RE: offlist--Re: [CANSLIM] Q: Accelerating growth

From: "Mike Gibbons" <mikegibbons@proactech.com>
Subject: RE: offlist--Re: [CANSLIM] Q: Accelerating growth
Date: Thu, 2 May 2002 09:49:32 -1000
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I think you meant

velocity = rate of change of distance + direction
acceleration = rate of change of velocity

So, the underlying quantity being measured is sales (equivalent to distance)
growth in sales per quarter is equivalent to velocity
rate of change of growth per quarter is acceleration of growth.

Aloha,

Mike Gibbons
Proactive Technologies, LLC
http://www.proactech.com
  -----Original Message-----
  From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Katherine Malm
  Sent: Thursday, May 02, 2002 9:34 AM
  To: canslim@lists.xmission.com
  Subject: offlist--Re: [CANSLIM] Q: Accelerating growth


  I might be all wrong here, but I think what you've calculated is velocity
rather than acceleration.

  Acceleration = rate of change
  Velocity = rate of change of the rate of change + direction

  Katherine
    ----- Original Message -----
    From: Mike Gibbons
    To: canslim@lists.xmission.com
    Sent: Thursday, May 02, 2002 2:24 PM
    Subject: [CANSLIM] Q: Accelerating growth


    I've often seen WON and IBD refer to the need for "accelerating growth".
    Strictly speaking, that means that the *rate of change* of growth should
be
    positive.

    In yesterday's Investor's Corner they said of PHA, "At the time,
earnings
    growth was accelerating (8% to 35% to 57%)". So the change in growth was
    from 8% to 35% (27%) to 35% to 57% (22%). So the *rate of change* of
growth
    was 22 - 27 -> -5. That is, growth was decelerating not accelerating

    Now as a physics major, I may be too picky, but I believe that language
    should be used correctly or it loses its value. It seems to me that what
    they mean is "earnings growth was increasing".

    In that case the WON rule that says that "sales growth should be
    accelerating" needs to be restated to "sales growth should be
increasing".

    Aloha,

    Mike Gibbons
    Proactive Technologies, LLC
    http://www.proactech.com


    -----Original Message-----
    From: owner-canslim@lists.xmission.com
    [mailto:owner-canslim@lists.xmission.com]On Behalf Of Warren Keuffel
    Sent: Thursday, May 02, 2002 7:55 AM
    To: canslim@lists.xmission.com
    Subject: Re: [CANSLIM] IBD's Industry Group and Ticker Symbol Index


    If you intend to pursue a group-oriented strategy, and you intend to use
    IBD's 197 industry group tables, the book is indispensible because it's
    not always obvious which companies are assigned to which industry
    groups. I'm using Vector Vest now, which has its own industry groupings,
    so I no longer buy the IBD books.

    HTH.
    Warren

    rolf hertenstein wrote:

    >Hello all -
    >
    >Could anyone who has used this guide in the past
    >tell me if they
    >indeed found it useful?  I'll likely wait for the
    >next issue due in June
    >in any case.
    >
    >Thanks!
    >
    > Rolf
    >
    >
    >-
    >-To subscribe/unsubscribe, email "majordomo@xmission.com"
    >-In the email body, write "subscribe canslim" or
    >-"unsubscribe canslim".  Do not use quotes in your email.
    >
    >
    >



    -
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<DIV><SPAN class=3D260144219-02052002><FONT face=3DArial color=3D#0000ff =
size=3D2>I=20
think you meant</FONT></SPAN></DIV>
<DIV><SPAN class=3D260144219-02052002><FONT face=3DArial color=3D#0000ff =

size=3D2></FONT></SPAN>&nbsp;</DIV>
<DIV><SPAN class=3D260144219-02052002><FONT face=3DArial color=3D#0000ff =

size=3D2>velocity =3D rate of change of distance&nbsp;+=20
direction</FONT></SPAN></DIV>
<DIV><SPAN class=3D260144219-02052002><FONT face=3DArial color=3D#0000ff =

size=3D2>acceleration =3D rate of change of velocity</FONT></SPAN></DIV>
<DIV><SPAN class=3D260144219-02052002><FONT face=3DArial color=3D#0000ff =

size=3D2></FONT></SPAN>&nbsp;</DIV>
<DIV><SPAN class=3D260144219-02052002><FONT face=3DArial color=3D#0000ff =
size=3D2>So,=20
the underlying quantity being measured is sales (equivalent to=20
distance)</FONT></SPAN></DIV>
<DIV><SPAN class=3D260144219-02052002><FONT face=3DArial color=3D#0000ff =
size=3D2>growth=20
in sales per quarter is equivalent to velocity</FONT></SPAN></DIV>
<DIV><SPAN class=3D260144219-02052002><FONT face=3DArial color=3D#0000ff =
size=3D2>rate=20
of change of growth per quarter&nbsp;is acceleration of=20
growth.</FONT></SPAN></DIV>
<DIV>&nbsp;</DIV>
<DIV><FONT face=3DArial size=3D2>Aloha,</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial size=3D2>Mike Gibbons<BR>Proactive Technologies, =

LLC</FONT></DIV>
<DIV><FONT face=3DArial size=3D2><A=20
href=3D"http://www.proactech.com/">http://www.proactech.com</A></FONT></D=
IV>
<BLOCKQUOTE dir=3Dltr style=3D"MARGIN-RIGHT: 0px">
  <DIV class=3DOutlookMessageHeader dir=3Dltr align=3Dleft><FONT =
face=3DTahoma=20
  size=3D2>-----Original Message-----<BR><B>From:</B>=20
  owner-canslim@lists.xmission.com=20
  [mailto:owner-canslim@lists.xmission.com]<B>On Behalf Of </B>Katherine =

  Malm<BR><B>Sent:</B> Thursday, May 02, 2002 9:34 AM<BR><B>To:</B>=20
  canslim@lists.xmission.com<BR><B>Subject:</B> offlist--Re: [CANSLIM] =
Q:=20
  Accelerating growth<BR><BR></FONT></DIV>
  <DIV>I might be all wrong here, but I think what you've calculated is =
velocity=20
  rather than acceleration.</DIV>
  <DIV>&nbsp;</DIV>
  <DIV>Acceleration =3D rate of change</DIV>
  <DIV>Velocity =3D rate of change of the rate of change + =
direction</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=3Dmike@proactech.com =
href=3D"mailto:mike@proactech.com">Mike=20
    Gibbons</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> Thursday, May 02, 2002 =
2:24=20
    PM</DIV>
    <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> [CANSLIM] Q: =
Accelerating=20
    growth</DIV>
    <DIV><BR></DIV>I've often seen WON and IBD refer to the need for=20
    "accelerating growth".<BR>Strictly speaking, that means that the =
*rate of=20
    change* of growth should be<BR>positive.<BR><BR>In yesterday's =
Investor's=20
    Corner they said of PHA, "At the time, earnings<BR>growth was =
accelerating=20
    (8% to 35% to 57%)". So the change in growth was<BR>from 8% to 35% =
(27%) to=20
    35% to 57% (22%). So the *rate of change* of growth<BR>was 22 - 27 =
- -&gt; -5.=20
    That is, growth was decelerating not accelerating<BR><BR>Now as a =
physics=20
    major, I may be too picky, but I believe that language<BR>should be =
used=20
    correctly or it loses its value. It seems to me that what<BR>they =
mean is=20
    "earnings growth was increasing".<BR><BR>In that case the WON rule =
that says=20
    that "sales growth should be<BR>accelerating" needs to be restated =
to "sales=20
    growth should be increasing".<BR><BR>Aloha,<BR><BR>Mike =
Gibbons<BR>Proactive=20
    Technologies, LLC<BR><A=20
    =
href=3D"http://www.proactech.com">http://www.proactech.com</A><BR><BR><BR=
>-----Original=20
    Message-----<BR>From: <A=20
    =
href=3D"mailto:owner-canslim@lists.xmission.com">owner-canslim@lists.xmis=
sion.com</A><BR>[mailto:owner-canslim@lists.xmission.com]On=20
    Behalf Of Warren Keuffel<BR>Sent: Thursday, May 02, 2002 7:55 =
AM<BR>To: <A=20
    =
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
<BR>Subject:=20
    Re: [CANSLIM] IBD's Industry Group and Ticker Symbol =
Index<BR><BR><BR>If you=20
    intend to pursue a group-oriented strategy, and you intend to =
use<BR>IBD's=20
    197 industry group tables, the book is indispensible because =
it's<BR>not=20
    always obvious which companies are assigned to which =
industry<BR>groups. I'm=20
    using Vector Vest now, which has its own industry groupings,<BR>so I =
no=20
    longer buy the IBD books.<BR><BR>HTH.<BR>Warren<BR><BR>rolf =
hertenstein=20
    wrote:<BR><BR>&gt;Hello all -<BR>&gt;<BR>&gt;Could anyone who has =
used this=20
    guide in the past<BR>&gt;tell me if they<BR>&gt;indeed found it=20
    useful?&nbsp; I'll likely wait for the<BR>&gt;next issue due in=20
    June<BR>&gt;in any case.<BR>&gt;<BR>&gt;Thanks!<BR>&gt;<BR>&gt;=20
    Rolf<BR>&gt;<BR>&gt;<BR>&gt;-<BR>&gt;-To subscribe/unsubscribe, =
email "<A=20
    =
href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>&gt=
;-In=20
    the email body, write "subscribe canslim" or<BR>&gt;-"unsubscribe=20
    canslim".&nbsp; Do not use quotes in your=20
    email.<BR>&gt;<BR>&gt;<BR>&gt;<BR><BR><BR><BR>-<BR>-To=20
    subscribe/unsubscribe, email "<A=20
    =
href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>-In=
 the=20
    email body, write "subscribe canslim" or<BR>-"unsubscribe =
canslim".&nbsp; Do=20
    not use quotes in your email.<BR><BR><BR>-<BR>-To =
subscribe/unsubscribe,=20
    email "<A=20
    =
href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>-In=
 the=20
    email body, write "subscribe canslim" or<BR>-"unsubscribe =
canslim".&nbsp; Do=20
    not use quotes in your =
email.</BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>

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