Re: [CANSLIM] Foreign Markets CANSLIM?

From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] Foreign Markets CANSLIM?
Date: Sat, 22 Feb 2003 14:19:31 -0500
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Jonathan,

I monitor daily all global exchanges, but have done little investing =
outside the USA. My reasons are pretty basic, I have too little time to =
keep up with politics, economics, exchange rates, etc. right here. =
Trying to obtain and stay current on these matters (which I deem =
important to me in assessing "M") in any foreign country, much less a =
foreign region of many countries, many of which may be unstable and =
subject to rapid political change, would be too much except as a full =
time occupation.

Additionally, DGO remains my data source of choice for the moment, and =
they provide very little coverage of foreign stocks. The different =
accounting systems as well deter me from foreign companies, as well as =
the lack of regulation and financial reporting required.

As you note, unless the company was listed on a US exchange, there are =
the added difficulties of opening an account in another country (and =
reporting it on your tax return as well), not to mention the additional =
risk of foreign exchange rate changes. The US economy remains the =
biggest (and I believe the strongest / healthiest / most likely to =
recover first), and I would expect other economies to trail when true =
recovery finally begins. I would not want to have my money trapped in =
yen, or baht, or francs, or pounds, or whatever, while the US markets =
finally take off.

The decades of research that went into the development and refinement of =
CANSLIM was mostly done on US stocks. While in theory I see no reason =
why it could not be applied elsewhere, a lot of the tools are lacking =
even for back testing, and the risks and difficulties are greater.

- ----- Original Message -----=20
From: Jonathan Lobatto=20
To: canslim@lists.xmission.com=20
Sent: Saturday, February 22, 2003 2:08 PM
Subject: [CANSLIM] Foreign Markets CANSLIM?


As has been discussed here for a very long time, "M" stinks. However, =
there have been foreign markets (China and a few others) where "M" has =
actually been pretty decent the past year or so. I'm wondering if anyone =
has tried applying CANSLIM in a foreign market? After all, there's no =
philosophical reason (as opposed to practical ones) that it wouldn't be =
applicable to a non-US market. Now some will argue that foreign =
accounting and reporting doesn't have the same kind of transparency that =
our does, but after Enron (et al ad nauseum), what appears transparent =
was in reality totally obscured anyway.

If one wanted to try, the first thing that would be handy would be a =
database that ranks the RS and EPS of foreign stocks. I know that it's =
possible to get this info for ADRS, but I'm sure there are hundreds of =
non-ADrs that would be suitable candidates also. Of course actually =
purchasing the stocks presents other difficulties, but it may be worth =
at least discussing. So, any ideas?

Jon
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<BODY bgColor=3D#ffffff>
<DIV><FONT face=3DArial>Jonathan,</FONT></DIV>
<DIV><FONT face=3DArial></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial>I monitor daily all global exchanges, but have =
done little=20
investing outside the USA. My reasons are pretty basic, I have too =
little time=20
to keep up with politics, economics, exchange rates, etc. right here. =
Trying to=20
obtain and stay current on these matters (which I deem important to me =
in=20
assessing "M") in any foreign country, much less a foreign region of =
many=20
countries, many of which may be unstable and subject to rapid political =
change,=20
would be too much except as a full time occupation.</FONT></DIV>
<DIV><FONT face=3DArial></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial>Additionally, DGO remains my data source of =
choice for the=20
moment, and they provide very little coverage of foreign stocks. The =
different=20
accounting systems as well deter me from foreign companies, as well as =
the lack=20
of regulation and financial reporting required.</FONT></DIV>
<DIV><FONT face=3DArial></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial>As you note, unless the company was listed on a =
US=20
exchange, there are the added difficulties of opening an account in =
another=20
country (and reporting it on your tax return as well), not to mention =
the=20
additional risk of foreign exchange rate changes. The US economy remains =
the=20
biggest (and I believe the strongest / healthiest / most likely to =
recover=20
first), and I would expect other economies to trail when true recovery =
finally=20
begins. I would not want to have my money trapped in yen, or baht, or =
francs, or=20
pounds, or whatever, while the US markets finally take off.</FONT></DIV>
<DIV><FONT face=3DArial></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial>The decades of research that went into the =
development and=20
refinement of CANSLIM was mostly done on US stocks. While in theory I =
see no=20
reason why it could not be applied elsewhere, a lot of the tools are =
lacking=20
even for back testing, and the risks and difficulties are =
greater.</FONT></DIV>
<DIV>&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=3Djlobatto@nyc.rr.com href=3D"mailto:jlobatto@nyc.rr.com">Jonathan =
Lobatto</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> Saturday, February 22, 2003 2:08 PM</DIV>
<DIV><B>Subject:</B> [CANSLIM] Foreign Markets CANSLIM?</DIV></DIV>
<DIV><BR></DIV>
<DIV><FONT face=3DVerdana color=3D#0000ff>As has been discussed here for =
a very long=20
time, "M" stinks. However, there have been foreign&nbsp;markets (China =
and a few=20
others) where "M" has actually been pretty decent the past year or so. =
I'm=20
wondering if anyone has tried applying CANSLIM in a foreign market? =
After all,=20
there's no philosophical reason (as opposed to practical ones) that it =
wouldn't=20
be applicable to a non-US market. Now some will argue that foreign =
accounting=20
and reporting doesn't have the same kind of transparency that our does, =
but=20
after Enron (et al ad nauseum), what appears transparent was in=20
reality&nbsp;totally obscured anyway.</FONT></DIV>
<DIV><FONT face=3DVerdana color=3D#0000ff></FONT>&nbsp;</DIV>
<DIV><FONT face=3DVerdana color=3D#0000ff>If one wanted to try, the =
first thing that=20
would be handy would be a database that ranks the RS and EPS of foreign =
stocks.=20
I know that it's possible to get this info for ADRS, but I'm sure there =
are=20
hundreds of non-ADrs that would be suitable candidates also. Of course =
actually=20
purchasing the stocks presents other difficulties, but it may be worth =
at least=20
discussing. So, any ideas?</FONT></DIV>
<DIV><FONT face=3DVerdana color=3D#0000ff></FONT>&nbsp;</DIV>
<DIV><FONT face=3DVerdana color=3D#0000ff>Jon</FONT></DIV></BODY></HTML>

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