RE: [CANSLIM] Canslim Evaluation Tool

From: "Mike Gibbons" <mikegibbons@proactech.com>
Subject: RE: [CANSLIM] Canslim Evaluation Tool
Date: Tue, 2 Apr 2002 22:02:39 -1000
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To Tim,

I wonder if you would pour such similar scorn on other stocks that rate a 94
on Investors.com (with two best in groups!).

Yes it's 30% below it's high but does that disqualify it as a CANSLIM stock?
Also, as I understand CANSLIM, there is nothing in the definition that
speaks of 50 or 200dma's, although they may well be additional metrics to
add to the mix of decision making tools. If I'm wrong please correct me.

To Tom's more rational response, I would make the following comments and ask
for more commentary:

- - overhead resistance? when stocks start climbing the right side of the cup,
the overhead resistance is always there, but many overcome it. We try to
identify such potential candidates. Would a stock that's 30% off it's high
be automatically excluded from consideration.

- - industry is a D: yup, few stocks are perfect

- - no buying? As I see it, the stock experienced buying from 3/4 to 3/7 and
then formed a classic downward wedging handle. It then rose again and is
forming a second handle. Is there another source of information I'm missing
apart from what's in the chart?

- - cash flow: Not part of the CANSLIM definition as I understand it but maybe
I should incorporate it into the analysis. What should be the parameters?

- - earnings forecast of "only 12% growth": again not a formal CANSLIM
component, but I wonder what the average forecast is? 12% sounds pretty good
to me in an economy that may grow 3.5% if we're lucky. What would be the
standard that you would look for?

I have no interest in touting this stock, but it came on to my radar screen
and I shared it with you all as the best CWH and CANSLIM candidate I have
seen recently. This is the type of discussion I had hoped to generate so I
can improve the tool. Thank you for your input - I look forward to your
responses.

Aloha,

Mike Gibbons
Proactive Technologies, LLC
http://www.proactech.com


- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Tim Fisher
Sent: Tuesday, April 02, 2002 4:19 PM
To: canslim@lists.xmission.com
Subject: RE: [CANSLIM] Canslim Evaluation Tool


A stock 30% below its 52 wk high and with the 50dma under the 200 gets a
10? Out of what, 100? Seriously, how is this a CANSLIM chart?

At 04:11 PM 4/2/2002 -1000, you wrote:
>Duke,
>
>(and others) here's one for you... AHMH ... a "10"  - lacking only industry
>ranking
>
>Aloha,
>
>Mike Gibbons
>Proactive Technologies, LLC
>http://www.proactech.com
>
>
>-----Original Message-----
>From: owner-canslim@lists.xmission.com
>[mailto:owner-canslim@lists.xmission.com]On Behalf Of Duke Miller
>Sent: Tuesday, April 02, 2002 9:09 AM
>To: canslim@lists.xmission.com
>Subject: RE: [CANSLIM] Canslim Evaluation Tool
>
>
>Bill,
>
>Great input here.  How about a show of hands of those who've been
>stopped out of A+ Stock Checkup stocks!
>
>And as always, thanks, Mike.  I'm one of the heavy users, and if it
>doesn't hit 6/11 or better, I'm onto the next one.
>
>Duke
>
>-----Original Message-----
>From: owner-canslim@lists.xmission.com
>[mailto:owner-canslim@lists.xmission.com] On Behalf Of Bill Triffet
>Sent: Monday, March 25, 2002 1:56 PM
>To: canslim@lists.xmission.com
>Subject: Re: [CANSLIM] Canslim Evaluation Tool
>
>
>Mike,
>
>First, I'd like to say thanks for the tool.
>
>I have yet to see anyone else - WON's products included - attempt to do
>something so basic as rate a stock directly to the c-a-n-s-l-i-m acronym
>attributes. Maybe because it's such a subjective thing that it's easier
>to dance around the numbers than really grade a stock based on canslim.
>The Stock Evaluator on the IBD site is pretty weak with in that regard.
>I guess if they actually graded a stock on ACTUAL IBD canslim data that
>would be construed as touting a stock. This is why most of us go to at
>least 3-5 different places to review a stock or use Daily Graphs where
>the data is all there but not exactly spelled out so as to not tout the
>issue.
>
>I think it's a great tool in addition to several others. Given it's
>price
>(g) I have no complaints and it comes close in some of the canslim
>criteria for me. Things like (M)arket direction and (N)ew can be very
>subjective and must be reviewed several ways. Come to think of it,
>lately when I see a high
>(L) rating it's usually extended as that is how it got there. I'm of the
>consensus of several others here that with data being so immediate, it's
>better to look for the gems in rising groups - not at the top.
>
>-Bill
>
>
>----- Original Message -----
>From: "Mike Gibbons" <mike@proactech.com>
>To: <canslim@lists.xmission.com>
>Sent: Monday, March 25, 2002 10:24 AM
>Subject: [CANSLIM] Canslim Evaluation Tool
>
>
> >
> > Since I released this tool to the group on 3/13, I (and my server)
> > have
>been
> > overwhelmed with the response. 182 of you have used the tool at least
> > once and several of you have accessed it frequently. Some of you are
> > using it extensively - the current record is 100 stocks analyzed by
> > one list subscriber in a single day!
> >
> > Apart from being pleasantly surprized at the use that many of you are
>making
> > of it, I'm also surprized that only one of you has questioned the
> > validity of the data, and the assumptions that go into the pass/fail
> > ranking. I was expecting a lively debate about the definitions of
> > CANSLIM and their applicability in the recent market conditions.
> >
> > For those of you who may have missed it, the link is
> > http://www.cwhcharts.com/canslim
> >
> > Aloha,
> >
> > Mike Gibbons
> > Proactive Technologies, LLC
> > http://www.proactech.com

Tim Fisher
Ore-ROCK-On Rockhounding Web Site
Owner, Fisher Fisheries, Ltd.
mailto:tim@OreRockOn.com
WWW http://OreRockOn.com


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