Re: [CANSLIM] Holy Cow....It's a New Era Indeed...

From: Spencer48@aol.com
Subject: Re: [CANSLIM] Holy Cow....It's a New Era Indeed...
Date: Wed, 19 Jun 2002 00:45:26 EDT
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Katherine:

     Thanks for the info.  

     To conjoin it to a thought that I recently read on Investors.com:  It 
appears to me that IBD (WON's apparent proxy) believes that the up&coming 
stocks will be coming from the small-cap consumer sector (retailers, 
restaurants, medicals, perhaps gaming and safety/security).  I conclude this 
because of the 6/17 "Ask Bill O' Neil", which queried, "Where will the new 
leaders come from?"  Here was the reply:  
     
     "How The Mkts Will Do W/O Tech. To Lead Them:  You don't need Cisco, 
Oracle and AOL to recover for the market to bounce back. People with short 
memories may forget, but consumer stocks often ruled the market before the 
high-tech craze of the 1990s. Though the market's still struggling, we're 
seeing a gradual shift by money managers toward retailers, restaurants, 
medicals and other consumer-focused companies [incl., I believe, 
Leisure-gaming/equip & Security/Safety]. While big techs' struggles may hold 
the Nasdaq back, other indexes could push forward. Keep an eye on small-cap 
indexes like the S&P 600 [or the Russell 2000], which offer a slew of 
promising, young firms with solid growth potential. Techs will eventually 
rebound, but it's possible they may mostly sit out the next bull market."

jans


In a message dated 6/18/2002 7:32:37 PM Eastern Daylight Time, 
kmalm@earthlink.net writes:

<< Check it out!!! The highlighting is mine....
 
 --Katherine
 
 The Big Picture
 Wednesday, June 19, 2002
 
 Tech Stocks Take A Break But Cyclicals Edge Higher
 BY DAVID SAITO-CHUNG
 
 INVESTOR'S BUSINESS DAILY
 
 Tech stocks decided Tuesday to rest after two straight days of gains. 
Cyclicals thought otherwise.
 
 Housing starts surged 11.6% in May, well above the 2.9% rise economists had 
expected. Core consumer prices, meanwhile, rose 0.2% the same month, matching 
estimates. Translation: good news for industrial stocks.
 
 The Nasdaq started higher, but ran out of fuel by midmorning. It ended off 
0.7%. Volume ran just a tad lower, a sign that heavy hitters weren't eager to 
sell stocks.
 
 In contrast, the S&P 500 edged up 0.1%, helped by retail, building, 
machinery and energy names. The Dow gained 0.2%. The Amex Morgan Stanley 
cyclical index marched ahead 0.6%. NYSE trade cooled as well.
 
 Small caps also held ground. The S&P SmallCap 600 index, up 3.2% in the 
previous two sessions, lost less than 0.1% Tuesday.
 
 On Thursday, the General Markets & Sectors page in the print edition will 
feature for the first time the S&P 600 SmallCap index chart on a daily basis. 
It will be sandwiched between the Nasdaq and S&P 500 charts. The Dow will 
appear at the bottom of the page on Mondays only. Four more indexes will fill 
in this slot on a rotating basis during the rest of the week.
 
 In the 1890s, Charles Henry Dow showed vision in creating an index of stocks 
as a barometer of the overall U.S. economy. By 1928, his industrial index had 
grown to 30 stocks.
 
 The Dow Jones industrial average was initially an index of railroad stocks. 
And rightfully so. Back then, railroads served as a backbone of economic 
growth. As the economy changed, so did the Dow's makeup. The latest changes 
to the Dow came in October 1999, when Microsoft  (MSFT), Intel (INTC), Home 
Depot (HD) and SBC Communications (SBC) kicked out Union Carbide, Chevron 
(CVX), Goodyear Tire (GT) and Sears (S).
 
 But the market has changed so much since then. We are in a brand-new economy 
where young companies provide new, exciting products and services, and excel 
at it. Success in the stock market means actively searching for these 
lesser-known yet fast-growing firms and buying shares early in their upward 
cycle.
 
 Smaller-cap stocks have outperformed their large-cap brethren. Since Sept. 
21, the S&P 600 has gained 22%, the Dow 9%. Many large caps have dragged 
their feet for years.
 
 IBD strives to present the facts - especially facts about great stocks and 
those that have the potential to outpace the market. We feel the S&P 600 will 
offer readers a clearer view of this new face of America. The Nasdaq and S&P 
500, meanwhile, will help investors keep a finger on the pulse of the largest 
companies.
 
 When the S&P 600 chart comes out on Thursday, it will list the index's 70 
biggest stocks along with their IBD Composite Rating. This feature will help 
save you time in singling out the best stocks in the market. The average IBD 
Composite Rating among the S&P 600 stocks is 59 vs. 54 for the Dow 30 stocks. 
While both indexes had the same average Earnings Per Share Rating of 57, the 
average RS Rating for the S&P 600 was 55 vs. the Dow's 43.
 
 Meanwhile, the Dow will continue to be featured in IBD every day on page B4 
in the print edition, along with the Dow transport and Dow utility indexes.
  >>

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