[CANSLIM] Low handle

From: Davellil5@aol.com
Subject: [CANSLIM] Low handle
Date: Fri, 5 Apr 2002 16:55:28 EST

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A first for me.  First time I've run into a good CANSLIM candidate with a 
handle 33% below the high point on the left side of the cup or W.  And first 
time I'm asking for any comments from the group as a whole.

The stock in question started a W-formation  last August. This March, it 
began a handle.  The high point of the left wall of the W was around 60.  The 
pivot of the handle is about 40.  The stock just broke out of the handle on a 
strong upgap on 80% above average volume.

Obviously, the stock is not within WON's rule against buying 15% below the 
52-week high.  

How far below the start of the cup or W can a handle form for a stock still 
to be regarded  as a timely buy?  Is 33% too far -- if a stock really shines 
on all other CANSLIM criteria?

Incidentally, IBD ranks the stock at 79 99 52 C- A B.  The 79 RS reflects 
that 33% gap still remaining between start of base formation and current 
price level.  I discount the 
C- Industry ranking because the Company is in a niche business.  In this 
market, I've observed that stocks that rise tend to be of Companies with 
niche-manship.  They tend to march to their own drummer.  They buck their 
industry groups.

So -- any advice, based on what I've disclosed here?

Regards, Dave      

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