From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #319 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, July 8 1998 Volume 02 : Number 319 In this issue: [CANSLIM] Using canslim with options Re: [CANSLIM] Triple Screen Demo and Guilt -to Frank Re: [CANSLIM] Triple Screen Demo and Guilt -to Frank [CANSLIM] Stock Screening [CANSLIM] Re: [NONCANSLIM] For Frank Re: [CANSLIM] Triple Screen Demo and Guilt -to Frank Re: [CANSLIM] Stock Screening Re: [CANSLIM] Stock Screening Re: [CANSLIM] Re: [NONCANSLIM] For Frank Re: [CANSLIM] Triple Screen Demo and Guilt -to Frank [CANSLIM] AMZN Re: [CANSLIM] Triple Screen Demo and Guilt -to Frank Re: [CANSLIM] AMZN Re: [CANSLIM] AMZN [CANSLIM] THRX [CANSLIM] CASLI Killer Scan for July [CANSLIM] CANSLIM -softer Earnings for software companies [CANSLIM] Triple practice on killer scan- Walter [CANSLIM] PSFT and Triple Screen ---------------------------------------------------------------------- Date: Tue, 07 Jul 1998 14:08:35 -0400 From: Ray Mathews Subject: [CANSLIM] Using canslim with options I'm new at the canslim game, so forgive me if I am suggesting an obvious, but it appears to me that using canslim with call options would be even more lucrative than just buying the stock. I'd like some comments on this. Thanks - - ------------------------------ Date: Tue, 07 Jul 98 14:02:57 PDT From: "Walter Stock" Subject: Re: [CANSLIM] Triple Screen Demo and Guilt -to Frank > Thanks for the concern, but I would never buy solely on the issues we = have > discussed thus far. I can't speak for others, but would echo your conce= rn > if they were. > > Frank Wolynski Hi Frank, Didn't mean to single you out at all, so if it seemed that way, I apologize. I know from your many valuable posts that you are a veteran of this group. I cannot imagine that you would buy stocks without doing your homework. I was concerned instead about the some of the e-mail (most of it private) that I have gotten from members some of whom are perhaps over-enthusiastic about Triple Screen. As you say, there is no Holy Grail. The Elder material is just one more sharp arrow in the quiver. I felt (and still feel) that a public message was necessary so that those who were over-exuberant and had not written me privately could get fair warning. On a separate topic, I notice that you use AIQ. I have visited their website, and can't avoid their ads in IBD. How do you find it as an active user ? Does it live up to the claims? Thanks, Walter e-mail: wstock@globalserve.net - - ------------------------------ Date: Tue, 07 Jul 1998 17:34:08 -0400 From: "Frank V. Wolynski" Subject: Re: [CANSLIM] Triple Screen Demo and Guilt -to Frank At 02:02 PM 7/7/98 PDT, Walter Stock wrote: > >> Thanks for the concern, but I would never buy solely on the issues we have >> discussed thus far. I can't speak for others, but would echo your concern >> if they were. >> >> Frank Wolynski > >Hi Frank, > >Didn't mean to single you out at all, so if it seemed >that way, I apologize. I know from your many valuable >posts that you are a veteran of this group. I cannot >imagine that you would buy stocks without doing >your homework. > >I was concerned instead about the some of the e-mail >(most of it private) that I have gotten from members >some of whom are perhaps over-enthusiastic about >Triple Screen. As you say, there is no Holy Grail. >The Elder material is just one more sharp arrow in the >quiver. > >I felt (and still feel) that a public message was necessary >so that those who were over-exuberant and had not >written me privately could get fair warning. > >On a separate topic, I notice that you use AIQ. >I have visited their website, and can't avoid their >ads in IBD. How do you find it as an active user ? >Does it live up to the claims? > >Thanks, >Walter > >e-mail: wstock@globalserve.net > Thanks for the kind words Walter. I didn't take your words as directed specifically towards me, but viewed it more as an opportunity to toss out a comment about 'Holy Grail''itus for the benefit of some who may need it. The arrow in the quiver is a nice analogy. AIQ you ask. It is strictly technically based. There are no fundamental factors taken into consideration by the program as I have it. There are other modules available, but I just have Trading Expert. At times I find it phenomemnal. It's timing seems razor sharp. It will hit a dead center bullseye in regards to a particular stocks purchase timing. Then it all goes haywire. The next stock won't give a decent signal no matter what. I'm trying to limit it's universe of stocks to qualified canslim candidates. It may prove to be more productive than with the stocks AIQ used for testing. Then again maybe not. Their claims are based on their 'Black Box' approach to the back testing model. I have not verified them at all. It isn't why I use the program. I use a bit of this and a bit of that to draw my own 'market context' conclusions. The features I like: Technical indicators are always available. The value of the many technical indicators are always present in the display panel. When clicked they graph. If 'Ctrl' clicked, they add to what is there already. Each indicator is color coded in the display panel for the current trend of the indicator. Green, you guessed it up, Yellow - untrending, Red for down. Hot keys are ample and instantaneous. Unlimited tickers in a single directory. Markets charts for quickly seeing Advance/Decline line, Hi/Lo index, McClellan Summation index, many many others. Custom created Sectors and Groups beneath the Sectors are easily created. The stocks making up the group are then summed to the Group ticker for charting, comparing and evaluating in the reports modules. I would like to see more customizable reports available. Not just changing a few of their predefined reports, but customizing my own based on specific technical information. The demo disk is available for a nonrefundable fee. I'd recommend you give the demo a go if interested. Best Regards, Frank Wolynski - - ------------------------------ Date: Tue, 7 Jul 1998 17:36:03 -0500 From: "Amy Porter and Rich Bejtlich" Subject: [CANSLIM] Stock Screening Hi Dan, Thank you for your offer of scans. To be honest I would REALLY be interested in a list of all the variables one can screen using Telescan, and for anyone else reading, other popular screening tools. That would help me decide if Telescan or others meet my needs. I have used several Web-based free screens, but none seem to focus on enough CANSLIM variables. Here are my concerns on Telescan and others: Does the program allow comparisons of variables? For example, you could scan for all stocks with quarterly EPS growth (vs. prior year quarter) of at least 25%. But does Telescan tell if the latest quarter is accelerating over the prior, and the prior before that? Also, does Telescan provide current quarter earnings estimates, and could it check for increases over the prior quarter? This quarterly earning acceleration info is crucial in my view, but I fear I will not find it. That forces me to look at Yahoo or elsewhere and figure acceleration by hand. One reason Daily Graphs appeals to me is the quarter-by-quarter EPS and sales info at the bottom of each graph. If I don't see at least acceleration in the latest quarter, I keep looking. I also avoid any stock without A or B group rel strength or without A or B accum/distrib. Of course, I am not thrilled with DGO's arithmetic, thick-line graphs. I much prefer www.bigcharts.com and the log, weekly graphs. Any help you can give on the capabilities of your screen would be appreciated. Thank you, Richard - - ------------------------------ Date: Tue, 7 Jul 1998 15:32:37 -0700 (PDT) From: Tannis Malone Subject: [CANSLIM] Re: [NONCANSLIM] For Frank I was in the archives recently and noticed that you used to subscribe to "Stocks and Commodities". Is is worthwhile? Thank you, TM _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Tue, 7 Jul 1998 16:33:43 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] Triple Screen Demo and Guilt -to Frank <> You were right to be concerned, Walter, but you did all that you could. Those who keep looking for the "trick" learn eventually that things don't always work out the way they're supposed to in real time. Hindsight is so easy, particularly when one is looking at a chart and he sees this nice, long base far to the left and wonders why he didn't see it back then and boy he's not going to miss it the next time. The only problem is that that nice, long base may not be a base at all. One of the greatest advantages of having one's own charting program is the ability to scroll. One can pick any window in time and analyze it as though it were real time. This can be an education. If, for example, one sees what looks like a base six months ago and what also looks like an obvious buypoint, he can scroll back to that point, blow it up to the scale he'd ordinarily be using, and discover that it's not a base at all and that the "buypoint" is anything but obvious. He may find instead that if he had bought, there would have been multiple occasions when he would have been stopped out. This sort of eye-opener comes free, as opposed to the sort which involves buying the stock, then discovering that not everything is working out the way it's supposed to in the book (or article or post or whatever). It also gives one a very different attitude towards the heyuh, heyuh, step right up ladies and gentlemen sort of no-brainer "methods" one keeps running into. Those of you who don't have charting programs really ought to save the charts you print. You'll very often find that what looks like a pretty volatile pattern right now will look very different in six or nine months or a year from now, when new activity has scrunched it into an almost flat line. - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Tue, 7 Jul 1998 16:50:10 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] Stock Screening <> If I may butt in here for a moment. Before embarking on a study of various programs and sites and so forth, make sure you're comparing apples with apples. Virtually every site you'll find and virtually every data vendor you'll contact will include extraordinary items (charges and gains) in their earnings reports--MarketGuide, WSRN, Yahoo, First Call, Zack's, etc., etc. I believe Telescan does as well, but you should check. I do know that DGO and stocksite.com do not, but, as far as I know, they are the only sites that do not. This matters because an extraordinary charge taken during one quarter can screw up growth calculations for the foreseeable future. In fact, if the charge is large enough, you won't be able to get ROE, a PE, or various other measures. If the charge results in a "loss" for that quarter, the EPS for that quarter will show up as negative, even though it's "really" positive. I'll grant you that figuring earnings acceleration by hand is a giant pain, but if it matters that much to you, you certainly don't want to be using data which isn't giving you what you think it's giving you. - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Tue, 07 Jul 1998 18:22:49 -0700 From: Kom Tukovinit Subject: Re: [CANSLIM] Stock Screening Hi, I have yet to see a web site that offers screening variables that are comparable to what you can see (but not scan) on the DG online. I am not aware of many commercial scanning packages, but I recently ordered a copy of Quotes-Plus 2.0 (still waiting...) which offers many variables for scanning (except maybe the industry group strength) including (from quotes plus site) 1.1: A 0-99 relative strength indicator for each issue Open High Low Close Volume Last 12 months earnings Dividend information PE ratio Shares outstanding SIC code Dividend payable dates Annual dividend Market capitalization Additions to 2.0: 12 quarters earnings 12 quarters sales Float EPS less extraordinary items (hooray!!!, but what extraordinary items?) Book value, latest quarter Revenue per share TTM Institutional percentage held Beta 1, 3 and 5 year EPS growth rate 1, 3 and 5 year revenue growth rate Short interest current month Shares outstanding Price to sales ratio Amy Porter and Rich Bejtlich wrote: > Hi Dan, > > Thank you for your offer of scans. To be honest I would REALLY be > interested in a list of all the variables one can screen using Telescan, and > for anyone else reading, other popular screening tools. That would help me > decide if Telescan or others meet my needs. - - ------------------------------ Date: Tue, 07 Jul 1998 22:33:55 -0400 From: "Frank V. Wolynski" Subject: Re: [CANSLIM] Re: [NONCANSLIM] For Frank I don't currently have a subscription, but will soon reinstate my long expired subscription. I have been purchasing the issue from a newstand for about 6 months. For those with an interest in the strictly technical aspects of price movements, I find it very rewarding. Unusual and even exotic ideas regarding cycles, customized indicators are common place in the magazine. Well known technical chartists/analysts author many of the articles. It helps me understand other issues regarding technical analysis as well. Read some of the posts Db has authored as well regarding price/volume patterns. I find reliance on more than the simpliest tools for trend confirmation very distracting, conflicting, confusing and can lead to dependence on those indicators for mostly poor trading decisions. The addage "As a drunk uses a lamp-post, for support rather than illumination" is especially applicable to technical analysis. Don't get me wrong, I use it, but as Walter states "another arrow in the quiver". Frank Wolynski At 15:32 7/7/98 -0700, you wrote: >I was in the archives recently and noticed that you used to subscribe >to "Stocks and Commodities". Is is worthwhile? > >Thank you, >TM > >_________________________________________________________ >DO YOU YAHOO!? >Get your free @yahoo.com address at http://mail.yahoo.com > > > > >- > > - - ------------------------------ Date: Tue, 07 Jul 1998 22:46:47 -0400 From: "Frank V. Wolynski" Subject: Re: [CANSLIM] Triple Screen Demo and Guilt -to Frank At 16:33 7/7/98 -0700, Db wrote: > >One of the greatest advantages of having one's own charting program is >the ability to scroll. One can pick any window in time and analyze it >as though it were real time. This can be an education. If, for >example, one sees what looks like a base six months ago and what also >looks like an obvious buypoint, he can scroll back to that point, blow >it up to the scale he'd ordinarily be using, and discover that it's >not a base at all and that the "buypoint" is anything but obvious. He >may find instead that if he had bought, there would have been multiple >occasions when he would have been stopped out. This sort of >eye-opener comes free, as opposed to the sort which involves buying >the stock, then discovering that not everything is working out the way >it's supposed to in the book (or article or post or whatever). It >also gives one a very different attitude towards the heyuh, heyuh, >step right up ladies and gentlemen sort of no-brainer "methods" one >keeps running into. > >Those of you who don't have charting programs really ought to save the >charts you print. You'll very often find that what looks like a >pretty volatile pattern right now will look very different in six or >nine months or a year from now, when new activity has scrunched it >into an almost flat line. > >--Db > A few months ago, to prove a point to a third friend, a friend and I took 2 years of data, we didn't know what the graph was of at the time and as you suggested scrolled throught the 2 years. Each right click brought another day and another decision of buy/hold/sell. Two indicators were on the screen, the MACD and the stochastic. We were wrong 7 out of 10 calls. The stock went vertical and after having exposed all 2 years of data we found the wild swings we were trading were mostly insignificant little dips in retrospect. But as your suggest, that is easy to see on 'Monday Morning'. The lessons we learned: * You have to put the move into context. Market, group, fundamentals. * Technical analysis alone, removed from other relevant data will not provide you with sufficient information to base a trade decision on. I've taken lately to leaving a margin on the right of my printouts, enough to use a red pen and draw a few additional weeks of price data and volume in. I add the date in big print. Reviewing those has been invaluable! Frank Wolynski - - ------------------------------ Date: Tue, 07 Jul 1998 23:37:48 -0400 From: Craig Griffin Subject: [CANSLIM] AMZN FWIW ... You might say that AMZN has had a climax run - having tripled in 5 weeks ;^). Today the candlestick chart shows a "bearish engulfing pattern". If you want to buy puts or go short - this might be a good time, simply based on the technicals. The higher volume today than yesterday also works in the favor of a trend change. Also, it is now around 3 times the 200 dma, 2 times the 50 dma, and about 10% more than the 10 dma. But then, it has been soaring - so this is not that important. Stochastics just crossed to the downside. Price closed at its low of the day. People with huge profits started to panic about retaining them a bit by the end of today no doubt. It might have a pretty good bounce tomorrow or it might just steadily sink - hard to call a timeframe that brief. But it does look like a short term top has been established today. Otherwise it still looks very bullish longer term. Remember - do your own research, make your own decisions. Just my thoughts. Good luck. Best Regards, Craig (I am not currently short AMZN and I may or may not buy puts or short it tomorrow.) - - ------------------------------ Date: Tue, 7 Jul 1998 20:58:47 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] Triple Screen Demo and Guilt -to Frank <> This is an exercise I used to have AOL groups do, since that was the only place I knew of that had charts you could scroll. I had them go back two or three years, as you did, then create a window of three or six or nine months--whatever--and make a decision based on what they saw, then advance a month to see if they were right. If they weren't, why not? If they were, why? This not only accelerated my own learning curve when I did it, but it has accelerated the learning curve of everyone who's tried it. This is at least one way in which the cost of a simple, inexpensive charting program is nothing more than tuition. - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Tue, 7 Jul 1998 21:10:05 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] AMZN <> Take care here. It looks as though the bulk of the volume occurred during the morning and that much of the decline was due as much to a lack of buying interest as to an eagerness to sell. Volume picked up again at the end of the day and led to a further decline, but it wasn't nearly as heavy as at the beginning of the day. Since 122 represents a decline of 15%, it'll be interesting to see if it bounces from here. Even though it makes no sense whatsoever, this could act as support. - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Wed, 08 Jul 1998 00:17:48 -0400 From: "Frank V. Wolynski" Subject: Re: [CANSLIM] AMZN Over on the AOL canslim site, I was just reading why one member felt AMZN was undervalued where it was currently trading. He gave a bold prediction of a 4-5 bagger! Based on the kind of business they were generating. They weren't simply an 'On-Line' book reseller. They had software and CD's too! They are according to the author 'one of the next 10 biggest companies of all time!' The janitor at work hasn't given them a recommendation so there must be plenty of upside left! (just kidding folks). Sure tempted me! ---- Not! Could be a bargain though, 'The Net's the Bet!' Frank Wolynski ( It's a frenzy folks, plain and simple. ) At 23:37 7/7/98 -0400, you wrote: >FWIW ... > >You might say that AMZN has had a climax run - having tripled in 5 weeks >;^). Today the candlestick chart shows a "bearish engulfing pattern". If >you want to buy puts or go short - this might be a good time, simply based >on the technicals. The higher volume today than yesterday also works in >the favor of a trend change. > >Also, it is now around 3 times the 200 dma, 2 times the 50 dma, and about >10% more than the 10 dma. But then, it has been soaring - so this is not >that important. > >Stochastics just crossed to the downside. Price closed at its low of the day. > >People with huge profits started to panic about retaining them a bit by the >end of today no doubt. It might have a pretty good bounce tomorrow or it >might just steadily sink - hard to call a timeframe that brief. But it >does look like a short term top has been established today. > >Otherwise it still looks very bullish longer term. > >Remember - do your own research, make your own decisions. Just my >thoughts. Good luck. > >Best Regards, >Craig > >(I am not currently short AMZN and I may or may not buy puts or short it >tomorrow.) > >- > > - - ------------------------------ Date: Tue, 07 Jul 1998 23:54:17 -0700 From: Dan Cash Subject: [CANSLIM] THRX More on Theragenics The Wall Street Journal Interactive Edition -- July 6, 1998 Shares of Theragenics Plunge 36% After Analyst Questions Outlook By DOUGLAS A. BLACKMON Staff Reporter of THE WALL STREET JOURNAL Shares of Theragenics Corp. plunged 36% Thursday after an analyst raised doubts about prospects for the maker of medical radiological devices. Theragenics executives, as well as other analysts, disputed the analyst's position. Nevertheless, Theragenics shares fell in Nasdaq Stock Market trading to close at $14.8125, down $8.1875. The sell-off began after analyst Parice C. Halbert of Dain Rauscher Inc. in Minneapolis, cut earnings estimates for Theragenics and two other companies involved in brachytherapy. In that technique, radiological "seeds" are implanted in cancerous tumors, allowing patients to be given much higher doses of radiation than in traditional treatments. The treatment is most often used for prostate cancer. Shares of the other companies mentioned, Mentor Corp. and North American Scientific, also fell in Nasdaq trading Thursday. Mentor closed at $22.75, down $1.375, or 5.7%. North American fell 25% to $14.25, down $4.75. Ms. Halbert said in a report to investors that a recent scholarly journal raised questions about whether the seed technique was preferable to other treatments. She also noted that new capacity among makers of the radiological seeds could create price pressure among the competitors next year. Theragenics' chairman, chief executive officer and president, M. Christine Jacobs, said: "It is an unfortunate conclusion drawn from a single paper by a single physician," adding that other research refutes the conclusions of the journal article. "It's triggered a sell-off in a jittery, volatile market. We have no revisions. No restatements. No corporate developments of any kind." Theragenics, based in Norcross, Ga., posted net income of $9.5 million on sales of $24.6 million in 1997, the company said. Analyst Melissa Wilmoth at Salomon Smith Barney in New York said the stock's fall was accelerated by short sellers and created a "huge" buying opportunity. "A lot of what is behind the Bain Rauscher downgrade is speculation and promises from companies that are not even in this market yet," Ms. Wilmoth said. She said Theragenics continues to have strong sales and that the company has received approval to begin using brachytherapy in treating other types of cancer. Return to top of page | Format for printing Copyright =A9 1998 Dow Jones & Company, Inc. All Rights Reserved. Dow Jones Newswires -- July 2, 1998 Theragenics Off 29%; Analysts Cite Dain Rauscher Note Dow Jones Newswires By Melanie Trottman NEW YORK (Dow Jones)--Theragenics Corp. (THRX) shares fell 36% Thursday, sparked by a Dain Rauscher note that cut ratings on several companies in the brachytherapy market to neutral, analysts said. "The market's reacting to Dain Bosworth's comments," said Nutmeg Securities Ltd. analyst Kenneth Pounds. He added that the stock's sharp descent is "a screaming buy opportunity." Brachytherapy is a seeding treatment for prostate cancer. Patrice Halbert, the Dain Rauscher analyst who issued the note on the sector, was not immediately available for comment. But according to the note, she lowered her rating on Theragenics to neutral from buy and reduced fiscal 1999 earnings estimates to 67 cents from 77 cents. She also cut her rating on North American Scientific Inc. (NASI) to neutral from strong buy, and on Mentor Corp. (MNTR) to neutral from buy. The downgrades reflect "the likelihood for the U.S. market to see price pressure sooner due to growing potential for excess capacity," the report said. Sterne Agee & Leach analyst Frank Brown said the note heightened competitive concerns that have been circulating in the industry for weeks. Theragenics makes therapeutic radiological devices, mainly to treat cancer. The Norcross, Ga., company's products include TheraSeed, an implant whose key active ingredient is Palladium 103. When implanted, the device releases doses of radiation to destroy tumors from the inside out. According to Brown, other companies gearing up to enter this market. "This panic is on a supposition that there will be a glut of radioactive material" on the market, said the company's President and Chief Executive Christine Jacobs. The fundamentals of the company, she said, have not changed. The Dain Rauscher report said its enthusiasm on the market "has cooled based on several new data points." One of those points is "newly confirmed information that Amersham, the competitor to Theragenics and North American, has escalated its capacity expansion sooner than we had previously anticipated," the note said. "The window of upside opportunity for Theragenics, North American Scientific and Mentor may narrow." At least one analyst disagrees. Salomon Smith Barney's Melissa Wilmoth reiterated her buy recommendation on Theragenics Thursday. And Pounds said the stock drop is an overreaction. His 1999 earnings estimate is 80 cents a share. Brown's is 75 cents. Shares of Theragenics are trading at 14 5/8, down 8 1/4, or 36%, on volume of 5.1 million shares. Average daily volume is 462,200 shares. North American Scientific shares are also trading lower, at 15, down 4, or 21%. Volume is 238,500 shares, compared with the daily average of 69,100. Shares of Mentor Corp. (MNTR) are trading off 2 1/2, or 10.4%, at 21 11/16. Volume is 1.8 million shares, compared with a daily average of 203,000. The company plans to release second quarter earnings July 21, and Jacobs said Theragenics is "comfortable" with analysts estimates of 10 cents a share. -Melanie Trottman; 201-938-5260 Copyright =A9 1998 Dow Jones & Company, Inc. All Rights Reserved. - - ------------------------------ Date: Wed, 8 Jul 1998 07:20:26 -0700 (PDT) From: Tim Fisher Subject: [CANSLIM] CASLI Killer Scan for July Just a quickie, my July CASLI Killer Scan results, didn't get a chance to rank them yet. COMPANY TICKER EXCHANGE SHARES OUT 24WK PCHG% % INSTITUT % INSIDERS 20D AVEVOL TREND EPGR QEPS 0/-4 QEPS -1/-5 QEPS -2/-6 QEPS -3/-7 ROE D/Equity BANKS-WEST Imperial Bcp IMP NYSE 39 -1.51 42.81 15.64 111260 112.59 60.00 64.52 63.68 N/A 17.53 0.93 BLDG PRD-RT/WHL Fastenal FAST NSDQ 38 24.11 49.78 22.58 299430 35.80 43.48 28.57 30.43 N/A 27.63 0.00 COMP-SERVICES Ciber Inc CBR NYSE 46 36.21 59.99 39.26 200725 62.01 66.67 94.12 64.71 N/A 24.03 0.00 Comp Task TSK NYSE 21 -9.98 59.80 27.07 91180 56.47 46.34 61.11 52.94 N/A 28.72 0.00 COMP-SOFTWARE Harbinger Corp HRBC NSDQ 42 7.14 41.88 37.65 415285 142.65 66.67 91.78 400.00 N/A 18.60 0.00 Symix Systems SYMX NSDQ 6 35.00 20.13 38.38 26935 81.28 125.00 33.33 33.33 N/A 18.03 0.00 Thq Inc THQI NSDQ 7 58.47 36.69 16.98 186686 191.48 616.67 342.11 53.85 N/A 53.95 0.00 Timberline Soft TMBS NSDQ 7 62.26 16.93 17.07 98947 58.53 233.33 133.33 250.00 N/A 43.42 0.00 ELEC COMP-SEMIC Mrv Comms Inc MRVC NSDQ 26 -11.70 38.03 25.21 480555 91.13 55.56 56.25 91.67 N/A 17.01 0.41 MED-DRUGS Theragenics Cp THRX NSDQ 29 -34.71 48.48 25.61 512857 99.75 144.44 175.00 185.71 N/A 17.91 0.00 RETAIL/WHSL CMP Cdw Comptr Ctrs CDWC NSDQ 22 -1.12 45.72 43.34 102035 53.63 30.77 30.61 36.36 N/A 28.18 0.00 COMP-INTEGT SYS Jack Henry Assc JKHY NSDQ 19 24.02 35.48 27.58 41995 30.81 28.57 30.00 15.00 N/A 32.66 0.00 Tim Fisher, 1995 President, Pacific Fishery Biologists Ore-ROCK-On Rockhounding Web Site PFB Information mailto:tim@OreRockOn.com WWW http://OreRockOn.com - - ------------------------------ Date: Wed, 8 Jul 1998 18:02:26 +1200 From: "Dean Edwards" Subject: [CANSLIM] CANSLIM -softer Earnings for software companies I was reading this article a couple weeks ago about a new US accounting = law that came in to existence last quater. This Austalian analyst = pointed out that this new accounting law will hurt the revenues and EPS = of US software companies. He was pointing out the pitfalls for = Australian Companies trying to list on the NASDAQ as a new IPO. And he = also said US software comapanies were currently trying to fight this law = because it directly affects them. It has to do with how the revenues are = recorded. A lot of software comapanies book the revenues straight away. = However this new accounting law states that they have to recognize the = revenues over a period of 2 years. I am not an accountant, just telling = you what I read. If my memory serves me correct it wasto do with US accounting law 97-2. = Below is SEC statement from PSFT. I don't believe the market has = discounted this news yet, on the new accounting law. As another software = comapany HRBC release a statement today and they plunged. Harbinger sees Q2 EPS $0.10, revs $35-36mln ATLANTA,, July 7 (Reuters) - Harbinger Corp. said Tuesday it expects = second quarter earnings will be $.10 per share, about 15 percent less = than First Call's consensus analyst expectations, in part due to failure = to ship about $1 million in software before June 30.=20 Harbinger said the software was shipped July 1, and that accounting = guidelines prohibit a company from recognizing revenue until software = has been sent. The company's quarter ended June 30. What do other people think? I know comapanies like Microsoft, streamline = their earnings and revenues so they will not be affected. But there will = a lot of high fliers (software comapnies) that will have to change their = accounting standards. Peoplesoft SEC statement POSSIBLE ADVERSE IMPACT OF RECENT ACCOUNTING PRONOUNCEMENT = Statement of=20 Position ("SOP") 97-2, "Software Revenue Recognition" was issued in October 1997 and addresses software revenue recognition = matters. The SOP supersedes SOP 91-1 and is effective for transactions entered into = forfiscal=20 years beginning after December 15, 1997. Based upon its reading and interpretation of SOP 97-2 the Company believes its current revenue = recognition policies and practices are materially consistent with the SOP. However, implementation guidelines for this standard have not yet been issued and = a wide range of potential interpretations are being discussed by the accounting profession. Once available, such implementation guidance could lead to unanticipated changes in the Company's current revenue accounting = practices, and such changes could materially adversely affect the Company's future = revenue and earnings. Such implementation guidance may necessitate substantial = changes=20 in theCompany's business practices in order for the Company to continue = to=20 recognize asubstantial portion of its license fee revenue upon delivery = of its=20 softwareproducts. Such changes may reduce = =20 15demand, extend sales cycles, increase administrative costs and = otherwise adversely affect operations. In addition, the Company may be put at = acompetitive=20 disadvantage relative to foreign based competitors not subject toU.S. = generally=20 accepted accounting principles. - - ------------------------------ Date: Wed, 8 Jul 1998 08:55:01 -0700 (PDT) From: Tannis Malone Subject: [CANSLIM] Triple practice on killer scan- Walter Hi Walter- I'm still paper trading CANSLIM. How is this for JKHY interpretation of triple screen only, not the stock? Using big charts, doing a little estimating. chart: coming out of a cup like pattern Screen 1: series of vertical bars getting shorter nearing zero- buy Screen 2: At oversold (30), high price is 35 3/4 Screen 3: Put in order at 36. (I guess I'd have to check after close tonight and put the theoretical order in tomorrow) TM _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Wed, 8 Jul 1998 12:40:31 -0700 (PDT) From: dbphoenix Subject: [CANSLIM] PSFT and Triple Screen PSFT is a good example of how a triple screen of the type we've been talking about can be combined with CS in order to give one an edge in making the decision to invest or stay on the sidelines. PSFT showed up on last night's scan. I'd been watching it for a couple of months anyway, but was surprised to see it being hit by the MACDw screen. When I checked the SSd, I found that a buy signal had been given on Monday. Since PSFT had been in the process of forming a handle and the handle was within 15% of the rim of the cup (closing basis), I expected to see something happen. The shorter-term EMAs and SMAs I watch had turned up over a week ago, but yesterday the 17d SMA crossed over the 50d SMA, a more conservative confirmation of an upward move. Today, as we know, the stock broke through the upper range of its handle on one-and-a-half times normal volume. The point of this is not to tout PSFT nor to demonstrate the supposed superiority of some method or other. It is only to show that a triple screen such as those we've been discussing can be used in conjunction with accepted CS procedures and chart patterns to give the investor a winning edge. - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ End of canslim-digest V2 #319 ***************************** 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.