Re: [CANSLIM] WGO

From: Spencer48@aol.com
Subject: Re: [CANSLIM] WGO
Date: Mon, 18 Nov 2002 14:52:48 EST

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Robin:

     I've just pulled WGO up on DGO, and besides Kathrine's high distribution 
days (which only comparitively I see as a danger sign, ie. price rises is on 
smaller volume than falls, which to me indicates that demand is beginning to 
dry up), I see that there are 51% funds ownership of the stock.  So perhaps 
that's why buying is beginning to dry up (51% is pretty high fund ownership). 
 

     Moreover, even if it broke out, I'd be wary:  There is enough fund 
ownership that the managers of the fund might be anxious to take profits on 
what appears to be a break-out.  And there is so much fund ownership that if 
funds start bailing out one after another, then...:  Look out below.

jans

In a message dated 11/18/2002 10:10:01 AM Eastern Standard Time, 
kmalm@earthlink.net writes:

<< Hi Robin,
 
 I'd agree with you on the need for WGO to breakout strongly above this 
resistance to show its strength. Afterall, that's the idea of a breakout 
entry point, i.e., look for strong accumulation to push through the latest 
price ceiling which may be holding back the stock.
 
 Fundamentally, I think WGO has a lot going for it--they've recently 
announced another stock buyback program and plant expansion program and they 
seem to fit nicely into Duke's "boomer theme." I think my aunt and uncle and 
their friends must be personally responsible for 1/2 the company's growth 
over the last several years....as they buy and trade-up constantly.
 
 Technically, I see some yellow flags.... mainly some troubling high volume 
distribution action in the handle. Hard to say how much of that is market 
related and how much company/stock related, but it's notable enough to cause 
some concern when I look at the chart. Either way, as with stocks like SYMC 
and others that have been mentioned on the list lately, a strong B/O and 
strong market action could take care of any lingering doubt in the chart! See 
an annotated chart at: http://WallStreet-LLC.com/canslim/WGO111702.JPG
 
 Katherine
   ----- Original Message ----- 
   From: Robin Gridley 
   To: CANSLIM 
   Sent: Sunday, November 17, 2002 11:12 PM
   Subject: [CANSLIM] WGO
 
 
   I've been looking at WGO...
 
   Even though it shows a Cw/H, am I correct in being
   worried about the $48 support level that's been set
   almost three times while forming the cup ($48.05,
   $48.60 and the pivot @ $49) I am guessing I should
   look for VERY strong volume on the BO before
   committing in order to break through and hold above
   these support levels???
 
   Thx!
 
   Robin
  >>

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