Go to Jeff Salisbury LWGate Home Page.From: "webster" <pwebste1@bigpond.net.au>
Subject: [CANSLIM] management rankings
Date: Fri, 3 May 2002 10:11:24 +1000
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This is a multi-part message in MIME format. - ------=_NextPart_000_0055_01C1F28A.E1878C10 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Hi everyone this is my first Post. I apologize in advance if this topic has been covered recently. I have developed an interest in quality of management(havent we all in = this environment) But I am trying to find sources of information = regarding this- whether it be informed debate or industry rankings or = whatever. I am hoping a forum such as this has more than its fair share of = fundamental investors that can help me on my quest. It seems to me that excellent management will eventually lead to = positive results (assuming that they are not in a dying industry) That = being said timing is important as well. I have for a long time concentrated on TA for timing decisions but not = as a day trader eg I use weekly charts a lot!=20 I am not an ego driven trader/investor- I do not have to be "right " but = anyone who has read Van Tharps book "trade your way to financial = freedom" will know that even a 10% win loss ratio can be very successful = as long as your average winners are big enough and your losses small = enough in comparison. This is where my concerns about management quality comes in. In this = whipsaw type of market even solid stocks are being punished. So it is = quite concievable that your stock selection can see you invest in a = great company at a reasonable(not overextended price) only to see your = stock plummet 20% or more. With the ability to have your losers at 20% our winners must be much = bigger to stay in front. Unless of course you trust your stock picking = to be 100% right and then you dont have any losers! (Unforunately that = is not me!) I believe we have to have a get out point even if you are an = investor and not a trader. So back to management quality. Any company = can have a bad quarter or two due to bad luck or economic (external) = reasons. The key to whether we should invest in these devalued stocks is = whether we can believe what management says about future prospects etc. = We all can relate to a stock we have in hindsite held too long on the = way down, based on the soothing words of management at the time of the = distribution phase. As an Australia investor there are some well known = examples- Pasminco(Mining) HIH(insurance) Onetel(telecom) All were considered well run companies at some stage. All gave investors = soothing words and all burned the faithful ones big time. Obviously in = the US Enron, Global crossing, etc are better known examples to you all. So what are some of the better regarded CEO's why are they considered so = good?=20 I look forward to hearing some suggestions Cheers Peter - ------=_NextPart_000_0055_01C1F28A.E1878C10 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=3DContent-Type content=3D"text/html; = charset=3Diso-8859-1"> <META content=3D"MSHTML 6.00.2600.0" name=3DGENERATOR> <STYLE></STYLE> </HEAD> <BODY bgColor=3D#ffffff> <DIV><FONT face=3DArial size=3D2>Hi everyone this is my first = Post.</FONT></DIV> <DIV><FONT face=3DArial size=3D2></FONT> </DIV> <DIV><FONT face=3DArial size=3D2>I apologize in advance if this topic = has been=20 covered recently.</FONT></DIV> <DIV><FONT face=3DArial size=3D2></FONT> </DIV> <DIV><FONT face=3DArial size=3D2>I have developed an interest in quality = of=20 management(havent we all in this environment) But I am trying to find = sources of=20 information regarding this- whether it be informed debate or industry = rankings=20 or whatever.</FONT></DIV> <DIV><FONT face=3DArial size=3D2>I am hoping a forum such as this has = more than its=20 fair share of fundamental investors that can help me on my = quest.</FONT></DIV> <DIV><FONT face=3DArial size=3D2></FONT> </DIV> <DIV><FONT face=3DArial size=3D2>It seems to me that excellent = management will=20 eventually lead to positive results (assuming that they are not in a = dying=20 industry) That being said timing is important as well.</FONT></DIV> <DIV><FONT face=3DArial size=3D2>I have for a long time concentrated on = TA for=20 timing decisions but not as a day trader eg I use weekly charts a lot!=20 </FONT></DIV> <DIV><FONT face=3DArial size=3D2></FONT> </DIV> <DIV><FONT face=3DArial size=3D2>I am not an ego driven trader/investor- = I do not=20 have to be "right " but anyone who has read Van Tharps book "trade your = way to=20 financial freedom" will know that even a 10% win loss ratio can be very=20 successful as long as your average winners are big enough and your = losses small=20 enough in comparison.</FONT></DIV> <DIV><FONT face=3DArial size=3D2></FONT> </DIV> <DIV><FONT face=3DArial size=3D2>This is where my concerns about = management quality=20 comes in. In this whipsaw type of market even solid stocks are being = punished.=20 So it is quite concievable that your stock selection can see you invest = in a=20 great company at a reasonable(not overextended price) only to see your = stock=20 plummet 20% or more.</FONT></DIV> <DIV><FONT face=3DArial size=3D2>With the ability to have your losers at = 20% our=20 winners must be much bigger to stay in front. Unless of course you trust = your=20 stock picking to be 100% right and then you dont have any losers! = (Unforunately=20 that is not me!) I believe we have to have a get out point even if you = are an=20 investor and not a trader. So back to management quality. Any = company can=20 have a bad quarter or two due to bad luck or economic (external) = reasons. The=20 key to whether we should invest in these devalued stocks is whether we = can=20 believe what management says about future prospects etc. We all can = relate to a=20 stock we have in hindsite held too long on the way down, based on the = soothing=20 words of management at the time of the distribution phase. As an = Australia=20 investor there are some well known examples- Pasminco(Mining) = HIH(insurance)=20 Onetel(telecom)</FONT></DIV> <DIV><FONT face=3DArial size=3D2>All were considered well run companies = at some=20 stage. All gave investors soothing words and all burned the faithful = ones big=20 time. Obviously in the US Enron, Global crossing, etc are better known = examples=20 to you all.</FONT></DIV> <DIV><FONT face=3DArial size=3D2></FONT> </DIV> <DIV><FONT face=3DArial size=3D2>So what are some of the better regarded = CEO's why=20 are they considered so good? </FONT></DIV> <DIV><FONT face=3DArial size=3D2></FONT> </DIV> <DIV><FONT face=3DArial size=3D2>I look forward to hearing some=20 suggestions</FONT></DIV> <DIV><FONT face=3DArial size=3D2></FONT> </DIV> <DIV><FONT face=3DArial size=3D2>Cheers</FONT></DIV> <DIV><FONT face=3DArial size=3D2></FONT> </DIV> <DIV><FONT face=3DArial size=3D2>Peter</FONT></DIV> <DIV><FONT face=3DArial size=3D2></FONT> </DIV> <DIV><FONT face=3DArial size=3D2></FONT> </DIV></BODY></HTML> - ------=_NextPart_000_0055_01C1F28A.E1878C10-- - - - -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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