Re: [CANSLIM] Smal and Micro Caps

From: Warren Keuffel <wkeuffel@xmission.com>
Subject: Re: [CANSLIM] Smal and Micro Caps
Date: Sun, 24 Feb 2002 12:40:45 -0700

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Top of Thread: [CANSLIM] Smal and Micro Caps Andreas Himmelreich
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Perry,

Here's my answer -- others may have differing perspectives.

CANSLIM is best-suited for small- and mid-caps because:

+ Large-caps have too many shares outstanding to have the explosive 
price movement that produces big winners.
+ Micro-caps are too thinly traded and thus the bid/ask spread is too 
wide for safety.

Warren

P.S.  The only naive/stupid question is the one that doesn't get asked! 
 I've asked (and will continue to ask) many elementary questions.

Perry Stanfield wrote:

> Perhaps a bit naive, but I'll ask the question anyway:
>
>  
>
> Why would one consciously look for a particular size company to buy?   
> Because the action is in small caps right now?  Does this mean that 
> large caps that meet all Canslim requirements with a similar chart are 
> more prone to failure?  Why not search for all Canslim candidates and 
> let the chips fall where the action is?
>
>  
>
> Perry
>
>  
>
>  
>
>     ----- Original Message -----
>
>     From: Katherine Malm <mailto:kmalm@earthlink.net>
>
>     To: canslim@lists.xmission.com <mailto:canslim@lists.xmission.com>
>
>     Sent: Sunday, February 24, 2002 9:49 AM
>
>     Subject: Re: [CANSLIM] Smal and Micro Caps
>
>
>     Hi Andreas,
>
>      
>
>     The definition seems to vary from one place to the next, but these
>     are the numbers I see quoted most often:
>
>      
>
>     Microcap: 50m-300m
>
>     Smallcap: 300m-2b
>
>     Midcap: 2b-10b
>
>     LgCap: >10b
>
>      
>
>     Katherine
>
>         ----- Original Message -----
>
>         From:Andreas Himmelreich <mailto:judgejimmy@web.de>
>
>         To: 'canslim@lists.xmission.com'
>         <mailto:%27canslim@lists.xmission.com%27>
>
>         Sent: Sunday, February 24, 2002 11:39 AM
>
>         Subject: [CANSLIM] Smal and Micro Caps
>
>
>         Hi,
>
>         Question: How big is a micro cap. When does the Smal Cap start?
>
>         I gues that Micros are below 100 Mio?
>
>         Thank you
>
>         Andreas
>
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