Re: [CANSLIM] DCOM - B/O rules

From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] DCOM - B/O rules
Date: Wed, 31 Jul 2002 14:03:53 -0500
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Hi Kris,

Good point. My comments earlier today were strictly to clarify the =
technicals, but a stock like DCOM has several marks against it in my =
book:

(1) This is a 3rd stage base and the stock has been running up steadily =
since early 2000. More often than not, late stage bases combined with 2 =
years of favoritism are suspect moves. Doesn't mean it's over, just =
suspect.

(2) Persistent insider selling. While that's not an omen in and of =
itself, it's worth a look to see if that is the habit of the insiders =
over the previous 2 years. I'm more inclined to write of insider selling =
in general, because people have kids, tuition, other investments, etc. I =
*do* pay attention when they're suddenly buying persistently.....as they =
have no reason to *have* to do that to live their lives.

(3) Single digit revenue growth QoQ

(4) Relatively low ROE (14%), though for a bank that's not too shabby.

The price dropped just to the pivot today on relatively high volume, but =
not enough for a distribution day. That doesn't worry me in and of =
itself, as it's not uncommon for stocks to retrace to the pivot....but =
given the other cautionary issues....a stock like this doesn't pass my =
personal tests. All in all, there are better regional bank candidates on =
my list than this one.

Katherine
  ----- Original Message -----=20
  From: KLall1112@aol.com=20
  To: canslim@lists.xmission.com=20
  Sent: Wednesday, July 31, 2002 12:38 PM
  Subject: Re: [CANSLIM] DCOM - B/O rules


  Katherine:


  Insiders keep on selling DCOM.


  Kris

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  -"unsubscribe canslim".  Do not use quotes in your email.

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<DIV>Hi Kris,</DIV>
<DIV>&nbsp;</DIV>
<DIV>Good point. My comments earlier today were strictly to clarify the=20
technicals, but a stock like DCOM has several marks against it in my =
book:</DIV>
<DIV>&nbsp;</DIV>
<DIV>(1) This is a 3rd stage base and the stock has been running up =
steadily=20
since early 2000. More often than not, late stage bases combined with 2 =
years of=20
favoritism are suspect moves. Doesn't mean it's over, just =
suspect.</DIV>
<DIV>&nbsp;</DIV>
<DIV>(2) Persistent insider selling. While that's not an omen in and of =
itself,=20
it's worth a look to see if that is the habit of the insiders over the =
previous=20
2 years. I'm more inclined to write of insider selling in general, =
because=20
people have kids, tuition, other investments, etc. I *do* pay attention =
when=20
they're suddenly buying persistently.....as they have no reason to =
*have* to do=20
that to live their lives.</DIV>
<DIV>&nbsp;</DIV>
<DIV>(3) Single digit revenue growth QoQ</DIV>
<DIV>&nbsp;</DIV>
<DIV>(4) Relatively low ROE (14%), though for a bank that's not too=20
shabby.</DIV>
<DIV>&nbsp;</DIV>
<DIV>The price dropped just to the pivot today on relatively high =
volume, but=20
not enough for a distribution day. That doesn't worry me in and of =
itself, as=20
it's not uncommon for stocks to retrace to the pivot....but given the =
other=20
cautionary issues....a stock like this doesn't pass my personal tests. =
All in=20
all, there are better regional bank candidates on my list than this =
one.</DIV>
<DIV>&nbsp;</DIV>
<DIV>Katherine</DIV>
<BLOCKQUOTE=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=3DKLall1112@aol.com=20
  href=3D"mailto:KLall1112@aol.com">KLall1112@aol.com</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 31, 2002 =
12:38=20
  PM</DIV>
  <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] DCOM - =
B/O=20
  rules</DIV>
  <DIV><BR></DIV>Katherine:<BR><BR><BR>Insiders keep on selling=20
  DCOM.<BR><BR><BR>Kris<BR><BR>-<BR>-To subscribe/unsubscribe, email "<A =

  =
href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>-In=
 the=20
  email body, write "subscribe canslim" or<BR>-"unsubscribe =
canslim".&nbsp; Do=20
  not use quotes in your email.</BLOCKQUOTE></BODY></HTML>

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