RE: [CANSLIM] GAIA

From: Neal Frankle <nfrankle@pacbell.net>
Subject: RE: [CANSLIM] GAIA
Date: Wed, 02 Jan 2002 16:55:14 -0800
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What is this IG you refer to?  Sorry...did I miss something?  Andreas,,,,are
you using some other system or software?

Thanks,
Neal

- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Andreas Himmelreich
Sent: Tuesday, January 01, 2002 3:37 PM
To: 'canslim@lists.xmission.com'
Subject: AW: [CANSLIM] GAIA

Tom,

I am not concerned, my SL is very tight and the IG Trend is up, so I belive
there is a good
chance that the BO will work.

I am not good in calculating pivot points, the whole entry strategy of
Oneil just does not work
for me and a 50/50 chance is not good enough for me.

What I am trying to do is to get in before the breakout. If I miss it I
still consider
to go in (as with GAIA), but that depends on how strong the industry trend
is.

What determines if a breakout works or not? I bet on the Industry Group
Trend (and what I did backtest
so far looks good enough for me, so that I try this now).

So I do not use the rule that if you miss a breakout 10% above Pivot, that
you should not go in.

The Industry Group Chart that gave a buy signal on 12/27, which
I was not reacting to, because I had some other unfortunate private things
to do.

(A buy signal of an Industry Group is for me: Price breaks out of a
consolidation area,
RS and Price of the Group is in a clear uptrend and I apply chart patterns
that are known from individual stocks
to the group, furthermore RS of the IG should be above 80, better 90)

I completly changed my strategy, I only look from top down (Market -->
Industry Group --> Stock).
A IG sets up a bull market for its members, that can even go against the
whole market. Oil and Medical
Stocks had great returns in 2000 or 2001. From where did TARO come?

When a IG gives me a signal, I simply look up the stocks that look
fundamentally and technically good (applying
Canslim Criteria).

Example FDS -->

FDS seems fundamentally to be OK, RS is a litle weak, but 70 is still OK
for me because the IG Strength is above 80.

Now the important part:

Industry Group is in a good uptrend, RS is 85, RS and price make new highs
almost every day.
Chart of FDS  has a real nice Flag and I can go in very agressivly with a
real tight stop (I try to get in tomorow for 35 and the SL will be around
34). and simply wait for a breakout.

I can use margin on my account (due to the tighter stop loss) and can so
spread my bets to 8 - 10 Stocks.
I am not sure how long I will wait, but so fare it never took longer then a
week to be stoped out or to be
in before the BO.

Since I use this strategy I have some promising results and my portfolio is
doing great during downdays of the market.
I got in SIDE (before), ROOM (well before), RSC (before), FHRX (after
breakout, because I liked the IG Trend), RYL (After).

Even better, I use it also for selling:
ECTX and UTSI got out (with a win) after I saw that the IG is not ready yet
(Its still basing).


I know this is not all sound and not yet backtestet, but something tells me
that I should try this.

See you

Andreas






> -----Ursprungliche Nachricht-----
> Von:  Tom Worley [SMTP:stkguru@netside.net]
> Gesendet am:  Tuesday, January 01, 2002 2:40 AM
> An:   canslim@lists.xmission.com
> Betreff:      Re: [CANSLIM] GAIA
>
> Andreas, you got your gap up, but I would be concerned about it closing
> almost at the low of the day on very heavy volume (what Katherine calls a
> tail).  I also would be interested in you explaining how you selected
your
> pivot or entry point, as I do not see a good one (other than the base it
> built between 15 and 16.50).
>
> Tom Worley
> stkguru@netside.net
> AIM: TexWorley
> ----- Original Message -----
> From: "Andreas Himmelreich" <judgejimmy@web.de>
> To: <canslim@lists.xmission.com>
> Sent: Monday, December 31, 2001 8:49 AM
> Subject: [CANSLIM] GAIA
>
>
> > GAIA Broke out on Friday
> >
> > CWH (Weekly Chart)
> > Industry Group is in a very good uptrend (Price and Relative Strength)
> >
> > Pros -->
> >
> > High RS of Industry Group (97), RS 88, EPS 98, Acc Diss A, SMR A,
Timeless
> > A, Shares 8.4 Million (1.8 Million Free Float), MGM Ownership 78%,
> > 12 Funds are invested, 4 more then in June, ROI 16%, Dept 31% (not to
high
> > for a retail comp)
> > Accelarating Sales. Business Model seems to me very interesting
> > (Environmental Lifestile stuff, Scalable through the web)
> >
> > Cons -->
> >
> > New CFO, Institutions are in big time (over 70% Institutions, I know
the
> > numbers do not add up,
> > I guess they have 70% the remaining 22% (100 - 78 (MGM Ownership) =
22%).
> > So if the institutions sell, price goes down
> > fast.
> >
> > I will get in today if there is a gap up today. I will wait if the open
is
> > flat.
> >
> > See you
> >
> > Andreas
> >
> >
> >
> >
> >
> >
> >
> >
> > -
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