Re: [CANSLIM] Smal and Micro Caps

From: "Tom Worley" <stkguru@netside.net>
Subject: Re: [CANSLIM] Smal and Micro Caps
Date: Sun, 24 Feb 2002 17:18:28 -0500

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When I joined my first firm using WON services, it was rare to see a true
large cap stock on his "picks" list. Almost every pick was a company I had
not heard of before, usually a small cap, sometimes a mid cap.  Over time,
this has changed and WON has by practice, at least, diminished the
importance of "S" and "I" in CANSLIM.

There is some validity to this, as the mutual fund and pension fund managers
control the big bucks that can move a stock. And the typical illiquidity of
a micro cap stock tends to keep out even a small cap fund manager.

I personally prefer buying a stock before it attracts institutional
interest. Makes it far more risky, but that's ok for me. But is not
recommended for most investors. Hence I don't post my personal stock lists.

Tom Worley
stkguru@netside.net
AIM: TexWorley
- ----- Original Message -----
From: "Warren Keuffel" <wkeuffel@xmission.com>
To: <canslim@lists.xmission.com>
Sent: Sunday, February 24, 2002 2:40 PM
Subject: Re: [CANSLIM] Smal and Micro Caps


> 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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> >         <mailto:majordomo@xmission.com> "
> >         -In the email body, write "subscribe canslim" or
> >         -"unsubscribe canslim".  Do not use quotes in your email.
> >
>
>
>
> -
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> -In the email body, write "subscribe canslim" or
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>
>



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