RE: [CANSLIM] Current Case Study - XRAY

From: "Duke Miller" <dukemill@tampabay.rr.com>
Subject: RE: [CANSLIM] Current Case Study - XRAY
Date: Fri, 9 Aug 2002 07:57:42 -0400
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No parle Francaise. =20

Just like to travel there, and each time stumble through phrases as I
go.  I learned early on that their reputation for being rude (in Paris,
anyway) is usually assuaged if you attempt to speak the tongue! =20

Bonjour...

Duke



- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com] On Behalf Of Mike Gibbons
Sent: Thursday, August 08, 2002 11:24 PM
To: canslim@lists.xmission.com
Subject: RE: [CANSLIM] Current Case Study - XRAY


Duke,

Alors! Tu parle CANSLIM et Francaise aussi? Tu est vraiment quelque
chose.

A bientot.....

On Thu, 2002-08-08 at 17:07, Duke Miller wrote:
> Hermann:
>=20
> 1.  Something superlative.
> 2.  People of the highest social level.
>=20
> [French : cr=E8me, cream + de, of + la, the + cr=E8me, cream.]
>=20
>=20
> ----------------------------------------------------------------------
> --
> --------
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> -----Original Message-----
> From: owner-canslim@lists.xmission.com=20
> [mailto:owner-canslim@lists.xmission.com] On Behalf Of Hermann Ertl
> Sent: Thursday, August 08, 2002 9:20 PM
> To: canslim@lists.xmission.com
> Subject: RE: [CANSLIM] Current Case Study - XRAY
>=20
>=20
> cr=E8me de la cr=E8me  -  would you please elaborate.
>=20
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> > From: "Duke Miller" <dukemill@tampabay.rr.com>
> > To: <canslim@lists.xmission.com>
> > Date: Thu, 8 Aug 2002 16:25:32 -0400
> >
> >    e  Mike:   When it comes to submitting  stocks for
> > consideration, this has got to be, beyond a doubt, the cr=E8me de la
> > cr=E8me!    =20
> >
> >         -----Original    Message-----
> > From: owner-canslim@lists.xmission.com
> > [mailto:owner-canslim@lists.xmission.com] On Behalf Of Mike Gibbons
> > Sent: Thursday, August 08, 2002 3:27 PM
> > To:    canslim@lists.xmission.com
> > Subject: [CANSLIM] Current Case Study -    XRAY
> >
> >    In    view of the interest in current cases rather than 20-20
> > hindsight,  and discussions to aid the    learning process,  I offer
> > XRAY as an example, which    broke out today from a CwH pattern with
> > short handle       Firstly, let me add the disclaimer that I'm a
> > programmer who was introduced to CANSLIM as a development project,
> > and I'm 1    year into the 3 yr learning curve, so further comment
> > by the "experts" is    welcomed to improve my own
> > understanding.       Firstly the fundamentals which are very strong,
> > with the    exception that Institutional Ownership is already quite
> > high. There are    differing views on what the level should be, but
> > somewhere less than 30% would    be better. Additional DD would be
> > required to determine why    pre-tax profit margins are decreasing
> > and if that is cause for    concern. (This information is drawn from
> > yahoo/multex not    IBD)     =20
> > C                Current Earnings        >        Earnings per share
> > growth of at least 25%          in the most recent quarter
> > >
> >
> > Most recent quarter year on year growth.          (Published
> > financial data).
> >
> >        35.00 %              >        Latest three quarters of sales
> > growth          should be a minimum of 25%        >        Average
> > year on year growth for last 3          quarters. (Published
> > financial data).       51.00 %              >        Sales growth
> > should be accelerating.                  >        Difference in year
> > on year growth rates          over last 3 quarters. (Published
> > financial data).        23.00             A                Strong
> > Annual Earnings        Growth                Annual earnings growth
> > for the last three          years of 25% or greater                3
> > year compound EPS growth rate. (Published          financial
> > data).       53.00 %                      Return on equity should be
> > at least          17%                Published financial data.
> > 21.00 %                     Pretax profit margins should
> > be          increasing                Profit Margin for most recent
> > quarter minus          profit margin 1 year ago. (Published
> > financial data).       -1.00                   size=3D2>N
> > >        New Products, Services or Leadership         >        If a
> > company has a dynamic new product or          service, or is
> > capitalizing on new conditions in the economy, this can have a=20
> > dramatic impact on the price of a stock. Buy stocks just as
> > they          emerge from a sound "base" pattern and make new price
> > highs.                 Not Known       =20
> > size=3D2>S                Supply and Demand                 Watch =
the
> > demand for shares by looking at          the percentage change in
> > volume for each of your stocks. Analyze a          stock's daily and
> > weekly price and volume changes.                 The up/down volume
> > ratio measures the ratio          of accumulation days to
> > distribution days over the last 50          days.
> > 0.90             L                Leading Stocks in Leading Industry
> > Groups                          Nearly 50% of a stock's price action
> > is a          result of its industry group's performance. Focus on
> > the top industry          groups, and within those groups select
> > stocks with the best price          performance.
> > Multex Industry Rank ( 0 - 99 )
> > (26 week          relative performance).
> > 90
> >
> > Multex Rank within Industry ( 0 - 99 ).          Provided for
> > informational purposes only.
> > (4 week relative          performance)
> >
> >        22              >        The stock's Relative Price Strength
> > Rating          should be in the 80s or 90s         >        We
> > calculate RS daily by ranking all NYSE,          AMEX and NASDAQ
> > stocks. Our RS algorithm is described          here. It correlates
> > well with IBD's. Value.          Score pro-rated in range
> > 60-79.       83             I                Institutional
> > Sponsorship                You want at least a few of the
> > better          performing mutual funds owning the stock. They're
> > the ones who will          drive the stock up on a sustained
> > basis.                Institutional Ownership. Value in range 5
> > -          30% needed to score 1.       79.00
> > %                      No. of Institutions. Provided for
> > informational purposes only.       568
> > size=3D2>M        >        Market Direction         >        You can
> > buy the best stocks, but if the          general market is weak,
> > most likely your stocks will be weak          also.
> > Because Market Direction is not specific to          any one
> > particular stock, we do not evaluate it on a per stock
> > basis.               Look at the chart below. Note that the handle
> > is only    3 days long. This is normally insufficient to have shaken
> > out the potential    sellers and WON recommends that a handle should
> > be at least 1-2 weeks long,    otherwise a breakout is prone to
> > failure. Also the volume in the handle has    not dried up. This is
> > often the case in the early days of handle formation and    we would
> > like to see the volume decrease below the ADV and the price wedge
> > downwards as the handle progresses.       Look at the volume coming
> > up the right side of the    cup - consistently above the 50 ADV
> > accompanied by big price positive price    movements, with only two
> > days when the stock closed slightly down. It would    have been
> > better if the volume had been below the ADV on those days, in
> > which    case the stock would have earned a higher CQ (Chart
> > Quality)    score.
> >
> >  Note the RS    line. This is quite high at 83, but has advanced
> > only    slightly over the last few days despite significant    price
> > gains in this stock. This indicates that other stocks are doing
> > at    least as well.       The 50 day up/down volume    is at 0.90.
> > Values less than 1 mean that the down volume days exceed the up=20
> > volume
>=20
> > days. However, the trend of the line is upwards, which is a
> > positive    sign.        I'll go out on a limb and say my guess
> > is    that todays breakout will not be sustained (although its
> > holding now -    just) and it will continue to form a
> > handle.           I conclude that this is one to watch but not to
> > buy    right  now.                  Aloha,       Mike Gibbons
> > Proactive Technologies,    LLC   http://www.proactech.com   =
size=3D2>=20
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- --=20
Aloha,

Mike Gibbons
Proactive Technologies, LLC
http://www.proactech.com


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