[CANSLIM] DYII Revisited--post analysis

From: "Katherine Malm" <kmalm@earthlink.net>
Subject: [CANSLIM] DYII Revisited--post analysis
Date: Thu, 17 Jan 2002 11:30:01 -0600
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DYII is a stock that came up for discussion on the list in early =
October. This is a stock that crossed my radar, but at the time I passed =
due to the poor chart action around 10/5. I have been watching it since =
and was interested in what the chart might have said prior to the =
failure yesterday. Here is what I saw that would have been sell signals =
for me:

(1) 10/5/01--tail...ominous end to attempted breakout of an 11-1/2 week =
base. This is one of the reasons (along with due diligence) that I =
crossed it off the list.
(2) 10/8/01--gap down just before earnings-Co. press release says "short =
sellers at fault" That's the goofiest reasoning I've ever heard and was =
a red flag that these guys don't know what they're doing. I never like a =
gap down just before an earnings announcement. It's a big red flag. If =
it happens, I'll generally wait for a bounce in the next day or 2 that =
begins to reverse and will sell into strength.
(3) 11/26/01--Breakout from sloppy 7 wk base. So, let's say someone =
bought on this breakout...let's see what comes next...
(4) 11/28/01--Reversal that closes below low of previous day just after =
B/O---I would take at least 50% off the table on this sell rule.
(5) 12/10/01-12/12/01--3 days closing just at "pivot"--red flag....stock =
has retraced to pivot, but not a sell rule in and of itself.
(6) 1/3/02--promising action on high volume--ok, this action is =
acceptable, might be ok afterall...but still the red flags are =
there...more red flags and this one should be out of the portfolio.
(7) 1/8/02-1/9/02--high volume with no progress for 2 days in a =
row---last red flag in my book, if I'd held the last 50%, it would be =
gone here.
(8) 1/10/02--high volume tail that closes below low of previous day--if =
I'd lost focus and missed the last sell, this would be the next sell =
signal.
(9) 1/14/02--gaps down on earnings day (earnings announced after market =
close)--sell rule hit---if I'd lost focus and missed everything =
else...this would be it.
(10) 1/15/02--bounces, but leaves a tail on close---last chance for the =
exits, a little bounce while the bargain hunters move in. Sell.
(11) 1/16/02--resolution. 2:46 pm, just before market close, Herb =
Greenberg article at theStreet.com points out possible accounting =
shenanigans and goofy CEO/CFO nonresponse to income statement inquiries. =
If I'd missed everything else and this plunged, an open protective stop =
set for "catastrophic loss" would have caught this on the way down.
(12) 1/16/02--Company issues response to Greenberg article after market =
close. I still can't figure out why a CFO couldn't have answered these =
questions when they were asked. Maybe he learned accounting somewhere =
other than the US and is still learning.=20

A chart with comments is posted at:
http://WallStreet-LLC.com/pub/DYII-PostAnal_011602.jpg

Katherine



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<DIV>DYII is a stock that came up for discussion on the list in early =
October.=20
This is a stock that crossed my radar, but at the time I passed due to =
the poor=20
chart action around 10/5. I have been watching it since and was =
interested in=20
what the chart might have said prior to the failure yesterday. Here is =
what I=20
saw that would have been sell signals for me:</DIV>
<DIV>&nbsp;</DIV>
<DIV>(1) 10/5/01--tail...ominous end to attempted breakout of an 11-1/2 =
week=20
base. This is one of the reasons (along with due diligence) that I =
crossed it=20
off the list.<BR>(2) 10/8/01--gap down just before earnings-Co. press =
release=20
says "short sellers at fault" That's the goofiest reasoning I've ever =
heard and=20
was a red flag that these guys don't know what they're doing. I never =
like a gap=20
down just before an earnings announcement. It's a big red flag. If it =
happens,=20
I'll generally wait for a&nbsp;bounce in the next day or 2 that begins =
to=20
reverse and will sell into strength.<BR>(3) 11/26/01--Breakout from =
sloppy 7 wk=20
base. So, let's say someone bought on this breakout...let's see what =
comes=20
next...<BR>(4) 11/28/01--Reversal that closes below low of previous day =
just=20
after B/O---I would take at least 50% off the table on this sell =
rule.<BR>(5)=20
12/10/01-12/12/01--3 days closing just at "pivot"--red flag....stock has =

retraced to pivot, but not a sell rule in and of itself.<BR>(6)=20
1/3/02--promising action on high volume--ok, this action is acceptable, =
might be=20
ok afterall...but still the red flags are there...more red flags and =
this one=20
should be out of the portfolio.<BR>(7) 1/8/02-1/9/02--high volume with =
no=20
progress for 2 days in a row---last red flag in my book, if I'd held the =
last=20
50%, it would be gone here.<BR>(8) 1/10/02--high volume tail that closes =
below=20
low of previous day--if I'd lost focus and missed the last sell, this =
would be=20
the next sell signal.<BR>(9) 1/14/02--gaps down on earnings day =
(earnings=20
announced after market close)--sell rule hit---if I'd lost focus and =
missed=20
everything else...this would be it.<BR>(10) 1/15/02--bounces, but leaves =
a tail=20
on close---last chance for the exits, a little bounce while the bargain =
hunters=20
move in. Sell.<BR>(11) 1/16/02--resolution. 2:46 pm, just before market =
close,=20
Herb Greenberg article at theStreet.com points out possible accounting=20
shenanigans and goofy CEO/CFO nonresponse to income statement inquiries. =
If I'd=20
missed everything else and this plunged, an open protective stop set for =

"catastrophic loss" would have caught this on the way down.<BR>(12)=20
1/16/02--Company issues response to Greenberg article after market =
close. I=20
still can't figure out why a CFO couldn't have answered these questions =
when=20
they were asked. Maybe he learned accounting somewhere other than the US =
and is=20
still learning. </DIV>
<DIV>&nbsp;</DIV>
<DIV>A chart with comments is posted at:</DIV>
<DIV><A=20
href=3D"http://WallStreet-LLC.com/pub/DYII-PostAnal_011602.jpg">http://Wa=
llStreet-LLC.com/pub/DYII-PostAnal_011602.jpg</A></DIV>
<DIV>&nbsp;</DIV>
<DIV>Katherine</DIV>
<DIV>&nbsp;</DIV>
<DIV>&nbsp;</DIV></BODY></HTML>

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