Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: RE: [CANSLIM] Foreign Markets CANSLIM?
Date: Sat, 22 Feb 2003 15:44:59 -0600
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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 -----
From: Tom Worley
To: canslim@lists.xmission.com
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 -----
From: Jonathan Lobatto
To: canslim@lists.xmission.com
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><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 =
evaluate=20
individual foreign equities. ETF's get an RSRank and you can read all =
the normal=20
technicals on them. That's something I've been doing for quite a few =
years when=20
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 recall=20
the mid 70s, or the early 80s will remember that all the macro factors =
looked=20
<U><STRONG>awful</STRONG></U>. If one had made decisions based on the=20
considerations you mention above, it would have been easy to stay out =
of the=20
market years past the bottoms. If anyone states that they analyzed the =
macro=20
sitaution back then and decided to invest based on the economic and =
political=20
outlook and exchange rates, I'd be highly skeptical. I know things =
looked grim=20
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, but=20
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 =
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 2:19=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] =
Foreign Markets=20
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. right=20
here. Trying to obtain and stay current on these matters (which I =
deem=20
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 =
subject=20
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 for=20
the moment, and they provide very little coverage of foreign stocks. =
The=20
different accounting systems as well deter me from foreign =
companies, as=20
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 =
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=20
finally begins. I would not want to have my money trapped in yen, or =
baht,=20
or francs, or pounds, or whatever, while the US 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=20
and refinement of CANSLIM was mostly done on US stocks. While in =
theory I=20
see no reason why it could not be applied elsewhere, a lot of the =
tools are=20
lacking even for back testing, and the risks and difficulties are=20
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 very=20
long time, "M" stinks. However, there have been foreign markets =
(China=20
and a few others) where "M" has actually been pretty decent the past =
year or=20
so. I'm wondering if anyone has tried applying CANSLIM in a foreign =
market?=20
After all, there's no philosophical reason (as opposed to practical =
ones)=20
that it wouldn't be applicable to a non-US market. Now some will =
argue that=20
foreign accounting and reporting doesn't have the same kind of =
transparency=20
that our does, but after Enron (et al ad nauseum), what appears =
transparent=20
was in reality totally obscured 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 thing=20
that would be handy would be a database that ranks the RS and EPS of =
foreign=20
stocks. I know that it's possible to get this info for ADRS, but I'm =
sure=20
there are hundreds of non-ADrs that would be suitable candidates =
also. Of=20
course actually purchasing the stocks presents other difficulties, =
but it=20
may be worth at least discussing. So, any 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></BODY></HTML>
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