Re: [CANSLIM] Chico's CHS


From: "Ira Post" <ip108@yahoo.com>
Subject: Re: [CANSLIM] Chico's CHS
Date: Sun, 14 Apr 2002 20:52:18 -0400

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I bought CHS last fall and sold it earlier this year.  After a run of =
more than 50%, the price started to falter, the p/e was very high and =
sales seemed to be settling down about.  It's a very good company and =
may have another run in it, but I'll pass.

Ira
  ----- Original Message -----=20
  From: Tom Worley=20
  To: canslim@lists.xmission.com=20
  Sent: Sunday, April 14, 2002 7:16 PM
  Subject: Re: [CANSLIM] Chico's CHS


  what I see is a decline in net after tax profit margins, combined with =
funds ownership of 46%. On top of that, cash flow fell below latest full =
year earnings. According to what DGO is showing, they will have to have =
four back to back record quarters in fiscal '03 to even come close to =
the full year forecast.

  Tom Worley
  stkguru@bellsouth.net
  AIM: TexWorley
  ----- Original Message -----=20
  From: Mona Guarino=20
  To: canslim@lists.xmission.com=20
  Sent: Sunday, April 14, 2002 9:59 PM
  Subject: RE: [CANSLIM] Chico's CHS


  John, couple cautions:

  1. C: WON makes a point of saying to look for not only good a =
quarter-on-quater EPS improvement, but to look for accelerating earning. =
I don't see that here.

  2. chart: base, not just handle, seems short. I remember (re)reading =
recently to beware of short bases as they are more failure-prone, esp. =
in bear markets. I think WON says 1 or 2 weeks. I agree with your point =
that changes in availability of data may justify a shorter period, I =
think at least a week or more would be required in order for an extreme =
volume dry-up at low end

  Overall, I agree it looks like a CANSLIM stock, just not sure it's the =
right time, and, I confess, I see the market as overall scary rather =
than bullish, even in that sector.

  I'm interested to hear others' comments on this one.

  -- Mona

   -----Original Message-----
  From: owner-canslim@lists.xmission.com =
[mailto:owner-canslim@lists.xmission.com]On Behalf Of John Lessnau
  Sent: Sunday, April 14, 2002 2:57 PM
  To: canslim@lists.xmission.com
  Subject: [CANSLIM] Chico's CHS


    I am considering CHS - Chico's Fashion, Inc.  Here is why...


    The chart looks to be in the final stages of a cup.  I little longer =
handle is needed (I believe WON recommends a 4 - 8 week handle) but is =
that really possible in today's information age?  Back when "How to Make =
Money in Stocks" was written the Web barely existed and only the most =
dedicated CANSLIMers and Stock pros could find these stocks. Today, any =
schmoe can find these stocks much more easily then before which may make =
entry point a little quicker then in the past.

    The CHS Stats:

    a.. C: Five quarters of solid earnings with one year Q to Q increase =
of 67%=20
    a.. A:  HOV 5 year annually earnings per share show outstanding =
growth.  .077 to 1.007 increase in EPS over past 5 years.=20
    a.. N: "Buy stocks as they are making new highs"  CHS is only 5% =
below 52 week high.=20
    a.. S: Only 40,182,680 shares outstanding.=20
    a.. L:  Technical Rating of 96 puts it 14 out of 65 stocks in its =
sector.=20
    a.. I:  35% institutional ownership.=20
    a.. M:  In a bullish sector that's ahead of the bear market.

    If this is not a CANSLIM stock, I give up.....  Should I wait for =
the handle to play out a little the catch a volume spike and a price =
jump before I buy?

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<DIV><FONT face=3DArial size=3D2>I bought CHS last fall and sold it =
earlier this=20
year.&nbsp; After a run of more than 50%, the price started to falter, =
the p/e=20
was very high and sales seemed to be settling down about.&nbsp; It's a =
very good=20
company and may have another run in it, but I'll pass.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial size=3D2>Ira</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=3Dstkguru@bellsouth.net =
href=3D"mailto:stkguru@bellsouth.net">Tom=20
  Worley</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> Sunday, April 14, 2002 =
7:16=20
PM</DIV>
  <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] Chico's =
CHS</DIV>
  <DIV><BR></DIV>
  <DIV><FONT face=3DArial>what I see is a decline in net after tax =
profit margins,=20
  combined with funds ownership of 46%. On top of that, cash flow fell =
below=20
  latest full year earnings. According to what DGO is showing, they will =
have to=20
  have four back to back record quarters in fiscal '03 to even come =
close to the=20
  full year forecast.</FONT></DIV>
  <DIV>&nbsp;</DIV>
  <DIV>Tom Worley<BR><A=20
  =
href=3D"mailto:stkguru@bellsouth.net">stkguru@bellsouth.net</A><BR>AIM:=20
  TexWorley</DIV>
  <DIV style=3D"FONT: 10pt arial">----- Original Message -----=20
  <DIV style=3D"BACKGROUND: #e4e4e4; font-color: black"><B>From:</B> <A=20
  title=3Dwebmaster@design21.com =
href=3D"mailto:webmaster@design21.com">Mona=20
  Guarino</A> </DIV>
  <DIV><B>To:</B> <A title=3Dcanslim@lists.xmission.com=20
  =
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
 </DIV>
  <DIV><B>Sent:</B> Sunday, April 14, 2002 9:59 PM</DIV>
  <DIV><B>Subject:</B> RE: [CANSLIM] Chico's CHS</DIV></DIV>
  <DIV><BR></DIV>
  <DIV><SPAN class=3D490384401-15042002><FONT face=3DArial =
color=3D#0000ff=20
  size=3D2>John, couple cautions:</FONT></SPAN></DIV>
  <DIV><SPAN class=3D490384401-15042002><FONT face=3DArial =
color=3D#0000ff=20
  size=3D2></FONT></SPAN>&nbsp;</DIV>
  <DIV><SPAN class=3D490384401-15042002><FONT face=3DArial =
color=3D#0000ff size=3D2>1.=20
  C: WON makes a point of saying to look for not only good a =
quarter-on-quater=20
  EPS improvement, but to look for <SPAN=20
  style=3D"FONT-SIZE: 12pt; FONT-FAMILY: Arial; mso-fareast-font-family: =
'Times New Roman'; mso-ansi-language: EN-US; mso-fareast-language: =
EN-US; mso-bidi-language: AR-SA"><FONT=20
  color=3D#000000>accelerating </FONT></SPAN>earning. I don't see that=20
  here.</FONT></SPAN></DIV>
  <DIV><SPAN class=3D490384401-15042002><FONT face=3DArial =
color=3D#0000ff=20
  size=3D2></FONT></SPAN>&nbsp;</DIV>
  <DIV><SPAN class=3D490384401-15042002><FONT face=3DArial =
color=3D#0000ff size=3D2>2.=20
  chart: base, not just handle, seems short. I remember (re)reading =
recently to=20
  beware of short bases as they are more failure-prone, esp. in bear =
markets. I=20
  think WON says 1 or 2 weeks. I agree with your point that changes in=20
  availability of data may justify a shorter period, I think at least a =
week or=20
  more would be required in order for&nbsp;an</FONT></SPAN><SPAN=20
  class=3D490384401-15042002><FONT face=3DArial color=3D#0000ff =
size=3D2> extreme volume=20
  dry-up at low end</FONT></SPAN></DIV>
  <DIV><SPAN class=3D490384401-15042002><FONT face=3DArial =
color=3D#0000ff=20
  size=3D2></FONT></SPAN>&nbsp;</DIV>
  <DIV><SPAN class=3D490384401-15042002><FONT face=3DArial =
color=3D#0000ff=20
  size=3D2>Overall, I agree it looks like a CANSLIM stock, just not sure =
it's the=20
  right time, and, I confess, I see the market as overall scary rather =
than=20
  bullish, even in that sector.</FONT></SPAN></DIV>
  <DIV><SPAN class=3D490384401-15042002><FONT face=3DArial =
color=3D#0000ff=20
  size=3D2></FONT></SPAN>&nbsp;</DIV>
  <DIV><SPAN class=3D490384401-15042002><FONT face=3DArial =
color=3D#0000ff size=3D2>I'm=20
  interested to hear others' comments on this one.</FONT></SPAN></DIV>
  <DIV><SPAN class=3D490384401-15042002><FONT face=3DArial =
color=3D#0000ff=20
  size=3D2></FONT></SPAN><SPAN class=3D490384401-15042002><FONT =
face=3DArial=20
  color=3D#0000ff size=3D2></FONT></SPAN>&nbsp;</DIV>
  <DIV><SPAN class=3D490384401-15042002><FONT face=3DArial =
color=3D#0000ff size=3D2>--=20
  Mona</FONT></SPAN></DIV>
  <DIV><SPAN class=3D490384401-15042002><FONT face=3DArial =
color=3D#0000ff=20
  size=3D2></FONT></SPAN>&nbsp;</DIV>
  <DIV><SPAN class=3D490384401-15042002>&nbsp;</SPAN><FONT face=3DTahoma =

  size=3D2>-----Original Message-----<BR><B>From:</B>=20
  owner-canslim@lists.xmission.com=20
  [mailto:owner-canslim@lists.xmission.com]<B>On Behalf Of </B>John=20
  Lessnau<BR><B>Sent:</B> Sunday, April 14, 2002 2:57 PM<BR><B>To:</B>=20
  canslim@lists.xmission.com<BR><B>Subject:</B> [CANSLIM] Chico's=20
  CHS<BR><BR></FONT></DIV>
  <BLOCKQUOTE dir=3Dltr=20
  style=3D"PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #0000ff 2px =
solid; MARGIN-RIGHT: 0px">
    <DIV><FONT size=3D2>I am considering CHS - Chico's Fashion, =
Inc.&nbsp; Here is=20
    why...</FONT></DIV>
    <DIV><FONT size=3D2></FONT>&nbsp;</DIV>
    <DIV><FONT size=3D2></FONT>&nbsp;</DIV>
    <DIV><FONT size=3D2>The chart looks to be in the final stages of a =
cup.&nbsp;=20
    I little longer handle is needed (I believe WON recommends a 4 - 8 =
week=20
    handle) but is that really possible in today's information =
age?&nbsp; Back=20
    when "How to Make Money in Stocks" was written the Web barely =
existed and=20
    only the most dedicated CANSLIMers and Stock pros&nbsp;could find =
these=20
    stocks.&nbsp;Today, any schmoe can find these stocks much more =
easily then=20
    before which may make entry point a little quicker then in the=20
    past.</FONT></DIV>
    <DIV><FONT size=3D2></FONT>&nbsp;</DIV>
    <DIV><FONT size=3D2>The CHS Stats:</FONT></DIV>
    <DIV><FONT size=3D2></FONT><FONT size=3D2></FONT>&nbsp;</DIV>
    <DIV>
    <LI><FONT size=3D2>C: Five quarters of solid earnings with one year =
Q to Q=20
    increase of 67%</FONT>=20
    <LI><FONT size=3D2>A:&nbsp; HOV 5 year annually earnings per share =
show=20
    outstanding growth.&nbsp; .077 to 1.007 increase in EPS over past 5=20
    years.</FONT>=20
    <LI><FONT size=3D2>N: "Buy stocks as they are making new =
highs"&nbsp; CHS is=20
    only 5% below 52 week high.</FONT>=20
    <LI><FONT size=3D2>S: Only 40,182,680 shares outstanding.</FONT>=20
    <LI><FONT size=3D2>L:&nbsp; Technical Rating of 96 puts it 14 out of =
65 stocks=20
    in its sector.</FONT>=20
    <LI><FONT size=3D2>I:&nbsp; 35% institutional ownership.</FONT>=20
    <LI><FONT size=3D2>M:&nbsp; In a bullish sector that's ahead of the =
bear=20
    market.</FONT></LI></DIV>
    <DIV><FONT size=3D2></FONT>&nbsp;</DIV>
    <DIV><FONT size=3D2>If this is not a CANSLIM stock, I give =
up.....&nbsp;=20
    Should I wait for the handle to play out a little the catch&nbsp;a =
volume=20
    spike and a price jump before I=20
buy?</FONT></DIV></BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>

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