Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: Growth Estimates (was: [CANSLIM] Updated CANSLIM hunting list)
Date: Mon, 27 May 2002 22:07:54 -0500
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Hi SRP,
I don't use the QP2 data, so folks using it may have a more definitive =
answer as to what they have found useful.
But...your question got me to wondering how the QP2 projections matched =
what I use in VectorVest. In VV, there is a forward growth parameter =
(GRT) which indicates the annual projected growth for "the next 1 to 3 =
years." I always use GRT>=3D15 in my own stock selection criteria.
I asked a friend who uses QP2 to forward the data for approx 3000 stocks =
with prices >=3D $6. I then ran a test to see how things compared =
between my numbers and the QP2 projected numbers. I deleted a lot of the =
stocks on the list because QP2 had 0% or 9999% for many of them. I then =
did a simple "toggle" test for GRT>=3D15, yes or no. Then did the same =
for each of the QP2 projected numbers (>=3D15%, yes or no). I then =
counted up the Yes/No matches between QP2 and VV. Here are the results:
Using %EPS Proj CFY: 59% matched
Using %EPS Proj 3-5 yrs: 62% matched
Using %EPS Proj NFY: 57% matched
Using a test where any one of the above 3 projected was >=3D15%: 47% =
matched.
I don't know what to tell you beyond that, but the using any of the QP2 =
projected numbers, the differences are marked, so couldn't draw any =
conclusions based on the tests I ran.
Katherine
----- Original Message -----=20
From: SRP Singh=20
To: canslim@lists.xmission.com=20
Sent: Friday, May 24, 2002 3:33 PM
Subject: Re: [CANSLIM] Updated CANSLIM hunting list
Hi Katherine and ALL,
Thanks for your reply. it really helps.
I've the following items in my filter to arrive at
forward growth rates cutoff.
If %EPS Proj CFY >=3D 15.0
Or %EPS Proj CFY =3D 0.0
Or %EPS Proj NFY >=3D 20.0
It means projected/estimated EPS growth for Current
Financial Year (CFY) should be greater than or equal
to 15%=20
or=20
the same equal to zero as some stocks may not have any
estimate
or Projectd EPS growth for Next Financial Year (NFY)
should be greater than or equal to 20 %
Is this a valid way to filter out lower growth stocks
? or Should one use Current QUARTER (instead of Year)
and Next QUARTER estimates? One can also take last 6
months actual EPS growth and extrapolate to arrive at
next 6 month expected growth.=20
Which is the more valid way to arrive at growth figure
?
Thanks,
SRP
--- Katherine Malm <kmalm@earthlink.net> wrote:
> Hi SRP,
>=20
> 1. To find out if the RS Line is increasing, I
> simply run a calculation based on the price today
> vs. 26 weeks ago. The RS Line compares the price of
> the stock to the S&P500 on that date and then plots
> it. To be accurate, I should have said that I've
> included stocks where the RS Line is not decreasing.
> That is, I included anything where the RS Line was
> the same or higher over 26 weeks. The calculation is
> as follows: (Pn =3D Price now, P26 =3D Price 26 wks ago,
> SPXn =3D SPX now, SPX26 =3D SPX 26 wks ago):
>=20
> % Inc in RS Line 26 wks =3D (Pn/SPXn - P26/SPX26) /
> (P26/SPX26)
>=20
> The line you see on the DGO or IBD charts is a plot
> of this relationship between Price & SPX over time
> and is *not* a plot of the RS Ranking (1-99) over
> time. That is, it tells you how the price of the
> stock is doing relative to the S&P500. The RS
> Ranking tells you how the stock is performing vs.
> all other stocks based on price appreciation over
> the last 12 months (based on 40% current quarter and
> 20% for each of the previous quarters).
>=20
> 2. D/E is Debt to Equity. Or, what some people
> simply call the Debt Ratio. I like it to be <=3D50%,
> but don't use it as a filter, just a weigh-in
> factor. Reasons are numerous, including errors in
> the data sources, the norm for the industry, etc.
>=20
> Katherine
> ----- Original Message -----=20
> From: SRP Singh=20
> To: canslim@lists.xmission.com=20
> Sent: Friday, May 24, 2002 12:20 PM
> Subject: Re: [CANSLIM] Updated CANSLIM hunting
> list
>=20
>=20
> Hi Katherine,
>=20
> Thanks for sharing spreadsheet. I've 2 questions
> though.
>=20
> 1. How or where do you get value for "an
> increasing RS
> Line for the last 26 wks" ? I can see the RS Line
> at
> charts in investors.com but how do you use it in
> the
> filter ?
>=20
>=20
> 2. In one of your earlier mails you've mentioned
> that
> you prefer the following values :
> ROE (prefer >=3D17%)
> D/E (prefer <=3D50%)
>=20
> Is this D/E is typo ? Should it be P/E ? Please
> excuse
> my ignorance.
>=20
> Thanks,
> SRP
>=20
>=20
> --- Katherine Malm <kmalm@earthlink.net> wrote:
> > Hi All,
> >=20
> > I've uploaded a more current spreadsheet with
> links
> > containing "CANSLIM hunting ground" stocks.
> >=20
> > All stocks have forward growth rates >=3D15, have
> an
> > increasing RS Line for the last 26 wks, current
> > RS>=3D60, Price>=3D200dMA, Price>=3D(-15%) of 50dMA,
> A/D
> > not D or E. Some stocks will slip through that
> don't
> > meet all the technical requirements because,
> when
> > data is missing, I let them pass.
> >=20
> > Most stocks included have Price>=3D6, though some
> > small fry slip through. Most AvgVols are >=3D30K,
> > though again, some lower ADV's are included.
> >=20
> > Stocks to be merged/acquired are not included.
> >=20
> > Data current as of 5/22/02
> >=20
> > You'll find the spreadsheet at: =20
> >
> =20
>
http://WallStreet-LLC.com/canslim/CANSLIMHunting052202.zip
> >=20
> > Happy Hunting,
> > Katherine
> >=20
> > PS Industries are NOT from DGO, so you will see
> some
> > differences between the industries identified
> here
> > and those as they are identified in DGO.
> >=20
>=20
>=20
> __________________________________________________
> Do You Yahoo!?
> LAUNCH - Your Yahoo! Music Experience
> http://launch.yahoo.com
>=20
> -
> -To subscribe/unsubscribe, email
> "majordomo@xmission.com"
> -In the email body, write "subscribe canslim" or
> -"unsubscribe canslim". Do not use quotes in your
> email.
>=20
>=20
__________________________________________________
Do You Yahoo!?
LAUNCH - Your Yahoo! Music Experience
http://launch.yahoo.com
-
-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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<META http-equiv=3DContent-Type content=3D"text/html; =
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<BODY bgColor=3D#ffffff>
<DIV>Hi SRP,</DIV>
<DIV> </DIV>
<DIV>I don't use the QP2 data, so folks using it may have a more =
definitive=20
answer as to what they have found useful.</DIV>
<DIV> </DIV>
<DIV>But...your question got me to wondering how the QP2 projections =
matched=20
what I use in VectorVest. In VV, there is a forward growth parameter =
(GRT) which=20
indicates the annual projected growth for "the next 1 to 3 years." I =
always use=20
GRT>=3D15 in my own stock selection criteria.</DIV>
<DIV> </DIV>
<DIV>I asked a friend who uses QP2 to forward the data for approx 3000 =
stocks=20
with prices >=3D $6. I then ran a test to see how things compared =
between my=20
numbers and the QP2 projected numbers. I deleted a lot of the stocks on =
the list=20
because QP2 had 0% or 9999% for many of them. I then did a simple =
"toggle" test=20
for GRT>=3D15, yes or no. Then did the same for each of the QP2 =
projected=20
numbers (>=3D15%, yes or no). I then counted up the Yes/No matches =
between QP2=20
and VV. Here are the results:</DIV>
<DIV> </DIV>
<DIV>Using %EPS Proj CFY: 59% matched</DIV>
<DIV>Using %EPS Proj 3-5 yrs: 62% matched</DIV>
<DIV>Using %EPS Proj NFY: 57% matched</DIV>
<DIV>Using a test where any one of the above 3 projected was =
>=3D15%:=20
47% matched.</DIV>
<DIV> </DIV>
<DIV>I don't know what to tell you beyond that, but the using any of the =
QP2=20
projected numbers, the differences are marked, so couldn't draw any =
conclusions=20
based on the tests I ran.</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=3Dssingh_01803@yahoo.com =
href=3D"mailto:ssingh_01803@yahoo.com">SRP=20
Singh</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> Friday, May 24, 2002 3:33 =
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] Updated =
CANSLIM=20
hunting list</DIV>
<DIV><BR></DIV>Hi Katherine and=20
ALL,<BR> Thanks for =
your=20
reply. it really helps.<BR><BR>I've the following items in my filter =
to arrive=20
at<BR>forward growth rates cutoff.<BR><BR>If %EPS Proj CFY >=3D =
15.0<BR>Or=20
%EPS Proj CFY =3D 0.0<BR>Or %EPS Proj NFY >=3D 20.0<BR><BR>It means =
projected/estimated EPS growth for Current<BR>Financial Year (CFY) =
should be=20
greater than or equal<BR>to 15% <BR>or <BR>the same equal to zero as =
some=20
stocks may not have any<BR>estimate<BR>or Projectd EPS growth for Next =
Financial Year (NFY)<BR>should be greater than or equal to 20 =
%<BR><BR>Is this=20
a valid way to filter out lower growth stocks<BR>? or Should one use =
Current=20
QUARTER (instead of Year)<BR>and Next QUARTER estimates? One can also =
take=20
last 6<BR>months actual EPS growth and extrapolate to arrive =
at<BR>next 6=20
month expected growth. <BR><BR>Which is the more valid way to arrive =
at growth=20
figure<BR>?<BR><BR>Thanks,<BR>SRP<BR><BR><BR><BR>--- Katherine Malm =
<<A=20
href=3D"mailto:kmalm@earthlink.net">kmalm@earthlink.net</A>> =
wrote:<BR>>=20
Hi SRP,<BR>> <BR>> 1. To find out if the RS Line is increasing,=20
I<BR>> simply run a calculation based on the price today<BR>> =
vs. 26=20
weeks ago. The RS Line compares the price of<BR>> the stock to the=20
S&P500 on that date and then plots<BR>> it. To be accurate, I =
should=20
have said that I've<BR>> included stocks where the RS Line is not=20
decreasing.<BR>> That is, I included anything where the RS Line =
was<BR>>=20
the same or higher over 26 weeks. The calculation is<BR>> as =
follows: (Pn =3D=20
Price now, P26 =3D Price 26 wks ago,<BR>> SPXn =3D SPX now, SPX26 =
=3D SPX 26 wks=20
ago):<BR>> <BR>> % Inc in RS Line 26 wks =3D (Pn/SPXn - =
P26/SPX26)=20
/<BR>> (P26/SPX26)<BR>> <BR>> The line you see on the DGO or =
IBD=20
charts is a plot<BR>> of this relationship between Price & SPX =
over=20
time<BR>> and is *not* a plot of the RS Ranking (1-99) over<BR>> =
time.=20
That is, it tells you how the price of the<BR>> stock is doing =
relative to=20
the S&P500. The RS<BR>> Ranking tells you how the stock is =
performing=20
vs.<BR>> all other stocks based on price appreciation over<BR>> =
the last=20
12 months (based on 40% current quarter and<BR>> 20% for each of =
the=20
previous quarters).<BR>> <BR>> 2. D/E is Debt to Equity. Or, =
what some=20
people<BR>> simply call the Debt Ratio. I like it to be =
<=3D50%,<BR>>=20
but don't use it as a filter, just a weigh-in<BR>> factor. Reasons =
are=20
numerous, including errors in<BR>> the data sources, the norm for =
the=20
industry, etc.<BR>> <BR>> Katherine<BR>> ----- =
Original=20
Message ----- <BR>> From: SRP Singh =
<BR>> To: <A=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
<BR>> Sent: Friday, May 24, 2002 12:20 =
PM<BR>> =20
Subject: Re: [CANSLIM] Updated CANSLIM hunting<BR>> list<BR>> =
<BR>>=20
<BR>> Hi Katherine,<BR>> =
<BR>> =20
Thanks for sharing spreadsheet. I've 2 questions<BR>> =20
though.<BR>> <BR>> 1. How or where do you get value =
for=20
"an<BR>> increasing RS<BR>> Line for the last 26 =
wks" ? I=20
can see the RS Line<BR>> at<BR>> charts in =
investors.com but=20
how do you use it in<BR>> the<BR>> filter ?<BR>> =
<BR>>=20
<BR>> 2. In one of your earlier mails you've =
mentioned<BR>>=20
that<BR>> you prefer the following values =
:<BR>> =20
ROE (prefer >=3D17%)<BR>> D/E (prefer =
<=3D50%)<BR>>=20
<BR>> Is this D/E is typo ? Should it be P/E ? =
Please<BR>>=20
excuse<BR>> my ignorance.<BR>> <BR>> =20
Thanks,<BR>> SRP<BR>> <BR>> <BR>> =
- ---=20
Katherine Malm <<A=20
href=3D"mailto:kmalm@earthlink.net">kmalm@earthlink.net</A>>=20
wrote:<BR>> > Hi All,<BR>> >=20
<BR>> > I've uploaded a more current spreadsheet=20
with<BR>> links<BR>> > containing "CANSLIM =
hunting=20
ground" stocks.<BR>> > <BR>> > All =
stocks=20
have forward growth rates >=3D15, have<BR>> =
an<BR>> >=20
increasing RS Line for the last 26 wks, current<BR>> =
>=20
RS>=3D60, Price>=3D200dMA, Price>=3D(-15%) of 50dMA,<BR>>=20
A/D<BR>> > not D or E. Some stocks will slip through =
that<BR>> don't<BR>> > meet all the technical=20
requirements because,<BR>> when<BR>> > data is =
missing, I=20
let them pass.<BR>> > <BR>> > Most =
stocks=20
included have Price>=3D6, though some<BR>> > =
small fry slip=20
through. Most AvgVols are >=3D30K,<BR>> > though =
again,=20
some lower ADV's are included.<BR>> > =
<BR>> =20
> Stocks to be merged/acquired are not =
included.<BR>> >=20
<BR>> > Data current as of =
5/22/02<BR>> >=20
<BR>> > You'll find the spreadsheet at: =20
<BR>> ><BR>> <BR>><BR><A=20
=
href=3D"http://WallStreet-LLC.com/canslim/CANSLIMHunting052202.zip">http:=
//WallStreet-LLC.com/canslim/CANSLIMHunting052202.zip</A><BR>> &n=
bsp;=20
> <BR>> > Happy Hunting,<BR>> > =
Katherine<BR>> > <BR>> > PS =
Industries are=20
NOT from DGO, so you will see<BR>> some<BR>> >=20
differences between the industries identified<BR>> =
here<BR>> =20
> and those as they are identified in DGO.<BR>> > =
<BR>> <BR>> <BR>> =20
__________________________________________________<BR>> =
Do You=20
Yahoo!?<BR>> LAUNCH - Your Yahoo! Music=20
Experience<BR>> <A=20
href=3D"http://launch.yahoo.com">http://launch.yahoo.com</A><BR>>=20
<BR>> -<BR>> -To subscribe/unsubscribe,=20
email<BR>> "<A=20
=
href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>>=
; =20
-In the email body, write "subscribe canslim" or<BR>> =20
-"unsubscribe canslim". Do not use quotes in your<BR>> =
email.<BR>>=20
<BR>> =
<BR><BR><BR>__________________________________________________<BR>Do=20
You Yahoo!?<BR>LAUNCH - Your Yahoo! Music Experience<BR><A=20
=
href=3D"http://launch.yahoo.com">http://launch.yahoo.com</A><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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