[CANSLIM] from IBD

From: "Patrick Wahl" <pjwahl@attbi.com>
Subject: [CANSLIM] from IBD
Date: Sat, 15 Dec 2001 20:04:55 -0700

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<div align="left"><font face="Arial"><span style="font-size:10pt">Someone posted this on the Motley 
Fool from an IBD Q/A on 12/12.</span></font></div>
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<p><font face="Times New Roman" size=3><span style="font-size:12pt"><b>After a severe bear market</b>, 
many stocks still <b>need time to build proper 
bases</b>. What we are seeing now are many patterns where stocks have come up 
off their bottoms but are now in handle-building phases. Currently many of 
these bases are <b>wide and loose, or wedging, or have some other defect 
indicating that they simply need more time to shape up</b>. This is actually 
<b>very normal behavior after a severe bear market</b>. Many of our models 
from prior cycles where stocks were recovering from a brutal bear show 
similar patterns, and <b>in some cases these stocks need as much as 8 months 
to build a proper base</b> before they launch on huge moves. In 1962, after a 
terrible bear period going into the Cuban Missile Crisis of October 1962, 
<b>Xerox needed 8 months of wide and loose, back and forth handle-
building in its base before launching on a seven-fold move</b>. This may be a 
very valid precedent for the action of many stocks today. The <b>only antidote is 
time, so patience and the ability to recognize when a proper base has 
been formed</b> for a stock's breakout to work are virtues in this environment. </span></font></p>
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