Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: RE: Fundamental Philosophies (was: [CANSLIM] NXTL, SXT)
Date: Fri, 6 Dec 2002 08:29:33 -0600
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Hi Andy,
Once again, I agree with you. No doubt that the greatest gains to be made during
a Bear are on the short side, but careful selection of stocks with solid
fundamentals and technicals for long positions while the Market is in rally mode
during a Bear also offer up good returns. The *same* discipline in selection
translates well in a solid Bull, because careful selection using the same
methodology makes the difference between 30% and 300% returns.
The challenge is to find what set of fundamental criteria (both forward and
backward looking) constitutes "a good stock" and for each individual, that set
of rules or guidelines is going to be a bit different. The key is "set of rules"
to be followed without exception but that can be modified as the investor learns
from their past mistakes. My argument was simply that a set of fundamental rules
that is overly restrictive does not necessarily translate into "a good stock" or
consistent returns. Dave L has posted a good email that addresses that very
issue. That is, what is a go/no go within the CANSLIM style? Will we find
consistencies across the board in some areas? If you were to pare down WON's
work, what are the absolutes?
Katherine
-----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of AJAskey@aol.com
Sent: Friday, December 06, 2002 7:22 AM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] NXTL, SXT
Katherine,
My thought is the fundies don't make a bit of difference of the first 10-20%
of the move. When "M" is bad very little works no matter what the fundies are.
When "M" is cooking everything works no matter what the fundies are. CANSLIM
attempts to separate those stocks capable of making the 20-1500% move from those
that can't.
Many appear to get sucked in during a good "M" to buying only from a good
base. This works fine but it is tougher to make a reasonable long term return
making only 20% on each positive buy while losing 8% on each negative buy and
then staying in cash during the bad "M". If I were to make 500% during a good
bull run I would have less temptation to try to make up for missing the big
moves in a bad "M" when I only turned several 20% gainers into 100% return
during the bull.
Andy
In a message dated 12/5/2002 11:27:03 PM Central Standard Time,
kmalm@earthlink.net writes:
To Curt's original point, each investor has to find a meaningful set of
rules to follow within a set of style guidelines (in this case, CANSLIM), trade
by them, and then adjust as necessary as they learn from their post analysis.
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<DIV><SPAN class=3D479441614-06122002>Hi Andy,</SPAN></DIV>
<DIV><SPAN class=3D479441614-06122002></SPAN> </DIV>
<DIV><SPAN class=3D479441614-06122002>Once again, I agree with you. No =
doubt that=20
the greatest gains to be made during a Bear are on the short side, but =
careful=20
selection of stocks with solid fundamentals and technicals for long =
positions=20
while the Market is in rally mode during a Bear also offer up good =
returns. The=20
*same* discipline in selection translates well in a solid Bull, because =
careful=20
selection using the same methodology makes the difference between 30% =
and 300%=20
returns.</SPAN></DIV>
<DIV><SPAN class=3D479441614-06122002></SPAN> </DIV>
<DIV><SPAN class=3D479441614-06122002>The challenge is to find what set =
of=20
fundamental criteria (both forward and backward looking) constitutes "a =
good=20
stock" and for each individual, that set of rules or guidelines is going =
to be a=20
bit different. The key is "set of rules" to be followed without =
exception but=20
that can be modified as the investor learns from their past mistakes. My =
argument was simply that a set of fundamental rules that is overly =
restrictive=20
does not necessarily translate into "a good stock" or consistent =
returns. Dave L=20
has posted a good email that addresses that very issue. That is, what is =
a go/no=20
go within the CANSLIM style? Will we find consistencies across the board =
in some=20
areas? If you were to pare down WON's work, what are the =
absolutes?</SPAN></DIV>
<DIV><SPAN class=3D479441614-06122002></SPAN> </DIV>
<DIV><SPAN class=3D479441614-06122002>Katherine</SPAN></DIV>
<BLOCKQUOTE>
<DIV class=3DOutlookMessageHeader dir=3Dltr align=3Dleft><FONT =
face=3DTahoma=20
size=3D2>-----Original Message-----<BR><B>From:</B>=20
owner-canslim@lists.xmission.com=20
[mailto:owner-canslim@lists.xmission.com]<B>On Behalf Of=20
</B>AJAskey@aol.com<BR><B>Sent:</B> Friday, December 06, 2002 7:22=20
AM<BR><B>To:</B> canslim@lists.xmission.com<BR><B>Subject:</B> Re: =
[CANSLIM]=20
NXTL, SXT<BR><BR></FONT></DIV><FONT face=3Darial,helvetica><FONT=20
size=3D2>Katherine,<BR><BR>My thought is the fundies don't make a bit =
of=20
difference of the first 10-20% of the move. When "M" is bad very =
little=20
works no matter what the fundies are. When "M" is cooking =
everything=20
works no matter what the fundies are. CANSLIM attempts to =
separate those=20
stocks capable of making the 20-1500% move from those that =
can't.<BR><BR>Many=20
appear to get sucked in during a good "M" to buying only from a good=20
base. This works fine but it is tougher to make a reasonable =
long term=20
return making only 20% on each positive buy while losing 8% on each =
negative=20
buy and then staying in cash during the bad "M". If I were =
to make=20
500% during a good bull run I would have less temptation to try to =
make up for=20
missing the big moves in a bad "M" when I only turned several 20% =
gainers into=20
100% return during the bull.<BR><BR>Andy<BR><BR>In a message dated =
12/5/2002=20
11:27:03 PM Central Standard Time, kmalm@earthlink.net =
writes:<BR><BR><BR>
<BLOCKQUOTE=20
style=3D"PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #0000ff 2px =
solid; MARGIN-RIGHT: 0px"=20
TYPE=3D"CITE">To Curt's original point, each investor has to find a =
meaningful=20
set of rules to follow within a set of style guidelines (in this =
case,=20
CANSLIM), trade by them, and then adjust as necessary as they learn =
from=20
their post=20
analysis.<BR></BLOCKQUOTE><BR><BR></BLOCKQUOTE></FONT></FONT></BODY></HTM=
L>
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