Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] USLB
Date: Wed, 1 May 2002 20:46:44 -0500
Previous Article (by Subject): Re: [CANSLIM] USLB "Parnelli"
Top of Thread: Re: [CANSLIM] USLB "Tom Worley"
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Youch....well, you've probably learned the second most important rule in =
CANSLIM.....don't buy extended stocks. If you purchased at $16.25, =
support was a long way away. The pivot on this one was $11.55. The gap =
on the open 3/25 meant that your best entry would have been around =
$12.04. That means it was (16.25-12.04)/12.04 =3D 35% extended on =
purchase. You can see why this is a critical technical guideline. WON =
says about 40% of stocks will pullback to their pivot before moving on. =
If you find a good stock but miss the valid breakout, WAIT and see if =
you can get a second chance entry or wait until it consolidates again =
and breaks out before jumping in. Buying an extended stock is a little =
like bungee jumping without a rope. One of the most critical (and most =
difficult) skills required in CANSLIM investing is patience.
See a marked chart at http://WallStreet-LLC.com/canslim/USLB050102.jpg
Oh yes...welcome to the list!
Katherine
PS...one of the best ways to really "get" a CANSLIM rule is to =
experience it first hand. Been there, done that, that's why I remember =
it myself!
----- Original Message -----=20
From: Parnelli=20
To: canslim@lists.xmission.com=20
Sent: Wednesday, May 01, 2002 7:53 PM
Subject: Re: [CANSLIM] USLB
Thanks Katherine...unfortunately I bought it a week before earnings at =
$16.25 and then it started tanking. Then when their numbers came out (I =
thought they were excellent), but apparently I was the only one who felt =
that way-ouch! Oh well, all part of the learning curve. I still think =
it looks like a good company and I've considered averaging down, =
however, O'neil is not a big fan of that move. Obviously, I should have =
kept my loss from exceeding 8%...but I'm learning. Thanks, Parnelli
----- Original Message -----=20
From: Katherine Malm=20
To: canslim@lists.xmission.com=20
Sent: Wednesday, May 01, 2002 8:44 PM
Subject: Re: [CANSLIM] USLB
Hi Parnelli,
When did you buy? If you bought on the breakout 3/25 then you =
shouldn't have been "slammed" as the big downward action 4/23-4/25 is =
most likely market driven. A good buy would have allowed you to weather =
the action and see if it held above the pivot and the 50dMA, which it's =
done, showing very good support 4/29 with high volume and an upward =
tail.
Katherine
----- Original Message -----=20
From: Parnelli=20
To: canslim@lists.xmission.com=20
Sent: Wednesday, May 01, 2002 7:39 PM
Subject: [CANSLIM] USLB
Hi Board,
I'm a new "canslimer" and thought I was an IBD guru until I bought =
USLB and it slammed me. I know I missed on the "M", but for the life of =
me I can't see any other problems. If any experienced folks follow this =
stock and can give me their two cents worth I'd be very appreciative. =
Many thanks, Parnelli =20
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<BODY bgColor=3D#ffffff>
<DIV>Youch....well, you've probably learned the second most important =
rule in=20
CANSLIM.....<EM>don't buy extended stocks</EM>. If you purchased at =
$16.25,=20
support was a long way away. The pivot on this one was $11.55. The gap =
on the=20
open 3/25 meant that your best entry would have been around $12.04. That =
means=20
it was (16.25-12.04)/12.04 =3D <EM><STRONG>35% extended</STRONG></EM> on =
purchase.=20
You can see why this is a critical technical guideline. WON says about =
40% of=20
stocks will pullback to their pivot before moving on. If you find a good =
stock=20
but miss the valid breakout, WAIT and see if you can get a second chance =
entry=20
or wait until it consolidates again and breaks out before jumping in. =
Buying an=20
extended stock is a little like bungee jumping without a rope. One of =
the most=20
critical (and most difficult) skills required in CANSLIM investing is=20
patience.</DIV>
<DIV> </DIV>
<DIV>See a marked chart at <A=20
href=3D"http://WallStreet-LLC.com/canslim/USLB050102.jpg">http://WallStre=
et-LLC.com/canslim/USLB050102.jpg</A></DIV>
<DIV> </DIV>
<DIV>Oh yes...welcome to the list!</DIV>
<DIV> </DIV>
<DIV>Katherine</DIV>
<DIV> </DIV>
<DIV>PS...one of the best ways to really "get" a CANSLIM rule =
is to=20
experience it first hand. Been there, done that, that's why I remember =
it=20
myself!</DIV>
<BLOCKQUOTE dir=3Dltr=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=3Dpgone@fuse.net href=3D"mailto:pgone@fuse.net">Parnelli</A> =
</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> Wednesday, May 01, 2002 =
7:53=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] =
USLB</DIV>
<DIV><BR></DIV>
<DIV><FONT size=3D2>Thanks Katherine...unfortunately I bought it a =
week before=20
earnings at $16.25 and then it started tanking. Then when their =
numbers=20
came out (I thought they were excellent), but apparently I was the =
only one=20
who felt that way-ouch! Oh well, all part of the learning =
curve. I=20
still think it looks like a good company and I've considered averaging =
down,=20
however, O'neil is not a big fan of that move. Obviously, I =
should have=20
kept my loss from exceeding 8%...but I'm learning. Thanks,=20
Parnelli</FONT></DIV>
<BLOCKQUOTE dir=3Dltr=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=3Dkmalm@earthlink.net =
href=3D"mailto:kmalm@earthlink.net">Katherine=20
Malm</A> </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>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Wednesday, May 01, 2002 =
8:44=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] =
USLB</DIV>
<DIV><BR></DIV>
<DIV>Hi Parnelli,</DIV>
<DIV> </DIV>
<DIV>When did you buy? If you bought on the breakout 3/25 then you =
shouldn't=20
have been "slammed" as the big downward action 4/23-4/25 is =
most likely=20
market driven. A good buy would have allowed you to weather the =
action and=20
see if it held above the pivot and the 50dMA, which it's done, =
showing very=20
good support 4/29 with high volume and an upward tail.</DIV>
<DIV> </DIV>
<DIV>Katherine</DIV>
<BLOCKQUOTE dir=3Dltr=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=3Dpgone@fuse.net =
href=3D"mailto:pgone@fuse.net">Parnelli</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Wednesday, May 01, =
2002 7:39=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> [CANSLIM] =
USLB</DIV>
<DIV><BR></DIV>
<DIV><FONT size=3D2>Hi Board,</FONT></DIV>
<DIV><FONT size=3D2></FONT> </DIV>
<DIV><FONT size=3D2>I'm a new "canslimer" and thought I was an IBD =
guru=20
until I bought USLB and it slammed me. I know I missed on =
the "M",=20
but for the life of me I can't see any other problems. If =
any=20
experienced folks follow this stock and can give me their two =
cents worth=20
I'd be very appreciative. Many thanks,=20
=
Parnelli </FONT></DIV></BLOCKQUOTE></BLOCKQUOTE></=
BLOCKQUOTE></BODY></HTML>
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Previous Article (by Subject): Re: [CANSLIM] USLB "Parnelli"
Top of Thread: Re: [CANSLIM] USLB "Tom Worley"
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