Re: [CANSLIM] watchlist / portfolio philosophy

From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] watchlist / portfolio philosophy
Date: Sat, 19 Oct 2002 19:32:16 -0400

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Mike, the only "cost" of my watch list is time and effort, time to screen
for candidates and check their charts, and the time to follow them after
that.

I actually maintain three different watch lists, for different purposes. At
Yahoo I keep a portfolio of every stock of interest to me, whether owned,
potential candidate to own in the future, or just of some other interest. I
use that for quick review of news on each, and try to check it daily.

One of the reasons that I started my VR Fund over a year ago was to force
myself to pay more attention to my watch list on a daily basis. Only problem
with that is that once I have spent all my "money", I can't add another
stock unless I sell something.  I also subscribe to real time quotes, and
there I keep the entire list, including anything of possible interest that I
did not add to the VR Fund.

Daily I take a list of everything from the last two (Fund, RT Quotes) and at
least look at every chart that showed close to a 5% move that day. Forces me
into a discipline, even when I cannot afford the time. On the weekend, I try
to look at every stock on the list, as well as my daily screens if not
already done.

I have no max nr for my watch list.

With actual money (or VR money), if I am fully invested and really badly
want to add a new one, or add to an existing position, then I first look at
my under performers. If I can't free up the money there, I look at others
that may be extended, and consider selling part of the position. If that
still doesn't give me the capital I need, I miss the opportunity. And sale I
consider is measured against the one I want to buy, and my comfort factor
with each.

- ----- Original Message -----
From: <michael_niemotka@baxter.com>
To: <canslim@lists.xmission.com>
Sent: Thursday, October 17, 2002 10:28 AM
Subject: [CANSLIM] watchlist / portfolio philosophy


All,

At the risk of jinxing the latest breakout, I will ask this question, since
it appears that M may finally be back, and that there are some sound stocks
breaking out of nice bases, and sustaining the breakouts....

That having been said, I was wonder how all of you manage your watchlist.
Say for instance you have built a list of 20 (is that too few or too many)
stocks that you are interested in.  You have noted the pivot points, and
are waiting to see what happens.  On a day to day basis, as you read IBD,
or get an idea from some other source on a stock, and after doing some
research, you decide that it could be added to your list, do you delete the
worst stock on your current list to make room for the new one?

In addition to having your watch list, say you have positions in a couple
of stocks, that you bought at the correct breakout, and to date a couple
have gone up 10-20%, and a couple are down less that 8%, or flat. All of
your capital is now in the equities.

Now, one of the stocks on your watch list breaks out on great volume......
Do you sell off the worst performer, to buy into the breakout,  I guess the
underlying question is how long do you hold a stock that you feel is sound,
and has shown no sell signs, but yet is performing flat, or less powerfully
than some of the newest breakout,

Thanks for any thoughts, let's hope this latest rally sticks!!!!

Mike Niemotka , PE
Sr. Principal Engineer
Baxter Healthcare Corporation
Route 120 & Wilson Road
Round Lake, IL 60073
Tel (847) 270-4075
Fax (847) 270-4525
michael_niemotka@baxter.com



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