Go to Jeff Salisbury LWGate Home Page.From: Ian <ianstm@shaw.ca>
Subject: Re: [CANSLIM] Lack of Buy Candidates
Date: Mon, 18 Feb 2002 10:16:08 -0800
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I couldn't agree more, and I couldn't have said it better myself. I =
have seen that microcaps with strong revenue and EPS growth will get bid =
up in any market - the only thing they need is a fundamental shift =
(increase) in average daily volume, and they have nowhere to go but up. =
And it happens while the media and daytraders are still chasing =
yesteryears winners. Personally, I think it would do many in the =
industry a world of good if they went backed and looked at the =
floats/valuations of those stocks circa 1990. It would provide them a =
good framework for what they should be looking for today.
Is there anyway you could email your list of 230 (I am particularly =
interested in the lower price/lower liquidity names), as I would like to =
do quick charts scans on them.
Thanks a lot,
Ian
- ----- Original Message -----=20
From: Katherine Malm=20
To: canslim@lists.xmission.com=20
Sent: Saturday, February 16, 2002 7:58 AM
Subject: Re: [CANSLIM] Lack of Buy Candidates
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.
=20
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
=20
Rob =20
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<DIV><FONT size=2>I couldn't agree more, and I couldn't have said it better
myself. I have seen that microcaps with strong revenue and EPS growth will get
bid up in any market - the only thing they need is a fundamental shift
(increase) in average daily volume, and they have nowhere to go but up. And it
happens while the media and daytraders are still chasing yesteryears winners.
Personally, I think it would do many in the industry a world of good if they
went backed and looked at the floats/valuations of those stocks circa 1990. It
would provide them a good framework for what they should be looking for
today.</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=2>Is there anyway you could email your list of 230 (I am
particularly interested in the lower price/lower liquidity names), as I would
like to do quick charts scans on them.</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=2>Thanks a lot,</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=2>Ian</FONT></DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV>----- Original Message ----- </DIV>
<BLOCKQUOTE dir=ltr
style="BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black"><B>From:</B>
<A href="mailto:kmalm@earthlink.net" title=kmalm@earthlink.net>Katherine
Malm</A> </DIV>
<DIV style="FONT: 10pt arial"><B>To:</B> <A
href="mailto:canslim@lists.xmission.com"
title=canslim@lists.xmission.com>canslim@lists.xmission.com</A> </DIV>
<DIV style="FONT: 10pt arial"><B>Sent:</B> Saturday, February 16, 2002 7:58
AM</DIV>
<DIV style="FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] Lack of Buy
Candidates</DIV>
<DIV><BR></DIV>
<DIV>Hi Ian,</DIV>
<DIV> </DIV>
<DIV>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.</DIV>
<DIV> </DIV>
<DIV>(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.)</DIV>
<DIV> </DIV>
<DIV>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.</DIV>
<DIV> </DIV>
<DIV>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.</DIV>
<DIV> </DIV>
<DIV>Katherine</DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV>----- Original Message ----- </DIV>
<BLOCKQUOTE dir=ltr
style="BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black"><B>From:</B>
<A href="mailto:ianstm@shaw.ca" title=ianstm@shaw.ca>Ian</A> </DIV>
<DIV style="FONT: 10pt arial"><B>To:</B> <A
href="mailto:canslim@lists.xmission.com"
title=canslim@lists.xmission.com>canslim@lists.xmission.com</A> </DIV>
<DIV style="FONT: 10pt arial"><B>Sent:</B> Friday, February 15, 2002 10:15
AM</DIV>
<DIV style="FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] Lack of Buy
Candidates</DIV>
<DIV><BR></DIV>
<DIV><FONT size=2>Katherine:</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=2>I would greatly appreciate it if you would share your list
of good CANSLIM stocks making healthy bases. Caveat Emptor is understood
:)</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=2>Thank you,</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=2>Ian</FONT></DIV>
<DIV> </DIV>
<DIV> </DIV>
<BLOCKQUOTE dir=ltr
style="BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
<DIV style="FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black"><B>From:</B>
<A href="mailto:kmalm@earthlink.net" title=kmalm@earthlink.net>Katherine
Malm</A> </DIV>
<DIV style="FONT: 10pt arial"><B>To:</B> <A
href="mailto:canslim@lists.xmission.com"
title=canslim@lists.xmission.com>canslim@lists.xmission.com</A> </DIV>
<DIV style="FONT: 10pt arial"><B>Sent:</B> Friday, February 15, 2002 6:54
AM</DIV>
<DIV style="FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] Lack of Buy
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
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!"</DIV>
<DIV> </DIV>
<DIV>Katherine</DIV>
<BLOCKQUOTE dir=ltr
style="BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
<DIV style="FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black"><B>From:</B>
<A href="mailto:rmiller2@carolina.rr.com"
title=rmiller2@carolina.rr.com>Rob Miller</A> </DIV>
<DIV style="FONT: 10pt arial"><B>To:</B> <A
href="mailto:canslim@lists.xmission.com"
title=canslim@lists.xmission.com>canslim@lists.xmission.com</A> </DIV>
<DIV style="FONT: 10pt arial"><B>Sent:</B> Friday, February 15, 2002
8:40 AM</DIV>
<DIV style="FONT: 10pt arial"><B>Subject:</B> [CANSLIM] Lack of Buy
Candidates</DIV>
<DIV><BR></DIV>
<DIV><FONT face=Arial size=2>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.</FONT></DIV>
<DIV><FONT face=Arial size=2></FONT><FONT face=Arial
size=2></FONT> </DIV>
<DIV><FONT face=Arial size=2>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. </FONT></DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV><FONT face=Arial size=2>Rob
</FONT></DIV></BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>
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