Re: [CANSLIM] Fundamental Philosophies

From: Davellil5@aol.com
Subject: Re: [CANSLIM] Fundamental Philosophies
Date: Fri, 6 Dec 2002 09:08:45 EST

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One of our members has said that a stock may be selected for purchase when 
there is a preponderance of evidence showing conformance with CANSLIM 
criteria.  This makes sense because it is very rare for a stock to conform 
100%.

Nevertheless, there are  some go-nogo conditions.  PECS provides us with a 
good example of one of those conditions.  PECS has displayed great growth.  
EPS growth this year is expected to be 51%.  However, EPS growth for next 
year is projected to be only 22%, less than half as much.  There's nothing 
shabby about 22% growth, but coming after 51%, it forces us to wonder whether 
the price of the stock already reflects all the prospects for the Company.   
Maybe that's why PECS broke out on high volume November 25th, only to 
collapse on high volume December 2nd, and is now flirting with its 50DMA.

I've been burned by stocks that I bought because of great growth records in 
spite of much slower future growth projections.  So, now, that is a go-nogo 
condition for me.   Maybe I'll miss a few "comers", but I just don't want to 
take that risk again.  

It would be useful for us CANSLIM-ers to discuss  strict go-nogo conditions 
in these e- mails.  Does anyone else have them?

Regards to all, Dave





   

 

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