Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] Lack of Buy Candidates
Date: Sat, 16 Feb 2002 09:58:27 -0600
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Hi Ian,
I keep a constantly refreshed database of stocks with the minimum =
growth, price and volume characteristics that qualify them as CANSLIM =
candidates in my mind. Right now that list contains nearly 700 names. Of =
those, about 400 are what I'd call "OK" right now. I then take these =
stocks and pass them through what I call my "master filter." In order to =
pass this test, the stock has to be showing near term outperformance, =
longer term minimal outperformance, minimal technical health and be a =
member of an industry that shows near term outperformance and longer =
term minimal outperformance. As of Friday, 135 stocks pass this test. Of =
the remainder, the jury is still out as to which are breaking down and =
which will buck up and work on their base. While 135 out of 10000 stocks =
in the market seems paltry, the point is that there *are* names worth =
watching on the long side. If I dip down into lower prices and =
liquidity, the number of stocks goes up to about 230 names. It only =
takes 10 or 12 to fill out a long portfolio so I see this as a healthy =
sized pile from which to mine gems.
(The remainder of my comments are general to the many posts against this =
subject line and aren't necessarily in response to your question, Ian.)
I don't buy the CANSLIM party line that you should "stay out" of the =
market if there aren't 1000's of stocks to choose from. I look for good =
stocks with rising relative strength, strategic advantage and good =
technical strength that are members of rising and strong industry =
groups. I sell stocks that break down technically or that are members of =
a group that is beginning to break down. I short stocks/groups in =
industries that are breaking down to take advantage of the prevailing =
winds. I let the market tell me which kinds of stocks are doing well. =
Whether it's value/growth, small/mid/large cap, industry group, I'm =
agnostic (except that I *do* stay away from super microcaps). What =
works, works and I have a methodology that looks for what's working.
The "market" is nothing more than a market of stocks. Too many people =
focus on what's *not* working and miss the many great opportunities that =
are out there. One of my mentors always says "when the market speaks, =
have big ears." I say, "when a stock and an industry speaks, have big =
ears." As I see it, too many folks are still focused on what *was* =
working during the last Great Bull market. This is the history of =
markets. A new bull starts and undiscovered gems begin to do well. Their =
business and markets grow somewhat unnoticed by the masses. When it all =
starts, they are micro/small caps. As the bull moves ahead, they =
continue to grow and eventually become big caps. Late in the bull, =
people begin to pile into the big caps making them bubble bait. Combine =
overvalued stocks, piling-on by the masses, overcapacity buildouts by =
the businesses and a confluence of macroeconomic events--it takes a =
while to work off the excesses. But when the new bull begins, all the =
new faces appear and tippy toe around somewhat unnoticed because =
everyone's still worried about the big cap former winners that are =
dive-bombing back to earth. Makings of a long flat market in my opinion =
and all the more reason to be paying attention to the stocks and =
industries that are in favor and then selling them when they fall out of =
favor. Hard work, but do-able, and *all* of this in the sprit of =
CANSLIM.
Katherine
- ----- Original Message -----=20
From: Ian=20
To: canslim@lists.xmission.com=20
Sent: Friday, February 15, 2002 10:15 AM
Subject: Re: [CANSLIM] Lack of Buy Candidates
Katherine:
I would greatly appreciate it if you would share your list of good =
CANSLIM stocks making healthy bases. Caveat Emptor is understood :)
Thank you,
Ian
----- Original Message -----=20
From: Katherine Malm=20
To: canslim@lists.xmission.com=20
Sent: Friday, February 15, 2002 6:54 AM
Subject: Re: [CANSLIM] Lack of Buy Candidates
Hi Rob,
I know there are plenty of folks here who short, but the subject =
only comes up on occasion because you are right, it is an advanced =
trading technique in comparison to CANSLIM in general. I'd also agree =
with you that my short scans are turning up far more candidates than my =
long scans. At the same time, however, I also see plenty of good quality =
CANSLIM stocks continuing to build healthy bases. All in all, I'd say =
the market is "stuck!"
Katherine
----- Original Message -----=20
From: Rob Miller=20
To: canslim@lists.xmission.com=20
Sent: Friday, February 15, 2002 8:40 AM
Subject: [CANSLIM] Lack of Buy Candidates
Even if we have a FTD from here, I see few stocks worth buying. =
However, my short list is overflowing. The only moderately attractive =
stocks I see on the long side are those already in an uptrend that are =
riding their lower channel.
Is shorting considered off limits for this list? I know that WON =
discourages it, but he also claimed to make good money from shorts in =
HTMMIS. As I understand it, he discourages it as a medium for the =
masses, nor necessarily for everyone. =20
Rob =20
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<DIV>Hi Ian,</DIV>
<DIV> </DIV>
<DIV>I keep a constantly refreshed database of stocks with the minimum =
growth,=20
price and volume characteristics that qualify them as CANSLIM candidates =
in my=20
mind. Right now that list contains nearly 700 names. Of those, about 400 =
are=20
what I'd call "OK" right now. I then take these stocks and pass them =
through=20
what I call my "master filter." In order to pass this test, the stock =
has to be=20
showing near term outperformance, longer term minimal outperformance, =
minimal=20
technical health and be a member of an industry that shows near term=20
outperformance and longer term minimal outperformance. As of Friday, 135 =
stocks=20
pass this test. Of the remainder, the jury is still out as to which are =
breaking=20
down and which will buck up and work on their base. While 135 out of =
10000=20
stocks in the market seems paltry, the point is that there *are* names =
worth=20
watching on the long side. If I dip down into lower prices and =
liquidity, the=20
number of stocks goes up to about 230 names. It only takes 10 or 12 to =
fill out=20
a long portfolio so I see this as a healthy sized pile from which to =
mine=20
gems.</DIV>
<DIV> </DIV>
<DIV>(The remainder of my comments are general to the many posts against =
this=20
subject line and aren't necessarily in response to your question, =
Ian.)</DIV>
<DIV> </DIV>
<DIV>I don't buy the CANSLIM party line that you should "stay out" of =
the market=20
if there aren't 1000's of stocks to choose from. I look for good stocks =
with=20
rising relative strength, strategic advantage and good technical =
strength that=20
are members of rising and strong industry groups. I sell stocks that =
break down=20
technically or that are members of a group that is beginning to break=20
down. I short stocks/groups in industries that are breaking down to =
take=20
advantage of the prevailing winds. I let the market tell me which kinds =
of=20
stocks are doing well. Whether it's value/growth, small/mid/large cap, =
industry=20
group, I'm agnostic (except that I *do* stay away from super microcaps). =
What=20
works, works and I have a methodology that looks for what's =
working.</DIV>
<DIV> </DIV>
<DIV>The "market" is nothing more than a market of stocks. Too many =
people focus=20
on what's *not* working and miss the many great opportunities that are =
out=20
there. One of my mentors always says "when the market speaks, have big =
ears." I=20
say, "when a stock and an industry speaks, have big ears." As I see it, =
too many=20
folks are still focused on what *was* working during the last Great Bull =
market.=20
This is the history of markets. A new bull starts and undiscovered gems =
begin to=20
do well. Their business and markets grow somewhat unnoticed by the =
masses. When=20
it all starts, they are micro/small caps. As the bull moves ahead, they =
continue=20
to grow and eventually become big caps. Late in the bull, people begin =
to pile=20
into the big caps making them bubble bait. Combine overvalued stocks, =
piling-on=20
by the masses, overcapacity buildouts by the businesses and a confluence =
of=20
macroeconomic events--it takes a while to work off the excesses. But =
when the=20
new bull begins, all the new faces appear and tippy toe around somewhat=20
unnoticed because everyone's still worried about the big cap former =
winners that=20
are dive-bombing back to earth. Makings of a long flat market in my =
opinion and=20
all the more reason to be paying attention to the stocks and industries =
that are=20
in favor and then selling them when they fall out of favor. Hard work, =
but=20
do-able, and *all* of this in the sprit of CANSLIM.</DIV>
<DIV> </DIV>
<DIV>Katherine</DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV>----- Original Message ----- </DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Dianstm@shaw.ca href=3D"mailto:ianstm@shaw.ca">Ian</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> Friday, February 15, 2002 =
10:15=20
AM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] Lack of =
Buy=20
Candidates</DIV>
<DIV><BR></DIV>
<DIV><FONT size=3D2>Katherine:</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=3D2>I would greatly appreciate it if you would share =
your list=20
of good CANSLIM stocks making healthy bases. Caveat Emptor is =
understood=20
:)</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=3D2>Thank you,</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=3D2>Ian</FONT></DIV>
<DIV> </DIV>
<DIV> </DIV>
<BLOCKQUOTE dir=3Dltr=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=3Dkmalm@earthlink.net =
href=3D"mailto:kmalm@earthlink.net">Katherine=20
Malm</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>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Friday, February 15, =
2002 6:54=20
AM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] Lack =
of Buy=20
Candidates</DIV>
<DIV><BR></DIV>
<DIV>Hi Rob,</DIV>
<DIV> </DIV>
<DIV>I know there are plenty of folks here who short, but the =
subject only=20
comes up on occasion because you are right, it is an advanced =
trading=20
technique in comparison to CANSLIM in general. I'd also agree with =
you that=20
my short scans are turning up far more candidates than my long =
scans. At the=20
same time, however, I also see plenty of good quality CANSLIM stocks =
continuing to build healthy bases. All in all, I'd say the market is =
"stuck!"</DIV>
<DIV> </DIV>
<DIV>Katherine</DIV>
<BLOCKQUOTE dir=3Dltr=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=3Drmiller2@carolina.rr.com=20
href=3D"mailto:rmiller2@carolina.rr.com">Rob Miller</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Friday, February 15, =
2002 8:40=20
AM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> [CANSLIM] Lack of =
Buy=20
Candidates</DIV>
<DIV><BR></DIV>
<DIV><FONT face=3DArial size=3D2>Even if we have a FTD from here, =
I see few=20
stocks worth buying. However, my short list is =
overflowing. =20
The only moderately attractive stocks I see on the long side are =
those=20
already in an uptrend that are riding their lower =
channel.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT><FONT face=3DArial=20
size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Is shorting =
considered off limits=20
for this list? I know that WON discourages it, but he also =
claimed=20
to make good money from shorts in HTMMIS. As I understand =
it,=20
he discourages it as a medium for the masses,=20
nor necessarily for everyone. </FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Rob =20
</FONT></DIV></BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>
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