Re: [CANSLIM] How are you choosing your stocks?

From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] How are you choosing your stocks?
Date: Fri, 26 Apr 2002 02:35:13 -0500

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Hi Dimitri,

The contradiction *is* the point. Think of it this way. Let's say that =
you are a scout for a professional sports team and someone has given you =
the following statistic:

The average height of world class professional athletes is 5'7"

Let's say that as a result of that statistic that you refuse to look at =
any athlete who is less than 5'7." What does that mean? You have taken =
an average and turned it into a minimum.=20

Here's another example. Let's say that somebody tells you that the =
batting average of professional baseball players is 700 and that as a =
result you refuse to look at any baseball player who has an average of =
less than 700. You would say, of course that's silly, because if I'm =
scouting for a team, I'm looking for an athlete who has a well rounded =
set of skills and/or has a set of skills that adds value to the team as =
a whole. You may, as a result of past studies determine that a baseball =
player who has a batting average of less than 200 is unacceptable, but =
you would not refuse to look at them if they had all the requisite =
skills and a batting average of 650.

The point is that you have to look at the preponderance of evidence for =
the stock and not build your screens so tightly that you eliminate =
excellent candidates just because they meet some arbitrary minimum cut =
offs that are based on *averages* for past winning stocks.

Katherine
  ----- Original Message -----=20
  From: Dimitri Katsaros=20
  To: canslim@lists.xmission.com=20
  Sent: Friday, April 26, 2002 12:02 AM
  Subject: Re: [CANSLIM] How are you choosing your stocks?


  Katherine,

  This seems quite contradictory... if one cannot sort
  according to the recommended minimums, then what is
  the point of stating them and... what is the value of
  the Daily Graphs Custom Screen Wizard?

  Just learning as I go
  Dimitri Katsaros

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<STYLE></STYLE>
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<BODY bgColor=3D#ffffff>
<DIV>Hi Dimitri,</DIV>
<DIV>&nbsp;</DIV>
<DIV>The contradiction *is* the point. Think of it this way. Let's say =
that you=20
are a scout for a professional sports team and someone has given you the =

following statistic:</DIV>
<DIV>&nbsp;</DIV>
<DIV>The average height of world class professional athletes is =
5'7"</DIV>
<DIV>&nbsp;</DIV>
<DIV>Let's say that as a result of that statistic that you refuse to =
look at any=20
athlete who is less than 5'7." What does that mean? You have taken an =
average=20
and turned it into a minimum. </DIV>
<DIV>&nbsp;</DIV>
<DIV>Here's another example. Let's say that somebody tells you that the =
batting=20
average of professional baseball players is 700 and that as a result you =
refuse=20
to look at any baseball player who has an average of less than 700. You =
would=20
say, of course that's silly, because if I'm scouting for a team, I'm =
looking for=20
an athlete who has a well rounded set of skills and/or has a set of =
skills that=20
adds value to the team as a whole. You may, as a result of past studies=20
determine that a baseball player who has a batting average of less than =
200 is=20
unacceptable, but you would not refuse to look at them if they had all =
the=20
requisite skills and a batting average of 650.</DIV>
<DIV>&nbsp;</DIV>
<DIV>The point is that you have to look at the preponderance of evidence =
for the=20
stock and not build your screens so tightly that you eliminate excellent =

candidates just because they meet some arbitrary minimum cut offs that =
are based=20
on *averages* for past winning stocks.</DIV>
<DIV>&nbsp;</DIV>
<DIV>Katherine</DIV>
<BLOCKQUOTE=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
  <DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
  <DIV=20
  style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
  <A title=3Ddcka@yahoo.com href=3D"mailto:dcka@yahoo.com">Dimitri =
Katsaros</A>=20
  </DIV>
  <DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
title=3Dcanslim@lists.xmission.com=20
  =
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
 </DIV>
  <DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Friday, April 26, 2002 =
12:02=20
  AM</DIV>
  <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] How are =
you=20
  choosing your stocks?</DIV>
  <DIV><BR></DIV>Katherine,<BR><BR>This seems quite contradictory... if =
one=20
  cannot sort<BR>according to the recommended minimums, then what =
is<BR>the=20
  point of stating them and... what is the value of<BR>the Daily Graphs =
Custom=20
  Screen Wizard?<BR><BR>Just learning as I go<BR>Dimitri=20
Katsaros</BLOCKQUOTE></BODY></HTML>

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