[CANSLIM] CANSLIM for sourcing shorts

From: Ian <ianstm@shaw.ca>
Subject: [CANSLIM] CANSLIM for sourcing shorts
Date: Wed, 01 May 2002 14:16:26 -0700

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Often, I keep a small list of 'CANSLIM' darlings as potential short
candidates - usually things with average balance sheets and huge valuations.
One of those that has been on my list for a while is PFCB.

In the last couple of weeks, PFCB has had 4 exceptional volume days without
any meaningful advance - even though each day was 'green'. IMHO, that is the
distribution that I have been looking for. I have a short here in the high
$72's, that I will stop out if it goes through $74.50 from here.

WIth a split upcoming, it is easily possible that I get stopped out - but I
am risking just 1 1/2 points, and my reward could be 20 points +.  PFCB
trades at what I consider an extremely high valuation, given their cash
generation, in a capital intensive business. If I had been long the stock, I
would have taken the recent advanceless volume days as sell signals.


We'll see.

Ian






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