Re: [CANSLIM]CCRN & USPI

From: Harvey Brion <hbrion@ieee.org>
Subject: Re: [CANSLIM]CCRN & USPI
Date: Sun, 05 May 2002 10:50:46 -0700

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Re CCRN, technically, the midpoint of the cup is 28.85 and the midpoint
of the handle is 29.18 so it meets WON's criteria of being in the top
half of the cup.

Yes, the handle's too jagged for my taste.  Also, the cup bottoms at
24.75 then dips again to 25.52.  Ideally, you'd like to see these two
dips in the opposite order with the price dropping to its lowest level
just before starting up the right side of the cup.  A little volatile
but that's not unusual in a recent IPO.

All that said, it looks like a pretty good candidate to me.  In general,
good price/volume action since starting up the right side of the cup, up
on high volume, down on lower volume.  Should have easy EPS comparisons
over the next two quarters.  Other numbers look pretty good, except ROE
of 7%.  Earnings report on 5/8 so I'd be a little careful right now.

I like to buy on pullbacks and it left a small gap at 29.20 and a larger
one at 30.60, so I'd consider a buy limit at the breakout (30.70) or at
one of the two gaps.  I often get conservative and miss the buy with
this tactic but when I get in at the lower price I rarely need a stop
loss.

Regarding the business, competition, etc., DGO lists RMCI in the same
group but it doesn't appear to be in the same business.  Hoover's lists
AHS, G T I V AND RHB as chief competitors.  RHB not a contender and I
like CCRN's numbers better than the other two.

Just noticed DGO shows CCRN's up/down volume ratio as only 0.6 which I
don't understand with the recent price/volume action - maybe because of
the high volume down days of 3/21 and 3/22, before it started up the
right side of the cup.

Winston Little wrote:

> On CCRN you mention that formation was poor.Is that because the handle
> extended BELOW the 50% point of the cup and was also jagged in price?

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