RE: [CANSLIM] In this trader's market

From: "Katherine Malm" <kmalm@earthlink.net>
Subject: RE: [CANSLIM] In this trader's market
Date: Wed, 15 Jan 2003 23:15:09 -0600

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Hi all,

I agree with Rolf and Patrick that CANSLIM stocks have a tendency to crash
and burn when their run is over.

BLUD had several red flags flying going into the breakout 1/14:

(1) Decelerating earnings and sales growth with the most recent earnings
growth less than CANSLIM standards:
http://www.cwhcharts.com/katherine/BLUDGrowth0103.JPG

(2) A late stage base:
http://www.cwhcharts.com/katherine/BLUD011003wkly.JPG

and (3) An iffy base with no shakeout before the breakout:
http://www.cwhcharts.com/katherine/BLUD011503.JPG

Katherine

- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Rolf Hertenstein
Sent: Wednesday, January 15, 2003 9:51 PM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] In this trader's market


Seems like it's a bit hard to ignore analysts if one downgrade from buy to
hold causes an 18% drop in your stock (I don't own BLUD).  Perhaps the
market's stronger resistance to bad news in the fall of 2002 is beginning to
erode.  Maybe it's just jitters associated with today's distribution day.

 Rolf


> Yes, It think its fairly common in these canslim-momentum type stocks for
> there to be some rapid sell offs, even in a strong market.  I would also
say
> that analysts upgrades and downgrades are best ignored.  Some
> conspiracy types even think upgrades and downgrades are issued for the
> purpose of allowing clients to unload a stock (an upgrade) or buy a stock.
>
> On 15 Jan 2003 at 20:10, rchodes wrote:
>
> > Is this a common fate for CANSLIM stocks or a relatively new trend by
analysts
> > to show that they are not afraid to downgrade a stock to a HOLD or even
a SELL.



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