Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] Lack of Buy Candidates
Date: Mon, 18 Feb 2002 12:26:41 -0600
Next Article (by Author): Re: AW: [CANSLIM] Lack of Buy Candidates "Tim Fisher"
Previous Article (by Author): Re: [CANSLIM] Lack of Buy Candidates Ian
Top of Thread: Re: [CANSLIM] Lack of Buy Candidates Ian
Next in Thread: Re: [CANSLIM] Lack of Buy Candidates Ian
Articles sorted by: [Date]
[Author]
[Subject]
This is a multi-part message in MIME format.
- ------=_NextPart_000_00F3_01C1B877.8521FA20
Content-Type: text/plain;
charset="iso-8859-1"
Content-Transfer-Encoding: quoted-printable
Hi Ian,
I hope you will understand my answer to your request for my list when I =
say "sorry, but I cannot." I see this as opening a big can of worms. I =
feel strongly in doing my own mining and as a result never pay attention =
to other people's lists whether they come from a newsletter, an email =
forum, CNBC, an analyst, etc. In the same way, I feel that sharing my =
own lists would not be of benefit to others because the methods that I =
use are personalized to my own style of trading. Earlier today I posted =
some "generalized" notes on how I go about finding stocks and that may =
lead you to many of the same names I get in my "filtered" list once you =
apply your own style to it. (I see forward growth rates as the number =
one most important filter but you may have a differing opinion even to =
this most basic of my criteria.)
Please don't misunderstand my unwillingness to share as being secretive =
or anything as dastardly as that. It's really about staying true to my =
principles.
Katherine
----- Original Message -----=20
From: Ian=20
To: canslim@lists.xmission.com=20
Sent: Monday, February 18, 2002 12:16 PM
Subject: Re: [CANSLIM] Lack of Buy Candidates
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.
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
- ------=_NextPart_000_00F3_01C1B877.8521FA20
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>Hi Ian,</DIV>
<DIV> </DIV>
<DIV>I hope you will understand my answer to your request for my list =
when I say=20
"sorry, but I cannot." I see this as opening a big can of worms. I feel =
strongly=20
in doing my own mining and as a result never pay attention to other =
people's=20
lists whether they come from a newsletter, an email forum, CNBC, an =
analyst,=20
etc. In the same way, I feel that sharing my own lists would not be of =
benefit=20
to others because the methods that I use are personalized to my own =
style of=20
trading. Earlier today I posted some "generalized" notes on how I go =
about=20
finding stocks and that may lead you to many of the same names I get in =
my=20
"filtered" list once you apply your own style to it. (I see forward =
growth=20
rates as the number one most important filter but you may have a =
differing=20
opinion even to this most basic of my criteria.)</DIV>
<DIV> </DIV>
<DIV>Please don't misunderstand my unwillingness to share as being =
secretive or=20
anything as dastardly as that. It's really about staying true to my=20
principles.</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=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> Monday, February 18, 2002 =
12:16=20
PM</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>I couldn't agree more, and I couldn't have said it =
better=20
myself. I have seen that microcaps with strong revenue and EPS growth =
will get=20
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=20
happens while the media and daytraders are still chasing yesteryears =
winners.=20
Personally, I think it would do many in the industry a world of good =
if they=20
went backed and looked at the floats/valuations of those stocks circa =
1990. It=20
would provide them a good framework for what they should be looking =
for=20
today.</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=3D2>Is there anyway you could email your list of 230 =
(I am=20
particularly interested in the lower price/lower liquidity names), as =
I would=20
like to do quick charts scans on them.</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=3D2>Thanks a lot,</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=3D2>Ian</FONT></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=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> Saturday, February 16, =
2002 7:58=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 Ian,</DIV>
<DIV> </DIV>
<DIV>I keep a constantly refreshed database of stocks with the =
minimum=20
growth, price and volume characteristics that qualify them as =
CANSLIM=20
candidates in my mind. Right now that list contains nearly 700 =
names. Of=20
those, about 400 are what I'd call "OK" right now. I then take these =
stocks=20
and pass them through what I call my "master filter." In order to =
pass this=20
test, the stock has to be showing near term outperformance, longer =
term=20
minimal outperformance, minimal technical health and be a member of =
an=20
industry that shows near term outperformance and longer term minimal =
outperformance. As of Friday, 135 stocks pass this test. Of the =
remainder,=20
the jury is still out as to which are breaking down and which will =
buck up=20
and work on their base. While 135 out of 10000 stocks in the market =
seems=20
paltry, the point is that there *are* names worth watching on the =
long side.=20
If I dip down into lower prices and liquidity, the number of stocks =
goes up=20
to about 230 names. It only takes 10 or 12 to fill out a long =
portfolio so I=20
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=20
this subject line and aren't necessarily in response to your =
question,=20
Ian.)</DIV>
<DIV> </DIV>
<DIV>I don't buy the CANSLIM party line that you should "stay out" =
of the=20
market if there aren't 1000's of stocks to choose from. I look for =
good=20
stocks with rising relative strength, strategic advantage and good =
technical=20
strength that are members of rising and strong industry groups. I =
sell=20
stocks that break down technically or that are members of a group =
that is=20
beginning to break down. I short stocks/groups in industries =
that are=20
breaking down to take advantage of the prevailing winds. I let the =
market=20
tell me which kinds of stocks are doing well. Whether it's =
value/growth,=20
small/mid/large cap, industry group, I'm agnostic (except that I =
*do* stay=20
away from super microcaps). What works, works and I have a =
methodology that=20
looks for what's working.</DIV>
<DIV> </DIV>
<DIV>The "market" is nothing more than a market of stocks. Too many =
people=20
focus on what's *not* working and miss the many great opportunities =
that are=20
out there. One of my mentors always says "when the market speaks, =
have big=20
ears." I say, "when a stock and an industry speaks, have big ears." =
As I see=20
it, too many folks are still focused on what *was* working during =
the last=20
Great Bull market. This is the history of markets. A new bull starts =
and=20
undiscovered gems begin to do well. Their business and markets grow =
somewhat=20
unnoticed by the masses. When it all starts, they are micro/small =
caps. As=20
the bull moves ahead, they continue to grow and eventually become =
big caps.=20
Late in the bull, people begin to pile into the big caps making them =
bubble=20
bait. Combine overvalued stocks, piling-on by the masses, =
overcapacity=20
buildouts by the businesses and a confluence of macroeconomic =
events--it=20
takes a while to work off the excesses. But when the new bull =
begins, all=20
the new faces appear and tippy toe around somewhat unnoticed because =
everyone's still worried about the big cap former winners that are=20
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=20
are in favor and then selling them when they fall out of favor. Hard =
work,=20
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=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=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 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=20
list of good CANSLIM stocks making healthy bases. Caveat Emptor is =
understood :)</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=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=20
6:54 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=20
only comes up on occasion because you are right, it is an =
advanced=20
trading technique in comparison to CANSLIM in general. I'd also =
agree=20
with you that my short scans are turning up far more candidates =
than my=20
long scans. At the same time, however, I also see plenty of good =
quality=20
CANSLIM stocks continuing to build healthy bases. All in all, =
I'd say=20
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=20
8:40 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=20
few stocks worth buying. However, my short list is=20
overflowing. The only moderately attractive stocks I see =
on the=20
long side are those already in an uptrend that are riding =
their lower=20
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=20
limits for this list? I know that WON discourages it, =
but he=20
also claimed to make good money from shorts in HTMMIS. =
As I=20
understand it, 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></BLOCKQUOTE></BLOCKQ=
UOTE></BODY></HTML>
- ------=_NextPart_000_00F3_01C1B877.8521FA20--
- -
- -To subscribe/unsubscribe, email "majordomo@xmission.com"
- -In the email body, write "subscribe canslim" or
- -"unsubscribe canslim". Do not use quotes in your email.
Next Article (by Author): Re: AW: [CANSLIM] Lack of Buy Candidates "Tim Fisher"
Previous Article (by Author): Re: [CANSLIM] Lack of Buy Candidates Ian
Top of Thread: Re: [CANSLIM] Lack of Buy Candidates Ian
Next in Thread: Re: [CANSLIM] Lack of Buy Candidates Ian
Articles sorted by: [Date]
[Author]
[Subject]