Re: [CANSLIM] MFA


From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] MFA
Date: Mon, 31 Dec 2001 12:59:58 -0600

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Thanks, jans.

Yes...that's the one. I scanned it and tried to post to the list, but it =
was too big. Can't seem to get access to the ftp site to upload it, so =
thanks for doing this!

Katherine
  ----- Original Message -----=20
  From: Spencer48@aol.com=20
  To: canslim@lists.xmission.com=20
  Sent: Monday, December 31, 2001 12:54 PM
  Subject: Re: [CANSLIM] MFA


  Katherine,=20

       I think this is the one you're refering to.  I'm also adding =
another one=20
  on the u/d ratio that was helpful to me:

  The up/down ratio in 12/31/01 Smart Investor:=20
  It's easy enough to see why there is more buying than selling as a =
stock=20
  shoots higher. But even before a stock begins a steep climb, the =
buying=20
  usually outweighs the selling.  Many times, companies go into =
consolidation=20
  periods, in which their stock prices typically decline anywhere from =
5% to=20
  50%. During these basing phases, strong stocks may fight their way =
back and=20
  try to reach new highs. If demand for the stock is plentiful, you'll =
see it=20
  reflected in an up/down ratio of 1.0 or higher. Some of the past =
decade's=20
  best stocks, such as Jabil Circuit, Anchor Gaming and Gadzooks, had =
up/down=20
  ratios of 1.0 or better in the weeks leading up to their big moves.  =
Take=20
  Caci International Inc. (CACI ) The computer services firm bolted out =
of its=20
  base Sept. 17, surging 9 points on strong volume. The up/down ratio =
that week=20
  was 1.9. Even in the several weeks prior, as the stock remained in its =
base,=20
  the up/down ratio was 1.0 or higher [So look for up/down >1.0 as the =
C&H=20
  bases].  The ratio - also a key element of the Stock Checkup's =
Attractiveness=20
  Rating - is a cousin of IBD's Accumulation/Distribution Rating. The =
Acc/Dist=20
  Rating, however, is less prone to volume distortions, and you should =
use it=20
  as your primary indicator. Days in which the volume is abnormally huge =
can=20
  distort the up/down ratio. How do you tell if the balance is on the =
side of=20
  buying? The up/down volume ratio is a good indicator. It is found in =
the IBD=20
  Stock Checkup, a feature at Investor's Business Daily's Web site,=20
  investors.com.=20

  The Smart Investor, Monday, November 19, 2001, Using IBD's =
Attractiveness=20
  Rating--  The Attractiveness Rating - found exclusively in the IBD =
Stock=20
  Checkup at investors.com - is the most timely rating an investor can =
use to=20
  gauge a stock=E2=80=99s action.  This rating [it] analyzes a =
stock=E2=80=99s price and=20
  volume, taking into account its recent trends as well as its weekly up =
vs.=20
  down volume. In short, it looks for significant buying or selling =
activity=20
  right here, right now.  In addition, the rating compares a =
stock=E2=80=99s price=20
  performance with its industry group, and compares the group=E2=80=99s =
overall=20
  performance with the Standard & Poor=E2=80=99s 500 index. The rating =
also analyzes=20
  the stock=E2=80=99s tendency to appreciate or depreciate vs. the =
general market -=20
  what=E2=80=99s called its alpha [So, in sum, Attractiveness Rating =
takes into acct:=20
  u/d volume; price performance w/ its industry group; overall =
performance w/=20
  the S&P; alpha (its one day fluctuation compared to a flat S&P)].  =
Once you=20
  mix all those factors, you get a rating that is the most up-to-date=20
  reflection of the stock=E2=80=99s health. The rating - expressed on a =
scale of 1 to=20
  99, with 99 representing the most attractive stocks - moves depending =
on how=20
  positive or negative the stock is acting. For example, if a =
stock=E2=80=99s price=20
  base starts falling apart on heavy volume, it will be reflected in the =

  rating. (Not all parts of the rating are weighted equally.)  The=20
  Attractiveness Rating can uncover a change in a stock=E2=80=99s pulse =
more quickly=20
  than, for example, IBD=E2=80=99s Relative Strength Price Rating. The =
RS Rating looks=20
  at the price activity over the past 12 months. IBD SmartSelect =
Corporate=20
  Ratings, in fact, cover longer time frames to bear out quality =
companies with=20
  proven track records. So, while the SmartSelect Ratings give a =
comprehensive=20
  view of a stock, the Attractiveness Rating focuses on the most recent=20
  activity.

  jans



  In a message dated 12/31/2001 10:03:50 AM Eastern Standard Time,=20
  kmalm@earthlink.net writes:

  << There was also a recent investor's corner on the subject. I'll see =
if I=20
  can track down an online version.
  =20
   Katherine >>

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  -To subscribe/unsubscribe, email "majordomo@xmission.com"
  -In the email body, write "subscribe canslim" or
  -"unsubscribe canslim".  Do not use quotes in your email.

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<DIV>Thanks, jans.</DIV>
<DIV>&nbsp;</DIV>
<DIV>Yes...that's the one. I scanned it and tried to post to the list, =
but it=20
was too big. Can't seem to get access to the ftp site to upload it, so =
thanks=20
for doing this!</DIV>
<DIV>&nbsp;</DIV>
<DIV>Katherine</DIV>
<BLOCKQUOTE=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
  <DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
  <DIV=20
  style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
  <A title=3DSpencer48@aol.com=20
  href=3D"mailto:Spencer48@aol.com">Spencer48@aol.com</A> </DIV>
  <DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
title=3Dcanslim@lists.xmission.com=20
  =
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
 </DIV>
  <DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Monday, December 31, 2001 =
12:54=20
  PM</DIV>
  <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] =
MFA</DIV>
  <DIV><BR></DIV>Katherine, <BR><BR>&nbsp;&nbsp;&nbsp;&nbsp; I think =
this is the=20
  one you're refering to.&nbsp; I'm also adding another one <BR>on the =
u/d ratio=20
  that was helpful to me:<BR><BR>The up/down ratio in 12/31/01 Smart =
Investor:=20
  <BR>It's easy enough to see why there is more buying than selling as a =
stock=20
  <BR>shoots higher. But even before a stock begins a steep climb, the =
buying=20
  <BR>usually outweighs the selling.&nbsp; Many times, companies go into =

  consolidation <BR>periods, in which their stock prices typically =
decline=20
  anywhere from 5% to <BR>50%. During these basing phases, strong stocks =
may=20
  fight their way back and <BR>try to reach new highs. If demand for the =
stock=20
  is plentiful, you'll see it <BR>reflected in an up/down ratio of 1.0 =
or=20
  higher. Some of the past decade's <BR>best stocks, such as Jabil =
Circuit,=20
  Anchor Gaming and Gadzooks, had up/down <BR>ratios of 1.0 or better in =
the=20
  weeks leading up to their big moves.&nbsp; Take <BR>Caci International =
Inc.=20
  (CACI ) The computer services firm bolted out of its <BR>base Sept. =
17,=20
  surging 9 points on strong volume. The up/down ratio that week <BR>was =
1.9.=20
  Even in the several weeks prior, as the stock remained in its base, =
<BR>the=20
  up/down ratio was 1.0 or higher [So look for up/down &gt;1.0 as the =
C&amp;H=20
  <BR>bases].&nbsp; The ratio - also a key element of the Stock =
Checkup's=20
  Attractiveness <BR>Rating - is a cousin of IBD's =
Accumulation/Distribution=20
  Rating. The Acc/Dist <BR>Rating, however, is less prone to volume =
distortions,=20
  and you should use it <BR>as your primary indicator. Days in which the =
volume=20
  is abnormally huge can <BR>distort the up/down ratio. How do you tell =
if the=20
  balance is on the side of <BR>buying? The up/down volume ratio is a =
good=20
  indicator. It is found in the IBD <BR>Stock Checkup, a feature at =
Investor's=20
  Business Daily's Web site, <BR>investors.com. <BR><BR>The Smart =
Investor,=20
  Monday, November 19, 2001, Using IBD's Attractiveness =
<BR>Rating--&nbsp; The=20
  Attractiveness Rating - found exclusively in the IBD Stock <BR>Checkup =
at=20
  investors.com - is the most timely rating an investor can use to =
<BR>gauge a=20
  stock=E2=80=99s action.&nbsp; This rating [it] analyzes a =
stock=E2=80=99s price and=20
  <BR>volume, taking into account its recent trends as well as its =
weekly up vs.=20
  <BR>down volume. In short, it looks for significant buying or selling =
activity=20
  <BR>right here, right now.&nbsp; In addition, the rating compares a =
stock=E2=80=99s=20
  price <BR>performance with its industry group, and compares the =
group=E2=80=99s=20
  overall <BR>performance with the Standard &amp; Poor=E2=80=99s 500 =
index. The rating=20
  also analyzes <BR>the stock=E2=80=99s tendency to appreciate or =
depreciate vs. the=20
  general market - <BR>what=E2=80=99s called its alpha [So, in sum, =
Attractiveness=20
  Rating takes into acct: <BR>u/d volume; price performance w/ its =
industry=20
  group; overall performance w/ <BR>the S&amp;P; alpha (its one day =
fluctuation=20
  compared to a flat S&amp;P)].&nbsp; Once you <BR>mix all those =
factors, you=20
  get a rating that is the most up-to-date <BR>reflection of the =
stock=E2=80=99s health.=20
  The rating - expressed on a scale of 1 to <BR>99, with 99 representing =
the=20
  most attractive stocks - moves depending on how <BR>positive or =
negative the=20
  stock is acting. For example, if a stock=E2=80=99s price <BR>base =
starts falling apart=20
  on heavy volume, it will be reflected in the <BR>rating. (Not all =
parts of the=20
  rating are weighted equally.)&nbsp; The <BR>Attractiveness Rating can =
uncover=20
  a change in a stock=E2=80=99s pulse more quickly <BR>than, for =
example, IBD=E2=80=99s Relative=20
  Strength Price Rating. The RS Rating looks <BR>at the price activity =
over the=20
  past 12 months. IBD SmartSelect Corporate <BR>Ratings, in fact, cover =
longer=20
  time frames to bear out quality companies with <BR>proven track =
records. So,=20
  while the SmartSelect Ratings give a comprehensive <BR>view of a =
stock, the=20
  Attractiveness Rating focuses on the most recent=20
  <BR>activity.<BR><BR>jans<BR><BR><BR><BR>In a message dated 12/31/2001 =

  10:03:50 AM Eastern Standard Time, <BR><A=20
  href=3D"mailto:kmalm@earthlink.net">kmalm@earthlink.net</A>=20
  writes:<BR><BR>&lt;&lt; There was also a recent investor's corner on =
the=20
  subject. I'll see if I <BR>can track down an online=20
  version.<BR>&nbsp;<BR>&nbsp;Katherine &gt;&gt;<BR><BR>-<BR>-To=20
  subscribe/unsubscribe, email "<A=20
  =
href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>-In=
 the=20
  email body, write "subscribe canslim" or<BR>-"unsubscribe =
canslim".&nbsp; Do=20
  not use quotes in your email.</BLOCKQUOTE></BODY></HTML>

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