[CANSLIM] Investing 101

From: Chazmoore@aol.com
Subject: [CANSLIM] Investing 101
Date: Wed, 24 Jul 2002 09:58:52 EDT

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Katherine: Yesterday, while commenting on the need to constantly be revising
our prospect lists, you went on to observe that the stocks that go up are
those with core CANSLIM characteristics, and then observed that technicals
should lead the way to the winners. I always enjoy your comments and usually
print them for future reference, but I must confess I feel like the student
who dosed off in class and missed a key test question.

To me, good fundamentals mean the company is in excellent financial health
with a light to moderate debt load, and has been very profitable for at least
four or more quarters. CANSLIM, IBD, and DGO lets us determine these facts
very quickly. Then with a little research we can perform the fine tuning.

Technically, the Group Industry Relative Strength, the Price Relative
Strength, and the Accumulation/Distribution Rating gives us clues as to when
it may be safe to buy.

The actual purchasing moment is determined by an analysis of the price chart,
as we look for a break out from a prior resistance level.

Is this the point you were making? Find the best companies then wait for the
technicals to tell us when to enter the market?

I think I missed something because you concluded by saying we should not
start with fundamentals to find good quality candidates.

Charley

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<HTML>Katherine: Yesterday, while commenting on the need to constantly be revising our prospect lists, you went on to observe that the stocks that go up are those with core CANSLIM characteristics, and then observed that technicals should lead the way to the winners. I always enjoy your comments and usually print them for future reference, but I must confess I feel like the student who dosed off in class and missed a key test question.
 
 To me, good fundamentals mean the company is in excellent financial health with a light to moderate debt load, and has been very profitable for at least four or more quarters. CANSLIM, IBD, and DGO lets us determine these facts very quickly. Then with a little research we can perform the fine tuning.
 
 Technically, the Group Industry Relative Strength, the Price Relative Strength, and the Accumulation/Distribution Rating gives us clues as to when it may be safe to buy.
 
 The actual purchasing moment is determined by an analysis of the price chart, as we look for a break out from a prior resistance level.
 
 Is this the point you were making? Find the best companies then wait for the technicals to tell us when to enter the market?
 
 I think I missed something because you concluded by saying we should not start with fundamentals to find good quality candidates.
 
 Charley</HTML>

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