From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #239 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 Saturday, May 16 1998 Volume 02 : Number 239 In this issue: [CANSLIM] Consolidation? [CANSLIM] Canslim - SSW, PHLY [CANSLIM] OBV/MF: VTCH [CANSLIM] Watching SYMX [CANSLIM] KTIE Re: [CANSLIM] Canslim - SSW, PHLY [CANSLIM] Re: Rexi Low Dish Breakouts [CANSLIM] LBOR [CANSLIM] Compression (was Consolidation?) RE: [CANSLIM] KTIE Re: [CANSLIM] Watching SYMX Re: [CANSLIM] KTIE RE: [CANSLIM] KTIE Re: [CANSLIM] LBOR Re: [CANSLIM] LBOR [CANSLIM] LBOR Re: [CANSLIM] LBOR Re: [CANSLIM] LBOR [CANSLIM] LBOR [CANSLIM] OBV/MF ---------------------------------------------------------------------- Date: Fri, 15 May 1998 10:13:45 -0400 From: Jeffry White Subject: [CANSLIM] Consolidation? Tom wrote: > But as long as I can continue finding stocks with top drawer CS > elements, I will continue to study charts and look for new buying > opportunities. I just don't find the "distribution" signals that > worked five years ago to be so clear today. Part of that is a result > of the duration of this bull mkt, which has led many "johnny come > lately"s to jump in (again a warning signal of a top). But mostly, I > think it is a result of the $20 billion or so being pumped into the > mkt every month on a net basis. And as long as the market says it > wants to go higher, whatever the reasons, who am I to argue with it?? > > Tom W > Were the "distribution" signals "clear" back in early October of 1997, prior to the crash? How about January 1997? If so, what exactly did you find to be unclear in each of those intermediate term tops? If not, what other points in the indices do you have in mind where "distribution" signals (compression type after an 3-6 month advance) were not clear during the past five years compared to those in the prior period you are referencing? Thanks. Jeffry - - ------------------------------ Date: Fri, 15 May 1998 09:14:58 -0500 From: "Naylor, Jordan" Subject: [CANSLIM] Canslim - SSW, PHLY SSW & PHLY look strong - - ------------------------------ Date: Fri, 15 May 1998 10:47:18 -0400 From: Connie Mack Rea Subject: [CANSLIM] OBV/MF: VTCH Members-- VTCH had a big pop yesterday. I'd wait for a bit to be taken off the price. If you've no precise method of determining how much you want taken off, use 1/3, 1/2, or 2/3 as entry points. Technically, it looks strong: OBV/MF good positive divergence. MACD gave buy yesterday. Stochastic also gave a buy. EMA gave buy Wednesday. I'm buying this morning. Connie Mack - - ------------------------------ Date: Fri, 15 May 1998 08:08:48 -0700 From: Tim Fisher Subject: [CANSLIM] Watching SYMX SYMX on my CASLI scan list of a few weeks ago. Saw this today: Friday May 15, 10:35 am Eastern Time RESEARCH ALERT - Symix started NEW YORK, May 15 (Reuters) - Piper Jaffray said on Friday it started coverage on shares of Symix Systems Inc. with a strong buy rating and a $30 per share target price. - -- Symix provides client/server enterprise resource planning applications to the middle market discrete manufacturers in five vertical markets, analyst Thomas Berquist said in a research note. - -- Company's comprehensive product suite is significant competitive advantage. - -- Client/server architecture, integrated product suite, low cost of implementation and distribution channels position Symix to meet middle market requirements such as low cost, low risk and reliable customer service. Tim Fisher / tim@OreRockOn.com Ore-Rock-On and Pacific Fishery Biologists WWW Sites: http://OreRockOn.com See naked fish and rocks! - - ------------------------------ Date: Fri, 15 May 1998 08:11:54 -0700 From: Tim Fisher Subject: [CANSLIM] KTIE A freind pointed out what looks like a micro-cap waking up and becoming liquid the past few months, also happens to be a LLUR (after it woke up). Of course Zacks is missing a bunch of data on it, however looks like a possible candidate except for D/E. Can someone fill in the blanks from DGO or QP? POLLUTION CNTRL Kti Inc TICKER KTIE EXCHANGE NSDQ X SECTOR 7 X INDUSTRY 143 24WK PCHG% 11.77 TREND EPGR N/A QEPS 0/-4 63.16 QEPS -1/-5 22.73 QEPS -2/-6 120.00 QEPS -3/-7 N/A % INSTITUT 32.16 % INSIDERS N/A TREND SALE N/A P/E 12M 21.59 ROI 8.84 D/Equity 73.41 PEG F1 0.62 Tim Fisher / tim@OreRockOn.com Ore-Rock-On and Pacific Fishery Biologists WWW Sites: http://OreRockOn.com See naked fish and rocks! - - ------------------------------ Date: Fri, 15 May 1998 08:16:42 -0700 From: Tim Fisher Subject: Re: [CANSLIM] Canslim - SSW, PHLY At 07:14 AM 5/15/98 , you wrote: >SSW & PHLY look strong > Don't remember these being discussed here before, so I looked them up. Neither make it by my standards - the 5-yr earnings trend for SSW is weak, institutions is high, insiders is low. PHLY looks better, except Q-1 earnings were not good enough. COMP-SOFTWARE Sterling Softwr INS-PROP&CASLTY Phila Cons Hldg TICKER SSW PHLY EXCHANGE NYSE NSDQ X SECTOR 10 13 X INDUSTRY 44 89 24WK PCHG% 52.62 22.82 TREND EPGR 7.66 30.49 QEPS 0/-4 80.00 22.45 QEPS -1/-5 48.48 12.28 QEPS -2/-6 7.02 22.92 QEPS -3/-7 -40.00 34.15 % INSTITUT 70.62 53.09 % INSIDERS 2.03 41.30 TREND SALE 8.34 25.34 P/E 12M 22.93 19.22 ROI 12.16 17.12 D/Equity 0.00 0.00 PEG F1 1.25 1.01 Tim Fisher / tim@OreRockOn.com Ore-Rock-On and Pacific Fishery Biologists WWW Sites: http://OreRockOn.com See naked fish and rocks! - - ------------------------------ Date: Fri, 15 May 1998 10:48:15 -0500 (CDT) From: mckeener@ix.netcom.com Subject: [CANSLIM] Re: Rexi Low Dish Breakouts Peter, I agree with you on REXI, but group strength is E. Keeping on my watch list only. Mary Keener - - ------------------------------ Date: Thu, 14 May 1998 18:55:45 -0400 From: Deral Rackley Subject: [CANSLIM] LBOR As I have previously mentioned, I have been using the CANSLIM approach for several years using IBD as my resource. With your help since going the CANSLIM list, I have learned about some web sites which are helpful such as Big Charts and have been learning about various technical indicators such as MACD, Bollinger Bands, Momentum, and Stochastics (which I have used in trading commodities, but not with stocks). Along with following the CANSLIM email, it has been rather overwhelming to say the least over the last few week. Information overload! I have a ways to go before I reach the point of knowing what indicators to use for a certain situation. I have been following LBOR on intraday charts since early February. LBOR has good CANSLIM fundamentals. It has recently gone through a correction ( 6 weeks) and has been moving up this month. I had targeted the stock as a buy @$35 on higher volume. It closed at 35 1/32 today on volume of 335,200 which is about twice normal volume. I plan to buy some shares tomorrow if the price and volume holds. Do any of you stock guru's have an suggestions on what to look for in the morning (what indicators to use and how to use them) in finding the best buy point (or not to buy) This is rather elementary for you stock guru's; however, I do appreciate your patience and assistance. Thanks Deral - - ------------------------------ Date: Fri, 15 May 1998 14:32:06 -0400 From: Craig Griffin Subject: [CANSLIM] Compression (was Consolidation?) Jeffry, I just noticed your specialized spelling - sorry for any errors in the past. You wrote: ... >If not, what other points in the indices do you have in mind where >"distribution" signals (compression type after an 3-6 month advance) ... I have seen "compression" referred to in the past in reference to a chart. Can you enlighten me a bit on its meaning or point me to a resource? For instance what is a "compression day"? Any and all responses appreciated. Regards, Craig - - ------------------------------ Date: Fri, 15 May 1998 11:32:41 -0700 From: Mike Lucero Subject: RE: [CANSLIM] KTIE EPS 70 RS 93 A/D A LTG N/A (losses in 94 and 95) Q0/-4 EPS 55% Q-1/-5 EPS 62% (notice big discrepancy with Zacks) EST98 EPS GR 44% Q0/-4 REV GR 104% Q-1/-5 REV GR 224% SHARESOUT 8.3MIL FUNDS 12% On Friday, May 15, 1998 8:12 AM, Tim Fisher [SMTP:tim@OreRockOn.com] wrote: > A freind pointed out what looks like a micro-cap waking up and becoming > liquid the past few months, also happens to be a LLUR (after it woke up). > Of course Zacks is missing a bunch of data on it, however looks like a > possible candidate except for D/E. Can someone fill in the blanks from DGO > or QP? > > POLLUTION CNTRL Kti Inc > TICKER KTIE > EXCHANGE NSDQ > X SECTOR 7 > X INDUSTRY 143 > 24WK PCHG% 11.77 > TREND EPGR N/A > QEPS 0/-4 63.16 > QEPS -1/-5 22.73 > QEPS -2/-6 120.00 > QEPS -3/-7 N/A > % INSTITUT 32.16 > % INSIDERS N/A > TREND SALE N/A > P/E 12M 21.59 > ROI 8.84 > D/Equity 73.41 > PEG F1 0.62 > > > Tim Fisher / tim@OreRockOn.com > Ore-Rock-On and Pacific Fishery Biologists WWW Sites: > > http://OreRockOn.com > See naked fish and rocks! > > > - - ------------------------------ Date: Fri, 15 May 1998 14:42:37 -0400 From: Craig Griffin Subject: Re: [CANSLIM] Watching SYMX Tim, I owned it from about 18 1/2 to 21 3/8. It appeared to me that it was poised to become a true CS middle tier stock with steady EPS growth (although probably not spectacular). By that I mean, they seem just at the point of building real momentum in their market due to a sort of reaching of critical mass in sales and customer base. This seems to be what the research report is pointing out as well. I sold because of the action on 4/21 when the earnings came out. It was a solid report, but there seemed to be a sell on the news mentality. I am looking for a re-entry signal. The price action looks promising. Regards, Craig - - ------------------------------ Date: Fri, 15 May 1998 14:51:23 -0400 From: Craig Griffin Subject: Re: [CANSLIM] KTIE Tim, Seems we are both looking at some of the same stocks. Both KTIE and SYMX are in a "making up their mind" stage. I am holding KTIE and believe Tom might be too. The question mark hanging over it is the recently announced acquisition which will roughly double the size of the company. But they have consistently grown by acquisition in the past and continue to look for them - so it is the nature of the business. Hopefully they will be able to swallow this one without much earnings impact. The price/volume action (as I mentioned in an earlier post) appears to indicate significant accumulation. I am judging this by looking at a chart with green volume on up days and red volume on down days. Some of the accumulators or earlier holders apparently used the acquisition news on 05/06 as an opportunity to liquidate part of their position. I almost pulled the trigger at the same time when it seemed to get "hung up" that day at 20 3/4. We will see what happens. Regards, Craig - - ------------------------------ Date: Fri, 15 May 1998 11:53:08 -0700 From: Tim Fisher Subject: RE: [CANSLIM] KTIE No discrepancy, your data includes the most recent quarter, which Zacks is a month behind. I don't like the fundies differences, either they have sold recently (price doesn't reflect heavy fund selling) or there is a big difference there.=20 At 11:32 AM 5/15/98 , you wrote: >EPS 70 >RS 93=20 >A/D A=20 >LTG N/A (losses in 94 and 95)=20 >Q0/-4 EPS 55%=20 >Q-1/-5 EPS 62% (notice big discrepancy with Zacks)=20 >EST98 EPS GR 44% >Q0/-4 REV GR 104% >Q-1/-5 REV GR=A0 224%=20 >SHARESOUT 8.3MIL >FUNDS 12% > >On Friday, May 15, 1998 8:12 AM, Tim Fisher [SMTP:tim@OreRockOn.com] wrote: >> A freind pointed out what looks like a micro-cap waking up and becoming >> liquid the past few months, also happens to be a LLUR (after it woke up). >> Of course Zacks is missing a bunch of data on it, however looks like a >> possible candidate except for D/E. Can someone fill in the blanks from= DGO >> or QP? >>=20 >> POLLUTION CNTRL Kti Inc >> TICKER KTIE=A0=A0=A0=A0=A0=20 >> EXCHANGE NSDQ=A0=20 >> X SECTOR 7 >> X INDUSTRY 143 >> 24WK PCHG% 11.77 >> TREND EPGR N/A >> QEPS 0/-4 63.16 >> QEPS -1/-5 22.73 >> QEPS -2/-6 120.00 >> QEPS -3/-7 N/A >> % INSTITUT 32.16 >> % INSIDERS N/A >> TREND SALE N/A >> P/E 12M 21.59 >> ROI 8.84 >> D/Equity 73.41 >> PEG F1 0.62 >>=20 Tim Fisher / tim@OreRockOn.com Ore-Rock-On and Pacific Fishery Biologists WWW Sites: http://OreRockOn.com See naked fish and rocks! - - ------------------------------ Date: Fri, 15 May 1998 11:50:06 -0700 From: Tim Fisher Subject: Re: [CANSLIM] LBOR I bot early on the split announce at 34-11/16, which IMHO is the driver for this move back to the 52wk high. If you're following strict CANSLIM then you would wait for the traditional breakout on 1.5x ADV, which hasn't happened, and may never happen. At 03:55 PM 5/14/98 , you wrote: >I have been following LBOR on intraday charts since early February.=A0 LBOR >has good CANSLIM fundamentals. It has recently gone through a correction ( >6 weeks) and has been moving up this month.=A0 I had targeted the stock as= a >buy @$35 on higher volume.=A0 It closed at 35 1/32 today on volume of= 335,200 >which is about twice normal volume. > Tim Fisher / tim@OreRockOn.com Ore-Rock-On and Pacific Fishery Biologists WWW Sites: http://OreRockOn.com See naked fish and rocks! - - ------------------------------ Date: Fri, 15 May 1998 12:59:07 -0800 From: "Patrick Wahl" Subject: Re: [CANSLIM] LBOR > Date: Thu, 14 May 1998 18:55:45 -0400 > From: Deral Rackley > I have been following LBOR on intraday charts since early February. LBOR > has good CANSLIM fundamentals. It has recently gone through a correction ( > 6 weeks) and has been moving up this month. I had targeted the stock as a > buy @$35 on higher volume. It closed at 35 1/32 today on volume of 335,200 > which is about twice normal volume. > > I plan to buy some shares tomorrow if the price and volume holds. Do any > of you stock guru's have an suggestions on what to look for in the morning > (what indicators to use and how to use them) in finding the best buy point > (or not to buy) I hope you don't mind if a non-guru replies - I've been watching Labor for a few months also, looks very good. LBOR is right near old highs formed 7 or 8 weeks ago, I would expect it to consolidate a bit more where it is at, that is, the old highs. I would peg a buy as any breakout to new highs on good volume. One worry, recent market action makes me think we might be entering a period of doldrums, where nothing makes a lot of headway. However, I don't have a great track record in market forecasting. - - ------------------------------ Date: Fri, 15 May 1998 20:25:41 -0400 From: "Deral Rackley" Subject: [CANSLIM] LBOR Patrick Wahl: You were one of the gurus that I was talking about. I bought LBOR this morning after months of weeks of watching the intraday charts and seeing it dive from a high of 35 1/2 down to below 29 at some points; then gradually move up the near side of the cup. I was anxious to buy when it hit 33; but held back trying to stick closely to CANSLIM approach of reaching a new high on good volume. It will be interesting to see how long it stays around 35-36. Another one that I have been trading in CRLBF. Strong CANSLIM fundamentals. It moved up nicely to around 20 and stayed there for about 5 weeks, moved up to between 25-26.5 and stayed there for about 3 weeks, and so far this month, has been moving between 29-29.6. The resistance is 29.6 and it looks like a concrete ceiling as it continues to hit it and bounce back. I expect it to penetrate 29.6 next week and move up a couple more dollars to around 32. Deral - - ------------------------------ Date: Fri, 15 May 1998 18:00:00 -0700 From: Bill Subject: Re: [CANSLIM] LBOR Interesting approach, Deral. Keep and eye of Money Flow - from 5/5 to 5/12, MF was negatively divergent and my call yesterday was that it was too far extended beyond a good entry point as indicated by the EMAs. Today's volume was below average! 210,800 vs an ADV of 289,954. Bill-->> At 5:25 PM -0700 5/15/98, Deral Rackley wrote: >Patrick Wahl: >You were one of the gurus that I was talking about. > >I bought LBOR this morning after months of weeks of watching the intraday >charts and seeing it dive from a high of 35 1/2 down to below 29 at some >points; then gradually move up the near side of the cup. I was anxious to >buy when it hit 33; but held back trying to stick closely to CANSLIM >approach of reaching a new high on good volume. > >It will be interesting to see how long it stays around 35-36. > >Another one that I have been trading in CRLBF. Strong CANSLIM fundamentals. > It moved up nicely to around 20 and stayed there for about 5 weeks, moved >up to between 25-26.5 and stayed there for about 3 weeks, and so far this >month, has been moving between 29-29.6. The resistance is 29.6 and it >looks like a concrete ceiling as it continues to hit it and bounce back. I >expect it to penetrate 29.6 next week and move up a couple more dollars to >around 32. > >Deral > >- - - ------------------------------ Date: Fri, 15 May 1998 18:00:00 -0700 From: Bill Subject: Re: [CANSLIM] LBOR Interesting approach, Deral. Keep and eye of Money Flow - from 5/5 to 5/12, MF was negatively divergent and my call yesterday was that it was too far extended beyond a good entry point as indicated by the EMAs. Today's volume was below average! 210,800 vs an ADV of 289,954. Bill-->> At 5:25 PM -0700 5/15/98, Deral Rackley wrote: >Patrick Wahl: >You were one of the gurus that I was talking about. > >I bought LBOR this morning after months of weeks of watching the intraday >charts and seeing it dive from a high of 35 1/2 down to below 29 at some >points; then gradually move up the near side of the cup. I was anxious to >buy when it hit 33; but held back trying to stick closely to CANSLIM >approach of reaching a new high on good volume. > >It will be interesting to see how long it stays around 35-36. > >Another one that I have been trading in CRLBF. Strong CANSLIM fundamentals. > It moved up nicely to around 20 and stayed there for about 5 weeks, moved >up to between 25-26.5 and stayed there for about 3 weeks, and so far this >month, has been moving between 29-29.6. The resistance is 29.6 and it >looks like a concrete ceiling as it continues to hit it and bounce back. I >expect it to penetrate 29.6 next week and move up a couple more dollars to >around 32. > >Deral > >- - - ------------------------------ Date: Fri, 15 May 1998 23:17:14 -0400 From: "Deral Rackley" Subject: [CANSLIM] LBOR Bill Thanks! I'll take a look at MF and the EMA's. I am sure that the use of some of these indicators will be a big help after I learn to use them. I was looking at the MACD and Stocastics this morning in making the decision to buy LBOR this morning. Deral - - ------------------------------ Date: Sat, 16 May 1998 11:42:46 -0400 From: Connie Mack Rea Subject: [CANSLIM] OBV/MF Members-- I have four stocks that meet OBV/MF/EMA criteria. When all three indicators are grouped with slashes, that means that the EMA is a first, second, or third level buy that is only one or two days old or has some other positive characteristic. E.g., the stock might have undergone a short term correction and is back in an entry position. Or the stock, though having an EMA that is more than two days old, has not advanced too much to enter. If only OBV/MF are given, the stocks meet OBV/MF criteria but are not ready for entry. The EMA determines the entry point, not the Stochastic and not the MACD--unless you want to be aggressive and believe that the EMA has an inclination such that it will give a buy in a day or two. When I say that the stock has given an EMA buy, that can mean either a first, second, or third level buy. It is for you to decide at which level you wish to enter. Often to distinguish among the three levels, you must go to a 1 or 2 day chart. It is common for a first and second level buy to be so nearly simultaneous that the distinction is irrelevant. Remember not to get too cute with these indicators; when you start slicing them on a 1 or 2 day chart, you're approaching cute and may be asking more than they can deliver. As you get more experienced, what was once cute becomes refinement, but you're still flying in a wind tunnel. I run my scan on a 3-mos chart; at this perspective I choose what stocks to look at more closely; then I go to a 1-mos chart. If you don't yet feel confident in your chart reading, stick to the 3-mos chart. To move to the 1-mos, or especially the 5-day chart, you may lose your way because there will likely be further internal trendlines to be inserted and interpreted. The more experienced you become, the more you'll know how to evaluate the vacillations in short term charts. If you find a nice smooth OBV/MF, the EMA will in a sense already have taken the vacillations into account; and a buy signal can be relied upon. The last six weeks of RNCO shows a smooth OBV/MF. The stocks are: RNCO, HEPH, PMCO, and CIX. RNCO has an EMA that is four days old, but not beyond a reasonable entry. There is evidence you might have been aggressive with this stock. The SlowSto gave a buy even before the EMA; there was little difference between the timing of the SlowSto and the FastSto. You might have inferred from Wednesday's MACD action that it would give a buy on Thursday, as it did. I'll make just a few brief points about the other stocks. I am looking at 1-mos charts. HEPH has a three week MF positive divergence [PD] from 4-17 to 5-6. Draw a trendline across the MF tops to the end of the chart. The OBV is a bit more complex, for there is a period from 4-23 to 4-31 that OBV is just tracking; however, it you'll draw a trendline from 4-23 through 5-6 and on to the chart edge, the positive divergence is apparent longer term. From 5-11 to Friday, the OBV is tracking price. Always take a look at the SlowSto and MACD to see if anything looks amiss; here all looks well. PMCO has a clean OBV/MF positive divergence from 4-17 to 5-7. Then the MF rises sharply, which is countered by an OBV dropping but still tracking price. Because the Stochastic and MACD look good, I'll ignore, but not forget about, OBV. The EMA is giving a first day buy. Draw the CIX price trendline from the 3-line EMA [remember I use the 3-line EMA to draw trendlines] of 4-23 across 5-11 and on to the edge of the chart. The trendline shows a steady declination right through Thursday. The MF trendline from 4-24 to 5-5 has only a slight PD against price; but the top of 5-5 to Friday has a distinctive PD. The MACD is improving but still a couple of days from a buy, assuming the price continues to improve. The Stochastic gave a buy Thursday. The EMA is right on the verge of giving a first level buy. From a further scan I have found SER that is OBV/MF. Another up day, and it will likely give an EMA buy. Connie Mack - - ------------------------------ End of canslim-digest V2 #239 ***************************** 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.