Re: [CANSLIM] New using DGO

From: Dimitri Katsaros <dcka@yahoo.com>
Subject: Re: [CANSLIM] New using DGO
Date: Sun, 19 May 2002 15:04:36 -0700 (PDT)

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Hey all,

FWIW, in today's investor profile, Jim Sheffield
"like[s] to see the up/down ratio at 1.7 or higher."

plus he has ratcheted UP, not down, his EPS and RS
requirements in this market to EPS >= 90 and RS >= 97.

Lastly, the article states "... it makes sense to
stick within the top 20 leading industry groups with
their stock picks."

Hope this helps
Dimitri

- --- Chazmoore@aol.com wrote:
> Marty:
> By setting your minimums so high you have missed
> stocks that are on the move 
> upward. Try setting the EPS at 75 or 80. Move the RS
> down to maybe 70. I like 
> Industry groups 75 and above, but you can go down to
> 60.
> 
> I do not know of any rule regarding management
> ownership versus the public, 
> other than that it is desirable for management to
> have a vested interest in 
> the company. On the flip side if most of the company
> is owned by management, 
> they are in a position to manipulate the stock
> price.
> 
> I like to see the ROE about 15 to 20%. Some use 17%
> as a minimum but this may 
> eliminate companies in the midst of a rapid
> turnaround, so I lower the bar a 
> bit.
> 
> No debt means the company is generating enough
> income to finance the assets, 
> and this is very good. When the cost of borrowing is
> low, like it is now, 
> then some debt is good because the assets generate
> income more than necessary 
> to cover the cost of debt and contribute to the
> return. Excess debt is 
> usually not good. Some feel more than 30% debt bears
> watching. Try to find 
> out why the debt load is high. I tend to accept
> higher debt due to an 
> acquisition, if it appears the acquisition can
> generate the income to cover 
> the debt.
> 
> I don't place a lot of significance on the u/d
> ratio, but more up than down 
> is desirable.  I am more interested in a sudden
> increase in upward trading 
> volume.
> 
> WON says that a desirable Earnings Stability would
> be 20 and under. I think 
> you will find this has been hard for most to achieve
> in a bear market.
> 
> I didn't try to answer all of your questions but
> this should get you started. 
> May I suggest you keep reading the postings at this
> site? You will learn 
> rather quickly who the experienced investors are and
> their wisdom is 
> priceless.
> 
> Charley

=====
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