Re: [CANSLIM] Earnings Confidence

From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] Earnings Confidence
Date: Mon, 1 Jul 2002 20:56:22 -0400

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Dave,

Just because a company is not currently using Andersen doesn't mean the
shareholders are out of the minefield. Look at Xerox, restating five years
of results. I now try to avoid any company that I find out used Andersen for
any of the past three full fiscal years.

- ----- Original Message -----
From: "Dave Cameron" <dfcameron@yahoo.com>
To: <canslim@lists.xmission.com>
Sent: Monday, July 01, 2002 5:54 PM
Subject: Re: [CANSLIM] Earnings Confidence

Hmmm... so far most of the responses to this have been to define
GARP.

This is all on paper, because I haven't bought an individual stock in
close to a year.   But, my first modification was to check to see who
the auditor was; if it was Andersen, I eliminated from consideration.
 Since the Andersen defections are now legion, the step is largely
unnecessary.

As a filtering step, I've generally avoided companies with large debt
(such as WCOM), so that wouldn't have affected me.   Although I've
learned the sector follows suit sometimes (guilt by association).
In addition, I'd be taking a closer look at cash flow (which I always
felt to be as important as EPS), but that's gotten trashed too....

Grrr...

Not sure, Katherine.   Gotta figure this one out.   But, the way the
market is going, there's time to do it.

- --- Katherine Malm <kmalm@earthlink.net> wrote:
> Hi All,
>
> I see the recent discussions of Anderson, WCOM, earnings
> confidence, etc. to be of great importance in CANSLIM investing,
> less as a matter of "current events" than in the sense that it
> impacts much of the core investing concepts in CANSLIM.
>
> I'm interested in finding out if and how this change in perception
> of earnings measurement will or has had any affect on your CANSLIM
> mining, entry, and/or exit strategies. If it has not yet had an
> effect, do you believe that it should? In other words, how will you
> modify your approach based on these events? How do you use these
> events to strengthen your strategies?
>
> Katherine
>

=====
Dave Cameron
dfcameron@yahoo.com

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