Go to Jeff Salisbury LWGate Home Page.From: "William King" <wk11@adelphia.net>
Subject: Re: [CANSLIM] DFXI
Date: Mon, 1 Apr 2002 13:03:12 -0500
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Makes sense. Thanks Katherine.
Bill King
----- Original Message -----=20
From: Katherine Malm=20
To: canslim@lists.xmission.com=20
Sent: Monday, April 01, 2002 2:24 AM
Subject: Re: [CANSLIM] DFXI
Hi Bill,
I think insider buying and selling is useful, but only in context. For =
example, if I see that the stock is making new lows and there is a rash =
of insider selling....bad sign. If there has been no insider action for =
some time and then suddenly the buying action picks up...that might be a =
good sign. It's also helpful to know who is selling and what their =
personal selling patterns are. Have they suddenly changed? If I were =
looking at two stocks that were essentially equal in all respects, I'd =
choose the stock that had little or no insider selling and/or some =
insider buying over a stock that had persistent insider selling. From a =
CANSLIM perspective, WON advocates selecting stocks where there is =
evidence of insider buying for the same reason he advocates buying =
stocks of companies that are buying back their own stock in the open =
market. Just a sign of confidence...or as he says signs they're willing =
to "eat their own cooking." And as Martha Stewart would say "that's a =
good thing."
Katherine
----- Original Message -----=20
From: William King=20
To: canslim@lists.xmission.com=20
Sent: Sunday, March 31, 2002 11:51 AM
Subject: Re: [CANSLIM] DFXI
Thanks to all for the interesting and educational dialogue on DFXI. =
I note from DGO that there has been consistent insider buying and =
selling. I haven't run across a WON position on that yet. Is that =
something you consider or accept as normal practice?
Bill King
--- Original Message -----=20
From: Katherine Malm=20
To: canslim@lists.xmission.com=20
Sent: Sunday, March 31, 2002 9:04 AM
Subject: Re: [CANSLIM] DFXI
I agree with you all that this is textbook CANSLIM down to the =
leadership status, savvy business planning, high ROE, high Sales/EPS =
growth, low institutional ownership, share buyback, etc. (They also own =
Nautilus sleep systems....those mattresses that have air chambers =
instead of box springs and compete with Select Comfort)...Good point =
about buying TV ad time on the cheap, Robert....more business savvy. My =
concern was that the breakout coincided with an upgrade by US Piper =
Jaffray (didn't notice that high short interest until Ian pointed it =
out). That, combined with a lot of CANSLIM eyes on the stock makes me =
wary about the timing, not the validity of the stock itself. I'll bet =
there'll be plenty of "second chances" for entry near the pivot on this =
one. (Hopefully no high-volume-rock-pullbacks for your sakes Charley and =
Robert!)
Ian...a question for you--If you were to find a company like DFXI =
that fit all your requirements except the low price/microcap status you =
prefer....would you pass? Seems that when you look back on a long term =
chart of stocks like INTC, DELL, CSCO that were once $25 "pricey" =
stocks, those prices now look like tiny blips in comparison.
Happy Easter,
Katherine
----- Original Message -----=20
From: Chazmoore@aol.com=20
To: canslim@lists.xmission.com=20
Sent: Saturday, March 30, 2002 11:33 PM
Subject: Re: [CANSLIM] DFXI
Robert, Katherine, and Spencer:=20
Direct Focus, in my opinion, is basically a marketing company =
that has chosen to sell high quality leisure equipment. They have =
"branded" their products through heavy spot TV commercials, =
infomercials, Internet, response mailings and print media. Their =
products include Bowflex, Nautilus, Schwinn, and StairMaster. One strong =
trait is their ability to set the product price and hold it for an =
extended period of time. I sent off for their free video tape over a =
year ago and the Bowflex prices have not changed. They are growing =
through acquisition which is reducing their fixed costs, and they are a =
clear leader in their industry. Their IBD Industry Classification, =
Leisure-Products, has done quite well over the last several months.=20
Having said all that, the stock price could drop like a rock =
Monday, and if it does, I'm gone.=20
Charley=20
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<DIV><FONT face=3DArial size=3D2>Makes sense. Thanks =
Katherine.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Bill King</FONT></DIV>
<BLOCKQUOTE dir=3Dltr=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=3Dkmalm@earthlink.net =
href=3D"mailto:kmalm@earthlink.net">Katherine=20
Malm</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> Monday, April 01, 2002 =
2:24=20
AM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] =
DFXI</DIV>
<DIV><BR></DIV>
<DIV>Hi Bill,</DIV>
<DIV> </DIV>
<DIV>I think insider buying and selling is useful, but only in =
context. For=20
example, if I see that the stock is making new lows and there is a =
rash of=20
insider selling....bad sign. If there has been no insider action for =
some time=20
and then suddenly the buying action picks up...that might be a good =
sign. It's=20
also helpful to know who is selling and what their personal selling =
patterns=20
are. Have they suddenly changed? If I were looking at two stocks that =
were=20
essentially equal in all respects, I'd choose the stock that had =
little or no=20
insider selling and/or some insider buying over a stock that had =
persistent=20
insider selling. From a CANSLIM perspective, WON advocates =
selecting=20
stocks where there is evidence of insider buying for the same reason =
he=20
advocates buying stocks of companies that are buying back their own =
stock in=20
the open market. Just a sign of confidence...or as he says signs =
they're=20
willing to "eat their own cooking." And as Martha Stewart would say =
"that's a=20
good thing."</DIV>
<DIV> </DIV>
<DIV>Katherine</DIV>
<BLOCKQUOTE dir=3Dltr=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=3Dwk11@adelphia.net =
href=3D"mailto:wk11@adelphia.net">William King</A>=20
</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>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Sunday, March 31, 2002 =
11:51=20
AM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] =
DFXI</DIV>
<DIV><BR></DIV>
<DIV><FONT face=3DArial size=3D2>Thanks to all for the interesting =
and=20
educational dialogue on DFXI. I note from DGO that there has=20
been consistent insider buying and selling. I haven't run =
across a WON=20
position on that yet. Is that something you consider or accept as =
normal=20
practice?</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Bill King</FONT></DIV>
<DIV>--- Original Message ----- </DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Dkmalm@earthlink.net =
href=3D"mailto:kmalm@earthlink.net">Katherine=20
Malm</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Sunday, March 31, =
2002 9:04=20
AM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] =
DFXI</DIV>
<DIV><BR></DIV>
<DIV>I agree with you all that this is textbook CANSLIM down to =
the=20
leadership status, savvy business planning, high ROE, high =
Sales/EPS=20
growth, low institutional ownership, share buyback, etc. (They =
also own=20
Nautilus sleep systems....those mattresses that have air chambers =
instead=20
of box springs and compete with Select Comfort)...Good point about =
buying=20
TV ad time on the cheap, Robert....more business savvy. My concern =
was that the breakout coincided with an upgrade by US Piper =
Jaffray=20
(didn't notice that high short interest until Ian pointed it out). =
That,=20
combined with a lot of CANSLIM eyes on the stock makes me wary =
about the=20
timing, not the validity of the stock itself. I'll bet there'll be =
plenty=20
of "second chances" for entry near the pivot on this one. =
(Hopefully=20
no high-volume-rock-pullbacks for your sakes Charley and=20
Robert!)</DIV>
<DIV> </DIV>
<DIV>Ian...a question for you--If you were to find a company like =
DFXI=20
that fit all your requirements except the low price/microcap =
status you=20
prefer....would you pass? Seems that when you look back on a =
long=20
term chart of stocks like INTC, DELL, CSCO that were once $25 =
"pricey"=20
stocks, those prices now look like tiny blips in =
comparison.</DIV>
<DIV> </DIV>
<DIV>Happy Easter,</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=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=20
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Saturday, March 30, =
2002=20
11:33 PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] =
DFXI</DIV>
<DIV><BR></DIV><FONT face=3Darial,helvetica><FONT =
size=3D2>Robert,=20
Katherine, and Spencer: <BR>Direct Focus, in my opinion, is =
basically a=20
marketing company that has chosen to sell high quality leisure=20
equipment. They have "branded" their products through heavy spot =
TV=20
commercials, infomercials, Internet, response mailings and print =
media.=20
Their products include Bowflex, Nautilus, Schwinn, and =
StairMaster. One=20
strong trait is their ability to set the product price and hold =
it for=20
an extended period of time. I sent off for their free video tape =
over a=20
year ago and the Bowflex prices have not changed. They are =
growing=20
through acquisition which is reducing their fixed costs, and =
they are a=20
clear leader in their industry. Their IBD Industry =
Classification,=20
Leisure-Products, has done quite well over the last several =
months.=20
<BR><BR>Having said all that, the stock price could drop like a =
rock=20
Monday, and if it does, I'm gone. <BR><BR>Charley=20
=
<BR></BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></FONT></FONT></B=
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