From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #214 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 Monday, April 27 1998 Volume 02 : Number 214 In this issue: Re: [CANSLIM] OBV/MF Stocks Re: [CANSLIM] Thoughts on CMED? Re: [CANSLIM] Opinions don't matter! Re: [CANSLIM] Re: [CANSLIM] SBUX (was Langston's Comment on History of List) [CANSLIM] Fw: Weekly Economic Update [CANSLIM] World Markets [CANSLIM] down we go Re: [CANSLIM] Cash Position (was M Today) [CANSLIM] Ilink [CANSLIM] Dave's "M" Re: [CANSLIM] My watch list for this week Re: [CANSLIM] Cash Position (was M Today) [CANSLIM] Off topic: Real-time quote service Re: [CANSLIM] My watch list for this week - RS comment [CANSLIM] 12:00 noon [CANSLIM] Re.Short Selling Re: [CANSLIM] MDV is up? Re: [CANSLIM] Scrath MDV Re: [CANSLIM] Off topic: Real-time quote service Re: [CANSLIM] Scrath MDV Re: [CANSLIM] Scrath MDV Re: [CANSLIM] Re.Short Selling [CANSLIM] BNSOF: reality check Re: [CANSLIM] Re.Short Selling Re: [CANSLIM] BNSOF: reality check Re: [CANSLIM] Re.Short Selling RE: [CANSLIM] Off topic: Real-time quote service ---------------------------------------------------------------------- Date: Mon, 27 Apr 1998 08:44:06 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] OBV/MF Stocks Talib, if you are trying to find CANSLIM stocks, then these two examples strongly suggest you try a different approach. Neither would even vaguely be considered CANSLIM other than from the basing pattern in the chart. RTI has an RS of 34, and and EPS of 62 while SNTKY has an RS of 22 and an EPS of only 1 (and is also a $4 stock). Since there are many different reasons why someone will buy a stock, nothing says these can't go up, however they are not logical or appropiate to buy on a CANSLIM basis. Tom W - -----Original Message----- From: Talib Hirji To: canslim@lists.xmission.com Date: Sunday, April 26, 1998 1:57 PM Subject: Re: [CANSLIM] OBV/MF Stocks >Connie, > >I tried to develop scan based on your OBV/MF strategy in my AIQ software >and came up with 7 stocks of my 8000+ database. Of these seven, the >appearance of chart for only two, as I see, can be considered candidates >and they are "RTI" and "SNTKY". > >If you can, Please let me know, if you would consider these as buy >candidates per your standards. > >Thank You, > >Talib > >At 04:29 PM 4/25/98 -0400, you wrote: >>Members-- >> >>Although there were fewer stocks available for scan on the three >>exchanges, there were more stocks that survived the screening: GLH, BDT, >>FFD, and RAZR. There have been days the last two weeks when not a >>single stock survived; and rarely do I find four. >> >>Those who have allowed OBV/MF/EMA to be complementary indicators to >>their Canslim indicators--and have spoken to me privately and on the >>site--seem to have grasped the concept quite well. Most of the stocks >>from your screening are very well chosen. I've taken two or three for >>myself--with your permission, of course. >> >>Of the four stocks, only GLH is ready to buy; it gave a second level buy >>on Friday. You can get too cute with the three levels of the EMA, both >>buying and selling, because you may get a first level buy in the middle >>of the day and won't be able to act on it unless you're watching every >>few minutes. Getting a first and second level signal or a second and >>third level signal in one day is not uncommon. >> >>To refine the EMA, you can do this. Find a stock in which at least two >>EMAs are in incline, such that the 3-line is about to pass through the >>7. Then pull up a two or five day hourly chart--or a two day-15 minute >>chart if you want to be aggressive. When, on either chart, you get a >>first level buy signal, put your order in. You'll need to anticipate at >>what price the buy will take place. And keep the spread in mind as you >>decide. >> >>If you have a Time & Sales chart, you may see some block trades that >>give a hint at what price to move in. >> >>The positive MF divergence for GLH begins in mid-March to about the end >>of April. The MF tails off while the stock is rising the last three >>days. This is a slight negative, but keep it in mind. A slight >>negative in a powerful indicator is not to be ignored. If the stock >>doesn't act the way you want following Friday's buy, tighten >>everything--your stops, your emotion, and your mind. Remember that you >>are buying into a weakening market. >> >>The OBV has risen from the last of February to the spike in mid-March >>while the price has fallen. >> >>Price continues to fall and the OBV levels out in mid-March and then >>begins a slow rise out >>to the present. The MACD is coming off an oversold bottom and looks >>okay. The SlowSto is ambiguous. >> >>FFD gave a buy over a week ago. On a correction that results in a new >>buy, there is some juice left if the OBV/MF stays positive. >> >>BDT gave a sell over a week ago. If the OBV/MF stays positive, this >>would be a buy. >> >>RAZR is not a buy but the 3-line is rising and will pass through the >>7-line with another up tick or two. This is beginning to look like an >>instance I spoke about with GLH. >> >>I'm reading RAZR this way. At the end of March price falls out of >>bed--as does OBV and MF. But here is the positive reading. Both the >>OBV and MF track the fallen price for a week, but then abruptly rise >>even higher when the price was at its high [about 23] although the price >>is now about 18. The rise of MF after its fall, and the price fall, >>indicates that the money is coming in ever faster than before. >> >>The price does not respond. If we're right--that there is good OBV >>volume that continues after the price decline and that money is coming >>in even faster than before--we're in a position to make a very safe >>entry, an entry in which the prospects for making money are greater than >>the prospects for losing money. >> >>Playing the odds is the best that anyone can do. That's why traders can >>lose on 50-60 percent of their trades and still make money: Find the >>entries with the least risk and religiously defend the stops. For an >>investor/trader not to arm himself with stops is as silly as a violinist >>saying he doesn't play well because bowing makes his arm tired. >> >>Too, there is the Monica Lewinsky market principle: Don't go down on >>your stops--unless you don't mind wearing knee pads and like to swallow >>your losses. >> >>Built into the positive divergence of OBV/MF is the fact that it ferrets >>out stocks that are in decline [or have been periodically in decline] >>but ready to recover [perhaps only temporarily and hence the invitation >>for traders to make some money] and have already declined [oversold?] >>and ready to move up. >> >>Where there is room for differing interpretations are these instances: >>[1] how far back does the positive divergence occur; [2] how long was >>the divergence; [3] how many divergences; [4] from what level does the >>divergence arise; [5] how powerful was the divergence? Most answers lie >>in reading trendlines drawn on price, OBV/MF, MACD, and Stochastics. If >>you're inclined, use a protractor to get some angles [ratios] of rise >>and fall between price and OBV/MF. There are more choices. No reason >>why you can't introduce yours. >> >>The three level EMA--and you can pick your own numbers--is one of the >>best in/out indicators around. Don't let its simplicity disguise its >>efficacy. Same with OBV/MF. >> >>I would print out some of the charts that have recently met both Canslim >>and OBV/MF criteria. Not often will the two systems coincide, but when >>they do coincide, and, they do, they should perform extraordinarily >>well and give you further comfort in your entry. >> >>Even when there is no coincidence, OBV/MF can provide confirmation or >>negation of Canslim stocks, especially to evaluate the quality of >>breakouts. >> >>Connie Mack >> >> >>- >> >> > >- > - - ------------------------------ Date: Mon, 27 Apr 1998 08:56:02 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Thoughts on CMED? Jerry, looks to me like the real base on this one is back at 6-6.5 ending late Jan. After that it moved up and consolidated, then moved again to ten (which appears to represent serious resistance). Thus far it has made three attempts to break cleanly thru 10 without success. Up/down ratio right now is only 1.0 (neutral) while Timeliness is C, suggesting it may once again be consolidating under 10. Volume appears to be drying up slightly, altho a little too erratic to be sure. Trailing PE is 33 while projected PE is about 27, altho the forecast of 35 cents has been revised downward. You do have a 2% funds position, even at this price, so it is getting some exposure. Tom W - -----Original Message----- From: Jerry Buchheit To: Canslim Date: Sunday, April 26, 1998 9:08 PM Subject: [CANSLIM] Thoughts on CMED? >I've been watching Colorado Med Tech (CMED) which has been in a trading >range for a couple of months after a 350% runup during the past year. > >CMED (NASDAQ) > eps 90 > rel str 96 > Acc/Dis B > ann earn growth 23% > Q EPS chng 29% > Q sales chng 111% > float 3.7 M > industry rank 1 out of 71 (by Zacks) > >CMED recently formed a partnership with TAVA to address Y2K issues for >medical technology equipment. > >I would appreciate anyone's thoughts on this company. Can one consider the >recent trading range of 9-10 to be a pause on it's march upward? > >Also, are there any guidelines from CS regarding buying before/after >earnings are reported? Should such an event be ignored when following CS or >not? > >Regards, >Jerry B. > > > >- > - - ------------------------------ Date: Mon, 27 Apr 1998 09:14:22 EDT From: DCSquires Subject: Re: [CANSLIM] Opinions don't matter! In a message dated 98-04-26 23:21:38 EDT, you write: << > If WON was in print tommorow saying this > rally is still intact it wouldn't change a thing I do because he told me > opinions don't matter.....only the market verdict does. > BING! BING! BING! You win the prize! I think this part of the post bears repeating. I wouldn't change a thing unless I were paying WON to manage my money - then I'd listen to his opinions because he'd have a financial incentive to keep me happy. >> Along these lines, does anyone remember last years interview with Big O in IBD. It was during the early 97 correction, very nearly the end, and he said he thought we were in a bear market. A few weeks latter the market took off into a huge rally. So much for opinions! DSquires - - ------------------------------ Date: Mon, 27 Apr 1998 09:15:28 -0400 From: Ari Lawson Subject: Re: [CANSLIM] SBUX seems to be a good canslim stock except for outstanding shares.Based on DGO,I see a very long cup with a handle.The cup going back to Sept.97 to begining of april 98.Any comments? Thanks - - ------------------------------ Date: Mon, 27 Apr 1998 09:13:51 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] SBUX (was Langston's Comment on History of List) Ari, I've been seeing a lot of stocks in the restaurant group hitting new highs lately, however GRS still is only 65. SBUX, with an RS of 81, is well out of the top five. I also note funds with 26% while management only has 6%. I also don't see any decent nearby support. The rest of the CS elements, including up/down, Timeliness, etc all look good. Tom W - -----Original Message----- From: Ari Lawson To: canslim@lists.xmission.com Cc: SBUX@smtp3.erols.com Date: Monday, April 27, 1998 7:30 AM Subject: Re: [CANSLIM] Langston's Comment on History of List >SBUX,seems to be a good canslim stock.By DGO,except for outstanding >shares.I see a very long cup ,going back to Sept.97.Thinking of buying >in right were it's at.Any comments? Thanks > > >- > - - ------------------------------ Date: Mon, 27 Apr 1998 09:22:58 -0400 From: "Tom Worley" Subject: [CANSLIM] Fw: Weekly Economic Update Following forwarded from Timely-Invest Tom W >Current Weekly Calendar of Economic Data: >========================================= > >Monday: Existing Home Sales >Tuesday: Durable Goods Orders, Consumer Confidence >Wednesday: New Home Sales >Thursday: Jobless Claims, 1st Qtr GDP, Employment Cost > Index, Chicago Purchasing Managers' Index >Friday: Personal Income/Spending, Construction Spending, > National Assn. of Purchasing Managers' Index, > Michigan Consumer Sentiment > - - ------------------------------ Date: Mon, 27 Apr 1998 09:21:07 -0400 From: "Tom Worley" Subject: [CANSLIM] World Markets Stand by for a major opening downward today. Almost every exchange in Asia was down between 1 and 2%, most of the major exchanges in Europe are down over 1%, and in the past hour the futures have fallen sharply on both the S&P500 and NASDAQ 100 (down 1.4 and 1.67% respectively). No call on where we go from here, either continuing the correction or simply the major shakeout (background noise of a toilet flushing) that we need to stabilize the market, consolidate recent gains, and start focusing on the future once again. Fears of a Fed rate hike however may impede this mkt till after the May FOMC meeting, barring some strong results from economic reports showing a lack of need to tighten. Tom W - - ------------------------------ Date: Mon, 27 Apr 1998 06:34:12 -0700 From: "Ken Davidson" Subject: [CANSLIM] down we go 4/27/98 9:25est. The market is going to start the day on the downside today pretty strong. Globex S & P 500 futures just closed down about -15.00 points at 9:15 est. The Wall Street Journal put out an article this morning that revealed that the federal reserve has changed its stance from being neutral on interest rates to a possible tightening mode. Federal Reserve officials say they are increasingly concerned that the U.S. economy may not be slowing as much as they expected or desired, forcing them to ponder lifting short-term interest rates in coming months. "In a sign of concern, Fed policy makers agreed at their March 31 meeting that a rate increase is more likely than a decrease. In doing so, they abandoned the neutral stance that was adopted in December to demonstrate, as the Fed put it, that they might cut rates if "the turmoil in Asia were to intensify. The Fed won't release this "directive," crafted at the end of each committee meeting, until May 21. The primary significance of the directive is to signal financial markets which way the Fed is leaning. Officials say Asia seems to be stabilizing, and domestic economic vigor appears to be offsetting the ill effects of Asian woes on U.S. exports. First-quarter consumer spending and housing construction was strong, and the economy appears to be awash in credit. So, in public speeches and interviews, Fed officials are beginning to prepare markets for a Fed move to brake the economy-unless it slows on its own soon." The 30 year bond has sold off this morning, losing -1.11/32nds to raise the yield to 6.02%. Many analysts are worried that with short term rates backing up that the yield curve will become inverted. Today should be exciting as it will be the first day of a correction but the futures are actually holding up well considering that they have changed the limits on globex trading to stop trading if the index hits -25 points now. We will post later on today to let you know how the open was! Ken The information contained in this commentary is based upon data that is believed to be accurate, but is not guaranteed, and subject to change without notice. All projections, forecasts, opinions, and track records cannot be guaranteed to equal our past performance. Persons reading this are responsible for their actions. Officers and employees of this publication may at times have a position in the securities mentioned, or related services. - - ------------------------------ Date: Mon, 27 Apr 1998 12:02:35 +0200 From: Johan Van Houtven Subject: Re: [CANSLIM] Cash Position (was M Today) At 02:08 AM 27/04/98 GMT, you wrote: >:I'd love to have a look at the charts of the stocks you owned. To see if >:there were any signs to looked like sell signals. > >I held 3 stocks: LEN, TMBS and KEG. What do you think? LEN: If you sold on Wednesday, you are either a genius or lucky. The next day it went down to kiss the 50DMA and bounced of it. A stop under the base would have taken you out that Thursday. TMBS: I don't see a reason to sell. KEG: This was not a CANSLIM pick, right? If you were short from the October period, I would guess you would have covered by now. Assuming you were long, I can not see why you went long. I can understand you'd want to buy an oil related stock if you are a long termer, but I think there are better candidates in that group. All in all soemthing that should be discussed in a NON-CANSLIM group. Just my opinion after taking a quick look at the charts on DG Online. Did not do any technical chart evaluations based on technical indicators. - --- Johan Van Houtven - - ------------------------------ Date: Mon, 27 Apr 1998 08:33:24 -0500 From: "Blake A Baysinger" Subject: [CANSLIM] Ilink I dont see it as a canslim stock, But I'm told that due to proprietary technolgy, this company can sell long distance at 4.9 Profitably. If thats true, I'm guessing that at the very least, The "n" is there. Blake Baysinger Blake@Baysingers.com - - ------------------------------ Date: Mon, 27 Apr 1998 10:01:02 -0400 From: Jeffry White Subject: [CANSLIM] Dave's "M" Dave Cameron wrote: > The current pattern may be mirroring what happened three > weeks ago, when after hitting a new high, the NASDAQ dropped to 1780 from > 1860 in 2 days. Of course, it subsequently climbed to 1930 or so. Since > then, it has dropped to 1870 in 2 days on a similar volume pattern. It > is very tough to tell if this is the start of a real decline, or merely > a pullback on its way to higher ground like last time. Thus, the coin > (or indicator) is weighted 55% - without a lot of previous patterns to > tell us if it is really 55% or 51% or 68%... This is a very good point, and I agree. Wish I could have gotten that point across as I've been commenting over the past two months. The prior two points in the chart you mention, starting in early March, are classic cautionary moments in an aging move like we had starting early in the year. Compression type distribution, a few days of sell off, followed by a rally. Both should, I think, have put us on watch for a "failed rally attempt", but neither failed. This most recent "hump" is, in my view, the same except the sentiment is now really way to the extreme and we've seen some "mania", leadership failure, etc. We could, and most probably will reverse in a few days, and the failed rally attempt watch must again start. Jeffry - - ------------------------------ Date: Mon, 27 Apr 1998 09:56:58 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] My watch list for this week LEVL - too extended for me, no nearby support TWR - RS of 65 would keep me out ESL - again, RS of 63 would keep it off my watch list, much less a buy CTAL - high PE (128) and RS of 79 would keep me out in current "M", also I would investigate such a huge revenue increase with such a small earnings increase (I'm presuming they did some kind of acquisition, but for whatever reasons, the addl revenues is not translating into earnings like I would expect). Short plays - no opinion Tom W - -----Original Message----- From: Tony Austin To: canslim@lists.xmission.com Date: Saturday, April 25, 1998 5:07 PM Subject: Re: [CANSLIM] My watch list for this week >Long Plays >LEVL - Level One Communications. Formed a cup and handle pattern between >TWR - Tower Automotive. Formed a cup and handle pattern between October >ESL - Esterline Technology Cp. Formed a cup and handle starting mid October >CTAL - Catalytica Inc. - Following eight months of consolidation in the 13 >to 10 range, it broke soundly upward with supporting volume the first week - - ------------------------------ Date: Mon, 27 Apr 1998 14:20:31 GMT From: musicant@autobahn.org (Dan Musicant) Subject: Re: [CANSLIM] Cash Position (was M Today) On Mon, 27 Apr 1998 12:02:35 +0200, you wrote: :At 02:08 AM 27/04/98 GMT, you wrote: :>:I'd love to have a look at the charts of the stocks you owned. To see = if :>:there were any signs to looked like sell signals. :> :>I held 3 stocks: LEN, TMBS and KEG. What do you think? : :LEN: If you sold on Wednesday, you are either a genius or lucky. The = next :day it went down to kiss the 50DMA and bounced of it. A stop under the = base :would have taken you out that Thursday. In this case it may have been more "lucky"...unless it was my subconscious (not impossible...I had some nasty dreams last night about a vicious downturn in the market). It was the last one I sold. I looked carefully at the chart and "pulled the trigger". I didn't feel I was looking at my holdings with fresh eyes...it was time to sweep the table clean. So easy to do! : :TMBS: I don't see a reason to sell. I've studied this issue pretty closely, and though I know the chart and numbers look very promising (double bottom, great recent earnings) I think that the likelihood of a sizeable move in the near term unlikely. Ergo, the fan went on, it was blown away. : :KEG: This was not a CANSLIM pick, right? If you were short from the = October :period, I would guess you would have covered by now. Assuming you were :long, I can not see why you went long. I can understand you'd want to = buy :an oil related stock if you are a long termer, but I think there are = better :candidates in that group. All in all soemthing that should be discussed = in :a NON-CANSLIM group. No, it was not CANSLIM. There has been much discussion in the past about KEG, and some discussion recently. It was CANSLIM last summer, and some anticipate a return to that status and are watchful. It was not a CANSLIM play, and I think/feel I should either 1) have been out of it quickly or (more likely) 2) never have bought it at all. I feel fortunate to have not taken a big loss in it. It IS the only of the 3 that is UP today. I think it's anticipation of earnings. Dan :Just my opinion after taking a quick look at the charts on DG Online. = Did :not do any technical chart evaluations based on technical indicators. : : : : : : :--- Johan Van Houtven : : : :- - - ------------------------------ Date: Mon, 27 Apr 1998 17:12:57 +0200 From: Johan Van Houtven Subject: [CANSLIM] Off topic: Real-time quote service Anyone out there that can recommend a good RT quote service? Interquote where down this AM and now are displaying approx 10 min delayed quotes. - --- Johan Van Houtven - - ------------------------------ Date: Mon, 27 Apr 1998 11:38:52 -0400 From: "Tony Austin" Subject: Re: [CANSLIM] My watch list for this week - RS comment I understand your point on RS. However, I do allow a bit more freedom, depending on the stock, for RS. My reasoning is, that by the time a stock has performed so well as to have a high RS number, it is very extended from it's last significant period of consolidation. A moderate RS number, say above 60, with very high earnings and growth, is the stock that has been in a protracted period of consolidation and may have higher upward potential than say a RS 98. Just my view. Tony - ---------- > From: Tom Worley > To: canslim@lists.xmission.com > Subject: Re: [CANSLIM] My watch list for this week > Date: Monday, April 27, 1998 9:56 AM > > LEVL - too extended for me, no nearby support > TWR - RS of 65 would keep me out > ESL - again, RS of 63 would keep it off my watch list, much less a buy > CTAL - high PE (128) and RS of 79 would keep me out in current "M", > also I would investigate such a huge revenue increase with such a > small earnings increase (I'm presuming they did some kind of > acquisition, but for whatever reasons, the addl revenues is not > translating into earnings like I would expect). > > Short plays - no opinion > > Tom W > > -----Original Message----- > From: Tony Austin > To: canslim@lists.xmission.com > Date: Saturday, April 25, 1998 5:07 PM > Subject: Re: [CANSLIM] My watch list for this week > > > >Long Plays > >LEVL - Level One Communications. Formed a cup and handle pattern > between > >TWR - Tower Automotive. Formed a cup and handle pattern between > October > >ESL - Esterline Technology Cp. Formed a cup and handle starting mid > October > >CTAL - Catalytica Inc. - Following eight months of consolidation in > the 13 > >to 10 range, it broke soundly upward with supporting volume the first > week > > > > - > - - ------------------------------ Date: Mon, 27 Apr 1998 09:15:58 -0700 From: "Ken Davidson" Subject: [CANSLIM] 12:00 noon 4/27/98 Well the market is still alive at noon. Dow -146.00 points, S & P 500 -22.37 points. The Dow fell right at the start of the day and the low so far today is -185.00 points or 2.0%. The S & P 500's low is -26.00 points or 2.0%. A little more then grinding lower but panic.....don't see it! Nasdaq is taking the biggest hit today being off -55 points or about 2.8%. The final hour of trading will be very important to watch to see if we collapse further or we strengthen. We do have a trivia question for you: What is the biggest fall the May expiration cycle has ever seen since 1983? If you want to know the answer e-mail us!! We'll see you at the close!! Ken The information contained in this commentary is based upon data that is believed to be accurate, but is not guaranteed, and subject to change without notice. All projections, forecasts, opinions, and track records cannot be guaranteed to equal our past performance. Persons reading this are responsible for their actions. Officers and employees of this publication may at times have a position in the securities mentioned, or related services. - - ------------------------------ Date: Mon, 27 Apr 1998 12:16:09 EDT From: JANSI1AUG1 Subject: [CANSLIM] Re.Short Selling Tom, I once heard that to sell short you must sign a margin agreement with your brokerage firm giving them the right to let others who sell short borrow any long shares that you hold. Therefore, I have never sold short-although I do buy puts options. Tom, I know that you are a broker, and I would really appreciate if you would tell me the steps one needs to go through to open a short account, and then the steps to take before shorting, when you do short, and what to keep in mind (if appropriate) after you short. I am a pretty sophisticated trader (believe it or not), but I have never even considered shorting once I heard that the brokerage firm could expropriate from me the shares I hold down there. (I understand the logic and the analysis necessary for shorting;I just don't know the procedures-or my rights, obligations and legal duties regarding short selling or the brokerage firm's relating to allowing me to short). jans - - ------------------------------ Date: Mon, 27 Apr 1998 12:32:04 -0400 From: "Tony Austin" Subject: Re: [CANSLIM] MDV is up? In the face of a very negative marget, MDV is up 1/4 at this hour. Could be a bullish sign. I'm looking further. Tony - - ------------------------------ Date: Mon, 27 Apr 1998 12:34:08 -0400 From: "Tony Austin" Subject: Re: [CANSLIM] Scrath MDV No volume and not a good chart pattern. Never mind. T - - ------------------------------ Date: Mon, 27 Apr 1998 12:31:02 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Off topic: Real-time quote service I have been mostly using www.freerealtime.com, you gotta register but can do it online instead of by fax. They have been having some problems lately, which have cost me some trades, but sent an apology this weekend, and so far today appear to be doing OK. Part of their problem is the same as AOL had, too many new subscribers for the existing equipment, but they are aware and apparently working on it. And you can't beat the price. Tom W - -----Original Message----- From: Johan Van Houtven To: canslim@lists.xmission.com Date: Monday, April 27, 1998 11:15 AM Subject: [CANSLIM] Off topic: Real-time quote service >Anyone out there that can recommend a good RT quote service? > >Interquote where down this AM and now are displaying approx 10 min delayed >quotes. > > > >--- Johan Van Houtven > > > >- > - - ------------------------------ Date: Mon, 27 Apr 1998 12:37:37 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Scrath MDV RS of 17 and EPS of 43 also takes it out of the CANSLIM horizon. Tom W - -----Original Message----- From: Tony Austin To: canslim@lists.xmission.com Date: Monday, April 27, 1998 12:31 PM Subject: Re: [CANSLIM] Scrath MDV >No volume and not a good chart pattern. Never mind. > >T > >- > - - ------------------------------ Date: Mon, 27 Apr 1998 13:00:42 -0400 From: "Tony Austin" Subject: Re: [CANSLIM] Scrath MDV Ugly, isn't it. - ---------- > From: Tom Worley > To: canslim@lists.xmission.com > Subject: Re: [CANSLIM] Scrath MDV > Date: Monday, April 27, 1998 12:37 PM > > RS of 17 and EPS of 43 also takes it out of the CANSLIM horizon. > > Tom W > > -----Original Message----- > From: Tony Austin > To: canslim@lists.xmission.com > Date: Monday, April 27, 1998 12:31 PM > Subject: Re: [CANSLIM] Scrath MDV > > > >No volume and not a good chart pattern. Never mind. > > > >T > > > >- > > > > > - > - - ------------------------------ Date: Mon, 27 Apr 1998 12:58:03 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Re.Short Selling When you short sell, you are borrowing shares from the firm holding your acct, then selling those shares in anticipation of a price drop, at which point you would buy back the shares and return them, pocketing the difference between the two prices (less commissions). The biggest single danger in short selling is that the stock can continue to move higher, just because you think it is overvalued doesn't mean the mkt agrees with you. Thus, you have to keep tight stops to the upside, or else buy calls to protect yourself. Because you are "borrowing", you must have signed a "margin" agreement. At many firms now, the "Customer Agreement" already covers both cash and margin trading, thus there is no separate agreement. At some firms, you can protect your stocks from being "hypotecated" (borrowed by someone else for purpose of shorting) by keeping them in a Type 1 (cash) acct. At other firms, the only way to prevent hypotecating is to have the shares delivered to you. You have to read your agreement carefully. Frankly, I've never been concerned if someone buys my stock and short sells it. If I'm bullish on it, then I think they're making a mistake, and will eventually be forced to buy in at a higher price. If I'm not bullish on it, I shouldn't still own it. You have to borrow normally from the firm where the acct is located. If they don't have shares to loan you, then you can't short there. And, of course, if they have no further shares they are willing to loan, and someone who is long the stock and whose shares were already loaned out should sell, then the holder of that corresponding short position is forced to buy to cover. You receive the cash proceeds from the sale, and get interest on that cash. However you are responsible for paying any dividends declared and payable while you are short. You must maintain the house minimum on equity, thus if the stock goes higher, you will be "mark'd to market" and may have to deposit addl funds or marginable stock. As a holder of a long position that has been hypotecated, the only sig thing you stand to lose is the right to vote those shares. That right has passed onto whoever bot the shares from the short seller. It does not cost anything to borrow the shares for a short sell, but the long position holder is likewise not paid anything for the use of his shares. If you use an acct at a small firm, but it clears thru a larger firm (such as myself clearing thru Bear Stearns), then it is the clearing firm typically that holds assets and determines if it has shares to loan out (which can come from any of its correspondent firms, or internal accts, or inventory). If the firm couldn't hypotecate (it's really not expropriation!!) your shares, then who would you expect would be willing to loan you shares at no cost so you could short their shares? It's all part of how the system works. Shorting is not linked directly to margining, altho the same agreement covers both issues of "borrowing". Unlike shorting, buying put options like Jeffry does is an alternative that doesn't entail such a large risk of capital. When you buy the put, the amount you have at risk is what you spent, while shorting creates a potentially unlimited capital risk. The best advice I have on shorting: Know what you are doing Don't fight the tape (trend) Cut your losses early (be disciplined), if you can't, don't short Don't fight the tape Choose carefully Don't fight the tape Tom W - -----Original Message----- From: JANSI1AUG1 To: CANSLIM@xmission.com Date: Monday, April 27, 1998 12:17 PM Subject: [CANSLIM] Re.Short Selling >Tom, > > I once heard that to sell short you must sign a margin agreement with >your brokerage firm giving them the right to let others who sell short borrow >any long shares that you hold. Therefore, I have never sold short-although I >do buy puts options. > > Tom, I know that you are a broker, and I would really appreciate if you >would tell me the steps one needs to go through to open a short account, and >then the steps to take before shorting, when you do short, and what to keep >in mind (if appropriate) after you short. I am a pretty sophisticated trader >(believe it or not), but I have never even considered shorting once I heard >that the brokerage firm could expropriate from me the shares I hold down >there. (I understand the logic and the analysis necessary for shorting;I just >don't know the procedures-or my rights, obligations and legal duties regarding >short selling or the brokerage firm's relating to allowing me to short). > >jans > >- > - - ------------------------------ Date: Mon, 27 Apr 1998 19:04:27 +0200 From: Derrick REAGINS Subject: [CANSLIM] BNSOF: reality check Could I get your opinions on BNSOF. To me this stock seem like a winner. From DGOnline, the EPS is 79 and RS is approx 9X. Low float 1.6M and ADV of 23K. Unfortunately fund ownership is lacking but my sources are probably behind in their updates (I believe that there was institutional buying during the runnup). These elements make it a good CANSLIM candidate, On the TA side, OBV and MF seem to be holding very steady on low volume. Does anyone see anything in this one that I'm missing?? Derrick REAGINS dreagins@businessobjects.com - - ------------------------------ Date: Mon, 27 Apr 1998 13:19:23 -0400 (EDT) From: Deepak Kapur Subject: Re: [CANSLIM] Re.Short Selling Tom, >You receive the cash proceeds from the sale, and get interest on that >cash. However you are responsible for paying any dividends declared >and payable while you are short. You must maintain the house minimum >on equity, thus if the stock goes higher, you will be "mark'd to >market" and may have to deposit addl funds or marginable stock. Do you know of any discount brokers that pay interest on cash proceeds of a short sale? Aufhauser used to, but not under ameritrade. I know that Dreyfus (old PBS), Schwab, Ameritrade, Datek, Smith Barney, Paine Webber, and Stockcross don't. Thanks, Deepak - - ------------------------------ Date: Mon, 27 Apr 1998 13:29:56 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] BNSOF: reality check Last base (and it was a decent one) was back at about 7. After jumping past 10, it looks to be trying to consolidate, and not clear to me where it's going from here. I would want to see some kind of base established (at a minimum 2 - 3 weeks) first. Tom W - -----Original Message----- From: Derrick REAGINS To: 'canslim@lists.xmission.com' Date: Monday, April 27, 1998 1:06 PM Subject: [CANSLIM] BNSOF: reality check >Could I get your opinions on BNSOF. > >To me this stock seem like a winner. From DGOnline, the EPS is 79 >and RS is approx 9X. Low float 1.6M and ADV of 23K. Unfortunately >fund ownership is lacking but my sources are probably behind in their >updates (I believe that there was institutional buying during the >runnup). >These elements make it a good CANSLIM candidate, On the TA side, >OBV and MF seem to be holding very steady on low volume. > >Does anyone see anything in this one that I'm missing?? > >Derrick REAGINS >dreagins@businessobjects.com > > >- > - - ------------------------------ Date: Mon, 27 Apr 1998 13:32:15 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Re.Short Selling I'll check with Schwab as I'm going down there later today to open an acct (after 9 days Datek still hasn't sent me my acct forms so I can transfer my accts, I'm tired of waiting). I would be surprised if firms like Merrill Lynch aren't paying interest. It's been pretty much industry std to pay interest on any net cash balance in an acct, and proceeds from a short sale count in that balance. Tom W - -----Original Message----- From: Deepak Kapur To: canslim@lists.xmission.com Date: Monday, April 27, 1998 1:17 PM Subject: Re: [CANSLIM] Re.Short Selling >Tom, > >>You receive the cash proceeds from the sale, and get interest on that >>cash. However you are responsible for paying any dividends declared >>and payable while you are short. You must maintain the house minimum >>on equity, thus if the stock goes higher, you will be "mark'd to >>market" and may have to deposit addl funds or marginable stock. > >Do you know of any discount brokers that pay interest on cash proceeds >of a short sale? Aufhauser used to, but not under ameritrade. >I know that Dreyfus (old PBS), Schwab, Ameritrade, Datek, >Smith Barney, Paine Webber, and Stockcross don't. > >Thanks, > >Deepak > >- > - - ------------------------------ Date: Mon, 27 Apr 1998 13:48:07 -0400 From: "Surindra Singh" Subject: RE: [CANSLIM] Off topic: Real-time quote service Some of the free real time quotes you might like to try: http://www.freerealtime.com http://www.marketguide.com/RTQ/ http://www.pathfinder.com/money/rtq/index.html http://www.thomsonrtq.com These are some of the one I use. You might have to register. Let me know if there is any problem with the address. Surindra :-----Original Message----- :From: owner-canslim@lists.xmission.com :[mailto:owner-canslim@lists.xmission.com]On Behalf Of Johan Van Houtven :Sent: Monday, April 27, 1998 11:13 AM :To: canslim@lists.xmission.com :Subject: [CANSLIM] Off topic: Real-time quote service : : :Anyone out there that can recommend a good RT quote service? : :Interquote where down this AM and now are displaying approx 10 min delayed :quotes. : : : :--- Johan Van Houtven : : : :- : : - - ------------------------------ End of canslim-digest V2 #214 ***************************** 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.