Go to Jeff Salisbury LWGate Home Page.From: "Mike Gibbons" <mikegibbons@proactech.com>
Subject: RE: offlist--Re: [CANSLIM] Q: Accelerating growth
Date: Thu, 2 May 2002 17:26:41 -1000
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Hi Richard,
Sorry to take up more space on the list revisiting this, but I'll have
another go.
I agree with you that sales growth is a measure of accelerating sales. But
accelerating growth of sales is something else again. It implies that the
rate of change of sales growth is increasing.
Successive quarters of sales growth of 5%, 10%, 15% = constant growth of
sales
Successive quarters of sales growth of 5%, 10%, 20% = accelerating growth of
sales
Successive quarters of sales growth of 5%, 10%, 12% = decelerating growth of
sales.
But I certainly agree that physics is no guide to the markets, other than
that the uncertainty principle is everywhere, and we hope that the inverse
of what goes up must come down applies.
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 Richard Yoder
Sent: Thursday, May 02, 2002 4:53 PM
To: canslim@lists.xmission.com
Subject: Re: offlist--Re: [CANSLIM] Q: Accelerating growth
Mike:
Think of the sales volume as velocity. It is the velocity of intake of
money. Sales growth then becomes acceleration. You can differentiate this as
many times as you wish to to get rate of acceleration, etc., but pretty soon
even physics fails to explain what's happening in the market.
Dick
Mike Gibbons wrote:
I think you meantvelocity = rate of change of distance +
directionacceleration = rate of change of velocitySo, the underlying
quantity being measured is sales (equivalent to distance)growth in sales per
quarter is equivalent to velocityrate of change of growth per quarter is
acceleration of growth. Aloha, Mike Gibbons
Proactive Technologies, LLChttp://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 changeVelocity =
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
>
>
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<META http-equiv=3DContent-Type content=3D"text/html; =
charset=3Dus-ascii">
<META content=3D"MSHTML 6.00.2715.400" name=3DGENERATOR></HEAD>
<BODY bgColor=3D#ffffff>
<DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN =
class=3D770330603-03052002>Hi=20
Richard, </SPAN></FONT></DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN=20
class=3D770330603-03052002></SPAN></FONT> </DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN =
class=3D770330603-03052002>Sorry=20
to take up more space on the list revisiting this, but I'll =
have <SPAN=20
class=3D980342403-03052002>a</SPAN>nother go.</SPAN></FONT></DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN=20
class=3D770330603-03052002></SPAN></FONT> </DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN=20
class=3D770330603-03052002> I agree with you that sales growth =
is a=20
measure of accelerating sales<SPAN =
class=3D980342403-03052002>.</SPAN> But=20
accelerating growth of sales is something else again. It implies that =
the rate=20
of change of sales growth is increasing. </SPAN></FONT></DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN=20
class=3D770330603-03052002></SPAN></FONT> </DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN=20
class=3D770330603-03052002>Successive quarters of sales growth of 5%, =
10%, 15% =3D=20
constant growth of sales</SPAN></FONT></DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN =
class=3D770330603-03052002><SPAN=20
class=3D770330603-03052002>Successive quarters of sales growth of 5%, =
10%, 20% =3D=20
accelerating growth of sales</SPAN></SPAN></FONT></DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN =
class=3D770330603-03052002><SPAN=20
class=3D770330603-03052002><SPAN class=3D770330603-03052002>Successive =
quarters of=20
sales growth of 5%, 10%, 12% =3D decelerating growth of=20
sales.</SPAN></SPAN></SPAN></FONT></DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN =
class=3D770330603-03052002><SPAN=20
class=3D770330603-03052002><SPAN=20
class=3D770330603-03052002></SPAN></SPAN></SPAN></FONT> </DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN =
class=3D770330603-03052002><SPAN=20
class=3D770330603-03052002><SPAN class=3D770330603-03052002>But I =
certainly agree=20
that physics is no guide to the markets, other than that the =
uncertainty=20
principle is everywhere, and we hope that <SPAN=20
class=3D980342403-03052002>the </SPAN>inverse of what goes up must come =
down=20
applies.</SPAN></SPAN></SPAN></FONT></DIV></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, =
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>Richard=20
Yoder<BR><B>Sent:</B> Thursday, May 02, 2002 4:53 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>Mike:=20
<P>Think of the sales volume as velocity. It is the velocity of intake =
of=20
money. Sales growth then becomes acceleration. You can differentiate =
this as=20
many times as you wish to to get rate of acceleration, etc., but =
pretty soon=20
even physics fails to explain what's happening in the market.=20
<P>Dick <BR>Mike Gibbons wrote:=20
<BLOCKQUOTE TYPE=3D"CITE">
<STYLE></STYLE>
<SPAN class=3D260144219-02052002><FONT face=3DArial><FONT =
color=3D#0000ff><FONT=20
size=3D-1>I think you meant</FONT></FONT></FONT></SPAN><SPAN=20
class=3D260144219-02052002></SPAN><SPAN =
class=3D260144219-02052002><FONT=20
face=3DArial><FONT color=3D#0000ff><FONT size=3D-1>velocity =3D rate =
of change of=20
distance + direction</FONT></FONT></FONT></SPAN><SPAN=20
class=3D260144219-02052002><FONT face=3DArial><FONT =
color=3D#0000ff><FONT=20
size=3D-1>acceleration =3D rate of change of=20
velocity</FONT></FONT></FONT></SPAN><SPAN=20
class=3D260144219-02052002></SPAN><SPAN =
class=3D260144219-02052002><FONT=20
face=3DArial><FONT color=3D#0000ff><FONT size=3D-1>So, the =
underlying quantity=20
being measured is sales (equivalent to=20
distance)</FONT></FONT></FONT></SPAN><SPAN =
class=3D260144219-02052002><FONT=20
face=3DArial><FONT color=3D#0000ff><FONT size=3D-1>growth in sales =
per quarter is=20
equivalent to velocity</FONT></FONT></FONT></SPAN><SPAN=20
class=3D260144219-02052002><FONT face=3DArial><FONT =
color=3D#0000ff><FONT=20
size=3D-1>rate of change of growth per quarter is acceleration of=20
growth.</FONT></FONT></FONT></SPAN> <FONT face=3DArial><FONT=20
size=3D-1>Aloha,</FONT></FONT> <FONT face=3DArial><FONT =
size=3D-1>Mike=20
Gibbons</FONT></FONT> <BR><FONT face=3DArial><FONT =
size=3D-1>Proactive=20
Technologies, LLC</FONT></FONT><FONT face=3DArial><FONT size=3D-1><A =
=
href=3D"http://www.proactech.com/">http://www.proactech.com</A></FONT></F=
ONT>=20
<BLOCKQUOTE dir=3Dltr style=3D"MARGIN-RIGHT: 0px">
<DIV class=3DOutlookMessageHeader dir=3Dltr><FONT =
face=3DTahoma><FONT=20
size=3D-1>-----Original Message-----</FONT></FONT> <BR><FONT=20
face=3DTahoma><FONT size=3D-1><B>From:</B> =
owner-canslim@lists.xmission.com=20
[<A=20
=
href=3D"mailto:owner-canslim@lists.xmission.com">mailto:owner-canslim@lis=
ts.xmission.com</A>]<B>On=20
Behalf Of </B>Katherine Malm</FONT></FONT> <BR><FONT =
face=3DTahoma><FONT=20
size=3D-1><B>Sent:</B> Thursday, May 02, 2002 9:34 =
AM</FONT></FONT>=20
<BR><FONT face=3DTahoma><FONT size=3D-1><B>To:</B>=20
canslim@lists.xmission.com</FONT></FONT> <BR><FONT =
face=3DTahoma><FONT=20
size=3D-1><B>Subject:</B> offlist--Re: [CANSLIM] Q: Accelerating=20
growth</FONT></FONT> <BR> </DIV>I might be all wrong here, =
but I=20
think what you've calculated is velocity rather than=20
acceleration. Acceleration =3D rate of changeVelocity =3D =
rate of change=20
of the rate of change + direction Katherine=20
<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>=
</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> I've often seen WON and IBD refer to the need =
for=20
"accelerating growth". <BR>Strictly speaking, that means that =
the *rate=20
of change* of growth should be <BR>positive.=20
<P>In yesterday's Investor's Corner they said of PHA, "At the =
time,=20
earnings <BR>growth was accelerating (8% to 35% to 57%)". So the =
change=20
in growth was <BR>from 8% to 35% (27%) to 35% to 57% (22%). So =
the *rate=20
of change* of growth <BR>was 22 - 27 -> -5. That is, growth =
was=20
decelerating not accelerating=20
<P>Now as a physics major, I may be too picky, but I believe =
that=20
language <BR>should be used correctly or it loses its value. It =
seems to=20
me that what <BR>they mean is "earnings growth was increasing".=20
<P>In that case the WON rule that says that "sales growth should =
be=20
<BR>accelerating" needs to be restated to "sales growth should =
be=20
increasing".=20
<P>Aloha,=20
<P>Mike Gibbons <BR>Proactive Technologies, LLC <BR><A=20
href=3D"http://www.proactech.com">http://www.proactech.com</A> =
<BR> =20
<P>-----Original Message----- <BR>From: <A=20
=
href=3D"mailto:owner-canslim@lists.xmission.com">owner-canslim@lists.xmis=
sion.com</A>=20
<BR>[<A=20
=
href=3D"mailto:owner-canslim@lists.xmission.com">mailto:owner-canslim@lis=
ts.xmission.com</A>]On=20
Behalf Of Warren Keuffel <BR>Sent: Thursday, May 02, 2002 7:55 =
AM=20
<BR>To: <A=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
<BR>Subject: Re: [CANSLIM] IBD's Industry Group and Ticker =
Symbol Index=20
<BR> =20
<P>If 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=20
because it's <BR>not always obvious which companies are assigned =
to=20
which industry <BR>groups. I'm using Vector Vest now, which has =
its own=20
industry groupings, <BR>so I no longer buy the IBD books.=20
<P>HTH. <BR>Warren=20
<P>rolf hertenstein wrote:=20
<P>>Hello all - <BR>> <BR>>Could anyone who has used =
this guide=20
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 =
June=20
<BR>>in any case. <BR>> <BR>>Thanks! <BR>> <BR>> =
Rolf=20
<BR>> <BR>> <BR>>- <BR>>-To subscribe/unsubscribe, =
email "<A=20
=
href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"=20
<BR>>-In the email body, write "subscribe canslim" or=20
<BR>>-"unsubscribe canslim". Do not use quotes in your =
email.=20
<BR>> <BR>> <BR>> <BR> <BR> =20
<P>- <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 email. <BR> =20
<P>- <BR>-To subscribe/unsubscribe, email "<A=20
=
href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>" =
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the email body, write "subscribe canslim" or <BR>-"unsubscribe=20
canslim". Do not use quotes in your=20
=
email.</P></BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></BODY></HT=
ML>
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