Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] Law Suits (was ACRT or MXT?)
Date: Mon, 27 May 2002 18:15:29 -0500
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Hi Norm,
I don't know that there's a pat answer to your question. For example, I =
owned shares in a local company, PVSW, quite some years ago. The stock =
price was doing just grand and then went into a climax run at some =
point. CANSLIM rules had me out, which didn't make me all that happy, =
because I rather enjoyed asking tough questions at the shareholder's =
meetings. But the truth of the matter was, there was trouble afoot that =
was evident in the fundamentals and business strategy even before the =
stock technically took a dive. The stock dropped from about 35 to zip in =
short order, followed by a slew of class action law suits against the =
company. Frankly, they were spurious. The company had done nothing to =
mislead the investors, as the lawsuits charged, they just weren't doing =
a very good job minding the business. In that case, the lawsuits were =
meaningless. The problem is, it takes precious resources to defend =
against these lawsuits, so if nothing else, it's money out of the =
coffers until things are settled. Add that to a "poor perception" and =
you have a recipe for a stinky stock.
When reading the details of ACRT's lawsuit, it seems plausible that =
there's something fishy in the works. If you take a look at the =
fundamental summary indicators, ACRT looks pretty grand, but WON always =
states that technicals will tell the story long before the "reason" =
shows up in the fundamentals and that's reason enough to stay away. All =
that in total is enough for me to throw something like this in the =
stinky fish pile. Is there a probability it'll all work out and the =
stock will climb back up? Yes. Is the probability that it'll work out =
higher than for a stock with no red flags, better RS and equivalent =
fundamental numbers? No.
Katherine
----- Original Message -----=20
From: Norman=20
To: canslim@lists.xmission.com=20
Sent: Monday, May 27, 2002 5:53 PM
Subject: Re: [CANSLIM] Law Suits (was ACRT or MXT?)
Katherine,
shed some light on that point for me. I have seen many companies the
subject of law suits in the past for exactly this type of thing: =
making
misleading or false statements during specific time periods, usually =
just
before the stock price tanks. It seems that this happened often after =
March
2000. How can one tell if a law suit is significant/legitimate or =
just
disgruntled stock holders? Is it significant just because the legal =
papers
have been filed? And, does that trouble extend until the legal action =
is
dismissed?
norm
----- Original Message -----
From: "Katherine Malm" <kmalm@earthlink.net>
To: <canslim@lists.xmission.com>
Sent: Monday, May 27, 2002 5:14 PM
Subject: Re: [CANSLIM] ACRT or MXT?
Hi James & Tom,
Not to mention things like this in the significant developments raise =
enough
red flags to stay away from something like ACRT:
=
http://yahoo.marketguide.com/MGI/news.asp?target=3Dstocks%2Fcompanyinform=
ation
%2Fnews&Ticker=3DACRT&TEXT=3DCMTX:20020412:102u4338
I'm with Tom.....just get in the habit of ignoring stocks with an =
RS<60 and
don't be tempted to bottom fish. Go to Investors.com and read articles =
on
Fallen Angels and Falling Knives to get the gist.
Katherine
----- Original Message -----
From: Tom Worley
To: canslim@lists.xmission.com
Sent: Monday, May 27, 2002 4:53 PM
Subject: Re: [CANSLIM] ACRT or MXT?
H James,
RS of 30 would keep ACRT off my list
RS of 18 would also block MCSI
RS of 9 on NYFX, goodbye
RS of 14 on MXT - sorry, none would go beyond a first glance for me
all have recent, and substantial, overhead due to the recent price
declines.
They will be fighting resistance all the way back up.
----- Original Message -----
From: "James Wang" <jamesjw1@hotmail.com>
To: <canslim@lists.xmission.com>
Sent: Monday, May 27, 2002 5:29 PM
Subject: [CANSLIM] ACRT or MXT?
Hi, Just to learn recognizing potential winning
stocks, by their both fundamantals and technical
analysis. I recently did some research on the following
stocks, and find they could be great candidates for
longs. What do you think:
ACRT: steady earings, low PE and low PEG, high short ratio.
MCSI: good earings, good values.
NYFX: should be great with economy's recovery.
MXT: great potential with recovery, over 80% short in floats. Great
values.
James
_________________________________________________________________
Chat with friends online, try MSN Messenger: =
http://messenger.msn.com
-
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-In the email body, write "subscribe canslim" or
-"unsubscribe canslim". Do not use quotes in your email.
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<HTML><HEAD>
<META http-equiv=3DContent-Type content=3D"text/html; =
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<DIV>Hi Norm,</DIV>
<DIV> </DIV>
<DIV>I don't know that there's a pat answer to your question. For =
example, I=20
owned shares in a local company, PVSW, quite some years ago. The stock =
price was=20
doing just grand and then went into a climax run at some point. CANSLIM =
rules=20
had me out, which didn't make me all that happy, because I rather =
enjoyed asking=20
tough questions at the shareholder's meetings. But the truth of the =
matter was,=20
there was trouble afoot that was evident in the fundamentals and =
business=20
strategy even before the stock technically took a dive. The stock =
dropped from=20
about 35 to zip in short order, followed by a slew of class =
action law=20
suits against the company. Frankly, they were spurious. The company had =
done=20
nothing to mislead the investors, as the lawsuits charged, they just =
weren't=20
doing a very good job minding the business. In that case, the lawsuits =
were=20
meaningless. The problem is, it takes precious resources to defend =
against these=20
lawsuits, so if nothing else, it's money out of the coffers until things =
are=20
settled. Add that to a "poor perception" and you have a recipe for a =
stinky=20
stock.</DIV>
<DIV> </DIV>
<DIV>When reading the details of ACRT's lawsuit, it seems plausible that =
there's=20
something fishy in the works. If you take a look at the =
fundamental=20
summary indicators, ACRT looks pretty grand, but WON always states that=20
technicals will tell the story long before the "reason" shows up in the=20
fundamentals and that's reason enough to stay away. All that in total is =
enough=20
for me to throw something like this in the stinky fish pile. Is there a=20
probability it'll all work out and the stock will climb back up? Yes. Is =
the=20
probability that it'll work out higher than for a stock with no red =
flags,=20
better RS and equivalent fundamental numbers? No.</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=3Dtheboyd@tisd.net =
href=3D"mailto:theboyd@tisd.net">Norman</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
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> Monday, May 27, 2002 5:53 =
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] Law =
Suits (was=20
ACRT or MXT?)</DIV>
<DIV><BR></DIV>Katherine,<BR><BR>shed some light on that point for =
me. I=20
have seen many companies the<BR>subject of law suits in the past for =
exactly=20
this type of thing: making<BR>misleading or false statements =
during=20
specific time periods, usually just<BR>before the stock price =
tanks. It=20
seems that this happened often after March<BR>2000. How can one =
tell if=20
a law suit is significant/legitimate or just<BR>disgruntled stock=20
holders? Is it significant just because the legal papers<BR>have =
been=20
filed? And, does that trouble extend until the legal action=20
is<BR>dismissed?<BR><BR>norm<BR><BR>----- Original Message =
- -----<BR>From:=20
"Katherine Malm" <<A=20
href=3D"mailto:kmalm@earthlink.net">kmalm@earthlink.net</A>><BR>To: =
<<A=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
><BR>Sent:=20
Monday, May 27, 2002 5:14 PM<BR>Subject: Re: [CANSLIM] ACRT or=20
MXT?<BR><BR><BR>Hi James & Tom,<BR><BR>Not to mention things like =
this in=20
the significant developments raise enough<BR>red flags to stay away =
from=20
something like ACRT:<BR><BR><A=20
=
href=3D"http://yahoo.marketguide.com/MGI/news.asp?target=3Dstocks%2Fcompa=
nyinformation">http://yahoo.marketguide.com/MGI/news.asp?target=3Dstocks%=
2Fcompanyinformation</A><BR>%2Fnews&Ticker=3DACRT&TEXT=3DCMTX:200=
20412:102u4338<BR><BR>I'm=20
with Tom.....just get in the habit of ignoring stocks with an RS<60 =
and<BR>don't be tempted to bottom fish. Go to Investors.com and read =
articles=20
on<BR>Fallen Angels and Falling Knives to get the=20
gist.<BR><BR>Katherine<BR> ----- Original Message =
- -----<BR> From:=20
Tom Worley<BR> To: <A=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
<BR> =20
Sent: Monday, May 27, 2002 4:53 PM<BR> Subject: Re: [CANSLIM] =
ACRT or=20
MXT?<BR><BR><BR> H James,<BR><BR> RS of 30 would keep ACRT =
off my=20
list<BR> RS of 18 would also block MCSI<BR> RS of 9 on =
NYFX,=20
goodbye<BR> RS of 14 on MXT - sorry, none would go beyond a =
first glance=20
for me<BR><BR> all have recent, and substantial, overhead due to =
the=20
recent price<BR>declines.<BR> They will be fighting resistance =
all the=20
way back up.<BR><BR> ----- Original Message -----<BR> =
From: "James=20
Wang" <<A=20
=
href=3D"mailto:jamesjw1@hotmail.com">jamesjw1@hotmail.com</A>><BR>&nbs=
p; To:=20
<<A=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
><BR> =20
Sent: Monday, May 27, 2002 5:29 PM<BR> Subject: [CANSLIM] ACRT =
or=20
MXT?<BR><BR><BR><BR><BR> Hi, Just to learn recognizing potential =
winning<BR> stocks, by their both fundamantals and =
technical<BR> =20
analysis. I recently did some research on the =
following<BR> =20
stocks, and find they could be great candidates for<BR> =
longs. =20
What do you think:<BR><BR> ACRT: steady earings, low PE and low =
PEG,=20
high short ratio.<BR><BR> MCSI: good earings, good =
values.<BR><BR> =20
NYFX: should be great with economy's recovery.<BR><BR> MXT: =
great=20
potential with recovery, over 80% short in floats. =20
Great<BR>values.<BR><BR> James<BR><BR> =20
=
_________________________________________________________________<BR>&nbs=
p;=20
Chat with friends online, try MSN Messenger: <A=20
=
href=3D"http://messenger.msn.com">http://messenger.msn.com</A><BR><BR><BR=
> =20
-<BR> -To subscribe/unsubscribe, email "<A=20
=
href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>&nb=
sp; -In=20
the email body, write "subscribe canslim" or<BR> -"unsubscribe=20
canslim". Do not use quotes in your =
email.<BR><BR><BR><BR><BR> =20
-<BR> -To subscribe/unsubscribe, email "<A=20
=
href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>&nb=
sp; -In=20
the email body, write "subscribe canslim" or<BR> -"unsubscribe=20
canslim". Do not use quotes in your =
email.<BR><BR><BR><BR>-<BR>-To=20
subscribe/unsubscribe, email "<A=20
=
href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>-In=
the=20
email body, write "subscribe canslim" or<BR>-"unsubscribe =
canslim". Do=20
not use quotes in your email.</BLOCKQUOTE></BODY></HTML>
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