RE: [CANSLIM] Question on CS Evaluator

From: "Katherine Malm" <kmalm@earthlink.net>
Subject: RE: [CANSLIM] Question on CS Evaluator
Date: Mon, 2 Jun 2003 23:59:47 -0500

Next Article (by Date): RE: [CANSLIM] Question on CS Evaluator Tomas
Previous Article (by Date): RE: Re: [CANSLIM] breakouts to come "Katherine Malm"
Top of Thread: [CANSLIM] Question on CS Evaluator Tomas
Next in Thread: RE: [CANSLIM] Question on CS Evaluator Tomas
Articles sorted by: [Date] [Author] [Subject]

Hi Tomas,

Remember that the CE score tells you the current fundamental and technical
condition of the stock in broad terms. A good CEF (fundamental) score tells
you that it meets most of the desired fundamental requirements of a CANSLIM
stock. A good CET (technical) score tells you that the stock is technically
sound. However, take a look at the chart for ENDP and you'll see that it
offers no technical entry point, having already broken out 3/25. In the same
vein, a stock could have an IBD composite score of 99, an RS of 99 and an
EPS of 99, thus a good "score" but that doesn't mean that it has a low-risk
entry point and is therefore buyable. Another way to say it is, you don't
buy a stock because it has a good score, you buy a stock because it is
setting up for a breakout and has a very good score relative to other stocks
that are also setting up.

The IBD's proprietary A/D ranking looks at the prior 13 weeks of
"institutional" buys and sells to derive the score. I think it's a useful
tool for getting a feel for the buy/sell action at the time the stock is
setting for a potential breakout, but it's a secondary or tertiary indicator
in my view because of its lagging nature. All else being equal, I would
choose the stock with the better A/D, but I would never use it to mine for
candidates.

Katherine

- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Tomas
Sent: Monday, June 02, 2003 10:19 PM
To: canslim canslim
Subject: [CANSLIM] Question on CS Evaluator


Katherine,

I looked up ENDP on the CE and it got very high score.
 6.61(CET)  9.19(CEF)  15.80(total).  However, when I
check the CS rating, it has a D+ for acc/dist.  I
guess your CE does not put too much weight the
institutional selling?  If I am a CS purest, I would
not consider this stock.  However, everything else
looks great, and I would hate to not add this stock to
my watch list.  Can you comment on this issue?

Thanks,
tomas


__________________________________
Do you Yahoo!?
Yahoo! Calendar - Free online calendar with sync to Outlook(TM).
http://calendar.yahoo.com

- -
- -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.

Go to Jeff Salisbury LWGate Home Page.