Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] PPDI Prevailing Wisdom on Earnings Announcment
Date: Wed, 27 Mar 2002 13:28:37 -0600
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This is a multi-part message in MIME format. - ------=_NextPart_000_0033_01C1D593.4D596EA0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Dave, I can understand what you mean if, after a stock breaks out on volume, = profit taking on the earnings might contribute to a throwback on light = volume to the pivot. But if the stock were purchased on the valid = breakout to begin with, it would make no difference in the long run, = unless the pullback on earnings was on high volume and/or forced the = price below the pivot. (Then, I would be inclined to sell if I were in = at that point) If, on the other hand you are talking about buying early, = while the stock is still in the base, I would stay away in any case, = pullback on earnings or no. That said, I agree with you that price action around earnings times is = often uncharacteristic of the "usual" price/volume action. I see the = same thing when a stock is rumored to be a candidate for addition to a = major index. Katherine ----- Original Message -----=20 From: Davellil5@aol.com=20 To: kmalm@earthlink.net ; canslim@lists.xmission.com=20 Sent: Wednesday, March 27, 2002 1:15 PM Subject: Re: [CANSLIM] PPDI Prevailing Wisdom on Earnings Announcment I don't remember any CANSLIM rule on not buying just before an = earnings=20 announcement. But I do follow that rule because stocks tend to rise in anticipation = of a=20 favorable surprise, after which there is profit taking. So, if a = stock has=20 broken out of a base, I usually get it cheaper if I wait until after = an=20 earnings announcement --- it there is one coming up shortly. Dave S. - -To subscribe/unsubscribe, email "majordomo@xmission.com" -In the email body, write "subscribe canslim" or -"unsubscribe canslim". Do not use quotes in your email. - ------=_NextPart_000_0033_01C1D593.4D596EA0 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 6.00.2600.0" name=3DGENERATOR> <STYLE></STYLE> </HEAD> <BODY bgColor=3D#ffffff> <DIV>Dave,</DIV> <DIV> </DIV> <DIV>I can understand what you mean if, after a stock = breaks out=20 on volume, profit taking on the earnings might contribute to a throwback = on=20 light volume to the pivot. But if the stock were purchased on the valid = breakout=20 to begin with, it would make no difference in the long run, unless the = pullback=20 on earnings was on high volume and/or forced the price below the pivot. = (Then, I=20 would be inclined to sell if I were in at that point) If, on = the other=20 hand you are talking about buying early, while the stock is still in the = base, I=20 would stay away in any case, pullback on earnings or no.</DIV> <DIV> </DIV> <DIV>That said, I agree with you that price action around earnings times = is=20 often uncharacteristic of the "usual" price/volume action. I see the = same thing=20 when a stock is rumored to be a candidate for addition to a major = index.</DIV> <DIV> </DIV> <DIV>Katherine</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=3DDavellil5@aol.com=20 href=3D"mailto:Davellil5@aol.com">Davellil5@aol.com</A> </DIV> <DIV style=3D"FONT: 10pt arial"><B>To:</B> <A = title=3Dkmalm@earthlink.net=20 href=3D"mailto:kmalm@earthlink.net">kmalm@earthlink.net</A> ; <A=20 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> Wednesday, March 27, 2002 = 1:15=20 PM</DIV> <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] PPDI = Prevailing=20 Wisdom on Earnings Announcment</DIV> <DIV><BR></DIV>I don't remember any CANSLIM rule on not buying just = before an=20 earnings <BR>announcement.<BR><BR>But I do follow that rule because = stocks=20 tend to rise in anticipation of a <BR>favorable surprise, after which = there is=20 profit taking. So, if a stock has <BR>broken out of a base, I = usually=20 get it cheaper if I wait until after an <BR>earnings announcement --- = it there=20 is one coming up shortly.<BR><BR>Dave S.<BR><BR>-<BR>-To=20 subscribe/unsubscribe, email "<A=20 = href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>-In= the=20 email body, write "subscribe canslim" or<BR>-"unsubscribe = canslim". Do=20 not use quotes in your email.</BLOCKQUOTE></BODY></HTML> - ------=_NextPart_000_0033_01C1D593.4D596EA0-- - - - -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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