Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: RE: [CANSLIM] OK Show me BIG MONEY
Date: Sat, 28 Dec 2002 10:17:31 -0600
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Hi John,
Sorry for the slow reply...finally a quiet house and more than a minute or two
to look at the list email from the holidays!
I think the main thing you're going to find with both the MarketGuide and the
MSN Deluxe Screeners is that you won't get everything you need from one or the
other to replicate all possible screens in the IBD or from one free screener to
the other. In general, the screens you are referring to are looking at price and
volume action over some period of time. MarketGuide has approximately 80
variables, but this is a pittance in comparison to what's available in their
full Pro package. They give you today's price but neither the prior day's prices
or the % change in price from one day to the next. They also don't give you
today's volume, but do give you average volume over the last 10 days and 3
months. The 3 month average volume is fairly close to MSN's screen which uses 13
wks average volume to find the big volume movers. MSN gives you today's price,
volume, % change in price today, and the avg. daily volume for the last quarter.
That means that you can write your own screens for price/volume action fairly
easily in the MSN screener, but you can't do it in the MarketGuide screener.
For example, in MSN's screener you can enter:
Field Name Operator Value
% Price Chg Today >= 5
Last Volume >= 3 * Avg. Daily Vol. Last Quarter
(I noticed a lot of penny junk in this screen, so you'd probably want to add
some min. Price and avg. vol. requirements to the screen as well.)
And get similar results to their canned screen (though they use 13 wks vs. 1
quarter's avg. volume, so their are slight differences in the results). But you
can't write something similar at MarketGuide because they don't have the
necessary fields for price and volume. If MarketGuide at least supplied today's
volume, you could download the price/volume for each day and then write a simple
formula in Excel to calculate the change in price from one day to the next and
then compare today's volume to the avg volume over the last 3 months (which they
*do* have). But, they just don't have what you need.
The bottom line is that if you're doing searches on price/volume, you have to
have access to the data and then run your own calculations, or you have to have
access to a screener that has all the necessary price/volume fields to create
your own custom searches. While you can compile your own free database using
Yahoo downloads, etc. The time and energy it would take is probably not worth
it. If nothing else, it shows the value of technical packages such as TC2000 or
in paid subscriptions to sites like StockCharts.com (about $8.95/month) where
you can easily create these kinds of screens. In the meantime, if you're using
free tools like MarketGuide or MSN, you'll have to pull data from both and then
use something like Excel to combine all your data into one location for further
analysis.
If you're trying to replicate the "NASDAQ Where the Big Money's Flowing" screens
in the IBD, here are the criteria:
They use the term "heavy volume" vs. 50-day avg. volume. I notice that on some
days, the volume as % of avg. volume can be as low as +10 or 11%.
Last Volume >= 1.1 * Avg Daily Vol. last 10 wks (50 days)
Price >= 16 (Note: NYSE stocks are >= 20)
Last Price - Previous Price >= 0.50 (They only look for 1/2
point change, not a particular % change)
****In something like MSN where they give % chg in Price
from the previous day but not the actual value, you can substitute in your
screen by specifying Last Price - (Last Price / (1 + %chg in Price)) >= 0.50
Avg. Daily Vol. last 10 wks (50 days) >= 60000
EPS Rank >= 70
RS Rank >= 70
Annual Earnings Estimates (growth) >= 15% (This forward
growth gem is often overlooked in CANSLIM circles, but is actually part of the
CANSLIM criteria as discussed in HTMMIS)
Katherine
-----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of John Calkins
Sent: Sunday, December 22, 2002 12:37 PM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] OK Show me BIG MONEY
Hi Katherine,
I have made a huge change in my approach to screening for stocks using IBD.
After more than 4 years of following the data almost exclusively in IBD, as you
say driving me and my family nuts, I canceled my subscription to the paper. The
main reason was they were unable to deliver it to me before I left for work each
day. I would use some of my free time at work to keep up. As you suggest, I have
decided to look at the paper (once each week) to confirm my screens rather than
use it for my stock selection. I decided to do this because my local cable
company recently offered the high-speed cable. I have for years fiddled around
with some of the free screens on Yahoo and MSN but was so disappointed in the
time it took just to set up a few simple screens, that I simply gave up because
of the slow results. That now has all changed. I certainly would not have even
considered making this change until I could justify my time to try another
method.
I agree with you in keeping the screens simple and applicable to what I have
learned so far. Being that I started my search in the paper with the stocks
making big volume moves, I have started my search (for now) using the simple
screens that are on MSN’s Deluxe screener and Multex’s Simple Screening.
The MSN Deluxe Screener (MSN DS) has some preset screens. The first one I’m
looking at is Advisor FYI, Trading & Volume, Price Up on Heavy Volume and its
description:
Trading volume for this company was triple its 13-week average, and its price
was up by at least 5%. A jump in price on big volume is generally considered a
bullish indicator because it suggests that the stock is under accumulation.
This screen gave me an alphabetical list on 113 companies.
Using the Multex Screen Criterion Builder (Mult SCB) and looking at the
available variables, I am unable to replicate the MSN DS screen. Looking for the
increase percentage in volume is not included in the variables.
So my first question is, knowing that I’m trying to replicate the IBD volume
moves, do you see a way to use one of these screens to do so?
Thanks
JC
----- Original Message -----
From: Katherine Malm
To: canslim@lists.xmission.com
Sent: Sunday, November 24, 2002 12:25 PM
Subject: Re: [CANSLIM] OK Show me BIG MONEY
Hi John,
I think the issue you address is a very important one for many CANSLIM
investors. That is, at what point to you make a choice to use sources other than
the IBD itself for your candidate mining? For the newest of CANSLIM investors,
the best place to mine is the IBD itself, because their canned mining strategies
lead you to strength in many different ways. It’s the best way to learn and to
fully understand the application of the underlying CANSLIM principles. But, at
some point, if you have a portfolio of size, if you are frustrated by the time
it takes to do the job manually, or you just prefer a more personal methodology,
it becomes necessary to branch out. Despite the fact that the IBD says that you
can do what it takes in 15 minutes or less a day, I think that’s an
understatement. I’d like to see a hedge fund manager manage their portfolio on
15 minutes a day!
It’s interesting to me that Investors.com has come on so strong with
electronic content, because as late as June of 2000 when I attended my last IBD
seminar, WON was firmly stating that he would not put the paper on the web.
There’s certainly an advantage in forcing folks to either pay up for the
proprietary data or in forcing them to manually extract it, but as they
obviously figured out, it’s not necessarily the smartest way to engender loyalty
to the proprietary indicators and the WON products or to expand market share.
So, let’s say that a person was ready to move on to other means of mining for
their candidates. The IBD then becomes a different and important tool as a means
for continuing education, keeping up on current news, interpreting the market,
researching up and coming companies, etc.
I made the leap away from the IBD for mining shortly after adopting CANSLIM
as my preferred style because I’d much rather be having dinner with my husband
than highlighting stocks in the must-have-a-magnifying-glass-to-read-it stock
tables or re-entering stock data into a spreadsheet manually. (Something I did,
by the way, for long enough that it made me crazy.) As I see it, there are 3
primary issues in making a choice as to how to go about this:
(1) If you’re currently relying on items such as “Where the Big Money’s
Flowing,” “Weekend Review” and “Screen of the Day” to find candidates, what’s
behind the numbers? How would I go about finding strength if I were doing it
myself? How do I know if a stock is a “CANSLIM candidate” and how do I find
them?
(2) What is more important when looking for strength, fundamentals or
technicals? When is it more appropriate to use one vs the other? What emphasis
should I place on each of them when mining? When sorting and/or whittling down a
list of potential candidates?
(3) What tools can I use once I figure that out? Should they be free or
paid tools and what is the advantage/disadvantage to each of them?
As you well know, mining for candidates and keeping a pulse on the ebb and
flow of the market is only a small part of the CANSLIM process, but it
nonetheless one of the most critical if you’re to generate consistent returns
over long periods of time.
I’ll post some additional detail on each of the 3 items I outlined when I
have some additional time. In the meantime, I thought I’d include the criteria
for 3 of IBD’s mining features as a lead in to item (1). Notice that each of
them has a very specific set of criteria for finding strength and also notice
that if you had tools to do this mining yourself, you wouldn’t necessarily need
to extract the info manually from the paper or download it to an individual
spreadsheet as with the Screen of the Day.
Current Screen of the Day:
Up/Down Volume Leaders--These stocks have the highest up/down volume ratio,
which indicates buying volume has exceeded selling volume in recent weeks.
Stocks shown have an EPS Rating and Relative Price Strength Rating of at least
80 along an Accumulation/Distribution Rating of at least B-.
The qualification criteria for listing in 'Where The Big Money's Flowing
Now:'
Stocks that show on the list are moving up or down in price with daily
volume at a significant percentage of the average daily volume.
a.. Stocks must trade on the Nasdaq or New York Stock Exchange.
b.. Stock price must be at least $20.00 ($16.00 for Nasdaq).
c.. Stocks must have a price change of 1/2 point or more.
d.. 50-day Average Volume must be a minimum of 60,000 shares.
e.. For stocks up in price only, the Earnings Per Share (EPS) and Relative
Price Strength (RS) Ratings must each be a minimum of 70,
Accumulation/Distribution Rating must be D+ or better and next year's earnings
estimate must be 15% or higher from the previous year's earnings. (Stocks
without earnings estimates are included.)
The qualification criteria for the Weekend Review (Friday's IBD):
All stocks above $10, within 15% of 12-month high, EPS Rating and RS Rating
of 85 or more and average daily volume of 10,0000 or more are shown in order of
Industry Group RS Rating.
--Katherine
----- Original Message -----
From: John Calkins
To: canslim@lists.xmission.com
Sent: Friday, November 22, 2002 8:10 AM
Subject: Re: [CANSLIM] OK Show me BIG MONEY
Hi Katherine,
It really is good to hear from you! You somehow bring things into
perspective.
I understand the piling up of the papers and the hours of manual mining. I
must say I have learned as much from you and this group as I have from the paper
in a fraction of the time.
I used to run a large computer user club back in the early 80's. I have
for years gone door to door helping my family, friends, neighbors, co-workers
and computer enthusiasts discover a better way to use their computers. My
employers have tapped my talents many times, and all along I have enjoyed it
tremendously. I got interested in individual stock investing when these great
retired people would fill my head with investing terms as I replaced a hard
drive for them in their home....no cost...just because I liked to visit and it
became a trade that they knew I accepted. They would talk about The Dow Theory
and show me some graphs, or some Ameritrade software before the internet was
called WWW or Dog of the Dow. Then someone asked me about IBD and I have been
absolutely absorbed in it ever since. I do believe I need to move on and use my
time more wisely though. I now have a base to start from, much as you have said
in the past. I believe that everyone truly interested in stock investing at some
point should take out a subscription at least long enough to get to the next
level or maybe know how to measure there success.
I can really appreciate your involvement in this group. It's your ability
to teach others and at the some time add knowledge to enhance your own
understanding that is what is so compelling here. I truly appreciate your input
to this group.
Katherine, I would have a difficult time without IBD right now. Like you
say, The Big Picture is worth the cost of the paper at least for a while longer.
I pin it up in front of my Nordic-Trac for 40 min each morning, killing two
birds. I am having a hard time understanding just how you actually start your
lists. Maybe I need to re-read your posts some more, but IBD’s screens at least
have sorted lists following CANSLIM. I have seen their screens printed Forbes. I
see your references to BIG MONEY, but without using IBD’s Big Money screens, how
do you get started with a manageable list? I guess I still feel that I need some
hand holding here.
I have stopped recording all the mini chart symbols, I saw the correlation
and bias such as you say. Now All I record is all the Big Money on both
exchanges and use and excel sheet macro that one of the members came up with to
sort the Screen of the Day. I just use the "Number of Times" appeared in the Big
Money to sort my list then head straight for the charts when the market looks
better simply starting at the top of the list and spending most of my time
reading charts from Investors.com. Like everyone else, this group is becoming
and index for me to decide if I want to run the screen. I then use The Screen of
the Day and Stock Checkup to double check after I look at the chart
But if there is an easier way to find the big money, I guess I haven't
understood it quite yet, or maybe if I put the paper down long enough and try
some of these sites you and others suggest, I might see the light. I just want
to try to correlate the data online to what is showing with the IBD data.
For those who don’t really understand The Big Money, it simply is IBD’s
proprietary screen of high quality stocks that institutional investors might be
buying with high Relative Price Strength and high IBD Earnings Ratings that
might be climbing the right side of the cup, indicating that the chart should be
looked at.
JC
----- Original Message -----
From: Katherine Malm
To: canslim@lists.xmission.com
Sent: Sunday, November 17, 2002 9:02 PM
Subject: Re: [CANSLIM] OK Show me BIG MONEY
Hi John,
I think the use of the IBD vs other free or paid services is more than
anything a matter of style and preference. There are many here on the CANSLIM
list who use the IBD exclusively for finding investment candidates, others who
practice the CANSLIM and or growth style of investing but use other tools, and
still others who use the IBD and/or DGO in combination with other paid services.
I still read the IBD's Big Picture via the web each day and utilize the numerous
educational features they provide, but I let the papers pile up for about a
month before I read them these days, as all of my day to day mining and news
monitoring is done via other free and paid services. I personally found the IBD
too time consuming to use as a methodical mining tool and it didn't allow me to
track the ebb and flow of the market without being influenced by their editorial
bias. It's amazing how much information is available for free on the web these
days, so it's entirely possible to mine and track good quality growth/CANSLIM
candidates even without paid tools. Regardless of the choice, I still think the
real secret to successful investing is using a disciplined approach and a
methodical/consistent methodology. I think most would be hard pressed to argue
any one tool was "better" than another, just "better for you."
Katherine
----- Original Message -----
From: John Calkins
To: canslim@lists.xmission.com
Sent: Sunday, November 17, 2002 10:17 PM
Subject: [CANSLIM] OK Show me BIG MONEY
OK! Some say IBD is invaluable. Others say it BS. So show me how I
can
find Where The Big Moneys Flow......OOps, I mean Going with out using
the
screen in the paper and without buying some other service.
JC
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<DIV><SPAN class=3D843465714-28122002>Hi John,</SPAN></DIV>
<DIV><SPAN class=3D843465714-28122002></SPAN> </DIV>
<DIV><SPAN class=3D843465714-28122002>Sorry for the slow reply...finally =
a quiet=20
house and more than a minute or two to look at the list email from the=20
holidays!</SPAN></DIV>
<DIV><SPAN class=3D843465714-28122002></SPAN> </DIV>
<DIV><SPAN class=3D843465714-28122002>I think the main thing you're =
going to find=20
with both the MarketGuide and the MSN Deluxe Screeners is that you won't =
get=20
everything you need from one or the other to replicate all possible =
screens in=20
the IBD or from one free screener to the other. In general, the screens =
you are=20
referring to are looking at price and volume action over some period of =
time.=20
MarketGuide has approximately 80 variables, but this is a pittance =
in=20
comparison to what's available in their full Pro package. They give you =
today's=20
price but neither the prior day's prices or the % change in price from =
one day=20
to the next. They also don't give you today's volume, but do give you =
average=20
volume over the last 10 days and 3 months. The 3 month average volume is =
fairly=20
close to MSN's screen which uses 13 wks average volume to find the big =
volume=20
movers. MSN gives you today's price, volume, % change in price today, =
and the=20
avg. daily volume for the last quarter. That means that you can write =
your own=20
screens for price/volume action fairly easily in the MSN screener, but =
you can't=20
do it in the MarketGuide screener.</SPAN></DIV>
<DIV><SPAN class=3D843465714-28122002></SPAN> </DIV>
<DIV><SPAN class=3D843465714-28122002>For example, in MSN's screener you =
can=20
enter:</SPAN></DIV>
<DIV><SPAN class=3D843465714-28122002><FONT face=3D"Courier New" =
size=3D2>Field=20
Name &nb=
sp; Operator Value</FONT></SPAN></DIV>
<DIV><SPAN class=3D843465714-28122002><FONT face=3D"Courier New" =
size=3D2>% Price Chg=20
Today >=3D &=
nbsp; 5</FONT></SPAN></DIV=
>
<DIV><SPAN class=3D843465714-28122002><FONT face=3D"Courier New" =
size=3D2>Last=20
Volume &=
nbsp; >=3D &=
nbsp; 3=20
* Avg. Daily Vol. Last Quarter</FONT></SPAN></DIV>
<DIV><SPAN class=3D843465714-28122002><FONT face=3D"Courier New" =
size=3D2>(I noticed a=20
lot of penny junk in this screen, so you'd probably want to add some =
min. Price=20
and avg. vol. requirements to the screen as well.)</FONT></SPAN></DIV>
<DIV><SPAN class=3D843465714-28122002></SPAN> </DIV>
<DIV><SPAN class=3D843465714-28122002>And get similar results to their =
canned=20
screen (though they use 13 wks vs. 1 quarter's avg. volume, so their are =
slight=20
differences in the results). But you can't write something similar at=20
MarketGuide because they don't have the necessary fields for price and =
volume.=20
If MarketGuide at least supplied today's volume, you could download the=20
price/volume for each day and then write a simple formula in Excel to =
calculate=20
the change in price from one day to the next and then compare today's =
volume to=20
the avg volume over the last 3 months (which they *do* have). But, they =
just=20
don't have what you need.</SPAN></DIV>
<DIV><SPAN class=3D843465714-28122002></SPAN> </DIV>
<DIV><SPAN class=3D843465714-28122002>The bottom line is that if you're =
doing=20
searches on price/volume, you have to have access to the data and then =
run your=20
own calculations, or you have to have access to a screener that has all =
the=20
necessary price/volume fields to create your own custom searches. While =
you can=20
compile your own free database using Yahoo downloads, etc. The time and =
energy=20
it would take is probably not worth it. If nothing else, it shows the =
value of=20
technical packages such as TC2000 or in paid subscriptions to sites like =
StockCharts.com (about $8.95/month) where you can easily create =
these kinds=20
of screens. In the meantime, if you're using free tools like MarketGuide =
or MSN,=20
you'll have to pull data from both and then use something like Excel to =
combine=20
all your data into one location for further analysis.</SPAN></DIV>
<DIV><SPAN class=3D843465714-28122002></SPAN> </DIV>
<DIV><SPAN class=3D843465714-28122002>If you're trying to replicate the =
"NASDAQ=20
Where the Big Money's Flowing" screens in the IBD, here are the=20
criteria:</SPAN></DIV>
<DIV><SPAN class=3D843465714-28122002></SPAN> </DIV>
<DIV><SPAN class=3D843465714-28122002>They use the term "heavy volume" =
vs. 50-day=20
avg. volume. I notice that on some days, the volume as % of avg. volume =
can be=20
as low as +10 or 11%.</SPAN></DIV>
<DIV><SPAN=20
class=3D843465714-28122002> &nbs=
p; =20
</SPAN><SPAN class=3D843465714-28122002>Last Volume >=3D 1.1 * Avg =
Daily Vol.=20
last 10 wks (50 days)</SPAN></DIV>
<DIV><SPAN=20
class=3D843465714-28122002> &nbs=
p; =20
Price >=3D 16 (Note: NYSE stocks are >=3D 20)</SPAN></DIV>
<DIV><SPAN=20
class=3D843465714-28122002> &nbs=
p; =20
Last Price - Previous Price >=3D 0.50 (They only look for 1/2 =
point=20
change, not a particular % change)</SPAN></DIV>
<DIV><SPAN=20
class=3D843465714-28122002> &nbs=
p;  =
;=20
****In something like MSN where they give % chg in Price from the =
previous day=20
but not the actual value, you can substitute in your screen by =
specifying Last=20
Price - (Last Price / (1 + %chg in Price)) >=3D 0.50</SPAN></DIV>
<DIV><SPAN=20
class=3D843465714-28122002> &nbs=
p; =20
Avg. Daily Vol. last 10 wks (50 days) >=3D 60000</SPAN></DIV>
<DIV><SPAN=20
class=3D843465714-28122002> &nbs=
p; =20
EPS Rank >=3D 70</SPAN></DIV>
<DIV><SPAN=20
class=3D843465714-28122002> &nbs=
p; =20
RS Rank >=3D 70</SPAN></DIV>
<DIV><SPAN=20
class=3D843465714-28122002> &nbs=
p; Annua=
l=20
Earnings Estimates (growth) >=3D 15% (This forward growth gem is =
often=20
overlooked in CANSLIM circles, but is actually part of the CANSLIM =
criteria as=20
discussed in HTMMIS)</SPAN></DIV>
<DIV><SPAN class=3D843465714-28122002></SPAN> </DIV>
<DIV><SPAN class=3D843465714-28122002>Katherine</SPAN></DIV>
<DIV><SPAN class=3D843465714-28122002></SPAN> </DIV>
<DIV><SPAN class=3D843465714-28122002></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>John=20
Calkins<BR><B>Sent:</B> Sunday, December 22, 2002 12:37 =
PM<BR><B>To:</B>=20
canslim@lists.xmission.com<BR><B>Subject:</B> Re: [CANSLIM] OK Show me =
BIG=20
MONEY<BR><BR></FONT></DIV>
<DIV><FONT face=3DArial,Helvetica size=3D2>
<P>Hi Katherine,</FONT><FONT size=3D2> </P></FONT><FONT =
face=3DArial,Helvetica=20
size=3D2>
<P>I have made a huge change in my approach to screening for stocks =
using IBD.=20
After more than 4 years of following the data almost exclusively in =
IBD, as=20
you say driving me and my family nuts, I canceled my subscription to =
the=20
paper. The main reason was they were unable to deliver it to me before =
I left=20
for work each day. I would use some of my free time at work to keep =
up. As you=20
suggest, I have decided to look at the paper (once each week) to =
confirm my=20
screens rather than use it for my stock selection. I decided to do =
this=20
because my local cable company recently offered the high-speed cable. =
I have=20
for years fiddled around with some of the free screens on Yahoo and =
MSN but=20
was so disappointed in the time it took just to set up a few simple =
screens,=20
that I simply gave up because of the slow results. That now has all =
changed. I=20
certainly would not have even considered making this change until I =
could=20
justify my time to try another method. </P>
<P>I agree with you in keeping the screens simple and applicable to =
what I=20
have learned so far. Being that I started my search in the paper with =
the=20
stocks making big volume moves, I have started my search (for now) =
using the=20
simple screens that are on MSN=92s Deluxe screener and Multex=92s =
Simple=20
Screening.</P>
<P>The MSN Deluxe Screener (MSN DS) has some preset screens. The first =
one I=92m=20
looking at is Advisor FYI, Trading & Volume, Price Up on Heavy =
Volume and=20
its description:</P>
<P>Trading volume for this company was triple its 13-week average, and =
its=20
price was up by at least 5%. A jump in price on big volume is =
generally=20
considered a bullish indicator because it suggests that the stock is =
under=20
accumulation.</P>
<P>This screen gave me an alphabetical list on 113 =
companies.</P></FONT><FONT=20
size=3D2>
<P>Using the Multex Screen Criterion Builder (Mult SCB) and looking at =
the=20
available variables, I am unable to replicate the MSN DS screen. =
Looking for=20
the increase percentage in volume is not included in the =
variables.</P>
<P>So my first question is, knowing that I=92m trying to replicate the =
IBD=20
volume moves, do you see a way to use one of these screens to do =
so?</P>
<P>Thanks</P>
<P>JC </P>
<P><FONT face=3DArial></FONT> </P></FONT></DIV>
<BLOCKQUOTE dir=3Dltr=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; font-color: =
black"><B>From:</B>=20
<A title=3Dkmalm@earthlink.net =
href=3D"mailto:kmalm@earthlink.net">Katherine=20
Malm</A> </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@lists.xmission.com</A>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Sunday, November 24, =
2002 12:25=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] OK =
Show me BIG=20
MONEY</DIV>
<DIV><BR></DIV>
<DIV>
<P class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt">Hi John,</P>
<P class=3DMsoNormal style=3D"MARGIN: 0in 0in =
0pt"> <o:p></o:p></P>
<P class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt">I think the issue =
you address=20
is a very important one for many CANSLIM investors. That is, at what =
point=20
to you make a choice to use sources other than the IBD itself for =
your=20
candidate mining? For the newest of CANSLIM investors, the =
<B>best</B> place=20
to mine is the IBD itself, because their canned mining strategies =
lead you=20
to strength in many different ways. It=92s the best way to learn and =
to fully=20
understand the application of the underlying CANSLIM principles. =
But, at=20
some point, if you have a portfolio of size, if you are frustrated =
by the=20
time it takes to do the job manually, or you just prefer a more =
personal=20
methodology, it becomes necessary to branch out. Despite the fact =
that the=20
IBD says that you can do what it takes in 15 minutes or less a day, =
I think=20
that=92s an understatement. I=92d like to see a hedge fund manager =
manage their=20
portfolio on 15 minutes a day! </P>
<P class=3DMsoNormal style=3D"MARGIN: 0in 0in =
0pt"> <o:p></o:p></P>
<P class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt">It=92s =
interesting to me that=20
Investors.com has come on so strong with electronic content, because =
as late=20
as June of 2000 when I attended my last IBD seminar, WON was firmly =
stating=20
that he would not put the paper on the web. There=92s certainly an =
advantage=20
in forcing folks to either pay up for the proprietary data or in =
forcing=20
them to manually extract it, but as they obviously figured out, =
it=92s not=20
necessarily the smartest way to engender loyalty to the proprietary=20
indicators and the WON products or to expand market share. So, =
let=92s say=20
that a person was ready to move on to other means of mining for =
their=20
candidates. The IBD then becomes a different and important tool as a =
means=20
for continuing education, keeping up on current news, interpreting =
the=20
market, researching up and coming companies, etc.</P>
<P class=3DMsoNormal style=3D"MARGIN: 0in 0in =
0pt"> <o:p></o:p></P>
<P class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt">I made the leap =
away from the=20
IBD for mining shortly after adopting CANSLIM as my preferred style =
because=20
I=92d much rather be having dinner with my husband than highlighting =
stocks in=20
the must-have-a-magnifying-glass-to-read-it stock tables or =
re-entering=20
stock data into a spreadsheet manually. (Something I did, by the =
way, for=20
long enough that it made me crazy.) As I see it, there are 3 primary =
issues=20
in making a choice as to how to go about this:</P>
<P class=3DMsoNormal style=3D"MARGIN: 0in 0in =
0pt"> <o:p></o:p></P>
<P class=3DMsoNormal=20
style=3D"MARGIN: 0in 0in 0pt 0.5in; TEXT-INDENT: -0.25in; mso-list: =
l1 level1 lfo2; tab-stops: list .5in">(1)<SPAN=20
style=3D"FONT: 7pt 'Times New Roman'"> </SPAN>If =
you=92re currently=20
relying on items such as =93Where the Big Money=92s Flowing,=94 =
=93Weekend Review=94=20
and =93Screen of the Day=94 to find candidates, what=92s =
<B>behind</B> the=20
numbers? How would I go about finding strength if I were doing it =
myself?=20
How do I know if a stock is a =93CANSLIM candidate=94 and how do I =
find=20
them?</P>
<P class=3DMsoNormal=20
style=3D"MARGIN: 0in 0in 0pt 0.5in; TEXT-INDENT: -0.25in; mso-list: =
l1 level1 lfo2; tab-stops: list .5in">(2)<SPAN=20
style=3D"FONT: 7pt 'Times New Roman'"> </SPAN>What is =
more=20
important when looking for strength, fundamentals or technicals? =
When is it=20
more appropriate to use one vs the other? What emphasis should I =
place on=20
each of them when mining? When sorting and/or whittling down a list =
of=20
potential candidates?</P>
<P class=3DMsoNormal=20
style=3D"MARGIN: 0in 0in 0pt 0.5in; TEXT-INDENT: -0.25in; mso-list: =
l1 level1 lfo2; tab-stops: list .5in">(3)<SPAN=20
style=3D"FONT: 7pt 'Times New Roman'"> </SPAN><SPAN=20
style=3D"mso-spacerun: yes"> </SPAN>What tools can<SPAN=20
style=3D"mso-spacerun: yes"> </SPAN>I use once I figure that =
out? Should=20
they be free or paid tools and what is the advantage/disadvantage to =
each of=20
them?</P>
<P class=3DMsoNormal style=3D"MARGIN: 0in 0in =
0pt"> <o:p></o:p></P>
<P class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt">As you well know, =
mining for=20
candidates and keeping a pulse on the ebb and flow of the market is =
only a=20
small part of the CANSLIM process, but it nonetheless one of the =
most=20
critical if you=92re to generate consistent returns over long =
periods of=20
time.</P>
<P class=3DMsoNormal style=3D"MARGIN: 0in 0in =
0pt"> <o:p></o:p></P>
<P class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt">I=92ll post some =
additional=20
detail on each of the 3 items I outlined when I have some additional =
time.=20
In the meantime, I thought I=92d include the criteria for 3 of =
IBD=92s mining=20
features as a lead in to item (1). Notice that each of them has a =
very=20
specific set of criteria for finding strength and also notice that =
if you=20
had tools to do this mining yourself, you wouldn=92t necessarily =
need to=20
extract the info manually from the paper or download it to an =
individual=20
spreadsheet as with the Screen of the Day.</P>
<P class=3DMsoNormal style=3D"MARGIN: 0in 0in =
0pt"> <o:p></o:p></P>
<P class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt">Current Screen of =
the=20
Day:</P>
<P class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt">Up/Down Volume =
Leaders--These=20
stocks have the highest <A=20
=
href=3D"javascript:popup=3Dwindow.open('../../ibdhelp/helpglossA.asp?help=
ID=3D423','help','width=3D375,height=3D200,directories=3Dno,location=3Dno=
,toolbar=3Dno,scrollbars=3Dyes,menubar=3Dno,copyhistory=3Dno,alwaysRaised=
=3D1,dependent=3Dyes');popup.focus()"><SPAN=20
style=3D"COLOR: #336699">up/down volume ratio</SPAN></A>, which =
indicates=20
buying volume has exceeded selling volume in recent weeks. Stocks =
shown have=20
an <A=20
=
href=3D"javascript:popup=3Dwindow.open('../../ibdhelp/helpglossA.asp?help=
ID=3D69','help','width=3D375,height=3D200,directories=3Dno,location=3Dno,=
toolbar=3Dno,scrollbars=3Dyes,menubar=3Dno,copyhistory=3Dno,alwaysRaised=3D=
1,dependent=3Dyes');popup.focus()"><SPAN=20
style=3D"COLOR: #336699">EPS Rating</SPAN></A> and <A=20
=
href=3D"javascript:popup=3Dwindow.open('../../ibdhelp/helpglossA.asp?help=
ID=3D153','help','width=3D375,height=3D200,directories=3Dno,location=3Dno=
,toolbar=3Dno,scrollbars=3Dyes,menubar=3Dno,copyhistory=3Dno,alwaysRaised=
=3D1,dependent=3Dyes');popup.focus()"><SPAN=20
style=3D"COLOR: #336699">Relative Price Strength Rating</SPAN></A> =
of at least=20
80 along an <A=20
=
href=3D"javascript:popup=3Dwindow.open('../../ibdhelp/helpglossA.asp?help=
ID=3D12','help','width=3D375,height=3D200,directories=3Dno,location=3Dno,=
toolbar=3Dno,scrollbars=3Dyes,menubar=3Dno,copyhistory=3Dno,alwaysRaised=3D=
1,dependent=3Dyes');popup.focus()"><SPAN=20
style=3D"COLOR: #336699">Accumulation/Distribution Rating</SPAN></A> =
of at=20
least B-.</P>
<P>The qualification criteria for listing in 'Where The Big Money's =
Flowing=20
Now:' </P>
<P>Stocks that show on the list are moving up or down in price with =
daily=20
volume at a significant percentage of the average daily volume.</P>
<UL type=3Ddisc>
<LI class=3DMsoNormal=20
style=3D"MARGIN: 0in 0in 0pt; mso-list: l0 level1 lfo1; tab-stops: =
list .5in; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto">Stocks =
must trade on the Nasdaq or New York Stock Exchange.=20
<LI class=3DMsoNormal=20
style=3D"MARGIN: 0in 0in 0pt; mso-list: l0 level1 lfo1; tab-stops: =
list .5in; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto">Stock=20
price must be at least $20.00 ($16.00 for Nasdaq).=20
<LI class=3DMsoNormal=20
style=3D"MARGIN: 0in 0in 0pt; mso-list: l0 level1 lfo1; tab-stops: =
list .5in; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto">Stocks =
must have a price change of 1/2 point or more.=20
<LI class=3DMsoNormal=20
style=3D"MARGIN: 0in 0in 0pt; mso-list: l0 level1 lfo1; tab-stops: =
list .5in; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto">50-day =
Average Volume must be a minimum of 60,000 shares.=20
<LI class=3DMsoNormal=20
style=3D"MARGIN: 0in 0in 0pt; mso-list: l0 level1 lfo1; tab-stops: =
list .5in; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto">For=20
stocks up in price only, the Earnings Per Share (EPS) and Relative =
Price=20
Strength (RS) Ratings must each be a minimum of 70,=20
Accumulation/Distribution Rating must be D+ or better and next =
year's=20
earnings estimate must be 15% or higher from the previous year's =
earnings.=20
(Stocks without earnings estimates are included.) </LI></UL>
<P class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt">The qualification =
criteria=20
for the Weekend Review (Friday's IBD):</P>
<P class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt">All stocks above =
$10, within=20
15% of 12-month high, EPS Rating and RS Rating of 85 or more and =
average=20
daily volume of 10,0000 or more are shown in order of Industry Group =
RS=20
Rating.</P>
<P class=3DMsoNormal style=3D"MARGIN: 0in 0in =
0pt"> <o:p></o:p></P>
<P class=3DMsoNormal style=3D"MARGIN: 0in 0in =
0pt"> <o:p></o:p></P>
<P class=3DMsoNormal style=3D"MARGIN: 0in 0in =
0pt">--Katherine</P></DIV>
<BLOCKQUOTE dir=3Dltr=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; font-color: =
black"><B>From:</B>=20
<A title=3Djcalkins@olypen.com =
href=3D"mailto:jcalkins@olypen.com">John=20
Calkins</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Friday, November 22, =
2002 8:10=20
AM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] OK =
Show me BIG=20
MONEY</DIV>
<DIV><BR></DIV>
<DIV><FONT face=3DArial size=3D2>
<P>Hi Katherine,</FONT><FONT size=3D2> </P></FONT><FONT =
face=3DArial size=3D2>
<P>It really is good to hear from you! You somehow bring things =
into=20
perspective. </P></FONT><FONT size=3D2></FONT><FONT face=3DArial =
size=3D2>
<P>I understand the piling up of the papers and the hours of =
manual=20
mining. I must say I have learned as much from you and this group =
as I=20
have from the paper in a fraction of the time. </P></FONT><FONT=20
size=3D2></FONT><FONT face=3DArial size=3D2>
<P>I used to run a large computer user club back in the early =
80's. I have=20
for years gone door to door helping my family, friends, neighbors, =
co-workers and computer enthusiasts discover a better way to use =
their=20
computers. My employers have tapped my talents many times, and all =
along I=20
have enjoyed it tremendously. I got interested in individual stock =
investing when these great retired people would fill my head with=20
investing terms as I replaced a hard drive for them in their =
home....no=20
cost...just because I liked to visit and it became a trade that =
they knew=20
I accepted. They would talk about The Dow Theory and show me some =
graphs,=20
or some Ameritrade software before the internet was called WWW or =
Dog of=20
the Dow. Then someone asked me about IBD and I have been =
absolutely=20
absorbed in it ever since. I do believe I need to move on and use =
my time=20
more wisely though. I now have a base to start from, much as you =
have said=20
in the past. I believe that everyone truly interested in stock =
investing=20
at some point should take out a subscription at least long enough =
to get=20
to the next level or maybe know how to measure there =
success.</FONT><FONT=20
size=3D2> </P></FONT><FONT face=3DArial size=3D2>
<P>I can really appreciate your involvement in this group. It's =
your=20
ability to teach others and at the some time add knowledge to =
enhance your=20
own understanding that is what is so compelling here. I truly =
appreciate=20
your input to this group.</P>
<P>Katherine, I would have a difficult time without IBD right now. =
Like=20
you say, The Big Picture is worth the cost of the paper at least =
for a=20
while longer. I pin it up in front of my Nordic-Trac for 40 min =
each=20
morning, killing two birds. I am having a hard time understanding =
just how=20
you actually start your lists. Maybe I need to re-read your posts =
some=20
more, but IBD=92s screens at least have sorted lists following =
CANSLIM. I=20
have seen their screens printed Forbes. I see your references to =
BIG=20
MONEY, but without using IBD=92s Big Money screens, how do you get =
started=20
with a manageable list? I guess I still feel that I need some hand =
holding=20
here. </P></FONT><FONT size=3D2></FONT><FONT face=3DArial =
size=3D2>
<P>I have stopped recording all the mini chart symbols, I saw the=20
correlation and bias such as you say. Now All I record is all the =
Big=20
Money on both exchanges and use and excel sheet macro that one of =
the=20
members came up with to sort the Screen of the Day. I just use the =
"Number=20
of Times" appeared in the Big Money to sort my list then head =
straight for=20
the charts when the market looks better simply starting at the top =
of the=20
list and spending most of my time reading charts from =
Investors.com. Like=20
everyone else, this group is becoming and index for me to decide =
if I want=20
to run the screen. I then use The Screen of the Day and Stock =
Checkup to=20
double check after I look at the chart</P></FONT><FONT =
size=3D2></FONT><FONT=20
face=3DArial size=3D2>
<P>But if there is an easier way to find the big money, I guess I =
haven't=20
understood it quite yet, or maybe if I put the paper down long =
enough and=20
try some of these sites you and others suggest, I might see the =
light. I=20
just want to try to correlate the data online to what is showing =
with the=20
IBD data.</P>
<P>For those who don=92t really understand The Big Money, it =
simply is IBD=92s=20
proprietary screen of high quality stocks that institutional =
investors=20
might be buying with high Relative Price Strength and high IBD =
Earnings=20
Ratings that might be climbing the right side of the cup, =
indicating that=20
the chart should be looked at.</P>
<P>JC</P></FONT><FONT size=3D2></FONT></DIV>
<BLOCKQUOTE dir=3Dltr=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; font-color: =
black"><B>From:</B>=20
<A title=3Dkmalm@earthlink.net =
href=3D"mailto:kmalm@earthlink.net">Katherine=20
Malm</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Sunday, November =
17, 2002=20
9:02 PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] OK =
Show me=20
BIG MONEY</DIV>
<DIV><BR></DIV>
<DIV>Hi John,</DIV>
<DIV> </DIV>
<DIV>I think the use of the IBD vs other free or paid services =
is more=20
than anything a matter of style and preference. There are many =
here on=20
the CANSLIM list who use the IBD exclusively for finding =
investment=20
candidates, others who practice the CANSLIM and or growth style =
of=20
investing but use other tools, and still others who use the IBD =
and/or=20
DGO in combination with other paid services. I still read the =
IBD's Big=20
Picture via the web each day and utilize the numerous =
educational=20
features they provide, but I let the papers pile up for about a =
month=20
before I read them these days, as all of my day to day mining =
and news=20
monitoring is done via other free and paid services. I =
personally found=20
the IBD too time consuming to use as a methodical mining tool =
and it=20
didn't allow me to track the ebb and flow of the market without =
being=20
influenced by their editorial bias. It's amazing how much =
information is=20
available for free on the web these days, so it's entirely =
possible to=20
mine and track good quality growth/CANSLIM candidates even =
without paid=20
tools. Regardless of the choice, I still think the real secret =
to=20
successful investing is using a disciplined approach and a=20
methodical/consistent methodology. I think most would be hard =
pressed to=20
argue any one tool was "better" than another, just "better for=20
you."</DIV>
<DIV> </DIV>
<DIV>Katherine</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; font-color: =
black"><B>From:</B>=20
<A title=3Djcalkins@olypen.com =
href=3D"mailto:jcalkins@olypen.com">John=20
Calkins</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Sunday, November =
17, 2002=20
10:17 PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> [CANSLIM] OK =
Show me BIG=20
MONEY</DIV>
<DIV><BR></DIV>OK! Some say IBD is invaluable. =
Others say=20
it BS. So show me how I can<BR>find Where The Big Moneys =
Flow......OOps, I mean Going with out using =
the<BR>screen in the=20
paper and without buying some other=20
service.<BR><BR>JC<BR><BR><BR>-<BR>-To subscribe/unsubscribe, =
email=20
"<A=20
=
href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>-In=
=20
the email body, write "subscribe canslim" or<BR>-"unsubscribe=20
canslim". Do not use quotes in your=20
=
email.<BR></BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOT=
E></BODY></HTML>
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- -In the email body, write "subscribe canslim" or
- -"unsubscribe canslim". Do not use quotes in your email.
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