Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] Re. A Possible Signal To Unscrupulous Bookeeping
Date: Mon, 18 Feb 2002 09:57:54 -0600
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This is a multi-part message in MIME format. - ------=_NextPart_000_007E_01C1B862.BC6620C0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable A great observation on the dividends, jans.=20 My general take on CANSLIM has always been that we are more typically = buying young companies early in their growth. That means the largest = percentage of stocks we look at are not dividend paying entities because = they are plowing earnings back into the company to fund expansion. Katherine ----- Original Message -----=20 From: Tom Worley=20 To: canslim@lists.xmission.com=20 Sent: Monday, February 18, 2002 9:46 AM Subject: Re: [CANSLIM] Re. A Possible Signal To Unscrupulous = Bookeeping Interesting point of view. Because I only do small and micro cap young companies, I am not used to getting dividends, so rarely think about = them. But where I have bought a dividend bearing stock, I must admit the = size of the dividend, while small, did tend to grow with earnings. Maybe just one more tool to put in the kit for further due diligence. Tom Worley stkguru@netside.net AIM: TexWorley ----- Original Message ----- From: <JANSI1AUG1@aol.com> To: <canslim@lists.xmission.com> Sent: Monday, February 18, 2002 10:05 AM Subject: [CANSLIM] Re. A Possible Signal To Unscrupulous Bookeeping > Canslimmers: > > I know not many (if any) high growth stocks have dividends, but = this > item from James Glassman (in techcentralstation.com) might be useful = in > identifying another Enronic-Bookeeping-Wonder (I wonder, appropos of = this, > what Enron's cash-flow was?): > > "...Enron paid dividends all during the period when it now admits = that it was > overstating earnings, but those payouts were curiously flat at a = time when > the company's reported profits were soaring. For example, between = 1997 and > 2000, earnings rose 69 percent but dividends rose just 9 percent. = That could > have been a sign that something fishy was happening. A company might = be able > to fake out analysts by booking today paper profits that might = possibly occur > in the future. But dividends aren't entries on the ledger; they're = real > money. A company that consistently raises its dividend is almost = always a > well-managed company in a strong market niche...." > > jans - ------=_NextPart_000_007E_01C1B862.BC6620C0 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 5.50.4807.2300" name=3DGENERATOR> <STYLE></STYLE> </HEAD> <BODY bgColor=3D#ffffff> <DIV>A great observation on the dividends, jans. </DIV> <DIV> </DIV> <DIV>My general take on CANSLIM has always been that we are more = typically=20 buying young companies early in their growth. That means the = largest=20 percentage of stocks we look at are not dividend paying entities because = they=20 are plowing earnings back into the company to fund expansion.</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=3Dstkguru@netside.net href=3D"mailto:stkguru@netside.net">Tom = Worley</A>=20 </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> Monday, February 18, 2002 = 9:46=20 AM</DIV> <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] Re. A = Possible=20 Signal To Unscrupulous Bookeeping</DIV> <DIV><BR></DIV>Interesting point of view. Because I only do small and = micro=20 cap young<BR>companies, I am not used to getting dividends, so rarely = think=20 about them.<BR>But where I have bought a dividend bearing stock, I = must admit=20 the size of<BR>the dividend, while small, did tend to grow with=20 earnings.<BR><BR>Maybe just one more tool to put in the kit for = further due=20 diligence.<BR><BR>Tom Worley<BR><A=20 href=3D"mailto:stkguru@netside.net">stkguru@netside.net</A><BR>AIM:=20 TexWorley<BR>----- Original Message -----<BR>From: <<A=20 href=3D"mailto:JANSI1AUG1@aol.com">JANSI1AUG1@aol.com</A>><BR>To: = <<A=20 = href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>= ><BR>Sent:=20 Monday, February 18, 2002 10:05 AM<BR>Subject: [CANSLIM] Re. A = Possible Signal=20 To Unscrupulous Bookeeping<BR><BR><BR>>=20 Canslimmers:<BR>><BR>> I know not = many (if=20 any) high growth stocks have dividends, but this<BR>> item from = James=20 Glassman (in techcentralstation.com) might be useful in<BR>> = identifying=20 another Enronic-Bookeeping-Wonder (I wonder, appropos of this,<BR>> = what=20 Enron's cash-flow was?):<BR>><BR>> "...Enron paid dividends all = during=20 the period when it now admits that it<BR>was<BR>> overstating = earnings, but=20 those payouts were curiously flat at a time when<BR>> the company's = reported profits were soaring. For example, between 1997 and<BR>> = 2000,=20 earnings rose 69 percent but dividends rose just 9 percent.=20 That<BR>could<BR>> have been a sign that something fishy was = happening. A=20 company might be<BR>able<BR>> to fake out analysts by booking today = paper=20 profits that might possibly<BR>occur<BR>> in the future. But = dividends=20 aren't entries on the ledger; they're real<BR>> money. A company = that=20 consistently raises its dividend is almost always a<BR>> = well-managed=20 company in a strong market niche...."<BR>><BR>>=20 jans<BR></BLOCKQUOTE></BODY></HTML> - ------=_NextPart_000_007E_01C1B862.BC6620C0-- - - - -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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