RE: [CANSLIM] ASIA?

From: "Dave" <drubin@i-2000.com>
Subject: RE: [CANSLIM] ASIA?
Date: Mon, 14 Jan 2002 10:11:44 -0500

Next Article (by Author): Re: [CANSLIM] Off Topic - Computer Security Jeff Salisbury
Previous Article (by Author): Re: [CANSLIM] IBD Smart Investor Dave Cameron
Next in Thread: Re: [CANSLIM] ASIA? Joe Maguire
Articles sorted by: [Date] [Author] [Subject]

In a nutshell, with ASIA I convinced myself to take a gamble with the
chart formation because there were things I liked about the stock:

 - Although the Internet/Network Security group is not in favor now, I
feel it will be one of the first tech groups to recover, and recover
strongly.

 - China continues to be a growth area for Internet and wireless
technology. Other stocks with significant interest in China, such as UTSI,
have broken out recently.

 - I think the Nasdaq will continue to do well for a few months and I'm
trying to put some cash to work.

 - Despite the sloppy handle, I still think it is a great chart. DFXI had
a sloppier handle and is still holding its breakout. ASIA's volume on 1/7
and beyond was well above average.

 - Having missed the ASIA breakout on 1/7 I had it on my watchlist for a
pullback.

In hindsight, buying breakout pullbacks, especially in this market, is not
a safe strategy. The high volume alone should have made me more cautious.
But I decided to take the risk, using a tight stop.

This group was very helpful by pointing out the weaknesses that I knew
about, and some that I didn't. Although I'm not a CANSLIM purist and will
use other strategies from time to time, I was clearly buying ASIA as a
CANSLIM breakout and this group helped me to put that decision in the
right perspective.

I'm still watching ASIA. Although technically the breakout failed I think
it is doing well to stay above 19.6, the low on breakout day. If the last
few days of market weakness is just a brief pullback in an uptrend, ASIA
still has a good chance of moving higher.

Nevertheless, in this market, I have seen yet another example that
second-chance buy opportunities usually do not work out. If you miss a
breakout, move on. If you catch a breakout and the stock shows signs of
weakness, be very cautious. This is not a bull market by any stretch.




> -----Original Message-----
> From: owner-canslim@lists.xmission.com
> [mailto:owner-canslim@lists.xmission.com]On Behalf Of Tom Worley
> Sent: Friday, January 11, 2002 11:58 PM
> To: canslim@lists.xmission.com
> Subject: Re: [CANSLIM] ASIA?
>
>
> Dave, the only way you truly lose is if you are not able to
> learn from the
> experience. I know I would be interested, and suspect many other members
> would also be interested, in you doing a retrospective piece on
> ASIA. There
> has been lots of discussion and feedback today and prior. Would be
> interested in your thoughts on the experience, what you may have learned
> from the group's comments you didn't know or see when you
> bought it, what
> you may do differently on this or another stock in the future,
> and what else
> you may have learned from it.
>
> Tom Worley
> stkguru@netside.net
> AIM: TexWorley
> ----- Original Message -----
> From: "Dave" <drubin@i-2000.com>
> To: <canslim@lists.xmission.com>
> Sent: Friday, January 11, 2002 9:41 AM
> Subject: RE: [CANSLIM] ASIA?
>
>
> > You all win, I lose. This is clearly a failed breakout now. Out with a
> > small loss, and another lesson learned :)
> >
> >
> > --
> > Dave
> >
> >
> > -
> > -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.
>


- -
- -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.