Go to Jeff Salisbury LWGate Home Page.From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] NXTL, SXT
Date: Wed, 4 Dec 2002 23:13:59 -0500
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Hi Curt,
I would have to agree with Katherine on this, but would add that I think =
a lot comes from experience, and knowing what you can get away with and =
still have it work in your favor. Your example of ROE is a good one, as =
I routinely will buy stocks that fall outside of WON's parameters. But =
the key, for me, is that (a) I know I am violating a rule and, (b) the =
type of young stocks I buy will often not be mature enough to have =
strong ROE numbers, but are showing accelerating earnings and revenues.
So the style / type of companies you seek should influence how closely =
you stick to the guidelines. And your experience and risk tolerance (and =
time to research as you point out) also dictate how far you can stray =
from the parameters.
- ----- Original Message -----=20
From: Curt Corley=20
To: canslim@lists.xmission.com=20
Sent: Wednesday, December 04, 2002 7:45 PM
Subject: RE: [CANSLIM] NXTL, SXT
Hi Katherine,
=20
Thanks for your input. I agree with you and appreciate your =
interpretation of HTTMIS for the most part. Although I did not mention =
it, I do compare D/E to the other companies within the same industry. I =
depart from your interpretation, however, regarding the meaning of the =
values. If I really want to follow WON's guidelines, I have to consider =
some of those values as solid criteria to be met - not just "typical" or =
"average" values for winning stocks over time. Take ROE for instance. =
According to my interpretation of the blue book, Chapter 20 clearly =
states what the ROE should be before you buy a stock. If the ROE is =
below that amount, it doesn't even show up on my radar. And that's a =
good thing (at least for me), because I don't have to devote time to =
find excuses as to why it didn't meet that criterion. For me: the more =
strict the interpretation, the better. After devoting time to my family, =
my job, and other obligations (not to mention the down-time I allow =
myself - including the time spent on the CANSLIM Digest list), I don't =
have very much time to devote to fundamental and technical analysis of =
stock candidates. So I would prefer to keep my stock candidates down to =
at least two dozen different stocks a week.
=20
Once again, thanks for your input. As always, you're an excellent =
contributor to this list and one of the reasons the list will probably =
still be around 5 years from now.
=20
Cheers,
Curt
=20
- -----Original Message-----
From: owner-canslim@lists.xmission.com =
[mailto:owner-canslim@lists.xmission.com] On Behalf Of Katherine Malm
Sent: Wednesday, December 04, 2002 9:11 AM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] NXTL, SXT
=20
Hi Curt,
=20
Thanks for the data on SXT and NXTL. I also agree with you about being a =
picky investor and choosing only the best. I'd like to take exception, =
however, to the idea that all the hurdles WON mentions in HTMMIS must be =
met simultaneously in order for a stock to be considered "a good stock." =
WON provides guidelines for each of the CANSLIM criteria, but these are =
"typical" or "average" values for winning stocks over time. In other =
words, you are looking for the greatest representation of strength from =
each of these categories, or what I call the "preponderance of evidence" =
that the company is a leader, has been able to generate growth in =
earnings and revenues, produces excellent profitability for the capital =
employed, and has fuel for future growth. Take for example, the tendency =
of accounting reporting to lag. By the time it is reported, it's past =
history. The price of the stock, on the other hand, is anticipating =
future earnings. So, if the technicals show sound accumulation and the =
preponderance of evidence of fundamentals and due diligence shows a =
pattern of growth and leadership, it's not necessary that each and every =
CANSLIM fundamental "typical" recommendation be met.
=20
I'm not arguing for NXTL...but I can use it as an example. 12 month EPS =
is -2.10, however, this includes a value from 4 quarters ago of -2.25, =
a bathtub quarter that included some unusual one time charges that =
couldn't be backed out of the pro forma number. More importantly, =
however, the most recent 2 quarters have been a positive .35 and .55, =
showing 166% and 304% growth in earnings over the same quarter in the =
prior year. As a result, the TTM ROE is also going to lag. Now, you have =
3 hurdles being missed simultaneously as a result of one bathtub quarter =
(EPS growth, ROE and raw EPS) because each of these accounting measures =
is inter-related. It also doesn't recognize the *turnaround* in the =
pattern of earnings over the last 2 quarters, something WON has talked =
about in the past as an important indicator after a company has gone =
through tough times.
=20
One last example, i.e., the hurdle for the D/E ratio. While WON suggests =
that "lower is better" it is also important to compare the D/E to other =
stocks in the same industry. For example, in highly capital intensive =
industries it is common to carry a fairly high D/E ratio, as much of the =
physical plant and equipment is financed through debt. It is not =
uncommon for companies to rejigger their capital structure to take on =
more debt when interest rates are low. It's far more important to =
determine if their earnings (and/or cash flow) are sufficient to cover =
interest payments than it is to judge them on the D/E in and of itself. =
There's much more to it than the brief examples I've given here, such as =
the stage of the business and the evolution of their D/E during each =
phase of maturity, etc., but it does demonstrate one more reason why =
writing off a company simply because it's D/E is > 50% (or some other =
hurdle) is a dangerous practice.
=20
Katherine
----- Original Message -----=20
From: Curt Corley=20
To: canslim@lists.xmission.com=20
Sent: Tuesday, December 03, 2002 8:57 PM
Subject: RE: [CANSLIM] NXTL, SXT
=20
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:=20
(1) Compounded annual EPS growth from continuing operations over the
last 3 years is -5.1%. =20
(2) Twelve-month ROE is only 11.3%. =20
(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.=20
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. =20
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.
=20
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
> > >
> > > -
> > > -To subscribe/unsubscribe, email "majordomo@xmission.com"
> > > -In the email body, write "subscribe canslim" or
> > > -"unsubscribe canslim". Do not use quotes in your email.
> > >
> >
> >
> >
> > -
> > -To subscribe/unsubscribe, email "majordomo@xmission.com"
> > -In the email body, write "subscribe canslim" or
> > -"unsubscribe canslim". Do not use quotes in your email.
> >
> >
>
>
> -
> -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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-"unsubscribe canslim". Do not use quotes in your email.
-
-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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<DIV><FONT face=3DArial>Hi Curt,</FONT></DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV><FONT face=3DArial>I would have to agree with Katherine on this, =
but would=20
add that I think a lot comes from experience, and knowing what you can =
get away=20
with and still have it work in your favor. Your example of ROE is a good =
one, as=20
I routinely will buy stocks that fall outside of WON's parameters. But =
the key,=20
for me, is that (a) I know I am violating a rule and, (b) the type of =
young=20
stocks I buy will often not be mature enough to have strong ROE numbers, =
but are=20
showing accelerating earnings and revenues.</FONT></DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV><FONT face=3DArial>So the style / type of companies you seek should =
influence=20
how closely you stick to the guidelines. And your experience and risk =
tolerance=20
(and time to research as you point out) also dictate how far you can =
stray from=20
the parameters.</FONT></DIV>
<DIV> </DIV>
<DIV style=3D"FONT: 10pt arial">----- Original Message -----=20
<DIV style=3D"BACKGROUND: #e4e4e4; font-color: black"><B>From:</B> <A=20
title=3Dcjcorley@hiwaay.net href=3D"mailto:cjcorley@hiwaay.net">Curt =
Corley</A>=20
</DIV>
<DIV><B>To:</B> <A title=3Dcanslim@lists.xmission.com=20
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
</DIV>
<DIV><B>Sent:</B> Wednesday, December 04, 2002 7:45 PM</DIV>
<DIV><B>Subject:</B> RE: [CANSLIM] NXTL, SXT</DIV></DIV>
<DIV><BR></DIV>
<DIV class=3DSection1>
<P class=3DMsoNormal><FONT face=3DArial color=3Dnavy size=3D2><SPAN=20
style=3D"FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial">Hi=20
Katherine,<o:p></o:p></SPAN></FONT></P>
<P class=3DMsoNormal><FONT face=3DArial color=3Dnavy size=3D2><SPAN=20
style=3D"FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: =
Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=3DMsoNormal><FONT face=3DArial color=3Dnavy size=3D2><SPAN=20
style=3D"FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial">Thanks for =
your=20
input.<SPAN style=3D"mso-spacerun: yes"> </SPAN>I agree with you =
and=20
appreciate your interpretation of HTTMIS for the most part.<SPAN=20
style=3D"mso-spacerun: yes"> </SPAN>Although I did not mention it, =
I do=20
compare D/E to the other companies within the same industry.<SPAN=20
style=3D"mso-spacerun: yes"> </SPAN>I depart from your =
interpretation,=20
however, regarding the meaning of the values.<SPAN=20
style=3D"mso-spacerun: yes"> </SPAN>If I really want to follow =
<SPAN=20
class=3DSpellE>WON=92s</SPAN> guidelines, I have to consider some of =
those values as=20
solid criteria to be met =96 not just =93typical=94 or =93average=94 =
values for winning=20
stocks over time.<SPAN style=3D"mso-spacerun: yes"> </SPAN>Take =
ROE for=20
instance.<SPAN style=3D"mso-spacerun: yes"> </SPAN>According to my =
interpretation of the blue book, Chapter 20 clearly states what the ROE =
should=20
be before you buy a stock.<SPAN style=3D"mso-spacerun: yes"> =
</SPAN>If the=20
ROE is below that amount, it doesn=92t even show up on my radar.<SPAN=20
style=3D"mso-spacerun: yes"> </SPAN>And that=92s a good thing (at =
least for=20
me), because I don=92t have to devote time to find excuses as to why it =
didn=92t=20
meet that criterion.<SPAN style=3D"mso-spacerun: yes"> </SPAN>For =
me: the=20
more strict the interpretation, the better. After devoting time to my =
family, my=20
job, and other obligations (not to mention the down-time I allow myself =
=96=20
including the time spent on the CANSLIM Digest list), I don=92t have =
very much=20
time to devote to fundamental and technical analysis of stock =
candidates.<SPAN=20
style=3D"mso-spacerun: yes"> </SPAN>So I would prefer to keep my =
stock=20
candidates down to at least two dozen different stocks a=20
week.<o:p></o:p></SPAN></FONT></P>
<P class=3DMsoNormal><FONT face=3DArial color=3Dnavy size=3D2><SPAN=20
style=3D"FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: =
Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=3DMsoNormal><FONT face=3DArial color=3Dnavy size=3D2><SPAN=20
style=3D"FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial">Once again, =
thanks for=20
your input.<SPAN style=3D"mso-spacerun: yes"> </SPAN>As always, =
you=92re an=20
excellent contributor to this list and one of the reasons the list will =
probably=20
still be around 5 years from now.<o:p></o:p></SPAN></FONT></P>
<P class=3DMsoNormal><FONT face=3DArial color=3Dnavy size=3D2><SPAN=20
style=3D"FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: =
Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=3DMsoNormal><FONT face=3DArial color=3Dnavy size=3D2><SPAN=20
style=3D"FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: =
Arial">Cheers,<o:p></o:p></SPAN></FONT></P>
<P class=3DMsoNormal><FONT face=3DArial color=3Dnavy size=3D2><SPAN=20
style=3D"FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: =
Arial">Curt<o:p></o:p></SPAN></FONT></P>
<P class=3DMsoNormal><FONT face=3DArial color=3Dnavy size=3D2><SPAN=20
style=3D"FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: =
Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT face=3DTahoma =
size=3D2><SPAN=20
style=3D"FONT-SIZE: 10pt; FONT-FAMILY: Tahoma">-----Original=20
Message-----<BR><B><SPAN style=3D"FONT-WEIGHT: bold">From:</SPAN></B>=20
owner-canslim@lists.xmission.com =
[mailto:owner-canslim@lists.xmission.com]=20
<B><SPAN style=3D"FONT-WEIGHT: bold">On Behalf Of </SPAN></B>Katherine=20
Malm<BR><B><SPAN style=3D"FONT-WEIGHT: bold">Sent:</SPAN></B> Wednesday, =
December=20
04, 2002 9:11 AM<BR><B><SPAN style=3D"FONT-WEIGHT: bold">To:</SPAN></B>=20
canslim@lists.xmission.com<BR><B><SPAN=20
style=3D"FONT-WEIGHT: bold">Subject:</SPAN></B> Re: [CANSLIM] NXTL,=20
SXT</SPAN></FONT></P>
<P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT face=3D"Times =
New Roman"=20
size=3D3><SPAN style=3D"FONT-SIZE: =
12pt"><o:p> </o:p></SPAN></FONT></P>
<DIV>
<P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT face=3D"Times =
New Roman"=20
size=3D3><SPAN style=3D"FONT-SIZE: 12pt">Hi =
Curt,<o:p></o:p></SPAN></FONT></P></DIV>
<DIV>
<P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT face=3D"Times =
New Roman"=20
size=3D3><SPAN style=3D"FONT-SIZE: =
12pt"> <o:p></o:p></SPAN></FONT></P></DIV>
<DIV>
<P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT face=3D"Times =
New Roman"=20
size=3D3><SPAN style=3D"FONT-SIZE: 12pt">Thanks for the data on SXT and =
NXTL. I also=20
agree with you about being a picky investor and choosing only the best. =
I'd like=20
to take exception, however, to the idea that all the hurdles WON =
mentions in=20
HTMMIS must be met simultaneously in order for a stock to be considered =
"a good=20
stock." WON provides guidelines for each of the CANSLIM criteria, but =
these are=20
"typical" or "average" values for winning stocks over time. In other =
words, you=20
are looking for the greatest representation of strength from each of =
these=20
categories, or what I call the "preponderance of evidence" that the =
company is a=20
leader, has been able to generate growth in earnings and revenues, =
produces=20
excellent profitability for the capital employed, and has fuel for =
future=20
growth. Take for example, the tendency of accounting reporting to lag. =
By the=20
time it is reported, it's past history. The price of the stock, on the =
other=20
hand, is anticipating future earnings. So, if the technicals show sound=20
accumulation and the preponderance of evidence of fundamentals and due =
diligence=20
shows a pattern of growth and leadership, it's not necessary that each =
and every=20
CANSLIM fundamental "typical" recommendation be=20
met.<o:p></o:p></SPAN></FONT></P></DIV>
<DIV>
<P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT face=3D"Times =
New Roman"=20
size=3D3><SPAN style=3D"FONT-SIZE: =
12pt"> <o:p></o:p></SPAN></FONT></P></DIV>
<DIV>
<P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT face=3D"Times =
New Roman"=20
size=3D3><SPAN style=3D"FONT-SIZE: 12pt">I'm not arguing for NXTL...but =
I can use it=20
as an example. 12 month EPS is -2.10, however, this includes a value =
from 4=20
quarters ago of -2.25, a bathtub quarter that included some =
unusual one=20
time charges that couldn't be backed out of the pro forma number. More=20
importantly, however, the most recent 2 quarters have been a positive =
.35 and=20
.55, showing 166% and 304% growth in earnings over the same =
quarter in the=20
prior year. As a result, the TTM ROE is also going to lag. Now, you have =
3=20
hurdles being missed simultaneously as a result of one bathtub quarter =
(EPS=20
growth, ROE and raw EPS) because each of these accounting measures is=20
inter-related. It also doesn't recognize the *turnaround* in the pattern =
of=20
earnings over the last 2 quarters, something WON has talked about in the =
past as=20
an important indicator after a company has gone through tough=20
times.<o:p></o:p></SPAN></FONT></P></DIV>
<DIV>
<P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT face=3D"Times =
New Roman"=20
size=3D3><SPAN style=3D"FONT-SIZE: =
12pt"> <o:p></o:p></SPAN></FONT></P></DIV>
<DIV>
<P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT face=3D"Times =
New Roman"=20
size=3D3><SPAN style=3D"FONT-SIZE: 12pt">One last example, i.e., the =
hurdle for the=20
D/E ratio. While WON suggests that "lower is better" it is also =
important to=20
compare the D/E to other stocks in the same industry. For example, in =
highly=20
capital intensive industries it is common to carry a fairly high D/E =
ratio, as=20
much of the physical plant and equipment is financed through debt. It is =
not=20
uncommon for companies to rejigger their capital structure to take on =
more debt=20
when interest rates are low. It's far more important to determine if =
their=20
earnings (and/or cash flow) are sufficient to cover interest =
payments than=20
it is to judge them on the D/E in and of itself. There's much more to it =
than=20
the brief examples I've given here, such as the stage of the business =
and the=20
evolution of their D/E during each phase of maturity, etc., but it does=20
demonstrate one more reason why writing off a company simply because =
it's D/E is=20
> 50% (or some other hurdle) is a dangerous=20
practice.<o:p></o:p></SPAN></FONT></P></DIV>
<DIV>
<P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT face=3D"Times =
New Roman"=20
size=3D3><SPAN style=3D"FONT-SIZE: =
12pt"> <o:p></o:p></SPAN></FONT></P></DIV>
<DIV>
<P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT face=3D"Times =
New Roman"=20
size=3D3><SPAN=20
style=3D"FONT-SIZE: 12pt">Katherine<o:p></o:p></SPAN></FONT></P></DIV>
<BLOCKQUOTE=20
style=3D"BORDER-RIGHT: medium none; PADDING-RIGHT: 0in; BORDER-TOP: =
medium none; PADDING-LEFT: 4pt; PADDING-BOTTOM: 0in; MARGIN: 5pt 0in 5pt =
3.75pt; BORDER-LEFT: black 1.5pt solid; PADDING-TOP: 0in; BORDER-BOTTOM: =
medium none">
<DIV>
<P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT face=3DArial =
size=3D2><SPAN=20
style=3D"FONT-SIZE: 10pt; FONT-FAMILY: Arial">----- Original Message =
- -----=20
<o:p></o:p></SPAN></FONT></P></DIV>
<DIV style=3D"font-color: black">
<P class=3DMsoNormal style=3D"BACKGROUND: #e4e4e4; MARGIN-LEFT: =
0.5in"><B><FONT=20
face=3DArial size=3D2><SPAN=20
style=3D"FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: =
Arial">From:</SPAN></FONT></B><FONT=20
face=3DArial size=3D2><SPAN style=3D"FONT-SIZE: 10pt; FONT-FAMILY: =
Arial"> <A=20
title=3Dcjcorley@hiwaay.net href=3D"mailto:cjcorley@hiwaay.net">Curt =
Corley</A>=20
<o:p></o:p></SPAN></FONT></P></DIV>
<DIV>
<P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><B><FONT =
face=3DArial size=3D2><SPAN=20
style=3D"FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: =
Arial">To:</SPAN></FONT></B><FONT=20
face=3DArial size=3D2><SPAN style=3D"FONT-SIZE: 10pt; FONT-FAMILY: =
Arial"> <A=20
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
<o:p></o:p></SPAN></FONT></P></DIV>
<DIV>
<P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><B><FONT =
face=3DArial size=3D2><SPAN=20
style=3D"FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: =
Arial">Sent:</SPAN></FONT></B><FONT=20
face=3DArial size=3D2><SPAN style=3D"FONT-SIZE: 10pt; FONT-FAMILY: =
Arial"> Tuesday,=20
December 03, 2002 8:57 PM<o:p></o:p></SPAN></FONT></P></DIV>
<DIV>
<P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><B><FONT =
face=3DArial size=3D2><SPAN=20
style=3D"FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: =
Arial">Subject:</SPAN></FONT></B><FONT=20
face=3DArial size=3D2><SPAN style=3D"FONT-SIZE: 10pt; FONT-FAMILY: =
Arial"> RE:=20
[CANSLIM] NXTL, SXT<o:p></o:p></SPAN></FONT></P></DIV>
<DIV>
<P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT face=3D"Times =
New Roman"=20
size=3D3><SPAN style=3D"FONT-SIZE: =
12pt"><o:p> </o:p></SPAN></FONT></P></DIV>
<P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT face=3D"Times =
New Roman"=20
size=3D3><SPAN style=3D"FONT-SIZE: 12pt">The web-based stock diagnosis =
service=20
(located on a site that we all<BR>know and love and which will remain=20
nameless) gives these two stocks<BR>high overall ratings. But I =
don't=20
agree with the ratings.<BR><BR>I have Stock Investor Pro screener, and =
I set=20
it up to look at all the<BR>factors that WON mentions in his most =
recent=20
edition of HTMMIS. Both<BR>SXT and NXTL look extremely =
disappointing to=20
me. Here's the list of<BR>fundamentals that are below standard =
according=20
to HTTMIS:<BR><BR>SXT: <BR>(1) Compounded annual EPS growth from =
continuing=20
operations over the<BR>last 3 years is -5.1%. <BR>(2) =
Twelve-month ROE=20
is only 11.3%. <BR>(3) Twelve-month Pretax profit margin is only =
12.5%<BR>(4) Twelve-month After-tax profit margin is down to 8.7% from =
9.3%=20
3<BR>years ago.<BR>(5) Long-term Debt/Equity ratio for the most recent =
quarter=20
is a<BR>whopping 103.9! This is an all-time high.<BR>(6) =
12-month=20
Cash-Flow per share is 1.2% less than 12-month EPS. =
<BR><BR>NXTL:<BR>(1)=20
12-month EPS is -2.10.<BR>(2) Compounded annual EPS growth from =
continuing=20
operations over the<BR>last 3 years is -12.6% (-27.9% over the last 5=20
years)<BR>(3) Quarterly Sales is only 14.4%<BR>(4) Annual sales growth =
is=20
decelerating.<BR>(5) Pretax profit margin is -18.1%<BR>(6) After-tax =
profit=20
margin is -37.2% (which is not near it's all-time<BR>high)<BR>(7) High =
Long-Term Debt/Equity ratio.<BR>(8) 12-month Cash-Flow-Per-Share is =
- -110% less=20
than 12-month EPS.<BR><BR>I agree with the guidelines and rules set =
forth by=20
WON, but I treat the<BR>ratings with a grain of salt. According =
to a=20
popular financial paper<BR>(and its associated web site), there will =
always be=20
200 stocks out of<BR>every 10,000 that are going to look good in each =
category=20
-- no matter<BR>what -- simply because they are in the top 20% of all =
stocks=20
for that<BR>category. In reality, there are currently less than =
50=20
stocks that meet<BR>all of the criteria set forth in HTMMIS. In =
fact, my=20
pickiest WON stock<BR>screen only came up with 15 stocks. After =
looking=20
at the charts, the<BR>pickings are even slimmer.<BR><BR>Now, I'm =
certainly not=20
saying that there will be only 15 stocks that<BR>will give you good=20
returns. And I'm also not saying that you cannot<BR>make good =
money=20
using the unnamed paper and web site for a reference. =
I<BR>subscribe to=20
that paper myself. I do, however, believe you =
shouldn't<BR>assume a=20
stock in the top 20% has good fundamentals. I also believe =
you<BR>can=20
pick CANSLIM stocks a lot easier using a good stock screener. =20
<BR><BR>Since most of us aren't burdened with the task of finding =
places=20
to<BR>invest millions of dollars, we can afford to be picky and buy =
only=20
the<BR>best.<BR> <BR>Curt<BR><BR>-----Original =
Message-----<BR>From: <A=20
=
href=3D"mailto:owner-canslim@lists.xmission.com">owner-canslim@lists.xmis=
sion.com</A><BR>[mailto:owner-canslim@lists.xmission.com]=20
On Behalf Of Jeff Mulder<BR>Sent: Tuesday, December 03, 2002 7:16 =
PM<BR>To: <A=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
<BR>Subject:=20
Re: [CANSLIM] NXTL, SXT<BR><BR>I'm not interested in SXT. I was=20
responding to a request for technical<BR>and<BR>fundamental opinions =
regarding=20
SXT and NXTL.<BR><BR>- Jeff<BR><BR>----- Original Message =
- -----<BR>From:=20
"Norman Boyd" <<A=20
href=3D"mailto:theboyd@tisd.net">theboyd@tisd.net</A>><BR>To: =
<<A=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
><BR>Sent:=20
Sunday, December 01, 2002 10:04 PM<BR>Subject: Re: [CANSLIM] NXTL,=20
SXT<BR><BR><BR>> Jeff,<BR>><BR>> May I ask why you are =
interested in=20
this stock? From my view point<BR>there<BR>> are many better =
looking=20
charts and fundamentals out there than this<BR>one.<BR>> Just=20
curious.<BR>><BR>> Norm<BR>><BR>> ----- Original Message=20
-----<BR>> From: "Jeff Mulder" <<A=20
href=3D"mailto:jeff@mulder.com">jeff@mulder.com</A>><BR>> To: =
<<A=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
><BR>>=20
Sent: Sunday, December 01, 2002 8:39 PM<BR>> Subject: Re: [CANSLIM] =
NXTL,=20
SXT<BR>><BR>><BR>> > SXT is in a better buying position =
now than a=20
week ago. Price has<BR>> tightened<BR>> > up nicely =
while=20
clarifying short-term support. However, as =
Tom<BR>pointed<BR>>=20
out,<BR>> > you probably won't get much juice from this =
one.<BR>>=20
><BR>> > SXT's group looks good. The Media General =
Industry=20
Average is<BR>> consolidating<BR>> > at new highs.<BR>>=20
><BR>> > - Jeff<BR>> ><BR>> > ----- Original =
Message=20
-----<BR>> > From: <<A=20
href=3D"mailto:Vanchee1@aol.com">Vanchee1@aol.com</A>><BR>> > =
To:=20
<<A=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
><BR>>=20
> Sent: Saturday, November 23, 2002 5:14 PM<BR>> > Subject: =
[CANSLIM]=20
NXTL, SXT<BR>> ><BR>> ><BR>> > > Looking for a =
little=20
feed back, but heres my thoughts, thinking<BR>about<BR>> >=20
buying<BR>> > > these two Mon.<BR>> > > SXT 84/90 =
BAA, I=20
like the chart, not too extended at this point.<BR>Volume<BR>> > =
has<BR>> > > been slightly higher but not real great. Earning =
are=20
good and they<BR>have<BR>> > been<BR>> > > buying =
smaller=20
companies that will provide some synergies. I know<BR>there<BR>> =
>=20
are<BR>> > > 47 mil shares outstanding but do not know what =
the float=20
is, if<BR>anyone<BR>> has<BR>> > a<BR>> > > link to =
where I=20
can find the float on different companies please<BR>post,<BR>> > =
>=20
thanks.<BR>> > ><BR>> > > NXTL 80/99 ADA, chart also =
looks=20
good, earnings are getting<BR>better,<BR>and<BR>> > the<BR>> =
>=20
> company is doing a good job of paying down dept.<BR>> >=20
><BR>> > > Any feed back is appreciated.<BR>> > =
><BR>>=20
> > Thanks Chris<BR>> > ><BR>> > > -<BR>> =
> >=20
-To subscribe/unsubscribe, email "<A=20
=
href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>>=
; >=20
> -In the email body, write "subscribe canslim" or<BR>> > =
>=20
-"unsubscribe canslim". Do not use quotes in your email.<BR>> =
>=20
><BR>> ><BR>> ><BR>> ><BR>> > -<BR>> =
> -To=20
subscribe/unsubscribe, email "<A=20
=
href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>>=
; >=20
-In the email body, write "subscribe canslim" or<BR>> > =
- -"unsubscribe=20
canslim". Do not use quotes in your email.<BR>> ><BR>>=20
><BR>><BR>><BR>> -<BR>> -To subscribe/unsubscribe, =
email "<A=20
=
href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>>=
; -In=20
the email body, write "subscribe canslim" or<BR>> -"unsubscribe=20
canslim". Do not use quotes in your =
email.<BR>><BR><BR><BR>-<BR>-To=20
subscribe/unsubscribe, email "<A=20
=
href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>-In=
the=20
email body, write "subscribe canslim" or<BR>-"unsubscribe =
canslim". Do=20
not use quotes in your email.<BR><BR><BR>-<BR>-To =
subscribe/unsubscribe, email=20
"<A =
href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>-In=
=20
the email body, write "subscribe canslim" or<BR>-"unsubscribe =
canslim". =20
Do not use quotes in your=20
email.<o:p></o:p></SPAN></FONT></P></BLOCKQUOTE></DIV></BODY></HTML>
- ------=_NextPart_000_0050_01C29BEA.D3761920--
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