Go to Jeff Salisbury LWGate Home Page.From: "David Taggart" <dctag@mavericktrading.com>
Subject: RE: [CANSLIM] Re: Cost ofr IBD
Date: Fri, 6 Dec 2002 11:13:25 -0700
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While not the most CANSLIMmish tool VLINE is nice and if you go to your =
local library and they have it ask if they have the user and password =
for the site. A regular print subscription gets a user/pword that way =
you can use it from home too.
David
-----Original Message-----
From: owner-canslim@lists.xmission.com =
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Gene Ricci
Sent: Friday, December 06, 2002 10:27 AM
To: canslim@lists.xmission.com
Subject: [CANSLIM] Re: Cost ofr IBD
Hi Nancy, much of the 'good' stuff is available on investors.com. You =
might want to adopt a trick that we use in Dallas... we go to one of the =
bookstores and read it for free. The only kicker is that we buy coffee =
and something to eat so we don't really save much money... the cheapest =
way is to visit your library and read it (and Value Line) for free.
Have a great weekend,
Gene
----- Original Message -----=20
From: NANCY POLCARO=20
To: canslim=20
Sent: Friday, December 06, 2002 12:03 AM
Subject: Re: [CANSLIM] Fundamental Philosophies
I would just like to put in my opinion if possible. For people who =
are just learning the IBD system and doing all the wrong things and not =
making money(especially in this market) it is a big expense-on top of no =
profits and maybe losing money. For people who have traded for 40 years =
and have their own web site and know Bill O'neil personally, I'm sure it =
is well worth the money. I think the problem is -how do you learn the =
system when you have no stock market background unless you pay that =
much money just to try to learn. I had the paper for two years. I =
thought I was learning it but in fact I was just doing well because I =
was caught up in the last two years of a raging bull market. I let the =
paper go when stocks were going no where but down. When the market =
turns I will probably try it again but in the mean time it is to big of =
an expense to pay for training. Especially if we have a 10 year bear. =
Sorry if I ask simple questions right now, but the books and this web =
site are where I'm being taught right now. I want to thank everyone on =
this site for all the help and training you offer the rest of us. nancy
----- Original Message -----
From: Fred Richards
Sent: Thursday, December 05, 2002 9:35 PM
To: canslim@lists.xmission.com
Subject: RE: [CANSLIM] Fundamental Philosophies
Curt,
After some 40 years in this business, I believe that one of the =
guidelines my mentor pounded into my head is still applicable.
"You get what you pay for in this business."
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 =E2=80=9C;)=E2=80=9D after that statement, instead of a =
=E2=80=9C:).=E2=80=9D =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 =
=E2=80=93 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=E2=80=99t 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=E2=80=99t 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=E2=80=99ve 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=E2=80=99s a situation to consider. Let=E2=80=99s 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=E2=80=99s =
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=E2=80=99s a tough thing to watch, and that=E2=80=99s 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=E2=80=99s 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=E2=80=99t cost $500 a year. :)
=20
Curt
=20
P.S. =E2=80=93 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=E2=80=99m 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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<DIV><SPAN class=3D991481118-06122002><FONT face=3Dverdana>While not the =
most=20
CANSLIMmish tool VLINE is nice and if you go to your local library and =
they have=20
it ask if they have the user and password for the site. A regular =
print=20
subscription gets a user/pword that way you can use it from home=20
too.</FONT></SPAN></DIV>
<DIV><SPAN class=3D991481118-06122002></SPAN> </DIV>
<DIV><SPAN class=3D991481118-06122002><FONT =
face=3Dverdana>David</FONT></SPAN></DIV>
<BLOCKQUOTE dir=3Dltr style=3D"MARGIN-RIGHT: 0px">
<DIV class=3DOutlookMessageHeader dir=3Dltr align=3Dleft><FONT=20
face=3DTahoma>-----Original Message-----<BR><B>From:</B>=20
owner-canslim@lists.xmission.com=20
[mailto:owner-canslim@lists.xmission.com]<B>On Behalf Of </B>Gene=20
Ricci<BR><B>Sent:</B> Friday, December 06, 2002 10:27 AM<BR><B>To:</B> =
canslim@lists.xmission.com<BR><B>Subject:</B> [CANSLIM] Re: Cost ofr=20
IBD<BR><BR></FONT></DIV>
<DIV><FONT face=3D"Comic Sans MS" size=3D3>Hi Nancy, much of the =
'good' stuff is=20
available on investors.com. You might want to adopt a trick that we =
use in=20
Dallas... we go to one of the bookstores and read it for free. The =
only kicker=20
is that we buy coffee and something to eat so we don't really =
save much=20
money... the cheapest way is to visit your library and read it =
(and Value=20
Line) for free.</FONT></DIV>
<DIV><FONT face=3D"Comic Sans MS" size=3D3></FONT> </DIV>
<DIV><FONT face=3D"Comic Sans MS" size=3D3>Have a great =
weekend,</FONT></DIV>
<DIV><FONT face=3D"Comic Sans MS" size=3D3>Gene</FONT></DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
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<DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3DZILLAGIRL@msn.com href=3D"mailto:ZILLAGIRL@msn.com">NANCY =
POLCARO</A>=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
title=3Dcanslim@lists.xmission.com=20
href=3D"mailto:canslim@lists.xmission.com">canslim</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Friday, December 06, =
2002 12:03=20
AM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] =
Fundamental=20
Philosophies</DIV>
<DIV><BR></DIV>
<DIV>I would just like to put in my opinion if possible. For people =
who are=20
just learning the IBD system and doing all the wrong things and not =
making=20
money(especially in this market) it is a big expense-on top of no =
profits=20
and maybe losing money. For people who have traded for 40 years and =
have=20
their own web site and know Bill O'neil personally, I'm sure it is =
well=20
worth the money. I think the problem is -how do you learn the=20
system when you have no stock market =
background unless you=20
pay that much money just to try to learn. I had the paper for =
two=20
years. I thought I was learning it but in fact I was just =
doing well=20
because I was caught up in the last two years of a raging bull =
market. =20
I let the paper go when stocks were going no where but =
down. =20
When the market turns I will probably try it again but in the mean =
time it=20
is to big of an expense to pay for training. Especially if we =
have a=20
10 year bear. Sorry if I ask simple questions right now, but =
the books=20
and this web site are where I'm being taught right now. I want to =
thank=20
everyone on this site for all the help and training you offer the =
rest of=20
us. nancy</DIV>
<DIV> </DIV>
<BLOCKQUOTE=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV style=3D"FONT: 10pt Arial">----- Original Message -----</DIV>
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt Arial; COLOR: =
black"><B>From:</B>=20
Fred Richards</DIV>
<DIV style=3D"FONT: 10pt Arial"><B>Sent:</B> Thursday, December =
05, 2002=20
9:35 PM</DIV>
<DIV style=3D"FONT: 10pt Arial"><B>To:</B> =
canslim@lists.xmission.com</DIV>
<DIV style=3D"FONT: 10pt Arial"><B>Subject:</B> RE: [CANSLIM] =
Fundamental=20
Philosophies</DIV>
<DIV> </DIV>
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<DIV><SPAN class=3D180333704-06122002><FONT face=3DArial =
color=3D#0000ff=20
size=3D2>Curt,</FONT></SPAN></DIV>
<DIV><SPAN class=3D180333704-06122002><FONT face=3DArial =
color=3D#0000ff=20
size=3D2></FONT></SPAN> </DIV>
<DIV><SPAN class=3D180333704-06122002><FONT face=3DArial =
color=3D#0000ff=20
size=3D2>After some 40 years in this business, I believe that one =
of the=20
guidelines my mentor pounded into my head is still=20
applicable.</FONT></SPAN></DIV>
<DIV><SPAN class=3D180333704-06122002><FONT face=3DArial =
color=3D#0000ff=20
size=3D2></FONT></SPAN> </DIV>
<DIV><SPAN class=3D180333704-06122002><FONT face=3DArial =
color=3D#0000ff=20
size=3D2>"You get what you pay for in this =
business."</FONT></SPAN></DIV>
<DIV><SPAN class=3D180333704-06122002><FONT face=3DArial =
color=3D#0000ff=20
size=3D2></FONT></SPAN> </DIV>
<DIV><SPAN class=3D180333704-06122002><FONT face=3DArial =
color=3D#0000ff=20
size=3D2>Fred</FONT></SPAN></DIV>
<BLOCKQUOTE dir=3Dltr style=3D"MARGIN-RIGHT: 0px">
<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 =
</B>Curt=20
Corley<BR><B>Sent:</B> Thursday, December 05, 2002 9:22 =
PM<BR><B>To:</B>=20
canslim@lists.xmission.com<BR><B>Subject:</B> RE: [CANSLIM] =
Fundamental=20
Philosophies<BR><BR></FONT></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">Fred,<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">I was =
just=20
joking about the online service.<SPAN style=3D"mso-spacerun: =
yes"> =20
</SPAN>Maybe I should have put a =E2=80=9C;)=E2=80=9D after that =
statement, instead of a=20
=E2=80=9C:).=E2=80=9D<SPAN style=3D"mso-spacerun: yes"> =20
</SPAN><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">I =
agree with=20
the idea that the cost is not very significant if you are able =
to make=20
significantly more than $500 using DGO and IBD =E2=80=93 =
especially if you are=20
unable to make that amount without DGO.<SPAN=20
style=3D"mso-spacerun: yes"> </SPAN>However, that could =
very well=20
strengthen the argument in favor of lower cost, because (1) =
there are=20
quite a few people out there who are not in your position and =
who don=E2=80=99t=20
have the starting capital and/or skills to make a significant =
amount=20
over $500, and (2) there are quite a few people out there who =
can make=20
significant money without the service.<SPAN=20
style=3D"mso-spacerun: yes"> =
</SPAN>;)<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">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=20
size=3D2><SPAN 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=20
[mailto:owner-canslim@lists.xmission.com] <B><SPAN=20
style=3D"FONT-WEIGHT: bold">On Behalf Of </SPAN></B>Fred=20
Richards<BR><B><SPAN style=3D"FONT-WEIGHT: =
bold">Sent:</SPAN></B>=20
</SPAN></FONT><st1:date Year=3D"2002" Day=3D"5" =
Month=3D"12"><FONT face=3DTahoma=20
size=3D2><SPAN style=3D"FONT-SIZE: 10pt; FONT-FAMILY: =
Tahoma">Thursday,=20
December 05, 2002</SPAN></FONT></st1:date><FONT face=3DTahoma =
size=3D2><SPAN=20
style=3D"FONT-SIZE: 10pt; FONT-FAMILY: Tahoma"> =
</SPAN></FONT><st1:time=20
Hour=3D"20" Minute=3D"36"><FONT face=3DTahoma size=3D2><SPAN=20
style=3D"FONT-SIZE: 10pt; FONT-FAMILY: Tahoma">8:36=20
PM</SPAN></FONT></st1:time><FONT face=3DTahoma size=3D2><SPAN=20
style=3D"FONT-SIZE: 10pt; FONT-FAMILY: Tahoma"><BR><B><SPAN=20
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] =
Fundamental=20
Philosophies</SPAN></FONT></P>
<P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT=20
face=3D"Times New Roman" size=3D3><SPAN=20
style=3D"FONT-SIZE: 12pt"><o:p> </o:p></SPAN></FONT></P>
<DIV>
<P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT =
face=3DArial=20
color=3Dblue size=3D2><SPAN=20
style=3D"FONT-SIZE: 10pt; COLOR: blue; FONT-FAMILY: Arial">And =
just how=20
much will you charge? Have you given any consideration to =
the=20
costs involved? Or how many people might sign up for =
another stock=20
rating service?</SPAN></FONT><o:p></o:p></P></DIV>
<DIV>
<P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT=20
face=3D"Times New Roman" size=3D3><SPAN=20
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=3DArial=20
color=3Dblue size=3D2><SPAN=20
style=3D"FONT-SIZE: 10pt; COLOR: blue; FONT-FAMILY: Arial">It is =
always=20
great to leverage off other people's work but unless you can =
make a=20
profit after all the costs both known and unknown are caculated, =
don't make the number 1 mistake of most entrepreneurs . . =
.=20
failing to consider the cost of one's=20
time.</SPAN></FONT><o:p></o:p></P></DIV>
<DIV>
<P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT=20
face=3D"Times New Roman" size=3D3><SPAN=20
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=3DArial=20
color=3Dblue size=3D2><SPAN=20
style=3D"FONT-SIZE: 10pt; COLOR: blue; FONT-FAMILY: Arial">Since =
I make a=20
few more dollars than $500 using the DGO and IBD, the cost is =
only=20
material to those who don't.</SPAN></FONT><o:p></o:p></P></DIV>
<BLOCKQUOTE=20
style=3D"MARGIN-TOP: 5pt; MARGIN-BOTTOM: 5pt; MARGIN-RIGHT: =
0in">
<P class=3DMsoNormal=20
style=3D"MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; =
MARGIN-RIGHT: 0in; mso-margin-top-alt: 0in"><FONT=20
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=20
[mailto:owner-canslim@lists.xmission.com]<B><SPAN=20
style=3D"FONT-WEIGHT: bold">On Behalf Of </SPAN></B>Curt=20
Corley<BR><B><SPAN style=3D"FONT-WEIGHT: =
bold">Sent:</SPAN></B>=20
Thursday, December 05, 2002 8:15 PM<BR><B><SPAN=20
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> [CANSLIM] =
Fundamental=20
Philosophies</SPAN></FONT><o:p></o:p></P>
<P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT =
face=3DArial=20
color=3Dnavy size=3D2><SPAN=20
style=3D"FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: =
Arial">Hi,<o:p></o:p></SPAN></FONT></P>
<P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT =
face=3DArial=20
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=3DArial=20
color=3Dnavy size=3D2><SPAN=20
style=3D"FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial">I =
hope you=20
don=E2=80=99t mind me changing the subject name of this thread =
to something a=20
little more appropriate than NXTL and SXT.=20
<o:p></o:p></SPAN></FONT></P>
<P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT =
face=3DArial=20
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=3DArial=20
color=3Dnavy size=3D2><SPAN=20
style=3D"FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial">To =
answer=20
your question:<SPAN style=3D"mso-spacerun: yes"> =
</SPAN>Yes, I=20
would certainly consider purchasing a stock if the ROE was =
less than=20
16.5% with all other factors looking good.<SPAN=20
style=3D"mso-spacerun: yes"> </SPAN>As you know, =
I=E2=80=99ve purchased=20
</SPAN></FONT><st1:City><st1:place><FONT face=3DArial =
color=3Dnavy=20
size=3D2><SPAN=20
style=3D"FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: =
Arial">PECS</SPAN></FONT></st1:place></st1:City><FONT=20
face=3DArial color=3Dnavy size=3D2><SPAN=20
style=3D"FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial"> =
and MNTR=20
recently -- two stocks that were a lot less perfect than the=20
theoretical stock you mentioned.<SPAN style=3D"mso-spacerun: =
yes"> =20
</SPAN>I get your point, and you are right:<SPAN=20
style=3D"mso-spacerun: yes"> </SPAN>an ROE below 17% =
certainly=20
does not mean the company or the stock is bad.<SPAN=20
style=3D"mso-spacerun: yes"> </SPAN>But here=E2=80=99s a =
situation to=20
consider.<SPAN style=3D"mso-spacerun: yes"> =
</SPAN>Let=E2=80=99s say you=20
have screened 9,100+ stocks, and came up with a dozen or so =
stocks=20
that have what you consider to be near-perfect =
fundamentals.<SPAN=20
style=3D"mso-spacerun: yes"> </SPAN>And let=E2=80=99s =
say a few of those=20
look like they might break out of a base formation within the =
next=20
couple of weeks.<SPAN style=3D"mso-spacerun: yes"> =
</SPAN>Would=20
you rather wait around for the possibility that those stocks =
with the=20
best fundamentals will break out?<SPAN=20
style=3D"mso-spacerun: yes"> </SPAN>Or would rather =
purchase=20
stocks that have already broken out but which have less =
stellar=20
fundamentals?<SPAN style=3D"mso-spacerun: yes"> =
</SPAN>Within a=20
very short time after purchasing=20
</SPAN></FONT><st1:City><st1:place><FONT face=3DArial =
color=3Dnavy=20
size=3D2><SPAN=20
style=3D"FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: =
Arial">PECS</SPAN></FONT></st1:place></st1:City><FONT=20
face=3DArial color=3Dnavy size=3D2><SPAN=20
style=3D"FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial"> =
and MNTR, I=20
saw other stocks with better fundamentals that looked like =
they were=20
ready to make a move.<SPAN style=3D"mso-spacerun: yes"> =
</SPAN>Of=20
course, that=E2=80=99s a tough thing to watch, and =
that=E2=80=99s why I put some=20
thought into this question.<SPAN style=3D"mso-spacerun: =
yes"> =20
</SPAN>Given my situation and my personality, I decided I =
would rather=20
keep my eye on only the very best ones.<SPAN=20
style=3D"mso-spacerun: yes"> </SPAN>That=E2=80=99s why I =
decided last=20
weekend to screen only the near-perfect ones and keep an eye =
on=20
those.<SPAN style=3D"mso-spacerun: yes"> </SPAN>And now =
you, Andy,=20
and Tom are starting to make me doubt that decision.<SPAN=20
style=3D"mso-spacerun: yes"> </SPAN>Thanks a lot!<SPAN=20
style=3D"mso-spacerun: yes"> =20
</SPAN>:)<o:p></o:p></SPAN></FONT></P>
<P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT =
face=3DArial=20
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=3DArial=20
color=3Dnavy size=3D2><SPAN=20
style=3D"FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: =
Arial">Seriously=20
now:<SPAN style=3D"mso-spacerun: yes"> </SPAN>this has =
been a very=20
educational and interesting thread.<SPAN=20
style=3D"mso-spacerun: yes"> </SPAN>Hopefully, by the =
time we are=20
through with this, we will have figured out the best overall=20
stock-picking system; then we can start an on-line rating =
system and=20
screening service that doesn=E2=80=99t cost $500 a year.<SPAN=20
style=3D"mso-spacerun: yes"> =20
</SPAN>:)<o:p></o:p></SPAN></FONT></P>
<P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT =
face=3DArial=20
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=3DArial=20
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 style=3D"MARGIN-LEFT: 0.5in"><FONT =
face=3DArial=20
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=3DArial=20
color=3Dnavy size=3D2><SPAN=20
style=3D"FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: =
Arial">P.S. =E2=80=93 I=20
would like to open a topic up some time in the future about =
the use of=20
earnings estimates.<SPAN style=3D"mso-spacerun: yes"> =
</SPAN>But=20
this topic is enough for now.<SPAN style=3D"mso-spacerun: =
yes"> =20
</SPAN>My laptop is over-heating.<SPAN=20
style=3D"mso-spacerun: yes"> </SPAN>I=E2=80=99m coming =
into work=20
tired.<SPAN style=3D"mso-spacerun: yes"> </SPAN>And my =
wife is=20
starting to forget my middle =
name.<o:p></o:p></SPAN></FONT></P>
<P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT =
face=3DArial=20
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: 1in"><FONT =
face=3DTahoma=20
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=20
[mailto:owner-canslim@lists.xmission.com] <B><SPAN=20
style=3D"FONT-WEIGHT: bold">On Behalf Of =
</SPAN></B>kmalm<BR><B><SPAN=20
style=3D"FONT-WEIGHT: bold">Sent:</SPAN></B> =
</SPAN></FONT><st1:date=20
Year=3D"2002" Day=3D"5" Month=3D"12"><FONT face=3DTahoma =
size=3D2><SPAN=20
style=3D"FONT-SIZE: 10pt; FONT-FAMILY: Tahoma">Thursday, =
December 05,=20
2002</SPAN></FONT></st1:date><FONT face=3DTahoma =
size=3D2><SPAN=20
style=3D"FONT-SIZE: 10pt; FONT-FAMILY: Tahoma"> =
</SPAN></FONT><st1:time=20
Hour=3D"11" Minute=3D"44"><FONT face=3DTahoma size=3D2><SPAN=20
style=3D"FONT-SIZE: 10pt; FONT-FAMILY: Tahoma">11:44=20
AM</SPAN></FONT></st1:time><FONT face=3DTahoma size=3D2><SPAN=20
style=3D"FONT-SIZE: 10pt; FONT-FAMILY: Tahoma"><BR><B><SPAN=20
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><o:p></o:p></P>
<P class=3DMsoNormal style=3D"MARGIN-LEFT: 1in"><FONT=20
face=3D"Times New Roman" size=3D3><SPAN=20
style=3D"FONT-SIZE: 12pt"><o:p> </o:p></SPAN></FONT></P>
<DIV>
<P class=3DMsoNormal style=3D"MARGIN-LEFT: 1in"><FONT=20
face=3D"Times New Roman" size=3D3><SPAN style=3D"FONT-SIZE: =
12pt">Hi=20
Curt,<o:p></o:p></SPAN></FONT></P></DIV>
<DIV>
<P class=3DMsoNormal style=3D"MARGIN-LEFT: 1in"><FONT=20
face=3D"Times New Roman" size=3D3><SPAN=20
style=3D"FONT-SIZE: =
12pt"> <o:p></o:p></SPAN></FONT></P></DIV>
<DIV>
<P class=3DMsoNormal style=3D"MARGIN-LEFT: 1in"><FONT=20
face=3D"Times New Roman" size=3D3><SPAN style=3D"FONT-SIZE: =
12pt">I think=20
you've identified the stickier issues in CANSLIM and =
interpreting=20
WON's work. As both Tom and Andy have pointed out in their =
posts,=20
while WON may *seem* to be stating that ROE>=3D17 is a =
"minimum=20
requirement' it turns out it is a guidepost to lead you to =
better=20
quality stocks. As with other indicators, this is based on his =
historical view of winning stocks, meaning that "on average" =
winning=20
stocks had an ROE>=3D17. As with D/E, ROE can be =
misleading. For=20
example, if a company rejiggers their capital structure and =
increases=20
their outstanding shares, this will have an immediate impact =
on the=20
ROE measure. Another way of viewing it would simply be by =
asking a=20
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=20
line making new highs; met all other earnings, sales and =
profit margin=20
guidelines, and broke out on 150% of ADV, would you pass it up =
because=20
it had an ROE of 16.5%? If so, why? Does the "low" ROE mean =
that it is=20
not a good company or a good =
stock?<o:p></o:p></SPAN></FONT></P></DIV>
<DIV>
<P class=3DMsoNormal style=3D"MARGIN-LEFT: 1in"><FONT=20
face=3D"Times New Roman" size=3D3><SPAN=20
style=3D"FONT-SIZE: =
12pt"> <o:p></o:p></SPAN></FONT></P></DIV>
<DIV>
<P class=3DMsoNormal style=3D"MARGIN-LEFT: 1in"><FONT=20
face=3D"Times New Roman" size=3D3><SPAN=20
style=3D"FONT-SIZE: =
12pt">Katherine<o:p></o:p></SPAN></FONT></P></DIV>
<BLOCKQUOTE=20
style=3D"MARGIN-TOP: 5pt; MARGIN-BOTTOM: 5pt; MARGIN-RIGHT: =
0in">
<P class=3DMsoNormal=20
style=3D"MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; =
MARGIN-RIGHT: 0in; mso-margin-top-alt: 0in"><FONT=20
face=3D"Times New Roman" size=3D3><SPAN=20
style=3D"FONT-SIZE: =
12pt"><o:p> </o:p></SPAN></FONT></P></BLOCKQUOTE></BLOCKQUOTE></DIV>=
</BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>
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