Re: [CANSLIM] VectorVest fundies

From: "Patrick Wahl" <pjwahl@attbi.com>
Subject: Re: [CANSLIM] VectorVest fundies
Date: Sun, 10 Mar 2002 12:05:12 -0700
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Thanks for the details, that would be a little expensive for my limited account size, I 
think QP will have to suffice (its actually a pretty good program).

If you don't mind one more question, just briefly why did you say a day or two ago 
that you thought UOPX was not a suitable Canslim buy candidate?

My limited examination of the fundamentals didn't turn up any obvious problems, 
and technically I thought it looked ok.  As I mentioned last week, I had questions 
about its longer term potential, but short term could not see anything wrong.

On 9 Mar 2002 at 22:07, Katherine Malm wrote:

> Hi Patrick,
> 
> For the VV ProGraphics which I use and described in my message to Warren, there is no initial cost. There is a monthly subscription fee that is all inclusive. No additional fees for data feeds, etc, as everything you need is downloaded to your PC. (There is also an online version, but I prefer 
the PC based product. I have access to both for my monthly fee) $49/month for daily updates, $39/month for weekly updates. (discounts for yearly subscriptions). Basic graphing capabilities including price/volume, moving averages, graphing all parameters over time, etc. is inclusive. 
(http://www.vectorvest.com/VVPGDetail2.htm) My extended database has data back to '95.
> 
> The optional super-souped-up technical add-on (ProTrader) has a one time charge (I think it's about $295) but there are no fees after that, as all the data is pulled from ProGraphics. (http://www.vectorvest.com/VVPTDetail2.htm) My understanding is that those who are in love with TC2000, 
MetaStock, etc. will find ProTrader somewhat lacking. It still has some pretty incredible things....but technicians-at-heart love what they love.
> 
> No hidden charges...never any upgrade fees (I've been using it since early '98)... great technical support by phone and/or email.
> 
> You can order a 5 week trial for $9.95. (I would be remiss not to mention that I get credit for referrals but you have to mention me by name when you order) End of pitch...no connection to VV, just a very happy long term user who's learned to make the product sing.
> 
> As a CANSLIMer, I think that you could use VV and then supplement it with free fundamental resources on the web. But, if you're a fundamental junkie, then I think it is useful to supplement it with something like QP2 (or its derivative products) or DGO. Since I don't care about *mining* on raw 
fundamentals, I think DGO is the better option, as all the proprietary IBD indicators are readily available.
> 
> Katherine
> 
> PS There are also some articles at the VV site which describe in greater detail some of what I wrote about in my original note to Warren. http://www.vectorvest.com/specialreports.htm
>   ----- Original Message ----- 
>   From: Patrick Wahl 
>   To: canslim@lists.xmission.com 
>   Sent: Saturday, March 09, 2002 9:26 PM
>   Subject: Re: [CANSLIM] VectorVest fundies
> 
> 
>   What does it cost - initially and per month?
> 
>   On 9 Mar 2002 at 19:01, Katherine Malm wrote:
> 
>   > Hi Warren,
>   > 
>   > It's difficult to do justice to the VV tool in a few paragraphs, but I will try and address your question in a way that shows how VV is different from tools such as QP2 (and tools built on its engine and/or MarketGuide fundamental data elements) and/or other tools that incorporate varying 
>   degrees of technical analysis.
>   > 
>   > It is true the VV does not have the raw historical fundamental data and it is for this and a couple of other reasons that I supplement it with DGO. Instead of providing the raw numbers, VV devotes its engine to looking for relationships between variables. The foundational parameters are 
built 
>   on long-standing stock-valuation techniques in which the value of a stock is determined by the present value of a future earnings stream given a particular growth rate in future earnings and a given interest and inflation rate. This valuation is then combined with the past profitability 
>   characteristics of the company--essentially the return on total capital employed. The final valuation is then compared to present price action and the expected return on the stock over time is compared to the return on a AAA bond. While the specifics are proprietary (just as are the specifics 
of 
>   DGO's A/D, GRS, SMR, etc.), the formulations are discussed in the manual. In short, this allows you to compare any stock in the database against another to determine the relative value (RV) of the stock. In addition to the RV, there is also a relative safety (RS) factor which takes not only 
the 
>   traditional measure of volatility (beta--a price based measure) but also the past fundamental volatility/safety of the stock. For example, D/E ratio, longevity of the business, persistence of profitability and growth in earnings, etc. etc. All of these factors are once again combined so that 
any 
>   one stock can be compared against another. Essentially, VV pares down all the raw past fundamental data and the future expected fundamentals into a couple of numbers for you. When I look at a stream of raw fundamentals, this is what I'm doing mentally...assessing growth patterns, 
repeatability, 
>   etc. So, no, you could not do a search on QoQ growth rates of x in the same way you can in QP2. From a technical perspective, there is once again a summary technical price indicator called relative timing (RT) which is difficult to describe without a white paper. But, it essentially takes the 

>   price movement over the last 13 weeks and the velocity of the price movement in more recent periods and then normalizes it for values between 0 and 2. Once again, this allows comparison of any one stock against another. (There are many more parameters, but these are the most important). From 
a 
>   CANSLIM perspective, the parameter most important is the projected forward growth rate of the company. Without a doubt, this one factor (based on forward EPS estimates, also given) is the fastest way to zoom in on CANSLIM quality companies and as far as I've been able to determine, no other 
>   software package has anything close.
>   > 
> 
> 
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