Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] Oskosh B'gosh gosha
Date: Thu, 31 Jan 2002 19:59:11 -0600
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This is a multi-part message in MIME format. - ------=_NextPart_000_000D_01C1AA91.C0295A80 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Thanks for pointing that out esetser--real lack of clarity on my part. As we don't know how DGO weights the current quarters vs. 5 years, I've = always looked at the 5 year growth and the current quarters and made my = own "assessment"--I personally place more weight on current quarters = than I believe the EPS numbers do. I do the same thing with the SMR = ratings. I prefer to look at margins, sales growth, ROE separately and = make my own conclusions, as again, we don't know "exactly" how the SMR = ratings weight these components. Sounds like we have similar habits! Katherine ----- Original Message -----=20 From: esetser=20 To: canslim@lists.xmission.com=20 Sent: Thursday, January 31, 2002 8:29 PM Subject: Re: [CANSLIM] Oskosh B'gosh gosha Sorry, Katherine, but your description of the DGO EPS isn't correct. = The EPS rank description says the following: "One of the five Investor's Business Daily SmartSelectT Corporate = Ratings, this is a proprietary formula that incorporates the percentage change = in the last two quarters' earnings versus the same quarters a year = earlier, the 5-year growth rate and the earnings stability. All components are separately rated and weighted." So EPS rank includes both long and short term growth rates, not just = the 5 year rate. =20 Now having said that, I'm not sure I disagree with your conclusion. I think it is important to look at both factors independently and chose stocks with the combination you prefer. I find quite a few stocks = with good EPS ranks with so-so to bad recent quarters, and I immediately = remove these from my watch lists. At 12:41 PM 1/31/02 -0600, you wrote: > Hi Steve, The 37% growth rate is a 5 year rate of growth in = earnings. >You can do a quick approximation by taking 1996 earnings $0.66 * >(1.37)^5 =3D 3.19 for current year The discrepancy between the = high EPS >Ranking and the lousy recent Q over Q actual EPS numbers show the >shortcoming of the EPS Ranking system. That is, based on 5 year = earnings >growth, the company has outperformed 89% of other stocks. But recent >quarters tell the tale more often than not.=20 - -To subscribe/unsubscribe, email "majordomo@xmission.com" -In the email body, write "subscribe canslim" or -"unsubscribe canslim". Do not use quotes in your email. - ------=_NextPart_000_000D_01C1AA91.C0295A80 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=3DContent-Type content=3D"text/html; = charset=3Diso-8859-1"> <META content=3D"MSHTML 5.50.4611.1300" name=3DGENERATOR> <STYLE></STYLE> </HEAD> <BODY bgColor=3D#ffffff> <DIV>Thanks for pointing that out esetser--real lack of clarity on = my=20 part.</DIV> <DIV> </DIV> <DIV>As we don't know how DGO weights the current quarters vs. 5 years, = I've=20 always looked at the 5 year growth and the current quarters and made my = own=20 "assessment"--I personally place more weight on current quarters than I = believe=20 the EPS numbers do. I do the same thing with the SMR ratings. I prefer = to look=20 at margins, sales growth, ROE separately and make my own conclusions, as = again,=20 we don't know "exactly" how the SMR ratings weight these components. = Sounds like=20 we have similar habits!</DIV> <DIV> </DIV> <DIV>Katherine</DIV> <BLOCKQUOTE=20 style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; = BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px"> <DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV> <DIV=20 style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: = black"><B>From:</B>=20 <A title=3Desetser@covad.net = href=3D"mailto:esetser@covad.net">esetser</A> </DIV> <DIV style=3D"FONT: 10pt arial"><B>To:</B> <A = title=3Dcanslim@lists.xmission.com=20 = href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>= </DIV> <DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Thursday, January 31, = 2002 8:29=20 PM</DIV> <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] Oskosh = B'gosh=20 gosha</DIV> <DIV><BR></DIV>Sorry, Katherine, but your description of the DGO EPS = isn't=20 correct. The<BR>EPS rank description says the = following:<BR><BR>"One of=20 the five Investor's Business Daily SmartSelectT Corporate = Ratings,<BR>this is=20 a proprietary formula that incorporates the percentage change = in<BR>the last=20 two quarters' earnings versus the same quarters a year earlier,<BR>the = 5-year=20 growth rate and the earnings stability. All components = are<BR>separately rated=20 and weighted."<BR><BR>So EPS rank includes both long and short term = growth=20 rates, not just the 5<BR>year rate. <BR><BR>Now having said = that, I'm=20 not sure I disagree with your conclusion. I<BR>think it is = important to=20 look at both factors independently and chose<BR>stocks with the = combination=20 you prefer. I find quite a few stocks with<BR>good EPS ranks = with so-so=20 to bad recent quarters, and I immediately remove<BR>these from my = watch=20 lists.<BR><BR><BR>At 12:41 PM 1/31/02 -0600, you=20 wrote:<BR>> Hi Steve, The 37% growth rate = is a 5=20 year rate of growth in earnings.<BR>>You can do a quick = approximation=20 by taking 1996 earnings $0.66 *<BR>>(1.37)^5 =3D = 3.19 for=20 current year The discrepancy between the high=20 EPS<BR>>Ranking and the lousy recent Q over Q actual EPS = numbers show=20 the<BR>>shortcoming of the EPS Ranking system. That is, based on = 5 =20 year earnings<BR>>growth, the company has outperformed 89% of other = stocks.=20 But recent<BR>>quarters tell the tale more often than not.=20 <BR><BR><BR>-<BR>-To subscribe/unsubscribe, email "<A=20 = href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>-In= the=20 email body, write "subscribe canslim" or<BR>-"unsubscribe = canslim". Do=20 not use quotes in your email.</BLOCKQUOTE></BODY></HTML> - ------=_NextPart_000_000D_01C1AA91.C0295A80-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
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