From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #3189 Reply-To: canslim Sender: owner-canslim-digest@lists.xmission.com Errors-To: owner-canslim-digest@lists.xmission.com Precedence: bulk Content-Transfer-Encoding: quoted-printable X-No-Archive: yes canslim-digest Thursday, February 27 2003 Volume 02 : Number 3189 In this issue: Re: [CANSLIM] CANSLIM Hunting List 02/21/03 + Notes on CANSLIM Re: [CANSLIM] OPTC ---------------------------------------------------------------------- Date: Wed, 26 Feb 2003 10:15:00 -0800 From: "NANCY POLCARO" Subject: Re: [CANSLIM] CANSLIM Hunting List 02/21/03 + Notes on CANSLIM - ------=_NextPart_001_0000_01C2DD7F.EB99B760 Content-Type: text/plain; charset="utf-8" Content-Transfer-Encoding: quoted-printable Thanks Tom- that's kind of what I was looking for- the things that don't= make it canslim-I see that now that you pointed it out. Also thanks to G= ene for spending the time to look up more facts for me. Some people stil= l are trying to learn on this board-appreciate you guys trying to help us= . zilla - ----- Original Message ----- From: Tom Worley Sent: Wednesday, February 26, 2003 3:50 AM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] CANSLIM Hunting List 02/21/03 + Notes on CANSLIM and it made my short list in WWW last weekend for its high handle on the = cup - ----- Original Message ----- =20 From: inderjit =20 To: canslim@lists.xmission.com =20 Sent: Tuesday, February 25, 2003 11:42 PM Subject: RE: [CANSLIM] CANSLIM Hunting List 02/21/03 + Notes on CANSLIM Perfect pick. Heading in the right direction. Even Tom W rated this very = high approximately 3 years ago=E2=80=A6. =20 - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmissi= on.com] On Behalf Of NANCY POLCARO Sent: Tuesday, February 25, 2003 9:44 PM To: canslim Subject: Re: [CANSLIM] CANSLIM Hunting List 02/21/03 + Notes on CANSLIM =20 wondering if anyone has thoughts on yahoo-numbers in paper look good and = possible break out?? PE of 109 . would appreciate some thoughts on this= one as far as CANSLIM-thanks nancy =20 - ----- Original Message ----- From: Katherine Malm Sent: Tuesday, February 25, 2003 10:09 AM To: canslim@lists.xmission.com Subject: RE: [CANSLIM] CANSLIM Hunting List 02/21/03 + Notes on CANSLIM =20 Hi jans & Mike, jans... I understand Mike's question and believe he wasn't asking for personal details and I have to admit I've asked similar questions of folk= s here in the group. Namely, "how has the experience of the last few years changed the way you trade?" I've also posted my own point of view on thin= gs CANSLIM in the past, so I won't go into great details, but will instead j= ust give a quick overview of what I've been doing the last few years. (1) No, I've not spent the entire time in cash. In April 2000 I started shorting the market on downtrends. That's an aggressive strategy that compliments a CANSLIM long strategy, but is decidedly not CANSLIM. Howeve= r, I kept things simple by shorting stocks in the former CANSLIM camp. That = is, stocks that were rolling over; stocks that rolled over, rose and then started to fail again; etc. It's been an excellent learning experience, b= ut I have to say it was a lot easier to short in 2000-2001 than it has been = in the last 6 months. When there are no clear signals in either direction, I= 'll stay in cash. I don't feel a need to trade all the time. My goal is to ma= ke money, not trade to make my day interesting. (2) I still use CANSLIM for long strategies and I'm about as purist as on= e can get with it. The major exception that I make is that WON suggests tha= t a stock rise at least 25-30% from a previous base and be in an underlying uptrend before entering a breakout. The longer the Bear goes on, the less likely it is that one can find potential long positions meeting that condition. For the purist of the pure CANSLIMers, that would be enough to keep one primarily in cash for most of the last 3 years. However, WON als= o suggests that once a stock's old highs are more than 1 to 1-1/2 years awa= y, the less the old high applies to current trading conditions. That means o= ne has to be alert to what I refer to as "bottoming bases." If all other conditions are met technically (RS, relationship to 200dMA, pattern, etc.= ) and the fundamentals (especially turnaround conditions) are met, then it becomes a viable candidate. These are the primary CANSLIM issues that I've focused my attention on in the last few years: (1) Rising strength is more important than "top of the heap." This means that bottoms up stock picking is far more effective than top down. While industry strength matters, it should never be the first stop in a selecti= on process, rather an indicator of the direction of the move and the potenti= al strength of an impending breakout (or breakdown). (2) Reading and re-reading WON has clearly indicated that fundamentals should be considered on the preponderance of evidence. Despite the 20 rul= es of investing in the IBD, there are many exceptions to the >=3D25% growth,= etc. and WON has always laid them on the table as if/thens. Overly restrictive fundamental searches leave out some of the very best candidates. (3) Technicals first, fundamentals second. Both matter, but technicals le= ad the eye to rising strength. The better one is at reading price/volume act= ion and technicals in general, the more they can rely on them for stock selection and entry/exit. I rely more on the technical action of the stoc= k to tell me when to enter/exit. That means that the "8%" rule is generally the last to kick in. I have a mental stop going into the trade that is se= t based on the technical action of the stock. Sometimes that is 4%, sometim= es it's 10%. It depends on the market and the stock itself. (4) Disicipline and methodical, unemotional rule-based trading is the key= to consistent profits. This approach works in all markets--trending or sideways. I'd be interested in what others have learned in the last few years and h= ope folks will chime in with their personal observations/learning points as well. Katherine - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Spencer48@aol.com Sent: Monday, February 24, 2003 5:00 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] CANSLIM Hunting List 02/21/03 + Notes on CANSLIM Mike: I love it when people speak for me: It's so interesting to hear another person's voice attached to my apparent words. I agree with the latter portion of your E-mail (being grateful to Katherine for all her work and analyses), but I don't agree with the form= er (asking Katherine to tell us, in general, how she's been trading the last couple of years). At any rate, I believe such a query intrudes on personal matters (financially speaking), and is sort of like asking someone to explain oneself (ie. putting Katherine on the defensive). My point is: I don't mind the query-it's really not directed at me, and Katherine can answer it or not as she chooses. But I do mind someone whe= n someone says that he's speaking for me. And especially so when he fashio= ns his E-mail to make it appear that I agree with all he is saying. jans In a message dated 2/24/2003 11:58:49 AM Eastern Standard Time, michael_niemotka@baxter.com writes: << Katherine, would you be willing to share with the group the "general" type of trading that you have been doing over the past couple of years, given the "M"? Have you spent the last couple years in mostly cash, or have you done som= e trading, and if so, how have you modified CANSLIM? Have you taken profits much more quickly, ie at 10-20%, rather than risk a ride for higher gains= ? Tightening the 8% loss rule to 5%? I am not expecting details, but I think I speak for the group when I say that we all value your insight into the application of CANSLIM. Thanks Mike >> - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. - ------=_NextPart_001_0000_01C2DD7F.EB99B760 Content-Type: text/html; charset="utf-8" Content-Transfer-Encoding: quoted-printable
Thanks Tom- that's kind of what I was loo= king for-  the things that don't make it canslim-I see that now that= you pointed it out. Also thanks to Gene for spending the time to look up= more facts for me.  Some people still are trying to learn on this b= oard-appreciate you guys trying to help us.  zilla
 =
----- Original Message -----
From: Tom Worl= ey
Sent: Wednesday, February= 26, 2003 3:50 AM
To: cansli= m@lists.xmission.com
Subject: Re: [CANSLIM] CANSLIM Hunting List 02/21/03 + Notes on CANSLIM
 
and it made my short l= ist in WWW last weekend for its high handle on the cup
=  
----- Original Message -----=
From: inderj= it
=
Sent: Tuesday, February 25, 2003 11:42 PM
Subj= ect: RE: [CANSLIM] CANSLIM Hunting List 02/21/03 + Notes on CANSLIM

Perfect pick. Heading in the right direction. Even Tom W rated this = very high approximately 3 years ago=E2=80=A6.

 =

-----Original Message-----
F= rom: owner= - -canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]= On Behalf Of NANCY POLCA= RO
Sent: Tuesday, Febr= uary 25, 2003 9:44 PM
To:<= /B> canslim
Subject: R= e: [CANSLIM] CANSLIM Hunting List 02/21/03 + Notes on CANSLIM

 =

wondering if anyone has thoughts on yahoo-numbers in paper l= ook good and possible break out?? PE of 109  .  would appreciat= e some thoughts on this one as far as CANSLIM-thanks  nancy

 

----- Original Message -----

<= FONT face=3DArial color=3Dblack size=3D2>From:<= /B> Katherine Malm

<= B>Sent: Tuesday, Febru= ary 25, 2003 10:09 AM

To: canslim@lists.xmission.com

<= FONT face=3DArial size=3D2>Subject: RE: [CANSLIM] = CANSLIM Hunting List 02/21/03 + Notes on CANSLIM=

 

Hi jans & Mike,

jans... I u= nderstand Mike's question and believe he wasn't asking for
personal de= tails and I have to admit I've asked similar questions of folks
here i= n the group. Namely, "how has the experience of the last few years
cha= nged the way you trade?" I've also posted my own point of view on things<= BR>CANSLIM in the past, so I won't go into great details, but will instea= d just
give a quick overview of what I've been doing the last few year= s.

(1) No, I've not spent the entire time in cash. In April 2000 I= started
shorting the market on downtrends. That's an aggressive strat= egy that
compliments a CANSLIM long strategy, but is decidedly not CAN= SLIM. However,
I kept things simple by shorting stocks in the former C= ANSLIM camp. That is,
stocks that were rolling over; stocks that rolle= d over, rose and then
started to fail again; etc. It's been an excelle= nt learning experience, but
I have to say it was a lot easier to short= in 2000-2001 than it has been in
the last 6 months. When there are no= clear signals in either direction, I'll
stay in cash. I don't feel a = need to trade all the time. My goal is to make
money, not trade to mak= e my day interesting.

(2) I still use CANSLIM for long strategies = and I'm about as purist as one
can get with it. The major exception th= at I make is that WON suggests that a
stock rise at least 25-30% from = a previous base and be in an underlying
uptrend before entering a brea= kout. The longer the Bear goes on, the less
likely it is that one can = find potential long positions meeting that
condition. For the purist o= f the pure CANSLIMers, that would be enough to
keep one primarily in c= ash for most of the last 3 years. However, WON also
suggests that once= a stock's old highs are more than 1 to 1-1/2 years away,
the less the= old high applies to current trading conditions. That means one
has to= be alert to what I refer to as "bottoming bases." If all other
condit= ions are met technically (RS, relationship to 200dMA, pattern, etc.)
a= nd the fundamentals (especially turnaround conditions) are met, then itbecomes a viable candidate.

These are the primary CANSLIM issues= that I've focused my attention on in
the last few years:
(1) Risin= g strength is more important than "top of the heap." This means
that b= ottoms up stock picking is far more effective than top down. While
ind= ustry strength matters, it should never be the first stop in a selection<= BR>process, rather an indicator of the direction of the move and the pote= ntial
strength of an impending breakout (or breakdown).
(2) Reading= and re-reading WON has clearly indicated that fundamentals
should be = considered on the preponderance of evidence. Despite the 20 rules
of i= nvesting in the IBD, there are many exceptions to the >=3D25% growth, = etc.
and WON has always laid them on the table as if/thens. Overly res= trictive
fundamental searches leave out some of the very best candidat= es.
(3) Technicals first, fundamentals second. Both matter, but techni= cals lead
the eye to rising strength. The better one is at reading pri= ce/volume action
and technicals in general, the more they can rely on = them for stock
selection and entry/exit. I rely more on the technical = action of the stock
to tell me when to enter/exit. That means that the= "8%" rule is generally
the last to kick in. I have a mental stop goin= g into the trade that is set
based on the technical action of the stoc= k. Sometimes that is 4%, sometimes
it's 10%. It depends on the market = and the stock itself.
(4) Disicipline and methodical, unemotional rule= - -based trading is the key to
consistent profits.

This approach = works in all markets--trending or sideways.

I'd be interested in w= hat others have learned in the last few years and hope
folks will chim= e in with their personal observations/learning points as
well.

= Katherine

-----Original Message-----
From: owner-canslim@lists.= xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Spe= ncer48@aol.com
Sent: Monday, February 24, 2003<= /st1:date> 5:00 PM
To: canslim@lists= .xmission.com
Subject: Re: [CANSLIM] CANSLIM Hunting List 02/21/03 + Notes on CANSLIM


Mike:
     I love it when people speak for me:  It's= so interesting to hear
another
person's voice attached to my appar= ent words.

      I agree with the latter = portion of your E-mail (being grateful to
Katherine for all her work a= nd analyses), but I don't agree with the former
(asking Katherine to t= ell us, in general, how she's been trading the last
couple of years).<= BR>
     At any rate, I believe such a query intru= des on personal matters
(financially speaking), and is sort of like as= king someone to explain
oneself
(ie. putting Katherine on the defen= sive).

     My point is:  I don't mind th= e query-it's really not directed at me,
and
Katherine can answer it= or not as she chooses.  But I do mind someone when
someone says = that he's speaking for me.  And especially so when he fashions
hi= s E-mail to make it appear that I agree with all he is saying.

jan= s


In a message dated 2/24/2003 11:58:49 AM Eastern Standard Ti= me,
michael_niemotka@baxter.com writes:

<< Katherine, wou= ld you be willing to share with the group the "general"
type
of tra= ding that you have been doing over the past couple of years, given
the= "M"?

Have you spent the last couple years in mostly cash, or have= you done some
trading, and if so, how have you modified CANSLIM? Have= you taken profits
much more quickly, ie at 10-20%, rather than risk a= ride for higher gains?
Tightening the 8% loss rule to 5%?

I am= not expecting details, but I think I speak for the group when I say
t= hat we all value your insight into the application of CANSLIM.

Tha= nks

Mike
  >>

-
-To subscribe/unsubscribe,= email "majordomo@xmission.com"
-In the email body, write "subscribe c= anslim" or
-"unsubscribe canslim".  Do not use quotes in your ema= il.



-
-To subscribe/unsubscribe, email "majordomo@xmiss= ion.com"
-In the email body, write "subscribe canslim" or
-"unsubsc= ribe canslim".  Do not use quotes in your email.

- ------=_NextPart_001_0000_01C2DD7F.EB99B760-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Thu, 27 Feb 2003 10:29:33 -0800 From: Ian Subject: Re: [CANSLIM] OPTC Hi Tom: IMO, OPTC is a very good example of 'Micro CANSLIM'. They have strong earnings growth, new products, improving margins, a good outlook, a hot sector, and a very strong chart. The catch-22 is that they have few outstanding shares, which keeps many buyers away, which holds the price down, which keeps many buyers away. The upside to this is that they can become a combination 'growth/momentum + value' stock, attracting more than just pure CANSLIM investors/traders. The nice thing is that since its breakout from $3 last summer, OPTC has exhibited all of the chart characteristics of a $15+ CANSLIM candidate. I owned OPTC from June-October last year, and bought again on Monday. Cheers, Ian - ----- Original Message ----- From: Tom Worley To: CANSLIM Sent: Monday, February 24, 2003 4:08 PM Subject: [CANSLIM] OPTC > nice volume driven b/o on earnings release, low priced, nano-cap > > in my VR Fund, wish I also owned it!! > > Tom Worley > stkguru@bellsouth.net > AIM: TexWorley > > > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ End of canslim-digest V2 #3189 ****************************** 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.