Re: [CANSLIM] BRLI

From: John Hone <jhone@comcast.net>
Subject: Re: [CANSLIM] BRLI
Date: Thu, 28 Mar 2002 18:41:10 -0500
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Tom,
     The primary problem with low priced stocks is securing reliable data to
make a decision.  Most low priced stocks, as you point out are not followed,
are illiquid and are subject to frequent surprises (positive as well as
negative)    John



- ----- Original Message -----
From: "Tom Worley" <stkguru@bellsouth.net>
To: <canslim@lists.xmission.com>
Sent: Thursday, March 28, 2002 9:07 AM
Subject: Re: [CANSLIM] BRLI


> John,
>
> I have no idea which definition you use when you see a stock as a "penny
> stock". During my early years as a stock broker, we considered anything
> trading under $1.00 (e.g. actually quoted in pennies) as a penny stock.
> Gradually over time the definition rose to anything under $5.00. I even
had
> one client that defined anything trading on NASDAQ as a penny stock (he
> didn't like it when I pointed out various Naz listings like MSFT)!!
>
> My personal choice for applying CANSLIM is low priced small and micro cap
> stocks. I still apply CANSLIM principles, along with chart reading, TA,
> news, etc. An example is DOCC, currently trading $7.42. However it has an
RS
> of 96 and an EPS of 84. Forecast for this year is a 57% growth in
earnings,
> with another 22% next year. Industry group is A, SMR is B. And I, and
others
> in the group with the experience and risk tolerance, can make money on
> stocks like this while still applying most CANSLIM criteria.
>
> I would also point out that this is not a terrible violation of WON
> guidance, as I can find many stocks he includes in his DG books that are
> trading at low prices, low volume, or low market cap. In fact, when I
first
> started using WON services well over a decade ago, most of his daily
"picks"
> were in the mid cap to small cap range.
>
> I also recognize that micro or small cap stocks are neither mainstream
> CANSLIM, nor suitable for most investors. They are more volatile, and
> certainly higher risk, that bigger and more established companies. They
are
> often not followed by major analysts, if by any analyst at all (then
again,
> the anal ists didn't do real good on Enron, Global Crossings, etc). So I
> rarely discuss my personal buys here, as they reflect my own personal
> interpretation and application of CANSLIM. But you can bet when I do, I
> don't consider them a "penny stock", but rather a largely undiscovered
gem.
>
> Price does not create value or opportunity, good business execution does
> that.
>
> Tom Worley
> stkguru@bellsouth.net
> AIM: TexWorley
> ----- Original Message -----
> From: "John Hone" <jhone@comcast.net>
> To: <canslim@lists.xmission.com>
> Sent: Wednesday, March 27, 2002 7:37 PM
> Subject: Re: [CANSLIM] BRLI
>
>
> It's beyond my ken as to why so much of the mail in the Canslim board is
> devoted to penny stocks and the like.  Why not take these non-canslim
ideas
> to a better board?
>
>
> ----- Original Message -----
> From: "Ian" <ianstm@shaw.ca>
> To: <canslim@lists.xmission.com>
> Sent: Wednesday, March 27, 2002 12:12 PM
> Subject: Re: [CANSLIM] BRLI
>
>
> > A good example of an illiquid microcap (with just 4 million shares out),
> > where the volume changes:
> >
> > Before:
> > http://table.finance.yahoo.com/d?a=8&b=14&c=01&d=8&e=20&f=01&g=d&s=mtec
> >
> > After:
> > http://finance.yahoo.com/q?s=mtec&d=t
> >
> > 10% of the outstanding shares in a day is almost unheard of, but it
helps
> > illustrate the point :)
> >
> >
> > Ian
> >
> >
> >
> > -
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>
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