From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #3479 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 Wednesday, August 6 2003 Volume 02 : Number 3479 In this issue: RE: [CANSLIM] filter ---------------------------------------------------------------------- Date: Wed, 6 Aug 2003 16:46:31 -0500 From: "Katherine Malm" Subject: RE: [CANSLIM] filter This is a multi-part message in MIME format. - ------=_NextPart_000_00B7_01C35C3A.49F509C0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: 8bit Hi Gene, Well, that makes a lot more sense now, as I didn't realize that you were no longer an HGSI subscriber. I can see why you'd need to use the MSN screener if Vectorvest is the only tool you are using, because VV contains neither RS ranks, RS lines, nor raw fundamental data such as ROE, QoQ EPS and sales growth rates, YoY EPS and sales growth rates, etc. Glad to see you've finally simplified and found some focus. It saves not only money, but time. Katherine -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Gene Ricci Sent: Wednesday, August 06, 2003 3:42 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] filter Hi Katherine, Good set of questions... luckily I asked myself those same questions when VectorVest released their new software last November... here's part of a message that I sent just yesterday... highlighting the need to focus. "Here's a good case for focusing on software. Fred determined what he needed to match his investment needs.... he learned to focus.... At one time I also had DGO, IBD, WizeTrade and HGSI/QP2 along with VectorVest. Luckily I also learned to focus and decided to 'really learn' VectorVest versus jumping from one software package to another. Now I'm down to 'only' VV and the free tools at Schwab; Microsoft and WallStreetCity... sure is cheaper !!!" I spent countless hours trying to rationalize the differences between various data sources and IBD's numbers. Came to learn and understand that it just didn't matter - if they were different - as long as I was consistent and used the same database for my analysis. Found that everyone's numbers are different.... took me a while to grasp the fact that I was preparing a watchlist and not a buy list. As far as using free stuff, why not? I just wish that I had started with the free stuff and really understood what they had to offer rather than chasing the idea of finding the holy grail with software. Just sold (11.57 am) my MetaStock software because of the new features in VectorVest's ProTrader module (charting program) and the abundance of material at stockcharts.com. Gene ----- Original Message ----- From: Katherine Malm To: canslim@lists.xmission.com Sent: Wednesday, August 06, 2003 2:45 PM Subject: RE: [CANSLIM] filter Hi Gene, Please see my follow up clarification post on the comment on "the prior 52 weeks." I did not state nor intend to imply that MSN screeners weren't effective, but that they would not produce the same results as those you would get when using DGO/IBD RSRanks. It's worth noting for those that are unaware that the RS values at free screening sites such as MSN are *not* the same as those from IBD/DGO. The same is true of industry ranks, etc., as the methdologies are quite different. It does leave a particular question, however, as to why you would find it necessary to use free MSN screeners when you use several different subscription services (HGSI and Vectorvest) and also use Metastock for screening (though I realize you probably use the QP2 data from the HGSI feed). HGSI, in particular, closely mirrors the IBD/DGO RSranks and includes EPS ranks as well. They also have a particularly comprehensive set of tools for performing analysis of a stock's technicals and fundamentals. Why use so many different tools? Katherine -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Gene Ricci Sent: Wednesday, August 06, 2003 2:31 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] filter Hi Katherine, I'm pretty sure that the RS ranks are not based over the prior 52 weeks. And, I have found the MSN screener to be very effective. Gene ----- Original Message ----- From: Katherine Malm To: canslim@lists.xmission.com Sent: Wednesday, August 06, 2003 2:21 PM Subject: RE: [CANSLIM] filter Hi Jeff, I might add a note of caution on using the MSN screener. That is, their RS ranks are based on a flat change in price over the prior 52 weeks. This is significantly different than IBD's RS ranks, which are weighted so that the price action in the most recent quarter carries more weight (40%), while previous quarter's each carry 20% weight. The other difference in RS ranks is that the database over which they are determined is very different. RS ranks for the IBD are based on a universe of stocks which includes *only* common stocks on the major US (NASDAQ, NYSE, AMEX) and Canadian exchanges, plus closed end bond and equity funds. From what I remember, MSN RS ranks are calculated across all equities in the US markets, including warrants and preferreds. While the RS ranks at MSN are indeed useful, you would not be emulating the IBD rankings for purposes of filtering your stocks. Katherine -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of DMC197807 Sent: Wednesday, August 06, 2003 2:08 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] filter Jeff, If you're using a free scanner, why don't you use the one Gene posted a couple of days ago (I'll repost his post) and play with the criteria there. If I adjust relative strength to 80 or above it spits out 15 names. As for CANSLIM criteria, after M one supposes they are all important, and my descending order is no better (could be a lot worse) than anyone else's. However, you are asking a question that I answered 2 days ago, at least from my perspective. This is from my note on 8/4 to Yien: <> DMC ----- Original Message ----- From: Jeff Henderson To: canslim@lists.xmission.com Sent: Wednesday, August 06, 2003 11:40 AM Subject: RE: [CANSLIM] filter Sorry about the misunderstanding I was using the CANSLIM acronym. I ’ll explain my filter again. First off I use MSN as my filter source. Here is my filter that I use: current earnings per share (the same quarter a year ago)>=70%, annual earnings per share over the past 5 years, >= 24% compounded, shares outstanding<25,000,000, relative strength> 80%. -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com] On Behalf Of DMC197807 Sent: Wednesday, August 06, 2003 11:23 AM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] filter Jeff, I don't understand which filter/scan you are using, or what all your variables mean. If you're using a public scan or stockcharts, maybe you can put in a link here? If C = capitalization and you are using only the top 30% of stocks you've filtered out way too many stocks already. In capitalization I only filter out the very top stocks, but that's just me. I don't know what your S is. For relative strength I use the top 40% of the market, that is, stocks outperforming 60%. I'm willing to let some other names in because after this scan gives me names, I'm happy to look through charts to find appropriate patterns. DMC ----- Original Message ----- From: Jeff Henderson To: Canslim Sent: Wednesday, August 06, 2003 9:02 AM Subject: [CANSLIM] filter After reading O’Neil’s book I decided to use the filter C>=70, A>=5, S<25,000,000, relative strength>80 and last volume 1.5 average quarterly volume. To my dismay, no stocks popped up. How would you alter this filter? - ------=_NextPart_000_00B7_01C35C3A.49F509C0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Hi Gene,
 
Well, that makes a lot more sense = now, as I=20 didn't realize that you were no longer an HGSI subscriber. I can see why = you'd=20 need to use the MSN screener if Vectorvest is the only tool you are = using,=20 because VV contains neither RS ranks, RS lines,  nor raw = fundamental data=20 such as ROE, QoQ EPS and sales growth rates, YoY EPS and sales growth = rates,=20 etc.
 
Glad to see you've finally = simplified and=20 found some focus. It saves not only money, but time.
 
Katherine
-----Original Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of Gene=20 Ricci
Sent: Wednesday, August 06, 2003 3:42 PM
To: = canslim@lists.xmission.com
Subject: Re: [CANSLIM]=20 filter

Hi = Katherine,
 
Good set of = questions... luckily=20 I asked myself those same questions when VectorVest = released their=20 new software last November... here's part of a = message that I=20 sent just yesterday... highlighting the need to focus. =
 
"Here's a good case for focusing on = software. Fred=20 determined what he needed to match his investment needs.... he = learned=20 to focus.... At one time I also had DGO, IBD, WizeTrade and = HGSI/QP2=20 along with VectorVest. Luckily I also learned to focus and=20 decided to 'really learn' VectorVest versus jumping from = one=20 software package to another. Now I'm down to 'only' VV and the = free=20 tools at Schwab; Microsoft and WallStreetCity... sure is cheaper = !!!"
 
I spent = countless hours=20 trying to rationalize the differences between various data = sources and=20 IBD's numbers. Came to learn and understand that it = just didn't=20 matter - if they were different - as long as I was consistent = and used=20 the same database for my analysis.  Found that everyone's = numbers=20 are different.... took me a while to grasp the fact that I was = preparing=20 a watchlist and not a buy list.
 
As far as using free stuff, = why=20 not?  I just wish that I had started with the free stuff = and really=20 understood what they had to offer rather than chasing the idea = of=20 finding the holy grail with software.
 
Just sold (11.57 am) my = MetaStock=20 software because of the new features in VectorVest's ProTrader = module=20 (charting program) and the abundance of material at=20 stockcharts.com. =
 
Gene
 
 
 
----- Original Message -----
From:=20 Katherine=20 Malm
Sent: Wednesday, August 06, = 2003 2:45=20 PM
Subject: RE: [CANSLIM] = filter

Hi=20 Gene,
 
Please see my=20 follow up clarification post on the comment on "the prior 52=20 weeks."
 
I = did not state=20 nor intend to imply that MSN screeners weren't effective, but that = they=20 would not produce the same results as those you would get when using = DGO/IBD=20 RSRanks. It's worth noting for those that are unaware that the RS = values at=20 free screening sites such as MSN are *not* the same as those from = IBD/DGO.=20 The same is true of industry ranks, etc., as the methdologies are = quite=20 different.
 
It does leave a=20 particular question, however, as to why you would find it necessary = to use=20 free MSN screeners when you use several different subscription = services=20 (HGSI and Vectorvest) and also use Metastock for screening (though I = realize=20 you probably use the QP2 data from the HGSI feed). HGSI, in = particular,=20 closely mirrors the IBD/DGO RSranks and includes EPS ranks as well. = They=20 also have a particularly comprehensive set of tools for performing = analysis=20 of a stock's technicals and fundamentals. Why use so many different = tools?=20
 
Katherine
 
 
 -----Original=20 Message-----
From: owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of Gene=20 Ricci
Sent: Wednesday, August 06, 2003 2:31 = PM
To:=20 canslim@lists.xmission.com
Subject: Re: [CANSLIM]=20 filter

Hi Katherine, I'm pretty sure = that the RS=20 ranks are not based over the prior 52 weeks.
And, I have found the MSN = screener to be=20 very effective.
 
Gene
----- Original Message ----- =
From:=20 Katherine=20 Malm
To: canslim@lists.xmission.com= =20
Sent: Wednesday, August = 06, 2003=20 2:21 PM
Subject: RE: [CANSLIM] = filter

Hi Jeff,
 
I might add a note of = caution on=20 using the MSN screener. That is, their RS ranks are based on a = flat=20 change in price over the prior 52 weeks. This is significantly = different=20 than IBD's RS ranks, which are weighted so that the price action = in the=20 most recent quarter carries more weight (40%), while previous = quarter's=20 each carry 20% weight. The other difference in RS ranks is that = the=20 database over which they are determined is very different. RS = ranks for=20 the IBD are based on a universe of stocks which includes *only* = common=20 stocks on the major US (NASDAQ, NYSE, AMEX) and = Canadian=20 exchanges, plus closed end bond and equity funds. From what I = remember,=20 MSN RS ranks are calculated across all equities in the US = markets,=20 including warrants and preferreds. While the RS ranks at MSN are = indeed=20 useful, you would not be emulating the IBD rankings for purposes = of=20 filtering your stocks.
 
Katherine
-----Original Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of=20 DMC197807
Sent: Wednesday, August 06, 2003 2:08=20 PM
To: canslim@lists.xmission.com
Subject: = Re:=20 [CANSLIM] filter

Jeff,
 
If you're using a free = scanner, why don't=20 you use the one Gene posted a couple of days ago (I'll repost = his=20 post) and play with the criteria there.  If I adjust = relative=20 strength to 80 or above it spits out 15 names.
 
As for CANSLIM criteria, = after M one=20 supposes they are all important, and my descending order is no = better=20 (could be a lot worse) than anyone else's.  However, you = are=20 asking a question that I answered 2 days ago, at least from my = perspective.  This is from my note on 8/4 to = Yien:
 
 
<<Good, that's a bunch of information that you = can't=20 use.  Now, for some you
can.  There are only 3 = numbers=20 which matter, when all the dust is settled.
They are NOT = p/e, d/e,=20 current ratio, PEG, profit margin or=20 inventory
turnover.

THEY ARE:  Price paid for = shares,=20 Price received for shares, Time held.

Now, MILSCAN = (Canslim to=20 some of you) is a very interesting approach, and
can = possibly, with=20 strong position and money management systems, help you = to
buy low=20 and sell high in a timely timeframe.

Here's how I think = of=20 these factors, in descending order of = importance:

<<M is=20 for the market and the market trend.  We are at an = inflection=20 point
here, so it's lookout below, or perhaps lookout=20 above.

N is for new highs in the stock, breaking out = above the=20 pivot point

L is for an relative strength rating of 70 = or=20 better

A is for annual earnings growth (this is for = additional=20 comfort)

C is for current quarterly earnings (this is = for=20 additional comfort)

I is for institutional = sponsorship =20 (this is a timing issue--I think I trust
the chart over = this, for=20 some reason)

S is for supply of stock (looking for a = relatively=20 low no. of shares--here I
want to exclude the over-issued = monsters=20 like CSCO and INTC where it will
take a ton of momentum to = move the=20 billions of shares outstanding).

In closing, using TA = and FA=20 together is a good idea, but when in conflict,
trust the = TA. =20 Remember, out of 7000 stocks we are looking for 1 or 2 = names
a week=20 on which to carefully place our hopes. >>
 
DMC
----- Original Message ----- =
From:=20 Jeff=20 Henderson
To: canslim@lists.xmission.com= =20
Sent: Wednesday, = August 06,=20 2003 11:40 AM
Subject: RE: = [CANSLIM]=20 filter

Sorry about=20 the misunderstanding I was using the CANSLIM acronym.  I=92ll explain my = filter=20 again.  First = off I use=20 MSN as my filter source.  Here is my filter = that I use:=20 current earnings per share (the same quarter a year = ago)>=3D70%,=20 annual earnings per share over the past 5 years, >=3D 24% = compounded, shares outstanding<25,000,000, relative = strength>=20 80%.

 

-----Original = Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com] On Behalf Of=20 DMC197807
Sent: = Wednesday, = August 06,=20 2003=20 11:23=20 AM
To:=20 canslim@lists.xmission.com
Subject: Re: = [CANSLIM]=20 filter

 

Jeff,

 

I don't=20 understand which filter/scan you are using, or what all your = variables mean.  If you're using a public scan or = stockcharts,=20 maybe you can put in a link = here?

 

If C =3D=20 capitalization and you are using only the top 30% of stocks = you've=20 filtered out way too many stocks already.  In = capitalization I=20 only filter out the very top stocks, but that's just = me.  I=20 don't know what your S is.  For relative strength I use = the top=20 40% of the market, that is, stocks outperforming=20 60%.

 

I'm willing=20 to let some other names in because after this scan gives me = names,=20 I'm happy to look through charts to find appropriate=20 patterns.

 

DMC

 

 

-----=20 Original Message -----

From: Jeff=20 Henderson

To: Canslim=20

Sent:=20 Wednesday, = August 06,=20 2003=20 9:02=20 AM

Subject: [CANSLIM]=20 filter

 

After=20 reading O=92Neil=92s book I decided to use the filter = C>=3D70,=20 A>=3D5, S<25,000,000, relative strength>80 and = last volume=20 1.5 average quarterly volume.  To my dismay, no = stocks=20 popped up.  = How would=20 you alter this=20 = filter?

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