Go to Jeff Salisbury LWGate Home Page.From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: offlist--Re: [CANSLIM] Q: Accelerating growth
Date: Thu, 2 May 2002 22:04:33 -0400
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exactly. Better sales growth, with poorer earnings resulting, is a red =
flag that must be investigated. There can be very good reasons for it, =
as you mention increased R&D being just one. Purchasing new more =
efficient equipment is another, which can help future profit margins. On =
the other hand, it can also be due to price cutting to increase, or =
hold, market share. That can be both good (better sales with better =
market share in the future) and bad (their product / service is old =
fashioned and they have not adapted).
Tom Worley
stkguru@bellsouth.net
AIM: TexWorley
- ----- Original Message -----=20
From: Mike Gibbons=20
To: canslim@lists.xmission.com=20
Sent: Thursday, May 02, 2002 9:36 PM
Subject: RE: offlist--Re: [CANSLIM] Q: Accelerating growth
Thanks Tom, I introduced unnecessary confusion by mentioning sales, =
although the article referred to earnings. I did so because I had =
extracted the rule "sales growth must be accelerating" from an Ask Bill =
column on the definitions of CANSLIM and used it as a criterion in the =
Canslim Evaluator. It was while I was programming that that I had to =
graple with what the meaning of what "growth must be accelerating" was.
So, we want sales to grow and earnings to grow more quickly. Suppose we =
had sales growth but earnings decline? Then I suppose one would look for =
the reason, such as increased R&D maybe?
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 Tom Worley
Sent: Thursday, May 02, 2002 3:10 PM
To: canslim@lists.xmission.com
Subject: Re: offlist--Re: [CANSLIM] Q: Accelerating growth
Mike, it's not only sales to consider, priority is earnings. As sales =
grow, earnings should be growing faster due to cost efficiencies and =
fixed costs being absorbed over a larger revenue base.
Tom Worley
stkguru@bellsouth.net
AIM: TexWorley
----- Original Message -----=20
From: Mike Gibbons=20
To: canslim@lists.xmission.com=20
Sent: Thursday, May 02, 2002 3:49 PM
Subject: RE: offlist--Re: [CANSLIM] Q: Accelerating growth
I think you meant
velocity =3D rate of change of distance + direction
acceleration =3D 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 =3D rate of change
Velocity =3D rate of change of the rate of change + direction
Katherine
----- Original Message -----=20
From: Mike Gibbons=20
To: canslim@lists.xmission.com=20
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.
>
>
>
-
-To subscribe/unsubscribe, email "majordomo@xmission.com"
-In the email body, write "subscribe canslim" or
-"unsubscribe canslim". Do not use quotes in your email.
-
-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><FONT face=3DArial>exactly. Better sales growth, with poorer =
earnings=20
resulting, is a red flag that must be investigated. There can be very =
good=20
reasons for it, as you mention increased R&D being just one. =
Purchasing new=20
more efficient equipment is another, which can help future profit =
margins. On=20
the other hand, it can also be due to price cutting to increase, or =
hold, market=20
share. That can be both good (better sales with better market share in =
the=20
future) and bad (their product / service is old fashioned and they have =
not=20
adapted).</FONT></DIV>
<DIV> </DIV>
<DIV>Tom Worley<BR><A=20
href=3D"mailto:stkguru@bellsouth.net">stkguru@bellsouth.net</A><BR>AIM:=20
TexWorley</DIV>
<DIV style=3D"FONT: 10pt arial">----- Original Message -----=20
<DIV style=3D"BACKGROUND: #e4e4e4; font-color: black"><B>From:</B> <A=20
title=3Dmikegibbons@proactech.com =
href=3D"mailto:mikegibbons@proactech.com">Mike=20
Gibbons</A> </DIV>
<DIV><B>To:</B> <A title=3Dcanslim@lists.xmission.com=20
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
</DIV>
<DIV><B>Sent:</B> Thursday, May 02, 2002 9:36 PM</DIV>
<DIV><B>Subject:</B> RE: offlist--Re: [CANSLIM] Q: Accelerating=20
growth</DIV></DIV>
<DIV><BR></DIV>
<DIV><SPAN class=3D660312701-03052002><FONT face=3DArial color=3D#0000ff =
size=3D2>Thanks=20
Tom, I introduced unnecessary confusion by mentioning sales, although =
the=20
article referred to earnings. I did so because I had extracted the rule =
"sales=20
growth must be accelerating" from an Ask Bill column on the definitions =
of=20
CANSLIM and used it as a criterion in the Canslim Evaluator. It was =
while I was=20
programming that that I had to graple with what the meaning of what =
"growth=20
must be accelerating" was.</FONT></SPAN></DIV>
<DIV><SPAN class=3D660312701-03052002><FONT face=3DArial color=3D#0000ff =
size=3D2></FONT></SPAN> </DIV>
<DIV><SPAN class=3D660312701-03052002><FONT face=3DArial color=3D#0000ff =
size=3D2>So, we=20
want sales to grow and earnings to grow more quickly. Suppose we had =
sales=20
growth but earnings decline? Then I suppose one would look for the =
reason, such=20
as increased R&D maybe?</FONT></SPAN></DIV>
<DIV><SPAN class=3D660312701-03052002><FONT face=3DArial color=3D#0000ff =
size=3D2></FONT></SPAN> </DIV>
<DIV><FONT face=3DArial size=3D2>Aloha,</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </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>Tom=20
Worley<BR><B>Sent:</B> Thursday, May 02, 2002 3:10 PM<BR><B>To:</B>=20
canslim@lists.xmission.com<BR><B>Subject:</B> Re: offlist--Re: =
[CANSLIM] Q:=20
Accelerating growth<BR><BR></FONT></DIV>
<DIV><FONT face=3DArial>Mike, it's not only sales to consider, =
priority is=20
earnings. As sales grow, earnings should be growing faster due to cost =
efficiencies and fixed costs being absorbed over a larger revenue=20
base.</FONT></DIV>
<DIV> </DIV>
<DIV>Tom Worley<BR><A=20
=
href=3D"mailto:stkguru@bellsouth.net">stkguru@bellsouth.net</A><BR>AIM:=20
TexWorley</DIV>
<DIV style=3D"FONT: 10pt arial">----- Original Message -----=20
<DIV style=3D"BACKGROUND: #e4e4e4; font-color: black"><B>From:</B> <A=20
title=3Dmikegibbons@proactech.com =
href=3D"mailto:mikegibbons@proactech.com">Mike=20
Gibbons</A> </DIV>
<DIV><B>To:</B> <A title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
</DIV>
<DIV><B>Sent:</B> Thursday, May 02, 2002 3:49 PM</DIV>
<DIV><B>Subject:</B> RE: offlist--Re: [CANSLIM] Q: Accelerating=20
growth</DIV></DIV>
<DIV><BR></DIV>
<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=20
size=3D2></FONT></SPAN> </DIV>
<DIV><SPAN class=3D260144219-02052002><FONT face=3DArial =
color=3D#0000ff=20
size=3D2>velocity =3D rate of change of distance +=20
direction</FONT></SPAN></DIV>
<DIV><SPAN class=3D260144219-02052002><FONT face=3DArial =
color=3D#0000ff=20
size=3D2>acceleration =3D rate of change of =
velocity</FONT></SPAN></DIV>
<DIV><SPAN class=3D260144219-02052002><FONT face=3DArial =
color=3D#0000ff=20
size=3D2></FONT></SPAN> </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=20
size=3D2>growth in sales per quarter is equivalent to=20
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 is acceleration of=20
growth.</FONT></SPAN></DIV>
<DIV> </DIV>
<DIV><FONT face=3DArial size=3D2>Aloha,</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Mike Gibbons<BR>Proactive =
Technologies,=20
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=20
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=20
velocity rather than acceleration.</DIV>
<DIV> </DIV>
<DIV>Acceleration =3D rate of change</DIV>
<DIV>Velocity =3D rate of change of the rate of change + =
direction</DIV>
<DIV> </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=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> 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%)=20
to 35% to 57% (22%). So the *rate of change* of growth<BR>was 22 - =
27=20
-> -5. That is, growth was decelerating not =
accelerating<BR><BR>Now as=20
a physics major, I may be too picky, but I believe that =
language<BR>should=20
be used correctly or it loses its value. It seems to me that =
what<BR>they=20
mean is "earnings growth was increasing".<BR><BR>In that case the =
WON rule=20
that says that "sales growth should be<BR>accelerating" needs to =
be=20
restated to "sales growth should be =
increasing".<BR><BR>Aloha,<BR><BR>Mike=20
Gibbons<BR>Proactive 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=20
you intend to pursue a group-oriented strategy, and you intend to=20
use<BR>IBD's 197 industry group tables, the book is indispensible =
because=20
it's<BR>not always obvious which companies are assigned to which=20
industry<BR>groups. I'm using Vector Vest now, which has its own =
industry=20
groupings,<BR>so I no longer buy the IBD=20
books.<BR><BR>HTH.<BR>Warren<BR><BR>rolf hertenstein=20
wrote:<BR><BR>>Hello all -<BR>><BR>>Could anyone who has =
used=20
this guide in the past<BR>>tell me if they<BR>>indeed found =
it=20
useful? I'll likely wait for the<BR>>next issue due in=20
June<BR>>in any case.<BR>><BR>>Thanks!<BR>><BR>>=20
Rolf<BR>><BR>><BR>>-<BR>>-To subscribe/unsubscribe, =
email "<A=20
=
href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>>=
;-In=20
the email body, write "subscribe canslim" or<BR>>-"unsubscribe=20
canslim". Do not use quotes in your=20
email.<BR>><BR>><BR>><BR><BR><BR><BR>-<BR>-To=20
subscribe/unsubscribe, email "<A=20
=
href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>-In=
=20
the email body, write "subscribe canslim" or<BR>-"unsubscribe=20
canslim". Do not use quotes in your =
email.<BR><BR><BR>-<BR>-To=20
subscribe/unsubscribe, email "<A=20
=
href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>-In=
=20
the email body, write "subscribe canslim" or<BR>-"unsubscribe=20
canslim". Do not use quotes in your=20
email.</BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>
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