Re: [CANSLIM] Earnings Confidence

From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] Earnings Confidence
Date: Mon, 1 Jul 2002 21:53:34 -0400
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Hi Katherine,

I must admit I feel somewhat insulated from the Andersen fallout because =
I only buy small and micro cap stocks. I remain convinced they are less =
likely to play games with their financial reporting, if wrong it's more =
likely an honest error. Since the ones I monitor already have, by =
definition, strong growth (otherwise I would not be looking at them), =
they don't need to play games, nor do they have the loose cash to do so =
(or to loan to their CEO).=20

Nonetheless, if I was not already working 12 hours or more a day at my =
day job, I would make a greater effort to visit the SEC site and do some =
reading. But I am now not convinced that I would read the truth there =
either, I suffered my biggest loss percentage wise on a penny stock that =
filed falsely with the SEC, and the CEO last I heard was a federal =
fugitive living in Brazil.

The greatest affect all this has had on me is paying more attention to =
the chart. You don't have to be an insider to read a chart, and the =
actions of the insider become known to many early on, and is often =
signaled in the chart. If the chart is doing something I don't expect =
from my perception of the company fundies, I am more inclined to bail =
than to stick around and argue with the market.=20

- ----- Original Message -----=20
From: Katherine Malm=20
To: canslim@lists.xmission.com=20
Sent: Monday, July 01, 2002 2:15 PM
Subject: [CANSLIM] Earnings Confidence


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

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<BODY bgColor=3D#ffffff>
<DIV><FONT face=3DArial>Hi Katherine,</FONT></DIV>
<DIV><FONT face=3DArial></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial>I must admit I feel somewhat insulated from the =
Andersen=20
fallout because I only buy small and micro cap stocks. I remain =
convinced they=20
are less likely to play games with their financial reporting, if wrong =
it's more=20
likely an honest error. Since the ones I monitor already have, by =
definition,=20
strong growth (otherwise I would not be looking at them), they don't =
need to=20
play games, nor do they have the loose cash to do so (or to loan to =
their CEO).=20
</FONT></DIV>
<DIV><FONT face=3DArial></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial>Nonetheless, if I was not already working 12 =
hours or more=20
a day at my day job, I would make a greater effort to visit the SEC site =
and do=20
some reading. But I am now not convinced that I would read the truth =
there=20
either, I suffered my biggest loss percentage wise on a penny stock that =
filed=20
falsely with the SEC, and the CEO last I heard was a federal fugitive =
living in=20
Brazil.</FONT></DIV>
<DIV><FONT face=3DArial></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial>The greatest affect all this has had on me is =
paying more=20
attention to the chart. You don't have to be an insider to read a chart, =
and the=20
actions of the insider become known to many early on, and is often =
signaled in=20
the chart. If the chart is doing something I don't expect from my =
perception of=20
the company fundies, I am more inclined to bail than to stick around and =
argue=20
with the market. </FONT></DIV>
<DIV><FONT face=3DArial></FONT>&nbsp;</DIV>
<DIV style=3D"FONT: 10pt arial">----- Original Message -----=20
<DIV style=3D"BACKGROUND: #e4e4e4; font-color: black"><B>From:</B> <A=20
title=3Dkmalm@earthlink.net =
href=3D"mailto:kmalm@earthlink.net">Katherine Malm</A>=20
</DIV>
<DIV><B>To:</B> <A title=3Dcanslim@lists.xmission.com=20
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
 </DIV>
<DIV><B>Sent:</B> Monday, July 01, 2002 2:15 PM</DIV>
<DIV><B>Subject:</B> [CANSLIM] Earnings Confidence</DIV></DIV>
<DIV><BR></DIV>
<DIV>Hi All,</DIV>
<DIV>&nbsp;</DIV>
<DIV>I see the recent discussions of Anderson, WCOM, earnings =
confidence, etc.=20
to be of great importance in CANSLIM investing, less as a matter of =
"current=20
events" than in the sense that it impacts much of the core investing =
concepts in=20
CANSLIM.</DIV>
<DIV>&nbsp;</DIV>
<DIV>I'm interested in finding out if and how this change in perception =
of=20
earnings measurement will or has had any affect on your CANSLIM mining, =
entry,=20
and/or exit strategies. If it has not yet had an effect, do you believe =
that it=20
should? In other words, how will you modify your approach based on these =
events?=20
How do you use these events to strengthen your strategies?</DIV>
<DIV>&nbsp;</DIV>
<DIV>Katherine</DIV></BODY></HTML>

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