for over 7 weeks. During this consolidation, or >base-building period, volume was drying up. > >I bought an initial position @ 69 3/8 a few days ago when it tried to break >69 on the highest volume in 2 weeks. > >I did not sell when prices reversed the next 3 days as volume was lower >each day and because of options expiration. > >Notice how volume and price started to increase after last Friday's option >expiration. That looked bullish to me. > >>From Monday onward the 10-day intraday chart: > >http://www.tscn.com/wsc/timespan.html?TSym=dell?146,18 > >started to look better and better. > >When Peter posted his breakout list I noticed his breakout point for DELL >was 72 1/8. > >72 1/8 was just 1/8 above a resistance trendline for the last 2 weeks and a >new high (old high was 71.94). That prompted me to put in a stop buy at 72 >1/8 yesterday. > >You got ample opportunity to get in at that point. It even backed down >under 72 for a little while. (With 'cheap' average 50K ADV stocks, you >often do not get that much time to buy in!) > >Besides that I also saw next potential resistance was in the 77 area (for >Wednes 4/22). A nice upside *if* this turns out to be short term trade. >(Drawing a long term (months) resistance trendline.) > > > > >--- Johan Van Houtven > > > >- > > - - ------------------------------ Date: Wed, 22 Apr 1998 10:44:55 -0400 From: "Tony Austin" Subject: Re: [CANSLIM] When to buy? You can't have a fixed rule about when to buy. However, most stocks that are not rec'g strong buying pressure, will have their daily lows between 12:00 and 2:00. If it is rec'g strong buying pressure, you may miss an entry if you wait past 10:00. So, as is always the case, it's stock specific. In general...sell at the open, buy duing the lunch hour. Regards, Tony - ---------- > From: James Adams > To: Canslim > Subject: [CANSLIM] When to buy? > Date: Wednesday, April 22, 1998 10:02 AM > > My investing partner has a rule of thumb that it isn't wise to buy before > 10:00 a.m. Does anyone else have the same thought. The reason I'm asking is > that we bought EPIQ early this morning, around 9:40 a.m. at 14 /58. > Any thoughts from the group would be appreciated. > > James Adams......................Maysville, KY USA > http://www.cris.com/~jimadams/ > Internet Pager 1343361@pager.mirabilis.com > > > - > - - ------------------------------ Date: Wed, 22 Apr 1998 08:10:44 -0700 From: Tim Fisher Subject: [CANSLIM] BigCharts MF calculation Connie or anyone else, I've been trying MFG and OBV charts on BigCharts and I don't understand how MF is calculated. Looking at charts on different timescales, i.e. 3-month, 1-month, etc., I don't get how the absolute value of MF on any given day can be different on each chart. It appears as if MF is arbitrarily set to a value of 0 on the first day the chart shows, and fluctuates based on what the value was on _that day_. This disturbs me, since I _thought_ that MF was an indicator of whether money was going into or out of a stock. So the way it is calculated right now, if I pull up a 6 month chart of NRVH, MF is positive for the whole period except a few days before the earnings release on Monday. On a 1-month chart, MF is negative the entire time. P.S. BigCharts FAQ is broken so I got no help there. Tim Fisher / tfish@spiritone.com Ore-Rock-On and Pacific Fishery Biologists WWW Sites: http://www.spiritone.com/~tfish See naked fish and rocks! - - ------------------------------ Date: Wed, 22 Apr 1998 11:08:07 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] When to buy? I was the high bid at 13.5 for 400 shares before the mkt opened. Something I NEVER do, but did anyway. First time I can recall in at least a year that I did something before 9:45 AM. Needless to say, didn't fill, at least not yet, so if I do fill, I probably won't like it. Only reason I didn't wait to see how the mkt on this stock would trade is I know it well, and knew I would be trying to fight the spread so wanted to get in early in hopes of stealing it. Tom W - -----Original Message----- From: James Adams To: Canslim Date: Wednesday, April 22, 1998 10:04 AM Subject: [CANSLIM] When to buy? >My investing partner has a rule of thumb that it isn't wise to buy before >10:00 a.m. Does anyone else have the same thought. The reason I'm asking is >that we bought EPIQ early this morning, around 9:40 a.m. at 14 /58. >Any thoughts from the group would be appreciated. > >James Adams......................Maysville, KY USA >http://www.cris.com/~jimadams/ >Internet Pager 1343361@pager.mirabilis.com > > >- > - - ------------------------------ Date: Wed, 22 Apr 1998 06:53:05 -0700 From: Tim Fisher Subject: Re: [CANSLIM] Re: ADSL (Was BELF) So does ISDN. GTE offers it right now, all you need is digital switching, which I have. I could pay through the nose and have it installed next week, buy a splitter, ISDN modem, then pay $50/month + 3 cents/minute to use it. Why should I when the next card that goes in my PC will be faster and will cost nothing after I buy the damn thing? 56k works fine for me, would be nice if I could do voice/data over the same line simultaneously, which I could do with ISDN but not ADSL. So I really see no advantage to it, esp. considering I couldn't get it installed next week or even next year AFAIK... At 10:29 PM 4/21/98 -0500, you wrote: > > >On Tue, 21 Apr 1998, Dave Cameron wrote: >ADSL is alot better than ISDN. Also, no need to have special phone lines >installed. Works over standard copper twisted-pair. >> 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: Wed, 22 Apr 1998 12:09:46 EDT From: JANSI1AUG1 Subject: [CANSLIM] Re. ZOMX Tom: Did you ever find out what the deal with ZOMX's earnings were. I'm surprised the SEC would allow them to report what would be a decline, as a rise in earnings (compared to the previous year's) by razzle-dazzling its numbers, using its aquisition to give it a prior years loss. (Moreover, if their aquisition lost money, how smart is management in purchasing it?) Anyway, did you ever check with an accountant to see if their pro-forma juggling is kosher? jans - - ------------------------------ Date: Wed, 22 Apr 1998 12:23:06 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Re. ZOMX Actually, I corrected my original post. Looks like what they did by restating year ago data was to include a profitable acquisition in that data, thus increasing the original earnings reported. I don't know why they would do that, tho. And no, I have no answer back yet from my CPA friend. Tom W - -----Original Message----- From: JANSI1AUG1 To: CANSLIM@xmission.com Date: Wednesday, April 22, 1998 12:10 PM Subject: [CANSLIM] Re. ZOMX >Tom: > > Did you ever find out what the deal with ZOMX's earnings were. I'm >surprised the SEC would allow them to report what would be a decline, as a >rise in earnings (compared to the previous year's) by razzle-dazzling its >numbers, using its aquisition to give it a prior years loss. (Moreover, if >their aquisition lost money, how smart is management in purchasing it?) > > Anyway, did you ever check with an accountant to see if their pro-forma >juggling is kosher? > >jans > >- > - - ------------------------------ Date: Wed, 22 Apr 1998 14:20:21 -0400 From: "James Adams" Subject: Re: [CANSLIM] When to buy? Tom Worley wrote: >I was the high bid at 13.5 for 400 shares before the mkt opened. >Something I NEVER do, but did anyway. First time I can recall in at >least a year that I did something before 9:45 AM. Tom, or anyone else who may know; How is after hours trading processed the following day. For example, did my order for EPIQ this morning have to wait in line for orders that had been placed the day before? TIA, James Adams......................Maysville, KY USA http://www.cris.com/~jimadams/ Internet Pager 1343361@pager.mirabilis.com - - ------------------------------ Date: Wed, 22 Apr 1998 13:36:13 -0500 From: "Eric Boller" Subject: [CANSLIM] Graphs in HTMMIS Well, I forgot to bring the numbers to work but I've got them somewhat memorized (might be off by 1 or 2). There were 93 charts on the stocks that were winners in HTMMIS. I only looked at current and annual earnings. I took the cutoff for current at 18% increase(O'Neils low figure) and 20% for annual earnings (O'Neil used 25%). So I decreased the restraint on annual a little. Also if there was an N/A or if the numbers looked like negative numbers (some I couldn't tell) then I gave them the benefit of the doubt. Of the 93 charts, 37 or so did not meet the C-A cutoff. If you threw out the annual earning restriction altogether I think that most of the stocks would qualify though. Most had current earnings pretty high, but alot had close to 0% annual growth. So I guess my conclusion is that annual earnings are probably not all that important but do give a way to weed out some stocks (but maybe some of the best ones). Current earnings appeared to be much more important. Any comments? Eric - - ------------------------------ Date: Wed, 22 Apr 1998 13:01:03 +0000 From: "Debby Howard" Subject: Re: [CANSLIM] BigCharts MF calculation, Tim, Connie Tim, Connie, Members - I've been trying to understand how the moneyflow formula works (apart from the subtleties of HOW to use it). The Bigcharts formula is proprietary (as stated in the FAQ, which was working just now when I tried it). I've been using the Chaikin Moneyflow formula in QuotesPlus. This is worth comparing to Bigcharts because it gives an identical trend line (wrong terminology?) for money flow. To see this, pull up a 1-month chart for NRVH in Bigcharts and you'll see that the y-axis reads (in millions) 9.9, 4.9, 0.0, -4.9, -9.9. In QuotesPlus the 1-month chart on NRVH gives the very same line; however, the y-axis values are different; they are 3042, 0, -3094, which is derived like this: "Chaikin Cumulative Money Flow Indicator "The Money Flow indicator is an accumulation/distribution indicator derived from this formula: (Close - Low) - (High - Close) ----------------------------------- x Volume (High - Low) "This formula is applied to each day's activity and a running total is kept of the result." You (Tim) wrote: >> Looking at charts on different timescales, i.e. 3-month, 1-month, etc., I don't get how the absolute value of MF on any given day can be different on each chart. It appears as if MF is arbitrarily set to a value of 0 on the first day the chart shows, and fluctuates based on what the value was on _that day_. This disturbs me, since I_thought_ that MF was an indicator of whether money was going into or out of a stock. So the way it is calculated right now, if I pull up a 6 month chart of NRVH, MF is positive for the whole period except a few days before the earnings release on Monday. On a 1-month chart, MF is negative the entire time. << The fact that MF is a cumulative indicator may answer your question about why it always seems to start around 0 give or take a little (no matter what time period for the chart). Notice that for the 1-, 3- or 6-month chart, you are actually looking at the same trend; it is just located at different places numerically. I haven't been able to make much use of the hard numbers, and instead just analyze the trend. (very possibly I am missing something here) The online help in Bigcharts states a little confusingly: "The money flow indicator attempts to measure the amount of money buying a stock vs. the amount of money selling a stock. It does this by assuming that when a stock closes higher than its open, all volume associated with that trading period results from buyers. It further assumes that when a stock closes lower than its open all volume associated with that trading period results from sellers. Although these assumption are overly simplistic, money flow can be a useful indicator when analyzing the general buying and selling pressure on a stock." The above sounds a lot "simpler" than the QuotesPlus ("Chaikin") formula, and QuotesPlus doesn't use the Open in their formula but according to the above, Bigcharts does. So the above makes it sound like they're not the same, yet something is close enough in the two formulas, so that I can look at the QP formula and know it will match the Bigcharts one, except for the hard numbers. Are we confused yet? Apparently the Chaikin moneyflow indicator is defined differently on the Equis website (citing Achelis' book). I haven't studied that yet. Another interesting wrinkle is the MF calculation which Jeffry mentioned, which weights block trades differently from smaller trades. Does anyone have a copyright on "don't know a thing" (Joe?) :) Debby - - ------------------------------ Date: Wed, 22 Apr 1998 17:20:03 -0400 From: "Voelker, David" Subject: [CANSLIM] Thoughts on PGA Ran across an interesting chart in Friday's Weekend Review that I would like to get some feedback on. PGA - Personnel Group of America EPS Rank 97, RS 84, PE 29 C -Quarter 3/97 6/97 9/97 12/97 EPS .18 .18 .22 .24 % chg 53% 39% 47% 37% A - Year '97 '96 '95 '94 EPS .80 .57 .45 .25 % chg 40% 27% 80% N - closed 4/22 @ 22 1/2 on drying volume, basing down for last 5-6 weeks after reaching a split-adjusted 52 wk high. Several recent acquisitions, not certain of value add. S - 24.7M float L - Industry leader in the staffing services industry, <50% in IT sector. Yahoo finance ranked 1 of 157 in Business Services Industry I - 168 institutional owners, % unknown, mgmt ownership unknown M - I doesn't pay to argue with the market right now, I am still bullish. Y2K contracts add fuel. Overall I like what I see, curious to hear what others think. There was a 4% negative surprise with earnings last quarter and the chart shows an appearant base after a substantial runup. The low PE, tech stocks may have altered my perception, makes me think that this one has room to grow yet. (PE 64% of industry according to daily stocks.) So what do you think? BTW, my favorite jumping off link is daily stocks BY FAR. No vested interest, just a happy (its FREE) customer. http://www.dailystocks.com Dave Voelker - - ------------------------------ Date: Wed, 22 Apr 1998 15:43:47 -0700 From: amiller@almaden.ibm.com Subject: [CANSLIM] The "L" in CANSLIM (was: Thoughts on PGA) David, for the "L" in CANSLIM, if you used the Yahoo Industry Ranking then I think all you're getting the securities ordered by Zacks broker opinion scores. I don't consider this equivalent to being a market leader. For example, in computer software, the Yahoo Industry Ranking leader is CMSX, which got 6 strong-buy recommendations, giving it an average Zacks score of 1.0. Microsoft is 138 of 289 because it was rated 10-11-6-1-0 for an average of 1.9, and the other significant companies (PSFT,CA,SAG) are also scattered about. I interpret the Industry Ranking number as optimism, not market leadership. From my read of HTMMIS, the "L" is price performance. The REL STR value in IBD gives us Twelve (12) month averages. - ---Alex "Voelker, David" on 04/22/98 02:20:03 PM Please respond to canslim@lists.xmission.com To: "'canslim@xmission.com'" cc: Subject: [CANSLIM] Thoughts on PGA Ran across an interesting chart in Friday's Weekend Review that I would like to get some feedback on. PGA - Personnel Group of America EPS Rank 97, RS 84, PE 29 C -Quarter 3/97 6/97 9/97 12/97 EPS .18 .18 .22 .24 % chg 53% 39% 47% 37% A - Year '97 '96 '95 '94 EPS .80 .57 .45 .25 % chg 40% 27% 80% N - closed 4/22 @ 22 1/2 on drying volume, basing down for last 5-6 weeks after reaching a split-adjusted 52 wk high. Several recent acquisitions, not certain of value add. S - 24.7M float L - Industry leader in the staffing services industry, <50% in IT sector. Yahoo finance ranked 1 of 157 in Business Services Industry I - 168 institutional owners, % unknown, mgmt ownership unknown M - I doesn't pay to argue with the market right now, I am still bullish. Y2K contracts add fuel. Overall I like what I see, curious to hear what others think. There was a 4% negative surprise with earnings last quarter and the chart shows an appearant base after a substantial runup. The low PE, tech stocks may have altered my perception, makes me think that this one has room to grow yet. (PE 64% of industry according to daily stocks.) So what do you think? BTW, my favorite jumping off link is daily stocks BY FAR. No vested interest, just a happy (its FREE) customer. http://www.dailystocks.com Dave Voelker - - - - ------------------------------ Date: Wed, 22 Apr 1998 20:28:10 -0400 From: Larry Horn Subject: [CANSLIM] The Visual Investor; Your Weekend Review Db, << You're using a "bottom-up" approach, screening for fundies first, = then looking at the chart. You can also follow a bottom-up approach by = reversing the order (a "top-down" approach would start with the group = fundies and/or chart). In other words, you can look for chart patterns = you like, then see if the fundies are acceptable.>> Thanks for the suggestion of going through charts first and fundamentals = later but not to buy if both aren't good. I've been reluctant to do it = that way b/c I thought that charting software was fairly expensive. I = read a few chapters in The Visual Investor today at the bookstore and = then bought it. I think it will help me a lot and it came with the free = charting software as you said.=20 Members, For stocks pulled from "Your Weekend Review" last Friday, with group = strength=3DA, A/D=3DA or B, EPS and RS >=3D 85, price within 15% of 52 = wk high, and with an A-, A, or A+ fund having an investment in them, = visit www.duke.edu/~clhorn/canslim. About 120 stocks are listed, and you = can copy and paste into your spreadsheet for sorting. The table also = includes shares outstanding, float, and some of them have %institutional = ownership. This is just the spreadsheet I start out with and I thought = others might be interested.=20 Larry - - ------------------------------ End of canslim-digest V2 #204 ***************************** 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.