Re: [CANSLIM] BLUD

From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] BLUD
Date: Wed, 17 Jul 2002 22:42:14 -0400

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because of the low price this slipped to, most of the chart over the past
two years or so would be off most CANSLIMers radar scope.

I think the depth of the correction would disqualify any real consideration
of a C&H formation. Likewise, the double bottom is shaky at best, again
because it was trying to practically bounce off zero.

My focus is almost always on just the past 12 months anyway, and
particularly in this case. Yes, it is something of a LLUR pattern, but very
volatile. One key criteria for me when I first look at a possible LLUR is
whether at any point it would have corrected to a point you would have
stopped out even with very liberal limits.  I see two at least in this case,
first from the high set 1/2/02 (down 33% by 2/19), and again from the high
of 4/2 (down 25% by 4/24).  These are very severe corrections for a LLUR,
even tho they did not measurably breach the 50 DMA.  Still, if you run a
line across the highs for the past year, and use the 50 dma for the lower
side of the trading range, you could have found good entry points that would
eventually make you a good return.

Because of the volatility, and the severity of the corrections, I would be
more inclined to see this as a stock trading in an upward channel, and
whether buying short, mid or long term more inclined to try to buy as it
rises from the 50 dma rather than just jumping in at any time if you were
investing long term.

I also note the earnings forecast are not impressive.

- ----- Original Message -----
From: <Spencer48@aol.com>
To: <canslim@lists.xmission.com>
Sent: Wednesday, July 17, 2002 1:39 PM
Subject: Re: [CANSLIM] BLUD


Mike:

     The weekly has a long C&H (I am looking at it on DGO), but since the
nadir fell to around 2½, the bottom of the cup probably fell more than 50%
(I
believe this is WON's threshold-even in a weak market).

     However, even though I can't see it on my screen, it is possible that
the weekly formed a long W-formation, with the Dec/00-Sept/01 area being the
2nd trough (notice, as confirmation, that volume dried up in this area).
According to WON's analysis of W-formations, BLUD (if it were a W) should
have been bought once it exceeded the middle leg zenith.  However, to me, it
looks like it made a C&H-type BO on 3/15/02.

     Also, the right leg up, to me, looks like an LLUR (as Tom defines one).
The retracements have been few, and the largest one was around 20%.  I
believe, according to how I understand Tom's evaluations of an LLUR, Tom
wouldn't buy this LLUR now until it retraces to its 50 DMA, which is a
little
below 20 (and perhaps, also, he wouldn't buy until the market turns-around).

     However, this should be observed:  BLUD has been strong-even while the
market has been weak.  And this, WON says, is the kind of stock one looks
for
when he/she is analyzing stocks during this quiet time of the Bear.

jans


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