Go to Jeff Salisbury LWGate Home Page.From: "rchodes" <rchodes@charter.net>
Subject: [CANSLIM] MOVI
Date: Mon, 4 Nov 2002 18:57:47 -0800
Previous Article (by Author): [CANSLIM] selling rules question michael_niemotka@baxter.com
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This is a multi-part message in MIME format. - ------=_NextPart_000_001D_01C28434.10C66B00 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable I have MOVI on my watch list and I decided not to purchase shares due to = questions that have been raised about the accounting method they use, = specifically the amortization schedule they use for valuing used = merchandise (DVDs, VCRs). Nothing fraudulent, just some concerns about = whether their liberal assumptions optomistically inflate their gross = margins. Here's a reference for anyone interested; the story is pretty = balanced. http://www.thestreet.com/_yahoo/tech/georgemannes/10048945.html But that's not the point of this question. MOVI scores well on most = fundamentals and the chart looks to me like a nice C&H; the pivot point = before today seemed to be 19.32 and the stock seemed to break through = that pivot point today on high volume. But it tanked at the end of the = day and closed at 17.98. If you purchased at the pp, you'd still own = the stock. So I have 2 questions.=20 1. Does today's high 20.14 become the new high pp for the handle? 2. How do you interpret today's action. Is it positive that it broke = out on high volume in the AM, negative that it closed lower on high = volume, or totally ambiguous? 3. MOVI reports their earnings on WEDS. What's your experience in = buying a stock that appears to break out of a base (as MOVI did this AM) = 2 days before earnings? Do you interpret "smart money" anticipating = good earnings perhaps due to a leak or is this a too risky breakout = since it could easily reverse with bad news on WEDS. =20 Once again, I have no investment in MOVI and I only bring this up as an = example to learn how more experienced CANSLIM investors think about = these issues. Thanks in advance. - ------=_NextPart_000_001D_01C28434.10C66B00 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=3DContent-Type content=3D"text/html; = charset=3Diso-8859-1"> <META content=3D"MSHTML 6.00.2719.2200" name=3DGENERATOR> <STYLE></STYLE> </HEAD> <BODY bgColor=3D#ffffff> <DIV><FONT face=3DArial size=3D2>I have MOVI on my watch list and I = decided not to=20 purchase shares due to questions that have been raised about the = accounting=20 method they use, specifically the amortiza</FONT><FONT face=3DArial = size=3D2>tion=20 schedule they use for valuing used merchandise (DVDs, = VCRs). Nothing=20 fraudulent, just some concerns about whether their liberal = assumptions=20 optomistically inflate their gross margins. Here's a = reference for=20 anyone interested; the story is pretty balanced.</FONT></DIV> <DIV><FONT face=3DArial size=3D2></FONT> </DIV> <DIV><FONT face=3DArial size=3D2><A=20 href=3D"http://www.thestreet.com/_yahoo/tech/georgemannes/10048945.html">= http://www.thestreet.com/_yahoo/tech/georgemannes/10048945.html</A></FONT= ></DIV> <DIV><FONT face=3DArial size=3D2></FONT> </DIV> <DIV><FONT face=3DArial size=3D2>But that's not the point of this = question. =20 MOVI scores well on most fundamentals and the chart looks to me like a = nice=20 C&H; the pivot point before today seemed</FONT><FONT face=3DArial = size=3D2> to=20 be 19.32 and the stock seemed to break through that pivot point today on = high=20 volume. But it tanked at the end of the day and closed at = 17.98. If=20 you purchased at the pp, you'd still own the stock. So I have 2=20 questions. </FONT></DIV> <DIV><FONT face=3DArial size=3D2></FONT> </DIV> <DIV><FONT face=3DArial size=3D2>1. Does today's high 20.14 become the = new high pp=20 for the handle?</FONT></DIV> <DIV><FONT face=3DArial size=3D2>2. How do you interpret today's = action. Is it=20 positive that it broke out on high volume in the AM, negative that it = closed=20 lower on high volume, or totally ambiguous?</FONT></DIV> <DIV><FONT face=3DArial size=3D2>3. MOVI reports their earnings on = WEDS. =20 What's your experience in buying a stock that appears to break out of a = base (as=20 MOVI did this AM) 2 days before earnings? Do you interpret "smart = money"=20 anticipating good earnings perhaps due to a leak or is this a too risky = breakout=20 since it could easily reverse with bad news on WEDS. </FONT></DIV> <DIV><FONT face=3DArial size=3D2></FONT> </DIV> <DIV><FONT face=3DArial size=3D2>Once again, I have no investment in = MOVI and I only=20 bring this up as an example to learn how more experienced CANSLIM = investors=20 think about these issues. Thanks in = advance.</FONT></DIV></BODY></HTML> - ------=_NextPart_000_001D_01C28434.10C66B00-- - - - -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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