Re: [CANSLIM] Ian and Tom - Subject Matter Pertains to Potential or Non CANSL...

From: "Tom Worley" <stkguru@netside.net>
Subject: Re: [CANSLIM] Ian and Tom - Subject Matter Pertains to Potential or Non CANSL...
Date: Fri, 3 Aug 2001 20:42:35 -0400
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True insiders can only sell stock under the provisions of Rule
144A. The most limiting feature of this is the limit on quantity
that can be sold. Quoted from the SEC, this is:

Trading Volume Formula. After the one-year holding period, the
number of shares you may sell during any three-month period can't
exceed the greater of 1% of the outstanding shares of the same
class being sold, or if the class is listed on a stock exchange
or quoted on Nasdaq, the greater of 1% of the average reported
weekly trading volume during the four weeks preceding the filing
a notice of the sale on Form 144.

For more information on the restrictions applying to holders of
Rule 144A shares, go to

http://www.sec.gov/investor/pubs/rule144.htm

A true insider (member of the management team) has many other
restrictions on the sale of stock, including even stock bought on
the open market. Most major corps not only monitor the sale of
their stock by insiders, but formally place date based limits
(usually surrounding the earnings reporting period) when they
cannot sell. An exception to this is when an insider sells shares
as part of a secondary offering. But in either case, the insider
must formally notify the SEC of the intent to sell, and that is
public information.

I much prefer strong management ownership, often well over 50%. I
want them to have even more at stake regarding the performance of
the company, and its stock price, than do I. It's not the same
thing when all they have at risk is their job, and a quantity of
stock options which cost them nothing, than if they actually own
a large block of restricted stock still valued in their mind
based on a current quoted price.

Tom Worley
stkguru@netside.net
AIM: TexWorley

- ----- Original Message -----
From: <Spencer48@aol.com>
To: <canslim@lists.xmission.com>
Sent: Friday, August 03, 2001 9:07 AM
Subject: Re: [CANSLIM] Ian and Tom - Subject Matter Pertains to
Potential or Non CANSL...


Steff:

     I'm on vacation, so I don't have access to my old mail (just
my new mail).  This is why I may not be quoting Tom accurately or
in full-but I believe I am.

     Tom wrote to me, concerning my objection to the 47%
management ownership. He said (and I believe this was his
reason)that there is unlikely to be a huge dumping of EBAY by mgt
because management is restricted by Federal law from selling more
than 3% at one time of the shares each one of mgt owns.

    However, I'd still feel hinky about mgt owning so much.
Also, my other objections still apply. I, also, might add that if
we were in a bull market, I'd probably reconsider my ROE, long
handle and large float reservations.

                         jans





On July 30th, steff@csrlink.net wrote:
Thanks Jans
- ----- Original Message -----
From: <Spencer48@aol.com>
To: <canslim@lists.xmission.com>
Sent: Saturday, July 28, 2001 11:42 PM
Subject: Re: [CANSLIM] Ian and Tom - Subject Matter Pertains to
Potential or
Non CANSL...


> Stef:
>
>      Yes, you should have asked the question.
>
>     EBAY has most of  CANSLIM's characterisitics (except for
one major
> proviso:  The market is not bullish).  It's annual and
quarterly earnings
are
> very nice (as are its quarterly sales).  Its ROE is only 6% (I
believe WON
> prefers around 15-17%), and the float is 143 million shares (in
the past
WON
> said to keep away from stocks with floats of more than 100
million shares,
> his reason being that with so many shares out the stock is less
likely to
> move quickly).
>
>      Also, management owns 47% of the shares outstanding.  Now
you'd want
> management to have a stake in its own company-but 47% seems
kind of
top-heavy
> to me (for example, if some high management official whose in
the know
> decides to sell, everyone in management could sell.  This would
dump a lot
of
> supply in the market).
>
>      As for its chart:  I don't know when you wrote your
original post on
> EBAY (you don't say), but to me it looks currently as though it
has made a
> long cup (with the lips in Sept. and June, and right now is
working on the
> handle.  To me the handle seems as if it will be commensurately
long (ie.
it
> will take some time to complete).
>
>      I say this because the market is weak right now, and I
don't believe
> EBAY will BO until the market turns.  Also, I believe I read
somewhere
that
> in WON's experience, long-forming- cups usually precede longish
handles.
> (Watch what EBAY does in relation to the 50 day moving average.
Notice
that
> it has tested it, and now it is below the 50 again.  Before it
can BO, it
> must rise above the 50 again-and preferably it should be on
high volume.)
>
> jans




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