Re: [CANSLIM] Cup and Handle on ROOM?

From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] Cup and Handle on ROOM?
Date: Sat, 14 Dec 2002 07:39:31 -0500
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Hi Chris,

There is not much "ideal" right now, especially after two straight weeks =
of losses. I see a c&h with ROOM, but perhaps not the same one. What I =
see is a left lip last March that began to form the handle at the end of =
Oct into mid Nov. Breakout on volume week of Nov 22. Last two weeks is a =
failure of that breakout, return to the level of the handle, and must =
rebuild again. Certainly not time to buy for the first time. Might be a =
second entry if you didn't fill your original position prior to the b/o, =
but "M" continues to suggest remaining in cash.

As a general rule, you don't want to be buying at the low point in the =
handle in any case, rather you want to buy as it breaks out on volume a =
dime above the high point in the handle. Right now, there is no evidence =
that ROOM will simply stop falling at the level of the handle, it could =
continue on down another 10 or 20 points, altho I don't see that as =
likely.

A further comment on the depth of the cup, it's too much. Max depth is =
preferred at no more than 50% decline from the left lip, measured =
against the prior leg up to the left lip. Went from 20 to 70, difference =
of 50, half is 25, so the cup should not have gone under 45 (70 minus =
25). But it settled out around 38, with a spike down to 34. And the =
handle, when it formed, was trending up along with the market rather =
than flat or trending down. Volume did decline up to the b/o however.

- ----- Original Message -----=20
From: Chris Jones=20
To: canslim@lists.xmission.com=20
Sent: Friday, December 13, 2002 11:39 PM
Subject: [CANSLIM] Cup and Handle on ROOM?


Does anybody else see a cup and handle on ROOM, in the 1 year range?  =
Looks pretty ideal to me.  Is now the time to buy, when it's likely at =
the low of its handle?  This stock also meets the CANSLIM formula =
relatively well.  What do you guys think?

Chris Jones
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<BODY bgColor=3D#ffffff>
<DIV><FONT face=3DArial>Hi Chris,</FONT></DIV>
<DIV><FONT face=3DArial></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial>There is not much "ideal" right now, especially =
after two=20
straight weeks of losses. I see a c&amp;h with ROOM, but perhaps not the =
same=20
one. What I see is a left lip last March that began to form the handle =
at the=20
end of Oct into mid Nov. Breakout on volume week of Nov 22. Last two =
weeks is a=20
failure of that breakout, return to the level of the handle, and must =
rebuild=20
again. Certainly not time to buy for the first time. Might be a second =
entry if=20
you didn't fill your original position prior to the b/o, but "M" =
continues to=20
suggest remaining in cash.</FONT></DIV>
<DIV><FONT face=3DArial></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial>As a general rule, you don't want to be buying =
at the low=20
point in the handle in any case, rather you want to buy as it breaks out =
on=20
volume a dime above the high point in the handle. Right now, there is no =

evidence that ROOM will simply stop falling at the level of the handle, =
it could=20
continue on down another 10 or 20 points, altho I don't see that as=20
likely.</FONT></DIV>
<DIV><FONT face=3DArial></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial>A further comment on the depth of the cup, it's =
too much.=20
Max depth is preferred at no more than 50% decline from the left lip, =
measured=20
against the prior leg up to the left lip. Went from 20 to 70, difference =
of 50,=20
half is 25, so the cup should not have gone under 45 (70 minus 25). But =
it=20
settled out around 38, with a spike down to 34. And the handle, when it =
formed,=20
was trending up along with the market rather than flat or trending down. =
Volume=20
did decline up to the b/o however.</FONT></DIV>
<DIV><FONT face=3DArial></FONT>&nbsp;</DIV>
<DIV style=3D"FONT: 10pt arial">----- Original Message -----=20
<DIV style=3D"BACKGROUND: #e4e4e4; font-color: black"><B>From:</B> <A=20
title=3DSwingKid104@attbi.com =
href=3D"mailto:SwingKid104@attbi.com">Chris Jones</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> Friday, December 13, 2002 11:39 PM</DIV>
<DIV><B>Subject:</B> [CANSLIM] Cup and Handle on ROOM?</DIV></DIV>
<DIV><BR></DIV>
<DIV><FONT face=3DArial size=3D2>Does anybody else see a cup and handle =
on ROOM, in=20
the 1 year range?&nbsp; Looks pretty ideal to me.&nbsp; Is now the time =
to buy,=20
when it's likely at the low of its handle?&nbsp; This stock also meets =
the=20
CANSLIM formula relatively well.&nbsp; What do you guys =
think?</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial size=3D2>Chris Jones</FONT></DIV></BODY></HTML>

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