[CANSLIM] Large Cap vs. Small Cap etc....

From: Dave Cameron <dfcameron@yahoo.com>
Subject: [CANSLIM] Large Cap vs. Small Cap etc....
Date: Mon, 22 Apr 2002 05:04:41 -0700 (PDT)

Next Article (by Subject): Re: [CANSLIM] Management Ownership/Fund Ownership. Davellil5@aol.com
Previous Article (by Subject): Re: [CANSLIM] Institutional Ownership Davellil5@aol.com
Articles sorted by: [Date] [Author] [Subject]

I think its interesting to read all the varied opinions on market
cap.

It used to be (back when I first got HTMMIS) that WON recommended
only going with small companies because they had more room to move,
and could move up more quickly than large companies.   In fact, on
his audio tapes, he specified a size that was too big (can't remember
what it was though) in terms of number of shares outstanding.   I do
recall he said he had his best successes with companies with less
than 30 million shares outstanding.   Of course, these successes were
now 25 years ago.... so maybe that's worth about 75 million shares
outstanding today.

Anyway, to Warren's earlier posting, this means staying under $200MM
in market cap is a bit too tight.   A lot of companies this size have
aspirations to go public, but haven't yet.   I work for a company
that had $50MM in revenue last year.   Our CEO wants to go public,
but has been told by advisors that he should wait until hitting
$100MM.  This, despite the fact we'd be a great CANSLIM company. 
Average earnings growth has been 30% annually over the last 12 years.

Tom mentioned $650MM - this might not be bad.

Although, its been pointed out earlier, that WON has really severely
relaxed his "30 million shares outstanding line" in that he's
mentioned stocks in public having the CANSLIM (CANLIM?)
characteristics that are 50 times that size.



=====
Dave Cameron
dfcameron@yahoo.com

__________________________________________________
Do You Yahoo!?
Yahoo! Games - play chess, backgammon, pool and more
http://games.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.

Go to Jeff Salisbury LWGate Home Page.