Re: [CANSLIM] FCBP

From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] FCBP
Date: Wed, 6 Nov 2002 23:25:49 -0500

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Kelly, first some comments on the chart and its fundies.

To me, earnings are way too erratic. Past 8 qtrs were minus 20%, +9%, zero,
+29%, +13%, minus 9%, +38%, +6%.  To make the full year forecast, they have
to show 49 cents in Q4, which looks questionable to me. And with sales up
114% in the latest qtr, but earnings only up 6%, suggests to me that margins
are being hurt.

Chart wise, I see nothing resembling a double bottom (remember you want to
see something that looks like the letter "W"). This is particularly clear on
a weekly chart, the daily chart is too confusing for me. On the weekly, if I
had to force fit it into any specific pattern, it would be a LLUR, but a
volatile one.

As for your general question on buying a double bottom, normally your pivot
is just over the center point of the "W" formation. But if it started to
form a handle below that level, and was otherwise a strong "W" pattern
(second down leg undercut the first, volume in the right places of the
pattern as well as on up and down days), then I would give more weight to
the handle forming, and use the high point in the handle as the pivot if /
when I saw at least 2X ADV.

- ----- Original Message -----
From: "Kelly Short" <kelly.short@fw.us.neoris.com>
To: <canslim@lists.xmission.com>
Sent: Wednesday, November 06, 2002 11:45 AM
Subject: [CANSLIM] FCBP


Noticed FCBP appears to be making a double bottom (opinions?) and has decent
fundamentals (Last QTR Sales up 114%, Prior QTR EPS up 38%, Mgmt owns 35%).
Volume appears to be picking up substantially over the past two days. What
are the rules for buying double bottoms? Do they form a handle or do you
purchase at the pivot the first time it hits? Also, FCBP is about to break a
2 Year price high of $32.

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