Re: [CANSLIM] DYII Revisited--post analysis

From: "Boyd" <theboyd@tisd.net>
Subject: Re: [CANSLIM] DYII Revisited--post analysis
Date: Thu, 17 Jan 2002 18:23:04 GMT

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Crimony!  Katherine you really should be teaching a course on investing at
UT or ACC (Austin Community College).  Maybe you'll be the next group
member to get a call from IBD??  That was a very good summary on the DYII
action.  Thanks.

Norm


Katherine Malm writes:

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

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