RE: [CANSLIM] Home Depot

From: "Kelly Short" <kelly.short@tx.us.neoris.com>
Subject: RE: [CANSLIM] Home Depot
Date: Wed, 21 Aug 2002 09:40:53 -0500
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Nancy,

If you really want a good outline for cursory exams of stocks- use =
Katherine's excel spreadsheet (linked below). As always- Katherine's the =
bomb! (for you older folks- that's a good thing....   ;-)  )

Kelly

- -----Original Message-----
From: Katherine Malm [mailto:kmalm@earthlink.net]
Sent: Tuesday, August 20, 2002 1:10 PM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] Home Depot


Hi Hermann,

HD certainly doesn't pass the requisite technical tests to be considered =
a
current CANSLIM candidate, but I see it as important in several ways:

HD is one of the 500 pound gorillas of retailing and at one time carried =
far
more CANSLIM characteristics than it does now. While it may not be
exhibiting current technical strength, it is still important as a =
sentiment
indicator. First, if it were to form a bottom here, it *may* indicate =
that
institutions are once more willing to load up on the stock of a very =
good
company which has been refocusing its strategy recently and expanding =
into
new market niches such as government contracting.  Second, if the market
reacts well to good news and the price rises without taking a big jump =
on
the news and then selling off, that may well indicate a change in tone =
in
the market. That is, stocks go *up* on good news. Add that to more cases
where stocks stop going down so severely on bad news and it could =
indicate a
turning point in the market. Third, consumers as a whole have been =
willing
to spend throughout the recessionary period. If they are feeling =
confident
about their current and future prospects, they will parlay that =
confidence
into spending at good retailers and on other consumer discretionary
products. That by itself doesn't create macroeconomic "safety" but it =
sure
helps.

Just to test the waters, I created a list of stocks from various =
industries
that I consider to be "consumer discretionary." Stocks don't make it to =
the
list unless they are minimum $6/30000 ADV. In all, that's 300 stocks. Of =
the
300, 141 have forward growth rates >=3D15%, HD included. That's what I
considered to be the bare bones minimum for a "growth" stock. There's =
also
nothing to say that current growth rates have not been reduced too far, =
as
forecasters always seem to severely underforecast in periods like this =
in
the same manner that they tend to severely overforecast in bubble times. =
Of
the 141, only 40 stocks currently pass what I consider to be "minimum
technicals." (RS>=3D60, price no more than 15% below the 50 day SMA, and =
price
at or above the 200 day SMA). This is an interesting list of 40 stocks, =
by
the way. Take a look and see if you see any CANSLIM themes running =
through
the list of 40.

See the complete list of 300 at:
http://WallStreet-LLC.com/canslim/ConsumerOverview.xls. You can filter =
any
of the columns to narrow the list as I suggested in the last paragraph.

Katherine


- ----- Original Message -----
From: "Hermann Ertl" <hertl@attglobal.net>
To: <canslim@lists.xmission.com>
Sent: Tuesday, August 20, 2002 11:05 AM
Subject: Re: [CANSLIM] Home Depot


| > From: "Tom Worley" <stkguru@bellsouth.net>
| > Date: Tue, 20 Aug 2002 08:14:05 -0400
| >
| > HD reported this morning, like Lowe's showing excellent growth with
earnings
| > up 28% (3 cents ahead of forecasts) and sales up 12%. Shouldn't be a
| > surprise, given all the new home owners, but Lowe's is being =
credited
with
| > yesterday's rally in part. Let's see if HD can take care of Tuesday.
|
|
| At what stage in its chart patterns is HD?
|
|
|
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