RE: [CANSLIM] NXTL, SXT

From: "Curt Corley" <cjcorley@hiwaay.net>
Subject: RE: [CANSLIM] NXTL, SXT
Date: Tue, 3 Dec 2002 20:57:31 -0600
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The web-based stock diagnosis service (located on a site that we all
know and love and which will remain nameless) gives these two stocks
high overall ratings.  But I don't agree with the ratings.

I have Stock Investor Pro screener, and I set it up to look at all the
factors that WON mentions in his most recent edition of HTMMIS.  Both
SXT and NXTL look extremely disappointing to me.  Here's the list of
fundamentals that are below standard according to HTTMIS:

SXT: 
(1) Compounded annual EPS growth from continuing operations over the
last 3 years is -5.1%.  
(2) Twelve-month ROE is only 11.3%.  
(3) Twelve-month Pretax profit margin is only 12.5%
(4) Twelve-month After-tax profit margin is down to 8.7% from 9.3% 3
years ago.
(5) Long-term Debt/Equity ratio for the most recent quarter is a
whopping 103.9!  This is an all-time high.
(6) 12-month Cash-Flow per share is 1.2% less than 12-month EPS. 

NXTL:
(1) 12-month EPS is -2.10.
(2) Compounded annual EPS growth from continuing operations over the
last 3 years is -12.6% (-27.9% over the last 5 years)
(3) Quarterly Sales is only 14.4%
(4) Annual sales growth is decelerating.
(5) Pretax profit margin is -18.1%
(6) After-tax profit margin is -37.2% (which is not near it's all-time
high)
(7) High Long-Term Debt/Equity ratio.
(8) 12-month Cash-Flow-Per-Share is -110% less than 12-month EPS.

I agree with the guidelines and rules set forth by WON, but I treat the
ratings with a grain of salt.  According to a popular financial paper
(and its associated web site), there will always be 200 stocks out of
every 10,000 that are going to look good in each category -- no matter
what -- simply because they are in the top 20% of all stocks for that
category.  In reality, there are currently less than 50 stocks that meet
all of the criteria set forth in HTMMIS.  In fact, my pickiest WON stock
screen only came up with 15 stocks.  After looking at the charts, the
pickings are even slimmer.

Now, I'm certainly not saying that there will be only 15 stocks that
will give you good returns.  And I'm also not saying that you cannot
make good money using the unnamed paper and web site for a reference.  I
subscribe to that paper myself.  I do, however, believe you shouldn't
assume a stock in the top 20% has good fundamentals.  I also believe you
can pick CANSLIM stocks a lot easier using a good stock screener.  

Since most of us aren't burdened with the task of finding places to
invest millions of dollars, we can afford to be picky and buy only the
best.
 
Curt

- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com] On Behalf Of Jeff Mulder
Sent: Tuesday, December 03, 2002 7:16 PM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] NXTL, SXT

I'm not interested in SXT.  I was responding to a request for technical
and
fundamental opinions regarding SXT and NXTL.

- - Jeff

- ----- Original Message -----
From: "Norman Boyd" <theboyd@tisd.net>
To: <canslim@lists.xmission.com>
Sent: Sunday, December 01, 2002 10:04 PM
Subject: Re: [CANSLIM] NXTL, SXT


> Jeff,
>
> May I ask why you are interested in this stock?  From my view point
there
> are many better looking charts and fundamentals out there than this
one.
> Just curious.
>
> Norm
>
> ----- Original Message -----
> From: "Jeff Mulder" <jeff@mulder.com>
> To: <canslim@lists.xmission.com>
> Sent: Sunday, December 01, 2002 8:39 PM
> Subject: Re: [CANSLIM] NXTL, SXT
>
>
> > SXT is in a better buying position now than a week ago.  Price has
> tightened
> > up nicely while clarifying short-term support.  However, as Tom
pointed
> out,
> > you probably won't get much juice from this one.
> >
> > SXT's group looks good.  The Media General Industry Average is
> consolidating
> > at new highs.
> >
> > - Jeff
> >
> > ----- Original Message -----
> > From: <Vanchee1@aol.com>
> > To: <canslim@lists.xmission.com>
> > Sent: Saturday, November 23, 2002 5:14 PM
> > Subject: [CANSLIM] NXTL, SXT
> >
> >
> > > Looking for a little feed back, but heres my thoughts, thinking
about
> > buying
> > > these two Mon.
> > > SXT 84/90 BAA, I like the chart, not too extended at this point.
Volume
> > has
> > > been slightly higher but not real great. Earning are good and they
have
> > been
> > > buying smaller companies that will provide some synergies. I know
there
> > are
> > > 47 mil shares outstanding but do not know what the float is, if
anyone
> has
> > a
> > > link to where I can find the float on different companies please
post,
> > > thanks.
> > >
> > > NXTL 80/99 ADA, chart also looks good, earnings are getting
better,
and
> > the
> > > company is doing a good job of paying down dept.
> > >
> > > Any feed back is appreciated.
> > >
> > > Thanks Chris
> > >
> > > -
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> >
> >
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> >
>
>
> -
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>


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