Re: [CANSLIM] Got hammered on ELTE

From: Spencer48@aol.com
Subject: Re: [CANSLIM] Got hammered on ELTE
Date: Mon, 11 Feb 2002 23:14:47 EST

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Patrick:

     I agree.  Except for the fact that the C&H was kind of truncated, I 
don't see anything wrong with ELTE's formation-except, in my opinion, it was 
cut short (probably by the market's weakness).  

     That is the one main reason that I wouldn't have bought it in mid-late 
January:  Both the Dow and NADAQ were below the 200 MA (The NADAQ fell 
there).  Moreover, both had many distribution days. 

     Also, while fundamentals are important and necessary, when the market is 
in a bear, I don't think they are sufficent reasons to invest.  As WON has 
pointed out many times, when the market is in a bear, about 70% of all stocks 
get hit.

jans


In a message dated 2/11/2002 10:31:33 PM Eastern Standard Time, 
pjwahl@attbi.com writes:

<< If you took a 20% loss, I figure you must have bought on the breakout of 
the 4 week 
 base that formed through Jan.   I think that base is too short, especially 
in this 
 questionable market environment.   Apart from that, I don't see anything in 
the chart 
 that would have given a hint of this, no obvious sign of distribution, to me 
anyway.....  I think you get more of a warning sign looking at the last 10 
quarters or so of 
earnings, where there were some good quarters, then a few quarters where 
losses 
were reported.  The accelerating earnings and sales of the last 3 quarters is 
a very 
good sign, but you would at least have to be careful given that up and down 
earnings history about holding across an earnings release.  >>

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