Re: [CANSLIM] HTRN

From: "Ira Post" <ip108@yahoo.com>
Subject: Re: [CANSLIM] HTRN
Date: Wed, 24 Jul 2002 20:37:47 -0400

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Top of Thread: [CANSLIM] HTRN michael_niemotka@baxter.com
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In a bad market, stocks with high p/e's and high debt/equity ratios are
vulnerable.
Ira

- ----- Original Message -----
From: <Davellil5@aol.com>
To: <canslim@lists.xmission.com>
Sent: Wednesday, July 24, 2002 8:18 PM
Subject: Re: [CANSLIM] HTRN


> Mike, I've had the same experience recently on stocks with great numbers
that
> fizzled after breaking out, after only a 10 to 15 % rise.
>
>  <A HREF="aol://4785:HTRN:NAS">Click here: AOL Quotes - HTRN(US)</A>
>
> The 6-month chart shows that HTRN broke out in May, and went up over 20%
> before collapsing.  I don't see any secondary base formation (of 7 weeks
or
> more) since breakout that would have justified recent purchase, but I also
> can't see anything in the chart action to predict the collapse.
>
> So, I looked at the numbers.  The Company has very good numbers and while
> they carry 1.5 times as much debt as equity, their earnings cover debt
> service requirements by 14.5 to 1, well covered.  The only really adverse
> number I saw was the percentage of stock held by institutions, only 6%.
WON
> says look for stocks already owned 30% by institutions -- meaning it's
been
> noticed.
>
> But the institutions and mutuals have been uniformly adding to their
> positions, and insiders have not been selling off (thru May31st).
>
> This leaves me with two conjectures.  One, that in this spooky market,
> investors are too scared to hang on once a stock has gained 15 or 20%.
> Maybe, we have to grab small gains and try to make enough of them to stay
> ahead.  Second, and especially because of the precipitous drop, maybe
someone
> knows something that we don't know.
>
> Bitter experience!  If a stock drops 8%, get out.  If it drops more than
8%
> before you can catch it, get out anyway.  Don't wait to find out what's
> happening.  The stock may rebound, but we shouldn't take that chance,
> especially in this market.
>
> Regards, Dave
>
>
>
>
>
>
> I
>
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