Re: [CANSLIM] THC + USPI

From: Chazmoore@aol.com
Subject: Re: [CANSLIM] THC + USPI
Date: Sun, 4 Aug 2002 21:04:27 EDT

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Hi Gene: I will share my opinion with you.

THC has good fundamentals, other than the 82% debt load, and certainly looks
like a good candidate. (I would want to know more about the debt.) It appears
to be forming a cup with the left side peaking on June 17th with a high of
$52.19. So far the cup mid point is about $47.00 so I would be looking for
the right side to complete somewhere around $50.00. Since this could take
another 2 or 3 weeks I wouldn't be in a rush to buy. While I was waiting I
would try to find out why the stock took a $4.00 plus nose dive on July 22nd.
Note that the current price of $47.87 is setting on the 50 day moving
average. Unless it climbs above that average I would not buy.

As a CANSLIMer I am sure you know that should the cup form a good handle at
about that $50 mark, then you should buy within 105% of that pivot point when
the breakout occurs. (Remember, I am guessing about $50 as the pivot, but it
will be in that neighborhood if it occurs.) One last point. With the funds
owning 52% of the company you really cannot expect a blowout breakout. Most
of the players are already on board.

USPI Is a CANSLIM candidate although the funds own 42% of this company, so
you can't expect much of a bang when, and if, it breaks out. The left side of
the cup was formed on June 17th at $34.65. The mid point is $29.00 so you can
see the right side of the cup has yet to clear the mid point. Again, I would
guess it will take 3 or 4 weeks to climb to the right side pivot, which may
be in the $32 range.

So, to answer your question, I think the prudent thing to do is to wait for
the cups to develop which should be within the month. In your favor is the
fact that both of these stocks are not that far off of their 52 week highs so
there should not be much resistance as the prices move up.

Having said all that you will probably make a mistake if you buy either stock
before the market corrects. Buying in this market is like trying to paddle up
Niagara Falls.

Charley

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<HTML>Hi Gene: I will share my opinion with you.
 
 THC has good fundamentals, other than the 82% debt load, and certainly looks like a good candidate. (I would want to know more about the debt.) It appears to be forming a cup with the left side peaking on June 17th with a high of $52.19. So far the cup mid point is about $47.00 so I would be looking for the right side to complete somewhere around $50.00. Since this could take another 2 or 3 weeks I wouldn't be in a rush to buy. While I was waiting I would try to find out why the stock took a $4.00 plus nose dive on July 22nd. Note that the current price of $47.87 is setting on the 50 day moving average. Unless it climbs above that average I would not buy.
 
 As a CANSLIMer I am sure you know that should the cup form a good handle at about that $50 mark, then you should buy within 105% of that pivot point when the breakout occurs. (Remember, I am guessing about $50 as the pivot, but it will be in that neighborhood if it occurs.) One last point. With the funds owning 52% of the company you really cannot expect a blowout breakout. Most of the players are already on board.
 
 USPI Is a CANSLIM candidate although the funds own 42% of this company, so you can't expect much of a bang when, and if, it breaks out. The left side of the cup was formed on June 17th at $34.65. The mid point is $29.00 so you can see the right side of the cup has yet to clear the mid point. Again, I would guess it will take 3 or 4 weeks to climb to the right side pivot, which may be in the $32 range.
 
 So, to answer your question, I think the prudent thing to do is to wait for the cups to develop which should be within the month. In your favor is the fact that both of these stocks are not that far off of their 52 week highs so there should not be much resistance as the prices move up.
 
 Having said all that you will probably make a mistake if you buy either stock before the market corrects. Buying in this market is like trying to paddle up Niagara Falls.
 
 Charley
 </HTML>

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