RE: [CANSLIM] Devil's Advocate: Why bother with fundamentals?

From: John Kruger <jokguger@yahoo.com>
Subject: RE: [CANSLIM] Devil's Advocate: Why bother with fundamentals?
Date: Tue, 18 Dec 2001 21:01:16 -0800 (PST)

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If you want to play Devil's Advocate, let me suggest attacking "Fundamental Analysis" more directly.  The "Fundamentals" that are "Analyzed" are made up of two kinds of data, historical data from the past and guesses about the future.  If you believe in historical data, I give you Enron.  If you believe in guesses about the future, I give you the entire dot-com industry.  Needless to say, doing advanced mathematics on bad numbers will not give one improved results.John-----Original Message-----From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Katherine MalmSent: Sunday, December 16, 2001 5:27 AMTo: canslim@lists.xmission.comSubject: [CANSLIM] Devil's Advocate: Why bother with fundamentals?Proposed:If a typical CANSLIM/Intermediate term move in a stock lasts only a few weeks, and in good markets, only a few months, why bother selecting portfolio candidates using any sort of fundamental analysis? Returns in this time period are strictly based on price movement and can be maximized based on technical indicators and price/volume action alone.Thoughts pro/con?Katherine


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If you want to play Devil's Advocate, let me suggest attacking "Fundamental Analysis" more directly.  

The "Fundamentals" that are "Analyzed" are made up of two kinds of data, historical data from the past and guesses about the future.  If you believe in historical data, I give you Enron.  If you believe in guesses about the future, I give you the entire dot-com industry.  Needless to say, doing advanced mathematics on bad numbers will not give one improved results.

John

- -----Original Message-----
From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Katherine Malm
Sent: Sunday, December 16, 2001 5:27 AM
To: canslim@lists.xmission.com
Subject: [CANSLIM] Devil's Advocate: Why bother with fundamentals?


Proposed:

If a typical CANSLIM/Intermediate term move in a stock lasts only a few weeks, and in good markets, only a few months, why bother selecting portfolio candidates using any sort of fundamental analysis? Returns in this time period are strictly based on price movement and can be maximized based on technical indicators and price/volume action alone.

Thoughts pro/con?

Katherine
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