Go to Jeff Salisbury LWGate Home Page.From: "Curt Corley" <cjcorley@hiwaay.net>
Subject: RE: [CANSLIM] Fundamental Philosophies
Date: Thu, 5 Dec 2002 22:46:16 -0600
Previous Article (by Subject): RE: [CANSLIM] Fundamental Philosophies "Fred Richards"
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In that case, you may want to consider subscribing to ValueLine. You
have to pay a lot more than $500 per year for that, so your returns
should be a lot better than using DGO.
=20
Curt
=20
- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com] On Behalf Of Fred Richards
Sent: Thursday, December 05, 2002 10:40 PM
To: canslim@lists.xmission.com
Subject: RE: [CANSLIM] Fundamental Philosophies
=20
Curt,
=20
After some 40 years in this business, I believe that one of the
guidelines my mentor pounded into my head is still applicable.
=20
"You get what you pay for in this business."
=20
Fred
- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Curt Corley
Sent: Thursday, December 05, 2002 9:22 PM
To: canslim@lists.xmission.com
Subject: RE: [CANSLIM] Fundamental Philosophies
Fred,
=20
I was just joking about the online service. Maybe I should have put a
=93;)=94 after that statement, instead of a =93:).=94 =20
=20
I agree with the idea that the cost is not very significant if you are
able to make significantly more than $500 using DGO and IBD =96 =
especially
if you are unable to make that amount without DGO. However, that could
very well strengthen the argument in favor of lower cost, because (1)
there are quite a few people out there who are not in your position and
who don=92t have the starting capital and/or skills to make a =
significant
amount over $500, and (2) there are quite a few people out there who can
make significant money without the service. ;)
=20
Curt
=20
- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com] On Behalf Of Fred Richards
Sent: Thursday, December 05, 2002 8:36 PM
To: canslim@lists.xmission.com
Subject: RE: [CANSLIM] Fundamental Philosophies
=20
And just how much will you charge? Have you given any consideration to
the costs involved? Or how many people might sign up for another stock
rating service?
=20
It is always great to leverage off other people's work but unless you
can make a profit after all the costs both known and unknown are
caculated, don't make the number 1 mistake of most entrepreneurs . . .
failing to consider the cost of one's time.
=20
Since I make a few more dollars than $500 using the DGO and IBD, the
cost is only material to those who don't.
- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Curt Corley
Sent: Thursday, December 05, 2002 8:15 PM
To: canslim@lists.xmission.com
Subject: [CANSLIM] Fundamental Philosophies
Hi,
=20
I hope you don=92t mind me changing the subject name of this thread to
something a little more appropriate than NXTL and SXT.=20
=20
To answer your question: Yes, I would certainly consider purchasing a
stock if the ROE was less than 16.5% with all other factors looking
good. As you know, I=92ve purchased PECS and MNTR recently -- two =
stocks
that were a lot less perfect than the theoretical stock you mentioned.
I get your point, and you are right: an ROE below 17% certainly does
not mean the company or the stock is bad. But here=92s a situation to
consider. Let=92s say you have screened 9,100+ stocks, and came up with =
a
dozen or so stocks that have what you consider to be near-perfect
fundamentals. And let=92s say a few of those look like they might break
out of a base formation within the next couple of weeks. Would you
rather wait around for the possibility that those stocks with the best
fundamentals will break out? Or would rather purchase stocks that have
already broken out but which have less stellar fundamentals? Within a
very short time after purchasing PECS and MNTR, I saw other stocks with
better fundamentals that looked like they were ready to make a move. Of
course, that=92s a tough thing to watch, and that=92s why I put some =
thought
into this question. Given my situation and my personality, I decided I
would rather keep my eye on only the very best ones. That=92s why I
decided last weekend to screen only the near-perfect ones and keep an
eye on those. And now you, Andy, and Tom are starting to make me doubt
that decision. Thanks a lot! :)
=20
Seriously now: this has been a very educational and interesting thread.
Hopefully, by the time we are through with this, we will have figured
out the best overall stock-picking system; then we can start an on-line
rating system and screening service that doesn=92t cost $500 a year. :)
=20
Curt
=20
P.S. =96 I would like to open a topic up some time in the future about =
the
use of earnings estimates. But this topic is enough for now. My laptop
is over-heating. I=92m coming into work tired. And my wife is starting
to forget my middle name.
=20
- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com] On Behalf Of kmalm
Sent: Thursday, December 05, 2002 11:44 AM
To: canslim@lists.xmission.com
Subject: RE: [CANSLIM] NXTL, SXT
=20
Hi Curt,
=20
I think you've identified the stickier issues in CANSLIM and
interpreting WON's work. As both Tom and Andy have pointed out in their
posts, while WON may *seem* to be stating that ROE>=3D17 is a "minimum
requirement' it turns out it is a guidepost to lead you to better
quality stocks. As with other indicators, this is based on his
historical view of winning stocks, meaning that "on average" winning
stocks had an ROE>=3D17. As with D/E, ROE can be misleading. For =
example,
if a company rejiggers their capital structure and increases their
outstanding shares, this will have an immediate impact on the ROE
measure. Another way of viewing it would simply be by asking a question.
That is, if you were looking at a stock and it had a "perfect" cup with
handle (ok, it's theoretical!); high RS Rank; an RS line making new
highs; met all other earnings, sales and profit margin guidelines, and
broke out on 150% of ADV, would you pass it up because it had an ROE of
16.5%? If so, why? Does the "low" ROE mean that it is not a good company
or a good stock?
=20
Katherine
=20
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<p class=3DMsoNormal><font size=3D2 color=3Dnavy face=3DArial><span =
style=3D'font-size:
10.0pt;font-family:Arial;color:navy'>In that case, you may want to =
consider
subscribing to ValueLine.<span style=3D'mso-spacerun:yes'>=A0 </span>You =
have to
pay a lot more than $500 per year for that, so your returns should be a =
lot
better than using DGO.<o:p></o:p></span></font></p>
<p class=3DMsoNormal><font size=3D2 color=3Dnavy face=3DArial><span =
style=3D'font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=3DMsoNormal><font size=3D2 color=3Dnavy face=3DArial><span =
style=3D'font-size:
10.0pt;font-family:Arial;color:navy'>Curt<o:p></o:p></span></font></p>
<p class=3DMsoNormal><font size=3D2 color=3Dnavy face=3DArial><span =
style=3D'font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
face=3DTahoma><span
style=3D'font-size:10.0pt;font-family:Tahoma'>-----Original =
Message-----<br>
<b><span style=3D'font-weight:bold'>From:</span></b> =
owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com] <b><span =
style=3D'font-weight:bold'>On
Behalf Of </span></b>Fred Richards<br>
<b><span style=3D'font-weight:bold'>Sent:</span></b> =
</span></font><st1:date
Month=3D"12" Day=3D"5" Year=3D"2002"><font size=3D2 face=3DTahoma><span =
style=3D'font-size:
10.0pt;font-family:Tahoma'>Thursday, December 05, =
2002</span></font></st1:date><font
size=3D2 face=3DTahoma><span =
style=3D'font-size:10.0pt;font-family:Tahoma'> </span></font><st1:time
Hour=3D"22" Minute=3D"40"><font size=3D2 face=3DTahoma><span =
style=3D'font-size:10.0pt;
font-family:Tahoma'>10:40 PM</span></font></st1:time><font size=3D2 =
face=3DTahoma><span
style=3D'font-size:10.0pt;font-family:Tahoma'><br>
<b><span style=3D'font-weight:bold'>To:</span></b> =
canslim@lists.xmission.com<br>
<b><span style=3D'font-weight:bold'>Subject:</span></b> RE: [CANSLIM] =
Fundamental
Philosophies</span></font></p>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'><o:p> </o:p></span></font></p>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
color=3Dblue face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;color:blue'>Curt,</span></fon=
t><o:p></o:p></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
color=3Dblue face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;color:blue'>After some 40 =
years in
this business, I believe that one of the guidelines my mentor pounded =
into my
head is still applicable.</span></font><o:p></o:p></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
color=3Dblue face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;color:blue'>"You get =
what you
pay for in this business."</span></font><o:p></o:p></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
color=3Dblue face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;color:blue'>Fred</span></font=
><o:p></o:p></p>
</div>
<blockquote =
style=3D'margin-top:5.0pt;margin-right:0in;margin-bottom:5.0pt'>
<p class=3DMsoNormal =
style=3D'mso-margin-top-alt:0in;margin-right:0in;margin-bottom:
12.0pt;margin-left:.5in'><font size=3D2 face=3DTahoma><span =
style=3D'font-size:10.0pt;
font-family:Tahoma'>-----Original Message-----<br>
<b><span style=3D'font-weight:bold'>From:</span></b>
owner-canslim@lists.xmission.com =
[mailto:owner-canslim@lists.xmission.com]<b><span
style=3D'font-weight:bold'>On Behalf Of </span></b>Curt Corley<br>
<b><span style=3D'font-weight:bold'>Sent:</span></b> =
</span></font><st1:date
Month=3D"12" Day=3D"5" Year=3D"2002"><font size=3D2 face=3DTahoma><span =
style=3D'font-size:
10.0pt;font-family:Tahoma'>Thursday, December 05, =
2002</span></font></st1:date><font
size=3D2 face=3DTahoma><span =
style=3D'font-size:10.0pt;font-family:Tahoma'> </span></font><st1:time
Hour=3D"21" Minute=3D"22"><font size=3D2 face=3DTahoma><span =
style=3D'font-size:10.0pt;
font-family:Tahoma'>9:22 PM</span></font></st1:time><font size=3D2 =
face=3DTahoma><span
style=3D'font-size:10.0pt;font-family:Tahoma'><br>
<b><span style=3D'font-weight:bold'>To:</span></b> =
canslim@lists.xmission.com<br>
<b><span style=3D'font-weight:bold'>Subject:</span></b> RE: [CANSLIM] =
Fundamental
Philosophies</span></font><o:p></o:p></p>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
color=3Dnavy face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;color:navy'>Fred,<o:p></o:p><=
/span></font></p>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
color=3Dnavy face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;color:navy'><o:p> </o:p>=
</span></font></p>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
color=3Dnavy face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;color:navy'>I was just =
joking about
the online service.<span style=3D'mso-spacerun:yes'>=A0 </span>Maybe I =
should have
put a “;)” after that statement, instead of a
“:).”<span style=3D'mso-spacerun:yes'>=A0 =
</span><o:p></o:p></span></font></p>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
color=3Dnavy face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;color:navy'><o:p> </o:p>=
</span></font></p>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
color=3Dnavy face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;color:navy'>I agree with the =
idea
that the cost is not very significant if you are able to make =
significantly
more than $500 using DGO and IBD – especially if you are unable to =
make
that amount without DGO.<span style=3D'mso-spacerun:yes'>=A0 =
</span>However, that
could very well strengthen the argument in favor of lower cost, because =
(1)
there are quite a few people out there who are not in your position and =
who
don’t have the starting capital and/or skills to make a =
significant
amount over $500, and (2) there are quite a few people out there who can =
make
significant money without the service.<span =
style=3D'mso-spacerun:yes'>=A0
</span>;)<o:p></o:p></span></font></p>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
color=3Dnavy face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;color:navy'><o:p> </o:p>=
</span></font></p>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
color=3Dnavy face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;color:navy'>Curt<o:p></o:p></=
span></font></p>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
color=3Dnavy face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;color:navy'><o:p> </o:p>=
</span></font></p>
<p class=3DMsoNormal style=3D'margin-left:1.0in'><font size=3D2 =
face=3DTahoma><span
style=3D'font-size:10.0pt;font-family:Tahoma'>-----Original =
Message-----<br>
<b><span style=3D'font-weight:bold'>From:</span></b>
owner-canslim@lists.xmission.com =
[mailto:owner-canslim@lists.xmission.com] <b><span
style=3D'font-weight:bold'>On Behalf Of </span></b>Fred Richards<br>
<b><span style=3D'font-weight:bold'>Sent:</span></b> =
</span></font><st1:date
Month=3D"12" Day=3D"5" Year=3D"2002"><font size=3D2 face=3DTahoma><span =
style=3D'font-size:
10.0pt;font-family:Tahoma'>Thursday, December 05, =
2002</span></font></st1:date><font
size=3D2 face=3DTahoma><span =
style=3D'font-size:10.0pt;font-family:Tahoma'> </span></font><st1:time
Hour=3D"20" Minute=3D"36"><font size=3D2 face=3DTahoma><span =
style=3D'font-size:10.0pt;
font-family:Tahoma'>8:36 PM</span></font></st1:time><font size=3D2 =
face=3DTahoma><span
style=3D'font-size:10.0pt;font-family:Tahoma'><br>
<b><span style=3D'font-weight:bold'>To:</span></b> =
canslim@lists.xmission.com<br>
<b><span style=3D'font-weight:bold'>Subject:</span></b> RE: [CANSLIM] =
Fundamental
Philosophies</span></font><o:p></o:p></p>
<p class=3DMsoNormal style=3D'margin-left:1.0in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'><o:p> </o:p></span></font></p>
<div>
<p class=3DMsoNormal style=3D'margin-left:1.0in'><font size=3D2 =
color=3Dblue
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;color:blue'>And just
how much will you charge? Have you given any consideration to the =
costs
involved? Or how many people might sign up for another stock =
rating
service?</span></font><o:p></o:p></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:1.0in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:1.0in'><font size=3D2 =
color=3Dblue
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;color:blue'>It is
always great to leverage off other people's work but unless you can make =
a
profit after all the costs both known and unknown are caculated, =
don't
make the number 1 mistake of most entrepreneurs . . . failing to =
consider the
cost of one's time.</span></font><o:p></o:p></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:1.0in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:1.0in'><font size=3D2 =
color=3Dblue
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;color:blue'>Since I
make a few more dollars than $500 using the DGO and IBD, the cost is =
only
material to those who don't.</span></font><o:p></o:p></p>
</div>
<blockquote =
style=3D'margin-top:5.0pt;margin-right:0in;margin-bottom:5.0pt'>
<p class=3DMsoNormal =
style=3D'mso-margin-top-alt:0in;margin-right:0in;margin-bottom:
12.0pt;margin-left:1.0in'><font size=3D2 face=3DTahoma><span =
style=3D'font-size:10.0pt;
font-family:Tahoma'>-----Original Message-----<br>
<b><span style=3D'font-weight:bold'>From:</span></b>
owner-canslim@lists.xmission.com =
[mailto:owner-canslim@lists.xmission.com]<b><span
style=3D'font-weight:bold'>On Behalf Of </span></b>Curt Corley<br>
<b><span style=3D'font-weight:bold'>Sent:</span></b> =
</span></font><st1:date
Month=3D"12" Day=3D"5" Year=3D"2002"><font size=3D2 face=3DTahoma><span =
style=3D'font-size:
10.0pt;font-family:Tahoma'>Thursday, December 05, =
2002</span></font></st1:date><font
size=3D2 face=3DTahoma><span =
style=3D'font-size:10.0pt;font-family:Tahoma'> </span></font><st1:time
Hour=3D"20" Minute=3D"15"><font size=3D2 face=3DTahoma><span =
style=3D'font-size:10.0pt;
font-family:Tahoma'>8:15 PM</span></font></st1:time><font size=3D2 =
face=3DTahoma><span
style=3D'font-size:10.0pt;font-family:Tahoma'><br>
<b><span style=3D'font-weight:bold'>To:</span></b> =
canslim@lists.xmission.com<br>
<b><span style=3D'font-weight:bold'>Subject:</span></b> [CANSLIM] =
Fundamental
Philosophies</span></font><o:p></o:p></p>
<p class=3DMsoNormal style=3D'margin-left:1.0in'><font size=3D2 =
color=3Dnavy
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;color:navy'>Hi,<o:p></o:p></s=
pan></font></p>
<p class=3DMsoNormal style=3D'margin-left:1.0in'><font size=3D2 =
color=3Dnavy
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;color:navy'><o:p> </o:p>=
</span></font></p>
<p class=3DMsoNormal style=3D'margin-left:1.0in'><font size=3D2 =
color=3Dnavy
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;color:navy'>I hope
you don’t mind me changing the subject name of this thread to =
something a
little more appropriate than NXTL and SXT. <o:p></o:p></span></font></p>
<p class=3DMsoNormal style=3D'margin-left:1.0in'><font size=3D2 =
color=3Dnavy
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;color:navy'><o:p> </o:p>=
</span></font></p>
<p class=3DMsoNormal style=3D'margin-left:1.0in'><font size=3D2 =
color=3Dnavy
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;color:navy'>To answer
your question:<span style=3D'mso-spacerun:yes'>=A0 </span>Yes, I would =
certainly
consider purchasing a stock if the ROE was less than 16.5% with all =
other
factors looking good.<span style=3D'mso-spacerun:yes'>=A0 </span>As you =
know,
I’ve purchased </span></font><st1:City><st1:place><font size=3D2
color=3Dnavy face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;
color:navy'>PECS</span></font></st1:place></st1:City><font size=3D2 =
color=3Dnavy
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;color:navy'> and
MNTR recently -- two stocks that were a lot less perfect than the =
theoretical
stock you mentioned.<span style=3D'mso-spacerun:yes'>=A0 </span>I get =
your point,
and you are right:<span style=3D'mso-spacerun:yes'>=A0 </span>an ROE =
below 17%
certainly does not mean the company or the stock is bad.<span
style=3D'mso-spacerun:yes'>=A0 </span>But here’s a situation to
consider.<span style=3D'mso-spacerun:yes'>=A0 </span>Let’s say you =
have
screened 9,100+ stocks, and came up with a dozen or so stocks that have =
what
you consider to be near-perfect fundamentals.<span =
style=3D'mso-spacerun:yes'>=A0
</span>And let’s say a few of those look like they might break out =
of a
base formation within the next couple of weeks.<span =
style=3D'mso-spacerun:yes'>=A0
</span>Would you rather wait around for the possibility that those =
stocks with
the best fundamentals will break out?<span =
style=3D'mso-spacerun:yes'>=A0 </span>Or
would rather purchase stocks that have already broken out but which have =
less
stellar fundamentals?<span style=3D'mso-spacerun:yes'>=A0 </span>Within =
a very
short time after purchasing </span></font><st1:City><st1:place><font =
size=3D2
color=3Dnavy face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;
color:navy'>PECS</span></font></st1:place></st1:City><font size=3D2 =
color=3Dnavy
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;color:navy'> and
MNTR, I saw other stocks with better fundamentals that looked like they =
were
ready to make a move.<span style=3D'mso-spacerun:yes'>=A0 </span>Of =
course,
that’s a tough thing to watch, and that’s why I put some =
thought
into this question.<span style=3D'mso-spacerun:yes'>=A0 </span>Given my =
situation
and my personality, I decided I would rather keep my eye on only the =
very best
ones.<span style=3D'mso-spacerun:yes'>=A0 </span>That’s why I =
decided last
weekend to screen only the near-perfect ones and keep an eye on =
those.<span
style=3D'mso-spacerun:yes'>=A0 </span>And now you, Andy, and Tom are =
starting to
make me doubt that decision.<span style=3D'mso-spacerun:yes'>=A0 =
</span>Thanks a
lot!<span style=3D'mso-spacerun:yes'>=A0 =
</span>:)<o:p></o:p></span></font></p>
<p class=3DMsoNormal style=3D'margin-left:1.0in'><font size=3D2 =
color=3Dnavy
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;color:navy'><o:p> </o:p>=
</span></font></p>
<p class=3DMsoNormal style=3D'margin-left:1.0in'><font size=3D2 =
color=3Dnavy
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;color:navy'>Seriously
now:<span style=3D'mso-spacerun:yes'>=A0 </span>this has been a very =
educational
and interesting thread.<span style=3D'mso-spacerun:yes'>=A0 =
</span>Hopefully, by
the time we are through with this, we will have figured out the best =
overall
stock-picking system; then we can start an on-line rating system and =
screening
service that doesn’t cost $500 a year.<span =
style=3D'mso-spacerun:yes'>=A0
</span>:)<o:p></o:p></span></font></p>
<p class=3DMsoNormal style=3D'margin-left:1.0in'><font size=3D2 =
color=3Dnavy
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;color:navy'><o:p> </o:p>=
</span></font></p>
<p class=3DMsoNormal style=3D'margin-left:1.0in'><font size=3D2 =
color=3Dnavy
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;color:navy'>Curt<o:p></o:p></=
span></font></p>
<p class=3DMsoNormal style=3D'margin-left:1.0in'><font size=3D2 =
color=3Dnavy
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;color:navy'><o:p> </o:p>=
</span></font></p>
<p class=3DMsoNormal style=3D'margin-left:1.0in'><font size=3D2 =
color=3Dnavy
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;color:navy'>P.S.
– I would like to open a topic up some time in the future about =
the use
of earnings estimates.<span style=3D'mso-spacerun:yes'>=A0 </span>But =
this topic is
enough for now.<span style=3D'mso-spacerun:yes'>=A0 </span>My laptop is
over-heating.<span style=3D'mso-spacerun:yes'>=A0 </span>I’m =
coming into work
tired.<span style=3D'mso-spacerun:yes'>=A0 </span>And my wife is =
starting to forget
my middle name.<o:p></o:p></span></font></p>
<p class=3DMsoNormal style=3D'margin-left:1.0in'><font size=3D2 =
color=3Dnavy
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;color:navy'><o:p> </o:p>=
</span></font></p>
<p class=3DMsoNormal style=3D'margin-left:1.5in'><font size=3D2 =
face=3DTahoma><span
style=3D'font-size:10.0pt;font-family:Tahoma'>-----Original =
Message-----<br>
<b><span style=3D'font-weight:bold'>From:</span></b>
owner-canslim@lists.xmission.com =
[mailto:owner-canslim@lists.xmission.com] <b><span
style=3D'font-weight:bold'>On Behalf Of </span></b>kmalm<br>
<b><span style=3D'font-weight:bold'>Sent:</span></b> =
</span></font><st1:date
Month=3D"12" Day=3D"5" Year=3D"2002"><font size=3D2 face=3DTahoma><span =
style=3D'font-size:
10.0pt;font-family:Tahoma'>Thursday, December 05, =
2002</span></font></st1:date><font
size=3D2 face=3DTahoma><span =
style=3D'font-size:10.0pt;font-family:Tahoma'> </span></font><st1:time
Hour=3D"11" Minute=3D"44"><font size=3D2 face=3DTahoma><span =
style=3D'font-size:10.0pt;
font-family:Tahoma'>11:44 AM</span></font></st1:time><font size=3D2 =
face=3DTahoma><span
style=3D'font-size:10.0pt;font-family:Tahoma'><br>
<b><span style=3D'font-weight:bold'>To:</span></b> =
canslim@lists.xmission.com<br>
<b><span style=3D'font-weight:bold'>Subject:</span></b> RE: [CANSLIM] =
NXTL, SXT</span></font><o:p></o:p></p>
<p class=3DMsoNormal style=3D'margin-left:1.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'><o:p> </o:p></span></font></p>
<div>
<p class=3DMsoNormal style=3D'margin-left:1.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'>Hi Curt,<o:p></o:p></span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:1.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:1.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'>I think you've identified the stickier issues =
in
CANSLIM and interpreting WON's work. As both Tom and Andy have pointed =
out in
their posts, while WON may *seem* to be stating that ROE>=3D17 is a
"minimum requirement' it turns out it is a guidepost to lead you to =
better
quality stocks. As with other indicators, this is based on his =
historical view
of winning stocks, meaning that "on average" winning stocks =
had an
ROE>=3D17. As with D/E, ROE can be misleading. For example, if a =
company
rejiggers their capital structure and increases their outstanding =
shares, this
will have an immediate impact on the ROE measure. Another way of viewing =
it
would simply be by asking a question. That is, if you were looking at a =
stock
and it had a "perfect" cup with handle (ok, it's =
theoretical!); high
RS Rank; an RS line making new highs; met all other earnings, sales and =
profit
margin guidelines, and broke out on 150% of ADV, would you pass it up =
because
it had an ROE of 16.5%? If so, why? Does the "low" ROE mean =
that it
is not a good company or a good stock?<o:p></o:p></span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:1.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'> <o:p></o:p></span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:1.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'>Katherine<o:p></o:p></span></font></p>
</div>
<blockquote =
style=3D'margin-top:5.0pt;margin-right:0in;margin-bottom:5.0pt'>
<p class=3DMsoNormal =
style=3D'mso-margin-top-alt:0in;margin-right:0in;margin-bottom:
12.0pt;margin-left:1.0in'><font size=3D3 face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'><o:p> </o:p></span></font></p>
</blockquote>
</blockquote>
</blockquote>
</div>
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