Re: [CANSLIM] COLM

From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] COLM
Date: Wed, 11 Sep 2002 21:28:51 -0400

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Hi Patrick,

While I am using multi-year charts more these days, I don't give
consideration to overhead more than a year old. Yes, some of those owners
are probably still around hoping / waiting to break even. But their numbers
(and shares owned) have been whittled down by time, and those buying now are
far more likely to have different reasons for buying than those "hangers on
waiting to break even" had for buying over a year ago.

Some of those old buyers may have held on this long because they believe in
the company long term. Thus some may have bought more at much lower prices,
and their average price in my mind takes them out of the picture of
"overhead resistance". Since I can't quantify the full affect of this, I
disregard considering it either positive or negative.

One additional point - once the end of the tax year passes, with the stock
at that time showing either a large gain or large loss for the tax year or
some measurable period of that year, I also begin to give less weight to
overhead resistance as much of that prior overhead may have been cleared out
for tax reasons.

- ----- Original Message -----
From: "Patrick Wahl" <pjwahl@attbi.com>
To: <canslim@lists.xmission.com>
Sent: Wednesday, September 11, 2002 4:09 PM
Subject: Re: [CANSLIM] COLM

Its still valid though, isn't it?  The idea of overhead supply is that all
those people
who bought at old highs are just sitting there ready to get out at break
even if the
price ever gets back there, I would think that is still the situation after
a year,
although as time passes I suppose there is some share turnover as people
just give
up.  If this seems incorrect, let me know why.

On 11 Sep 2002 at 12:55, Jack Tencza wrote:

> Patrick, Why the overhead supply comment when it
> hasn't been that high since 7/01? Thanks, Jack

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