Re: [CANSLIM] Testing Smart Money Screening Tool

From: Warren Keuffel <wkeuffel@xmission.com>
Subject: Re: [CANSLIM] Testing Smart Money Screening Tool
Date: Sun, 21 Apr 2002 17:37:10 -0600

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Hi, Ira. Yes, you can do 3 year screens on earnings. As for debt, I 
guess it depends on the industry, but I am not comfortable with 
companies without a cushion to help them get thru difficult times. 
Regarding market cap, my understanding is that it is *much* harder for a 
big cap to have an explosive growth spurt simply because of the inertia 
of the shares already out there. All that said, however, with the 
screen, I can see who survives the screen with and without the debt, 
cap, etc. filters.

Warren

Ira Post wrote:

>I'm always interested in new screening tools (or old ones I don't know
>about).  Some questions/comments.
>
>1) Can you do three year earnings instead of 5 with this screen?
>2) While debt/equity is a good thing to evaluate, some companies with high
>debt are good buys.  But high debt is a red light that should be looked at.
>3) I'm not big on looking at market capitalization.  The reason low market
>cap stocks often do better is because their may be more of those stocks that
>are a good value and haven't gotten onto many peoples radar.  I prefer to
>look at the company and its fundamentals regardless of market cap.
>
>
>----- Original Message -----
>From: "Warren Keuffel" <wkeuffel@xmission.com>
>To: "CANSLIM list" <canslim@lists.xmission.com>
>Sent: Sunday, April 21, 2002 2:08 PM
>Subject: [CANSLIM] Testing Smart Money Screening Tool
>
>
>>Hey, I signed up for a two week free trial of a financial site run by
>>Smart Money. Looking through HTMMIS I created a screen with these
>>CANSLIM parameters:
>>
>>A -- 5 Yr earnings growth % >= 25%
>>C -- Quarterly earnings % (compared to same qtr previous year) >= 25%
>>I -- Institutional ownership < 40%
>>S -- Market Cap < $200M
>>S -- Debt as % of total cap < 50%
>>
>>It gave me back 10 stocks
>>
>>EMBX
>>CNTL
>>VLGEA
>>FRS
>>XNR
>>HITK
>>PMFG
>>HANS
>>TRAK
>>TOF
>>
>>I have not looked at the charts for these bad boys, or done any further
>>DD, but I am curious what comments you might have about (a) screening in
>>this manner; (b) the screening parameters (numbers) I used; and (c)
>>which, if any, parameters would you drop, add or change.
>>
>>Obviously these parameters are very tight but I did that deliberately so
>>as to create a hit list of manageable size for this message. For a
>>real-world exercise I would loosen the parameters somewhat and conduct
>>more DD.
>>
>>Warren
>>
>>
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>
>
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