Go to Jeff Salisbury LWGate Home Page.From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] MicroCaps
Date: Thu, 21 Mar 2002 23:05:15 -0500
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This is a multi-part message in MIME format. - ------=_NextPart_000_0154_01C1D12C.DCC07090 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Chaz, One (among many) problems in trying to invest (vs trading) in small caps = that are both low priced and thinly traded is the lack of liquidity. The = four times I bot EPIQ, the ADV was under 10,000. Didn't stop me making = very respectable money on it, but I did have to buy it with a long term = perspective, and a willingness to sell it only after a lot of other = retail investors (and eventually mutual funds) discovered it and placed = it under demand. That also meant being willing to hold it thru the hard = times, when a few hundred shares sold could move it down sharply, = because I believed in the business model given the state of the economy = at that time. Same is true of MDII, which just gave me nearly a 100% return in under a = year. Volume was very sporadic, often trading next to no shares at all. = But when the buyout was announced, I could have sold hundreds of = thousands of shares without a problem or a price penalty. That's one of the many reasons why I don't post my stocks, they just are = not suitable for most investors, much less CANSLIMers. Tom Worley stkguru@bellsouth.net AIM: TexWorley - ----- Original Message -----=20 From: Gene Ricci=20 To: canslim@lists.xmission.com=20 Sent: Thursday, March 21, 2002 12:44 PM Subject: Re: [CANSLIM] MicroCaps Charley, I'm not Fred.... I bought a lot less than $25,000 and it took = me 7 days to get in.....without really raising the price.=20 If you buy $25,000 @ $19.70 you'll want over 1k shares.... it's 11:30 = CDT and zero shares have been traded today (normal 1300 shares) ... if = you can afford to sell slowly probably no big deal.... but to sell 1k+ = in one day will most likely cause you significant PAIN! Today's ask is = $19.70 and bid $19.00... no bites... what price would interest a buyer = to buy 1K shares today??? Gene ----- Original Message -----=20 From: Chazmoore@aol.com=20 To: canslim@lists.xmission.com=20 Sent: Thursday, March 21, 2002 11:19 AM Subject: Re: [CANSLIM] MicroCaps Fred: I too see the financials moving although I have not ventured = into the micro-caps. My general rule is to invest $25,000 to $30,000 in = any given stock, and I would follow that rule even with micro-caps. Can = you briefly explain the downside? For example, if I bought $25,000 of = NASB, would I have any trouble unloading tomorrow? Charley=20 - ------=_NextPart_000_0154_01C1D12C.DCC07090 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 6.00.2713.1100" name=3DGENERATOR> <STYLE></STYLE> </HEAD> <BODY bgColor=3D#ffffff> <DIV><FONT face=3DArial>Chaz,</FONT></DIV> <DIV><FONT face=3DArial></FONT> </DIV> <DIV><FONT face=3DArial>One (among many) problems in trying to invest = (vs trading)=20 in small caps that are both low priced and thinly traded is the lack of=20 liquidity. The four times I bot EPIQ, the ADV was under 10,000. Didn't = stop me=20 making very respectable money on it, but I did have to buy it with a = long term=20 perspective, and a willingness to sell it only after a lot of other = retail=20 investors (and eventually mutual funds) discovered it and placed it = under=20 demand. That also meant being willing to hold it thru the hard times, = when a few=20 hundred shares sold could move it down sharply, because I believed in = the=20 business model given the state of the economy at that time.</FONT></DIV> <DIV><FONT face=3DArial></FONT> </DIV> <DIV><FONT face=3DArial>Same is true of MDII, which just gave me nearly = a 100%=20 return in under a year. Volume was very sporadic, often trading next to = no=20 shares at all. But when the buyout was announced, I could have sold = hundreds of=20 thousands of shares without a problem or a price penalty.</FONT></DIV> <DIV><FONT face=3DArial></FONT> </DIV> <DIV><FONT face=3DArial>That's one of the many reasons why I don't post = my stocks,=20 they just are not suitable for most investors, much less=20 CANSLIMers.</FONT></DIV> <DIV><FONT face=3DArial></FONT> </DIV> <DIV>Tom Worley<BR><A=20 href=3D"mailto:stkguru@bellsouth.net">stkguru@bellsouth.net</A><BR>AIM:=20 TexWorley</DIV> <DIV style=3D"FONT: 10pt arial">----- Original Message -----=20 <DIV style=3D"BACKGROUND: #e4e4e4; font-color: black"><B>From:</B> <A=20 title=3Dgenr@swbell.net href=3D"mailto:genr@swbell.net">Gene Ricci</A> = </DIV> <DIV><B>To:</B> <A title=3Dcanslim@lists.xmission.com=20 href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>= </DIV> <DIV><B>Sent:</B> Thursday, March 21, 2002 12:44 PM</DIV> <DIV><B>Subject:</B> Re: [CANSLIM] MicroCaps</DIV></DIV> <DIV><BR></DIV> <DIV><FONT face=3D"Comic Sans MS">Charley, I'm not Fred.... = I bought a lot=20 less than $25,000 and it took me 7 days to get in.....without really = raising the=20 price. </FONT></DIV> <DIV><FONT face=3D"Comic Sans MS"></FONT> </DIV> <DIV><FONT face=3D"Comic Sans MS">If you buy $25,000 @ $19.70 you'll = want over 1k=20 shares.... it's 11:30 CDT and zero shares </FONT><FONT face=3D"Comic = Sans MS">have=20 been traded today (normal 1300 shares) ... if you can afford to sell = slowly=20 probably no big deal.... but to sell 1k+ </FONT> <FONT=20 face=3D"Comic Sans MS">in one day will most likely cause you significant = PAIN!=20 Today's ask is $19.70 and bid $19.00... no bites... what price would = interest a=20 buyer to buy 1K shares today???</FONT></DIV> <DIV><FONT face=3D"Comic Sans MS"></FONT> </DIV> <DIV><FONT face=3D"Comic Sans MS">Gene</FONT></DIV> <BLOCKQUOTE=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=3DChazmoore@aol.com=20 href=3D"mailto:Chazmoore@aol.com">Chazmoore@aol.com</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> Thursday, March 21, 2002 = 11:19=20 AM</DIV> <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] = MicroCaps</DIV> <DIV><BR></DIV><FONT face=3Darial,helvetica><FONT size=3D2>Fred: I too = see the=20 financials moving although I have not ventured into the micro-caps. My = general=20 rule is to invest $25,000 to $30,000 in any given stock, and I would = follow=20 that rule even with micro-caps. Can you briefly explain the downside? = For=20 example, if I bought $25,000 of NASB, would I have any trouble = unloading=20 tomorrow? Charley</FONT> </FONT></BLOCKQUOTE></BODY></HTML> - ------=_NextPart_000_0154_01C1D12C.DCC07090-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
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