Re: [CANSLIM] Ask Bill--Does anybody really ask these questions?

From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] Ask Bill--Does anybody really ask these questions?
Date: Sun, 25 Aug 2002 00:00:13 -0400

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Bill, just don't hold your breath waiting for an answer!!

- ----- Original Message -----
From: "Bill Triffet" <btriffet@earthlink.net>
To: <canslim@lists.xmission.com>
Sent: Sunday, August 25, 2002 12:23 AM
Subject: Re: [CANSLIM] Ask Bill--Does anybody really ask these questions?

Well... this is the one I just sent  "Ask Bill"

"Hey Bill, why don't you or your associates speak up during our discussions
at canslim@lists.xmission.com ? We'd sure like to get some input from you
directly as you seem to only post OUR discussion topics in YOUR paper".

One problem I could see with the very distant scenario of participating with
this group is they would be FLOODED with questions as they're considered by
most here to be experts in canslim.

Maybe IBD will try to buy this list to offer it as a $$$ service to
subscribers? (ggg)

Hope we get grandfathered in...(g)

- -Bill

- ----- Original Message -----
From: "Tom Worley" <stkguru@bellsouth.net>
To: <canslim@lists.xmission.com>
Sent: Saturday, August 24, 2002 7:41 PM
Subject: Re: [CANSLIM] Ask Bill--Does anybody really ask these questions?

maybe while we weren't looking, we became the last CANSLIMers out there. So
they have to glean from our discussions just to have someone left to "Ask
Bill". Then again, maybe they just want to tackle the soft questions.

Maybe what we should do is every member flood IBD with "Ask Bill" questions,
and see if any get published from real people we actually know, instead of
an unnamed person from Texarkana or wherever.

- ----- Original Message -----
From: Katherine Malm
To: canslim@lists.xmission.com
Sent: Saturday, August 24, 2002 10:32 PM
Subject: [CANSLIM] Ask Bill--Does anybody really ask these questions?

Here is today's "Ask Bill" column. Sound familiar?

Question: Can you please define "swing trader"?

- - Submitted from Texarkana, Texas

 Answer: A swing trader is one who trades short-term "swings" in the market,
stocks, options, etc. that last anywhere from a few days to just a few
weeks.

I'd sure like to know why so often these questions are exactly the same
topics that appear on our email list. Why pick up on stuff like this and
make up bogus "Ask Bills" when I've still got at least 2 questions asked of
them and never answered (I'm sure there are others who've written questions
that aren't answered).

For example, why the heck does the IBD calculate the ROE based on the
average of 2 years data? Huh? Since when did anybody use 2 years for such a
measurement?

Here's the Ask Bill I'm referring to (highlighting is mine):

Ask Bill O'Neil Archives
Wednesday, August 21, 2002

"Why is it some stocks showing accelerating earnings and sales growth still
have relatively low return on equity? Would you make an exception to your
rule of buying stocks with ROE of 17% or better?"
- - Submitted from Montgomery, Texas

One possible reason is the fact that IBD's measure of ROE (return on equity)
takes an average of the ROE over the past two fiscal years. If a company
posted weak earnings or a loss in the previous year, that would dilute its
ROE. Also keep in mind that ROE measures total operating earnings divided by
shareholders' equity. So even when the year-over-year EPS growth is
accelerating, if earnings per share are small (say, only 4 or 8 cents), it
may result in a relatively small numerator in the ROE equation. This is why
the best growth companies with strong ROE tend to show strong growth over
several years, not just in a number of quarters. Regarding the rule of
having ROE of at least 17%, keep in mind that some of the best stocks had an
ROE less than that, including Emulex (8% before its big price run-up
beginning in December 1998), Millennium Pharmaceuticals (7%) and Qualcomm
(8%). But on average, the best stocks during the 1997-2000 period sported an
average ROE of 23%.

- --Katherine

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