Re: [CANSLIM] Testing Smart Money Screening Tool

From: "Ira Post" <ip108@yahoo.com>
Subject: Re: [CANSLIM] Testing Smart Money Screening Tool
Date: Sun, 21 Apr 2002 20:23:26 -0400

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Top of Thread: Re: [CANSLIM] Testing Smart Money Screening Tool Warren Keuffel
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Good points Warren,
I especially liked what you said about not being comfortable with companies
that don't have a cushion for difficult times.  Every now and then someone
shows me a stock which seems good but isn't my kind of stock.  So I don't
buy it.  We all have our comfort zone in investing and I've found it makes
sense to follow that.

Ira
- ----- Original Message -----
From: "Warren Keuffel" <wkeuffel@xmission.com>
To: <canslim@lists.xmission.com>
Sent: Sunday, April 21, 2002 7:37 PM
Subject: Re: [CANSLIM] Testing Smart Money Screening Tool


> 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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> >
> >
> >
>
>
>
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