Re: [CANSLIM] CANSLIM jc

From: Harvey Brion <hbrion@ieee.org>
Subject: Re: [CANSLIM] CANSLIM jc
Date: Sun, 21 Apr 2002 14:41:48 -0700

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Dimitri,  I took John's number of 60 million shares to mean the shares
outstanding or float.  I think WON originally liked 25-30 million shares
but appears to have backed away from the restriction to small caps.  He
has recently been more receptive to mid and large caps since
institutional buying increased so dramatically in the '90s.  I
personally prefer smaller cap stocks.

The 200,000 shares that you mention I believe refers to the average
daily volume which apparently John has not addressed in his screening
criteria.

John, I like your methodology and would also like to know if you've
developed any statistics on its success.  -Harvey

Dimitri Katsaros wrote:

> Hello John,
>
> Great introduction! I'm just learning the system and I
> find your checklist jives with most of what I've found
> online at investors.com, in HTMMIS, and 24 Essential
> Lessons.
>
> Of the 13 rules you have there are a couple I'd like
> to comment on/ask you about:
>
> > 1.    Number of shares           less than 60
> million
>
> Recently, WON has changed his views on market cap....
> he now prefers to see volume of 200,000 or greater
> (for liquidity's sake) rather than cap. Additionally,
> he recommends looking at the small cap vs. big cap
> graph in the mutual funds section to see what the
> market is currently favoring.
>
> > 4.    Debt                        0
> > 8.    MGMT Owns                  20+
>
> As to debt, I agree it's a good idea but don't know
> where WON refers to it. As to MGMT ownership, I know
> he stated that there should be a significant amount,
> but never pegged down a number... did you get 20+ from
> somewhere in particular that I missed?
>
> > 11.   PE                        100-
>
> I'm curious to see where you got this criterion as
> everything I've read by WON indicates that the only
> reason to use PE is if it has gone up 120-130% or more
> since its last pivot as a sell signal. Other than
> that, he seems unconcerned with PE.
>
> Thanks
> Dimitri
>
> =====
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>
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