Re: [CANSLIM] Lack of Buy Candidates

From: Spencer48@aol.com
Subject: Re: [CANSLIM] Lack of Buy Candidates
Date: Sat, 16 Feb 2002 23:49:14 EST

Next Article (by Author): Re: AW: [CANSLIM] Lack of Buy Candidates "Tom Worley"
Previous Article (by Author): Re: [CANSLIM] Lack of Buy Candidates Quan Tran
Top of Thread: Re: [CANSLIM] Lack of Buy Candidates Quan Tran
Articles sorted by: [Date] [Author] [Subject]

Katherine:

     Apropos of your E-mail, then, are you stating that the Market's 
direction isn't as important as WON says it is.  He says that about 70% of 
stocks will fall, no matter how great their earnings are, during a bear 
market.  That's why he advises not to go long during a bear.

     I've been taking this advice.  Anecdotally, based on my experience in 
the market, his advice regarding the Market's direction and when and when not 
to buy stocks always seemed valid.  However, as I understand it, you are 
saying that strong stocks (stocks with high and accelerating earnings) in 
strong industries will do well-even during a bear.  And how do you define a 
"strong industry"?  The top 40% of IBD's 197?

     I wonder if WON has ever done a statistical study on the 70% failure 
rate of strong stocks WHEN the strong stock is in a strong industry?  It 
would be very interesting to see if the 70% falls, and by how much it falls.  
It would be even more eye-opening if he were able to statistically correlate 
the strength of the industry (during a bear) with the likelihood that the 
stock would rise or fall.

jans


In a message dated 2/16/2002 10:57:52 AM Eastern Standard Time, 
kmalm@earthlink.net writes:

<< 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...  >>

- -
- -To subscribe/unsubscribe, email "majordomo@xmission.com"
- -In the email body, write "subscribe canslim" or
- -"unsubscribe canslim".  Do not use quotes in your email.

Go to Jeff Salisbury LWGate Home Page.