Go to Jeff Salisbury LWGate Home Page.From: "J. Lobatto" <jlobatto@nyc.rr.com>
Subject: Re: [CANSLIM] IBD "Bull" Call
Date: Wed, 3 Jul 2002 08:59:06 -0400
Next Article (by Author): Re: [CANSLIM] DGO/IBD "Katherine Malm"
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Tom,
In more normal markets, I think you're prescription of waiting for =
volume and using limits is fine. However, in this kind of a market, I've =
seen the spreads widen even further as soon as a whiff of panic (of =
which there have been many) hits. I don't think that placing a limit =
will safely allow you to sell a micro-cap under these circumstances and =
maintain a single digit percentage loss. Unfortunately, the illiquid =
nature of micro caps works for you in bull markets (with daily double =
digit percentage gains common), but that volatility works against you in =
a bear. Am not trashing small caps by any means, just thought a "buyer =
beware" clause is necessary.
Jon
----- Original Message -----=20
From: Tom Worley=20
To: canslim@lists.xmission.com=20
Sent: Wednesday, July 03, 2002 6:37 AM
Subject: Re: [CANSLIM] IBD "Bull" Call
as someone who has been doing nothing but small and micro caps for =
years, I agree the spread on them tends to be larger than with mid or =
large caps, just as the liquidity tends to be substantially less. The =
spread was substantially tightened when we went to decimalization, =
helped the small caps far more than the bigger cousins. I deal with =
what spread remains either by waiting till there is above average =
volume, or by using limits.
----- Original Message -----=20
From: J. Lobatto=20
To: canslim@lists.xmission.com=20
Sent: Tuesday, July 02, 2002 11:42 PM
Subject: Re: [CANSLIM] IBD "Bull" Call
Although there may be some small caps outperforming the market, the =
small cap indices were actually down today more than the Dow or S&P. My =
main problem with low price stocks is the relative large spread between =
the bid and ask which kills you if and when you are forced to sell in a =
down draft. It makes it almost impossible to cut your losses at 7% or so =
when the spread is often 5%!
Jon
----- Original Message -----=20
From: zillagirl=20
To: canslim@lists.xmission.com=20
Sent: Tuesday, July 02, 2002 10:58 PM
Subject: Re: [CANSLIM] IBD "Bull" Call
I have a theory on small caps,although Im sure some of you are tired =
of hearing from me today.(smile) there is a lot of money to be made in =
the right small caps. I would almost bet IBD does research in all caps =
- -not just the ones he posts on his site. Esp. for small cap mutual =
funds, etc. Some of them have good earnings, new products, the M is on =
their side right now compared to the other indexes. Someone is buying =
these stocks and making a lot of money on them before they ever hit a =
canslim list.(you can buy a lot more shares at 5.00 then with 25.00 =
eventhough the risk is greater)If in this market the risk can be =
greater. I cant help but think that there is a trading system with =
established % on earnings, growth, etc. but it is not available to us. =
And Im sure it would not be with the same criteria as the canslim =
system we are given. Its great to ride a stock from 5 to 15 or 20 =
dollars and then a whole new set of buyers comes in. I could be wrong =
but if the research is done I feel it should be made available to =
us-buyer beware. In this market when small caps seem to have been hit =
the least and canslim seems to be in reverse half the time, we could =
use more then 'one day the market will turn' from IBD.I would like to =
think bill is protecting us from bad investments but as anyone who read =
my posts today can see-my rose colored glasses got broken somewhere. PS =
dont get me wrong I love canslim but its like following the indexes-when =
they drop - you might have to think about shorting.=20
----- Original Message -----=20
From: Tom Worley=20
To: canslim@lists.xmission.com=20
Sent: Tuesday, July 02, 2002 6:15 PM
Subject: Re: [CANSLIM] IBD "Bull" Call
interesting he avoids mentioning the Russell 2000, is it just too =
small for him?
----- Original Message -----=20
From: Katherine Malm=20
To: canslim@lists.xmission.com=20
Sent: Tuesday, July 02, 2002 9:12 PM
Subject: Re: [CANSLIM] IBD "Bull" Call
Hi Jon,
I've often wondered about that same thing as it's certainly not =
obvious there's a Bull market anywhere in sight if looking at the =
Nasdaq, S&P500 or Dow. Here's an interesting "Ask Bill" from today that =
might "explain" their point of view.
--Katherine
Ask Bill O'Neil 7/2/02
=20
Q: Would you classify the period from late Sept. 2001 to =
Jan. 2002 as a "bull market" or a "bear-market rally"? =20
- Submitted from Thornhill, Canada =20
=20
A: The bear market is alive and kicking on the Nasdaq. But =
the smaller-cap indexes such as the S&P 600 and S&P MidCap 400 are just =
10% to 11% below their all-time highs. For them, the current decline is =
a correction in a bull market. =20
----- Original Message -----=20
From: J. Lobatto=20
To: canslim@lists.xmission.com=20
Sent: Tuesday, July 02, 2002 8:04 PM
Subject: [CANSLIM] IBD "Bull" Call
I wonder how long IBD is going to continue running that ad I've =
seen there featuring a graphic illustrating how they called the new bull =
market last fall???
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<DIV><FONT face=3DArial color=3D#0000ff>Tom,</FONT></DIV>
<DIV><FONT face=3DArial color=3D#0000ff></FONT> </DIV>
<DIV><FONT face=3DArial color=3D#0000ff>In more normal markets, I think =
you're=20
prescription of waiting for volume and using limits is fine. However, in =
this=20
kind of a market, I've seen the spreads widen even further as soon as a =
whiff of=20
panic (of which there have been many) hits. I don't think that placing a =
limit=20
will safely allow you to sell a micro-cap under these circumstances and =
maintain=20
a single digit percentage loss. Unfortunately, the illiquid nature of =
micro caps=20
works for you in bull markets (with daily double digit percentage=20
gains common), but that volatility works against you in a bear. Am =
not=20
trashing small caps by any means, just thought a "buyer beware" clause =
is=20
necessary.</FONT></DIV>
<DIV><FONT face=3DArial color=3D#0000ff></FONT> </DIV>
<DIV><FONT face=3DArial color=3D#0000ff>Jon</FONT></DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #0000ff 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=3Dstkguru@bellsouth.net =
href=3D"mailto:stkguru@bellsouth.net">Tom=20
Worley</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> Wednesday, July 03, 2002 =
6:37=20
AM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] IBD =
"Bull"=20
Call</DIV>
<DIV><BR></DIV>
<DIV><FONT face=3DArial>as someone who has been doing nothing but =
small and=20
micro caps for years, I agree the spread on them tends to be larger =
than with=20
mid or large caps, just as the liquidity tends to be substantially =
less. The=20
spread was substantially tightened when we went to decimalization, =
helped the=20
small caps far more than the bigger cousins. I deal with what =
spread=20
remains either by waiting till there is above average volume, or by =
using=20
limits.</FONT></DIV>
<DIV> </DIV>
<DIV style=3D"FONT: 10pt arial">----- Original Message -----=20
<DIV style=3D"BACKGROUND: #e4e4e4; font-color: black"><B>From:</B> <A=20
title=3Djlobatto@nyc.rr.com href=3D"mailto:jlobatto@nyc.rr.com">J. =
Lobatto</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> Tuesday, July 02, 2002 11:42 PM</DIV>
<DIV><B>Subject:</B> Re: [CANSLIM] IBD "Bull" Call</DIV></DIV>
<DIV><BR></DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2>Although there may be =
some small=20
caps outperforming the market, the small cap indices were actually =
down today=20
more than the Dow or S&P. My main problem with low price stocks is =
the=20
relative large spread between the bid and ask which kills you if and =
when you=20
are forced to sell in a down draft. It makes it almost impossible to =
cut your=20
losses at 7% or so when the spread is often 5%!</FONT></DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2>Jon</FONT></DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #0000ff 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=3Dzillagirl@email.msn.com=20
href=3D"mailto:zillagirl@email.msn.com">zillagirl</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>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Tuesday, July 02, 2002 =
10:58=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] IBD =
"Bull"=20
Call</DIV>
<DIV><BR></DIV>
<DIV><FONT face=3DArial size=3D2>I have a theory on small =
caps,although Im sure=20
some of you are tired of hearing from me today.(smile) there =
is a lot=20
of money to be made in the right small caps. I would almost bet IBD =
does=20
research in all caps -not just the ones he posts on his site. =
Esp. for=20
small cap mutual funds, etc. Some of them have good earnings, new =
products,=20
the M is on their side right now compared to the other =
indexes. Someone=20
is buying these stocks and making a lot of money on them before they =
ever=20
hit a canslim list.(you can buy a lot more shares at 5.00 then =
with=20
25.00 eventhough the risk is greater)If in this market the risk can =
be=20
greater. I cant help but think that there is a trading system with=20
established % on earnings, growth, etc. but it is not available to =
us. And=20
Im sure it would not be with the same =
criteria as the=20
canslim system we are given. Its great to ride a stock from 5 to 15 =
or 20=20
dollars and then a whole new set of buyers comes in. I could be =
wrong but if=20
the research is done I feel it should be made available to us-buyer=20
beware. In this market when small caps seem to have been hit =
the least=20
and canslim seems to be in reverse half the time, we could use =
more=20
then 'one day the market will turn' from IBD.I would like to think =
bill is=20
protecting us from bad investments but as anyone who read my posts =
today can=20
see-my rose colored glasses got broken somewhere. PS dont get me =
wrong I=20
love canslim but its like following the indexes-when they drop - you =
might=20
have to think about shorting. </FONT></DIV>
<BLOCKQUOTE dir=3Dltr=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=3Dstkguru@bellsouth.net =
href=3D"mailto:stkguru@bellsouth.net">Tom=20
Worley</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Tuesday, July 02, =
2002 6:15=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] IBD =
"Bull"=20
Call</DIV>
<DIV><BR></DIV>
<DIV><FONT face=3DArial>interesting he avoids mentioning the =
Russell 2000,=20
is it just too small for him?</FONT></DIV>
<DIV> </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=20
Malm</A> </DIV>
<DIV><B>To:</B> <A title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
</DIV>
<DIV><B>Sent:</B> Tuesday, July 02, 2002 9:12 PM</DIV>
<DIV><B>Subject:</B> Re: [CANSLIM] IBD "Bull" Call</DIV></DIV>
<DIV><BR></DIV>
<DIV>Hi Jon,</DIV>
<DIV> </DIV>
<DIV>I've often wondered about that same thing as it's certainly =
not=20
obvious there's a Bull market anywhere in sight if looking at the =
Nasdaq,=20
S&P500 or Dow. Here's an interesting "Ask Bill" from today =
that might=20
"explain" their point of view.</DIV>
<DIV> </DIV>
<DIV>--Katherine</DIV>
<DIV> </DIV>
<DIV>
<TABLE cellSpacing=3D0 cellPadding=3D0 width=3D"80%" border=3D0>
<TBODY>
<TR>
<TD vAlign=3Dtop colSpan=3D2><FONT size=3D2>
<H2 class=3Dtxthead>Ask Bill O'Neil 7/2/02</H2><!--<span =
class=3D"sub"><b>Sponsored By Your =
Company</b></span><br>--> </FONT></TD><!--<td align=3D"center" =
rowspan=3D"3" class=3D"txtsubxsml"><font size=3D"1">
<a href=3D"../about/WJO.asp"><img src=3D"../images/staWJO2.gif" =
width=3D"59" height=3D"85" border=3D"0" alt=3D"William J. O'Neil"><br>
<u>William J. O'Neil</u></a><br>
<nobr>Chairman & Founder<br>
Investor's Business Daily</nobr></font></td>--></TR>
<TR>
<TD class=3Dcopy vAlign=3Dtop><FONT size=3D2> Q: Would =
you classify=20
the period from late Sept. 2001 to Jan. 2002 as a "bull =
market" or a=20
"bear-market rally"? </FONT></TD>
<TD> </TD></TR>
<TR>
<TD class=3Dcopy vAlign=3Dbottom align=3Dright><FONT=20
size=3D2><B><I>- Submitted from</I></B>=20
<B><I>Thornhill,</I></B> <B><I>Canada</I></B> </FONT></TD>
<TD> </TD></TR>
<TR>
<TD class=3Dcopy vAlign=3Dtop colSpan=3D2><FONT =
size=3D2> <BR>
<SCRIPT language=3DJavaScript>
<!--
OAS_AD('www.investors.com/AskBill250', 'x17');
//-->
</SCRIPT>
<SCRIPT language=3DJavaScript1.1=20
=
src=3D"http://oascentral.investors.com/RealMedia/ads/adstream_jx.ads/www.=
investors.com/AskBill250/1567613433@x17?_RM_HTML_TARGET_=3D_blank"></SCRI=
PT>
A:<A=20
=
href=3D"http://oas-central.realmedia.com/RealMedia/ads/click_lx.ads/www.i=
nvestors.com/AskBill250/124150637/x17/Investors/BCN2002050034_Cyber_250x2=
50/chess250x250.gif/34323230333035613363363331613030"=20
target=3D_blank></A> The bear market is alive and kicking on =
the=20
Nasdaq. But the smaller-cap indexes such as the S&P 600 =
and=20
S&P MidCap 400 are just 10% to 11% below their all-time =
highs.=20
For them, the current decline is a correction in a bull =
market.=20
</FONT></TD></TR></TBODY></TABLE></DIV>
<BLOCKQUOTE dir=3Dltr=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=3Djlobatto@nyc.rr.com =
href=3D"mailto:jlobatto@nyc.rr.com">J.=20
Lobatto</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Tuesday, July 02, =
2002 8:04=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> [CANSLIM] IBD =
"Bull"=20
Call</DIV>
<DIV><BR></DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2>I wonder how =
long IBD is=20
going to continue running that ad I've seen there featuring a =
graphic=20
illustrating how they called the new bull market last=20
=
fall???</FONT></DIV></BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE><=
/BODY></HTML>
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Next Article (by Author): Re: [CANSLIM] DGO/IBD "Katherine Malm"
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