Re: [CANSLIM] CHBS

From: Warren Keuffel <wkeuffel@xmission.com>
Subject: Re: [CANSLIM] CHBS
Date: Mon, 28 Jan 2002 19:21:15 -0700

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Thanks.  Someone (who wishes to remain anonymous) pointed out that CHBS 
has 93% institutional ownership (99% of the float!) and therefore 
concludes that there is little further room for the big money to move 
in.  Sounds logical to me.  Anyway I also discovered that a small-cap 
mutual fund that I invest in is the 2nd largest institutional holder of 
CHBS, so I am already getting a piece of that action.

Warren

Spencer48@aol.com wrote:

>Warren:
>
>     These are just my opinions based on my understanding of  WON's CANSLIM 
>ideas:  To me it does not yet invalidate the C&H formation.  If the handle 
>wedged upward, then CHBS would invalidated as a CANSLIM candidate.  Or if it 
>BO above its pivot point (about 34¾) on lowish volume, then it also would not 
>be CANSLIMMISH.
>
>     Sometimes a stock will rise to its pivot point on low volume.  If the 
>market is in a bull, the stock will break out with high volume.  If it is in 
>a bear (or consolidating) the stock probably will fall into a base-on-base, 
>or another handle consolidation.  To identify that the stock is still strong, 
>look at the volume.  It should be low.  The Big Picture on 1/28/02 gives what 
>I believe is apropos counsel:  
>      "Now is a good time to search for stocks with strong fundmentals.  Look 
>at IBD's yellow highlighted stocks; NY and NASDAQ Where The Big Money Is 
>Flowing and Stocks In The News; Weekend Review.  1) See if the buy candidate 
>has more up weeks in above average volume than down weeks in above average 
>volume (ie. the stock has more up weeks than downs, and the ups were 
>generally on above average volume).   2) Also note that the stock should tend 
>to close in the upper half of each week's trading range.  3) See if the bases 
>are areas of tight trading ranges and closes. ALL OF THESE TRAITS PAINT A 
>PICTURE OF INSTITUTIONS ACCUMULATING THE STOCK.  IT STANDS TO REASON THAT IF 
>THEY SUPPORT THE STOCK DURING ITS BASING PHASE, THAT THEY WILL BE MORE LIKELY 
>TO BE HEAVY BUYERS WHEN THE STOCK BREAKS OUT."
>
>     Also, another way to judge the strength of the stock:  Notice that the 
>RS line (in DGO) is strongish today (ie. it is trending up, and is at least 
>as high as it was at the left lip of the cup.
>
>jans 
>
>
>In a message dated 1/28/2002 12:30:34 PM Eastern Standard Time, 
>wkeuffel@xmission.com writes:
>
><< CANSLIMers --
> 
> What do you make of CHBS?  The fundies are good, and it has (or had) a 
> C&H with a nice handle, but now there is upward activity from the handle 
> base but not on good volume.  Should the pattern of the handle 
> disqualify the stock from consideration as a CANSLIM candidate?
> 
> Thanks,
> Warren >>
>
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