Go to Jeff Salisbury LWGate Home Page.From: Ian <ianstm@shaw.ca>
Subject: Re: [CANSLIM] Lack of Buy Candidates
Date: Mon, 18 Feb 2002 11:04:03 -0800
Next Article (by Author): Re: [CANSLIM] Lack of Buy Candidates "Katherine Malm"
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I understand. All of my ideas come from my own personal mining method as =
well - based on scanning earnings reports. I haven't used a 'pick' frome =
someone else in ages. However, I figured it didn't hurt to ask, as I =
have some time on my hands today, the largest cash position I've had in =
years, and a distinct lack of great ideas from my own sources :)
Also, I have been toying with the idea of adding a screening tool to my =
arsenal (the free tools at marketguide are all I use now), that include =
RS, IG RS, moving averages, forward estimates, and recent changes in =
ADV. I've been doing most of my work in an old-fashioned manner - by =
reading papers, reading earnings reports, listening to conference calls =
and reading SEC filings. I figure its about to time to start doing some =
regular automated screening - so I was curious as to the sort of things =
that come up from these screens. What site/tools do you use to do your =
screening?
Thanks,
Ian
- ----- Original Message -----=20
From: Katherine Malm=20
To: canslim@lists.xmission.com=20
Sent: Monday, February 18, 2002 10:26 AM
Subject: Re: [CANSLIM] Lack of Buy Candidates
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.
=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 understand. All of my ideas come from my own personal mining
method as well - based on scanning earnings reports. I haven't used a 'pick'
frome someone else in ages. However, I figured it didn't hurt to ask, as I have
some time on my hands today, the largest cash position I've had in years, and a
distinct lack of great ideas from my own sources :)</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=2>Also, I have been toying with the idea of adding a screening
tool to my arsenal (the free tools at marketguide are all I use now), that
include RS, IG RS, moving averages, forward estimates, and recent changes in
ADV. I've been doing most of my work in an old-fashioned manner - by
reading papers, reading earnings reports, listening to conference calls and
reading SEC filings. I figure its about to time to start doing some regular
automated screening - so I was curious as to the sort of things that come up
from these screens. What site/tools do you use to do your
screening?</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=2>Thanks,</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> Monday, February 18, 2002 10:26
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 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.)</DIV>
<DIV> </DIV>
<DIV>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.</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: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> Monday, February 18, 2002 12:16
PM</DIV>
<DIV style="FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] Lack of Buy
Candidates</DIV>
<DIV><BR></DIV>
<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></BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>
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