Go to Jeff Salisbury LWGate Home Page.From: Ian <ianstm@shaw.ca>
Subject: Re: [CANSLIM] Tom or Ian
Date: Thu, 18 Apr 2002 07:21:20 -0700
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I'll add one more point that I believe is relevant. Institutional support of sub $10 stocks has changed considerably in t= he past 18 months. Although not much of a chart reader, I consider myself qui= te an adept ticker reader, and I have a pretty good feel for what insitutio= nal buying/support looks like. It wasn't long ago that sub $10 stocks wer= e strictly the domain of daytraders and retail news-driven investors. I= n the past 18 months that has changed - many of the best performing funds a= re now stepping in and buying and supporting the cheaper stocks - making the= m even more 'CANSLIM', IMHO. The reason they are good fundmanagers, again just my opinion, is that= they have adapted their style to what is working today. Ian PS - I have to be in 100% total disagreement with WON over the split = thing. It is a lead weight over many of those stocks that cannot be removed = until they start doing reverse splits. Many companies with small/microcap r= evenues have 100,000,000+ shares outstanding. It is ludicrous. - ----- Original Message ----- =46rom: Dimitri Katsaros <dcka@yahoo.com> To: <canslim@lists.xmission.com> Sent: Thursday, April 18, 2002 1:51 AM Subject: Re: [CANSLIM] Tom or Ian > > In fact, the biggest hurdle I see to a long > > sustained move up in tech > > stocks is that they split way too many times in the > > 1998-2000 mania > > Which IBD says is "okay" for tech stocks > > > leaving most of them horrendously over-priced on a > > P/S or P/E basis above $15. > > Dunno about P/S, but WON says to ignore PE unless it > goes up 120% since last pivot, then it is a sell > signal. > > > Remember that when WON did his original research, > > the median number of shares outstanding was > > 4,000,000! I would absolutely love to have a large > > selection of $15+ stocks with solid growth, and less > > than 10,000,000 shares > > outstanding. > > It seems his stance has changed considerably on this > matter since the book was written... I did a search on > the "Ask IBD" knowledgebase: > > Question: Some companies have high IBD SmartSelect=AE > Corporate Ratings and well-formed charts, but low > market capitalization. Is there a minimum market cap I > should look for when evaluating stocks? > > Answer: A stock's market capitalization should make no > difference. It's more important to disregard stocks > priced less than $15 or those that have less than > 200,000 shares of average daily volume. That should > help you focus on quality stocks with adequate > liquidity. > > Question: In 'How To Make Money in Stocks' you > emphasize stocks with fewer than 25 million shares. I > see little mentioned about this in IBD. Has the number > changed? > > Answer: Generally speaking, the more shares a stock > trades, the more buying that is needed to lift the > share price. In recent years, however, large cap > stocks (with many million shares outstanding) have > shown more leadership thanks to the growing influence > of mutual funds, indexing and the growth of leading > industries. Therefore, a stock with any size > capitalization is worth considering as long it has the > characteristics of strength we look for. To properly > weigh the demand for a stock, you should analyze day > to day price and volume changes. > > The purpose of my question wasn't to tell you that you > are wrong or anything like that. Rather, I am still > learning the CANSLIM method and was curious about your > discounting some of the rules as I am always > open-minded to what works and what doesn't. > > Thank you > Dimitri Katsaros > > =3D=3D=3D=3D=3D > Quiquid latine dictum sit altum viditur > > __________________________________________________ > Do You Yahoo!? > Yahoo! Tax Center - online filing with TurboTax > http://taxes.yahoo.com/ > > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
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