Go to Jeff Salisbury LWGate Home Page.From: "Kelly Short" <kelly.short@tx.us.neoris.com>
Subject: RE: [CANSLIM] Home Depot
Date: Wed, 21 Aug 2002 09:40:53 -0500
Next Article (by Date): Re: [CANSLIM] Intro - Bob Mansk Chazmoore@aol.com
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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? | | | | - | -To subscribe/unsubscribe, email "majordomo@xmission.com" | -In the email body, write "subscribe canslim" or | -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. _________________________________________________________________________= ___ For your protection, this e-mail message has been scanned for viruses. Visit us at http://www.neoris.com/ - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
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