Re: [CANSLIM] BRLI

From: Ian <ianstm@shaw.ca>
Subject: Re: [CANSLIM] BRLI
Date: Tue, 26 Mar 2002 15:43:57 -0800

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Actually, if you just go through the letters in CANSLIM, there is nothing in
them about price or volume :)

I consider myself a true-blue f'fundamental' CANSLIM investor - looking at
revenue and earnings growth, strong margins, some new product/service/market
that is about to ramp the companies forward EPS, lots of demand and limited
supply, companies leading their market and institutions jumping on board.
(Where I differ from the "norm" is that I also like to see a low relative
historical valuation, and I don't care as much about price or starting ADV -
but I care a LOT about volume changes once the stock starts moving.)

Because the low price stocks tend to trade at much lower valuations, they
are MUCH more resistant to getting dragged down with 'M", so I can
underweight it - but you have to be very careful about only buying strong
sectors.

IMHO, most current IBD CANSLIM stocks are grossly negligent in their
complete dismissal of the original 'S' criteria.  Microcaps can kick you in
the back of the head telling you that 'S' is about to propel them upwards.
Look at the volume on NBSC from Feb 13 onwards. The increase from its
week-earlier ADV is an order of magnitude. When the stock is cheap, hitting
new highs, growing with strong EPS and a sound outlook ... and that kind of
'S' picture suddenly emerges, the stock has nowhere to go but up.

My experience is that my percentage of winning stocks appears to be way
higher doing it this way than if I just jumped on volume breakouts of $16+
80 80.  The main problem doing it my way is that I end up with far fewer
candidates in a given timeframe.

My 2 cents.


Cheers,

Ian




- ----- Original Message -----
From: Bill Triffet <btriffet@earthlink.net>
To: <canslim@lists.xmission.com>
Sent: Tuesday, March 26, 2002 2:10 PM
Subject: Re: [CANSLIM] BRLI


> To echo Tim's comment: one of the refreshing things about canslim (and
this
> group) is the restraint from "fortune telling". Bottom line: it's still
> under canslim radar. If you bought today then how do you apply the proper
> sell rules now? Stocks under $10 bucks historically can swing huge
> percentages.
>
> If your new to canslim, read HTMMIS (at least once) then wait for the
issues
> that meet the basic requirements. It will save you MUCH anguish. Trust me
on
> this! (g)
>
> -Bill
>
>
>
>
>
> ----- Original Message -----
> From: <AlpineTap34@aol.com>
> To: <canslim@lists.xmission.com>
> Sent: Tuesday, March 26, 2002 12:20 PM
> Subject: Re: [CANSLIM] BRLI
>
>
> > it will
> >
>
>
> -
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> -In the email body, write "subscribe canslim" or
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