Go to Jeff Salisbury LWGate Home Page.From: "Jonathan Lobatto" <jlobatto@nyc.rr.com>
Subject: Re: [CANSLIM] Foreign Markets CANSLIM?
Date: Sat, 22 Feb 2003 19:41:24 -0500
Previous Article (by Date): [CANSLIM] Investors Business Daily "Chris Jones"
Top of Thread: RE: [CANSLIM] Foreign Markets CANSLIM? "Katherine Malm"
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Thanks Katherine... I'm aware of ishares but was hoping for individual =
stock ideas....
Jon
----- Original Message -----=20
From: Katherine Malm=20
To: canslim@lists.xmission.com=20
Sent: Saturday, February 22, 2003 4:44 PM
Subject: RE: [CANSLIM] Foreign Markets CANSLIM?
Hi Jon,
One thing you might consider is using the ETFs for foreign markets. =
That takes out a bit of the risk of trying to evaluate individual =
foreign equities. ETF's get an RSRank and you can read all the normal =
technicals on them. That's something I've been doing for quite a few =
years when I want to take advantage of significant moves in non-US =
markets.
Go to www.ishares.com and you'll see a section on International ETFs.
Katherine
-----Original Message-----
From: owner-canslim@lists.xmission.com =
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Jonathan Lobatto
Sent: Saturday, February 22, 2003 1:57 PM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] Foreign Markets CANSLIM?
Tom,
I agree with much of what you say. However, I might point out that =
analysis of politics, economics and exchange rates is in my opinion of =
minor value in determining "M", as it is mostly discounted (i.e. in the =
market already). Those of us old enough to recall the mid 70s, or the =
early 80s will remember that all the macro factors looked awful. If one =
had made decisions based on the considerations you mention above, it =
would have been easy to stay out of the market years past the bottoms. =
If anyone states that they analyzed the macro sitaution back then and =
decided to invest based on the economic and political outlook and =
exchange rates, I'd be highly skeptical. I know things looked grim to =
me.
Yes, the U.S. is the biggest market, but the growth rates in the =
coming decades will be highest in China, Asia (ex-Japan) and India and =
I'm just looking ahead and wondering how a US based investor can benefit =
from this.
Jon
----- Original Message -----=20
From: Tom Worley=20
To: canslim@lists.xmission.com=20
Sent: Saturday, February 22, 2003 2:19 PM
Subject: Re: [CANSLIM] Foreign Markets CANSLIM?
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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<DIV><FONT face=3DVerdana color=3D#0000ff>Thanks Katherine... I'm aware =
of ishares=20
but was hoping for individual stock ideas....</FONT></DIV>
<DIV><FONT face=3DVerdana color=3D#0000ff></FONT> </DIV>
<DIV><FONT face=3DVerdana color=3D#0000ff>Jon</FONT></DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #0000ff 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>=
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Saturday, February 22, =
2003 4:44=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> RE: [CANSLIM] Foreign =
Markets=20
CANSLIM?</DIV>
<DIV><BR></DIV>
<DIV><SPAN class=3D140233421-22022003>Hi Jon,</SPAN></DIV>
<DIV><SPAN class=3D140233421-22022003></SPAN> </DIV>
<DIV><SPAN class=3D140233421-22022003>One thing you might consider is =
using the=20
ETFs for foreign markets. That takes out a bit of the risk of trying =
to=20
evaluate individual foreign equities. ETF's get an RSRank and you can =
read all=20
the normal technicals on them. That's something I've been doing for =
quite a=20
few years when I want to take advantage of significant moves in non-US =
markets.</SPAN></DIV>
<DIV><SPAN class=3D140233421-22022003></SPAN> </DIV>
<DIV><SPAN class=3D140233421-22022003>Go to <A=20
href=3D"http://www.ishares.com">www.ishares.com</A> and you'll see a =
section on=20
International ETFs.</SPAN></DIV>
<DIV><SPAN class=3D140233421-22022003></SPAN> </DIV>
<DIV><SPAN class=3D140233421-22022003>Katherine</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>Jonathan=20
Lobatto<BR><B>Sent:</B> Saturday, February 22, 2003 1:57 =
PM<BR><B>To:</B>=20
canslim@lists.xmission.com<BR><B>Subject:</B> Re: [CANSLIM] Foreign =
Markets=20
CANSLIM?<BR><BR></FONT></DIV>
<DIV><FONT face=3DVerdana color=3D#0000ff>Tom,</FONT></DIV>
<DIV><FONT face=3DVerdana color=3D#0000ff></FONT> </DIV>
<DIV><FONT face=3DVerdana color=3D#0000ff>I agree with much of what =
you say.=20
However, I might point out that analysis of politics, economics and =
exchange=20
rates is in my opinion of minor value in determining "M", as it is =
mostly=20
discounted (i.e. in the market already). Those of us old enough =
to=20
recall the mid 70s, or the early 80s will remember that all the =
macro=20
factors looked <U><STRONG>awful</STRONG></U>. If one had made =
decisions=20
based on the considerations you mention above, it would have been =
easy to=20
stay out of the market years past the bottoms. If anyone states that =
they=20
analyzed the macro sitaution back then and decided to invest based =
on the=20
economic and political outlook and exchange rates, I'd be highly =
skeptical.=20
I know things looked grim to me.</FONT></DIV>
<DIV><FONT face=3DVerdana color=3D#0000ff></FONT> </DIV>
<DIV><FONT face=3DVerdana color=3D#0000ff>Yes, the U.S. is the =
biggest market,=20
but the growth rates in the coming decades will be highest in China, =
Asia=20
(ex-Japan) and India and I'm just looking ahead and wondering how a =
US based=20
investor can benefit from this.</FONT></DIV>
<DIV><FONT face=3DVerdana color=3D#0000ff></FONT> </DIV>
<DIV><FONT face=3DVerdana color=3D#0000ff>Jon</FONT></DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #0000ff 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=3Dstkguru@bellsouth.net =
href=3D"mailto:stkguru@bellsouth.net">Tom=20
Worley</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> Saturday, February =
22, 2003=20
2:19 PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] =
Foreign=20
Markets CANSLIM?</DIV>
<DIV><BR></DIV>
<DIV><FONT face=3DArial>Jonathan,</FONT></DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV><FONT face=3DArial>I monitor daily all global exchanges, but =
have done=20
little investing outside the USA. My reasons are pretty basic, I =
have too=20
little time to keep up with politics, economics, exchange rates, =
etc.=20
right here. Trying to obtain and stay current on these matters =
(which I=20
deem important to me in assessing "M") in any foreign country, =
much less a=20
foreign region of many countries, many of which may be unstable =
and=20
subject to rapid political change, would be too much except as a =
full time=20
occupation.</FONT></DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV><FONT face=3DArial>Additionally, DGO remains my data source =
of choice=20
for the moment, and they provide very little coverage of foreign =
stocks.=20
The different accounting systems as well deter me from foreign =
companies,=20
as well as the lack of regulation and financial reporting=20
required.</FONT></DIV>
<DIV><FONT face=3DArial></FONT> </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=20
another country (and reporting it on your tax return as well), not =
to=20
mention the additional risk of foreign exchange rate changes. The =
US=20
economy remains the biggest (and I believe the strongest / =
healthiest /=20
most likely to recover first), and I would expect other economies =
to trail=20
when true recovery finally begins. I would not want to have my =
money=20
trapped in yen, or baht, or francs, or pounds, or whatever, while =
the US=20
markets finally take off.</FONT></DIV>
<DIV><FONT face=3DArial></FONT> </DIV>
<DIV><FONT face=3DArial>The decades of research that went into the =
development and refinement of CANSLIM was mostly done on US =
stocks. While=20
in theory I see no reason why it could not be applied elsewhere, a =
lot of=20
the tools are lacking even for back testing, and the risks and=20
difficulties are greater.</FONT></DIV>
<DIV> </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=20
Lobatto</A> </DIV>
<DIV><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><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=20
very long time, "M" stinks. However, there have been =
foreign markets=20
(China and a few others) where "M" has actually been pretty decent =
the=20
past year or so. I'm wondering if anyone has tried applying =
CANSLIM in a=20
foreign market? After all, there's no philosophical reason (as =
opposed to=20
practical ones) that it wouldn't be applicable to a non-US market. =
Now=20
some will argue that foreign accounting and reporting doesn't have =
the=20
same kind of transparency that our does, but after Enron (et al ad =
nauseum), what appears transparent was in reality totally =
obscured=20
anyway.</FONT></DIV>
<DIV><FONT face=3DVerdana color=3D#0000ff></FONT> </DIV>
<DIV><FONT face=3DVerdana color=3D#0000ff>If one wanted to try, =
the first=20
thing that would be handy would be a database that ranks the RS =
and EPS of=20
foreign stocks. I know that it's possible to get this info for =
ADRS, but=20
I'm sure there are hundreds of non-ADrs that would be suitable =
candidates=20
also. Of course actually purchasing the stocks presents other=20
difficulties, but it may be worth at least discussing. So, any=20
ideas?</FONT></DIV>
<DIV><FONT face=3DVerdana color=3D#0000ff></FONT> </DIV>
<DIV><FONT face=3DVerdana=20
=
color=3D#0000ff>Jon</FONT></DIV></BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></=
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