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Subject: Re: [CANSLIM] CANSLIM Hunting List 02/21/03 + Notes on CANSLIM
Date: Tue, 25 Feb 2003 18:44:13 -0800
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wondering if anyone has thoughts on yahoo-numbers in paper look good and =
possible break out?? PE of 109 . would appreciate some thoughts on this=
one as far as CANSLIM-thanks nancy
- ----- Original Message -----
From: Katherine Malm
Sent: Tuesday, February 25, 2003 10:09 AM
To: canslim@lists.xmission.com
Subject: RE: [CANSLIM] CANSLIM Hunting List 02/21/03 + Notes on CANSLIM
Hi jans & Mike,
jans... I understand Mike's question and believe he wasn't asking for
personal details and I have to admit I've asked similar questions of folk=
s
here in the group. Namely, "how has the experience of the last few years
changed the way you trade?" I've also posted my own point of view on thin=
gs
CANSLIM in the past, so I won't go into great details, but will instead j=
ust
give a quick overview of what I've been doing the last few years.
(1) No, I've not spent the entire time in cash. In April 2000 I started
shorting the market on downtrends. That's an aggressive strategy that
compliments a CANSLIM long strategy, but is decidedly not CANSLIM. Howeve=
r,
I kept things simple by shorting stocks in the former CANSLIM camp. That =
is,
stocks that were rolling over; stocks that rolled over, rose and then
started to fail again; etc. It's been an excellent learning experience, b=
ut
I have to say it was a lot easier to short in 2000-2001 than it has been =
in
the last 6 months. When there are no clear signals in either direction, I=
'll
stay in cash. I don't feel a need to trade all the time. My goal is to ma=
ke
money, not trade to make my day interesting.
(2) I still use CANSLIM for long strategies and I'm about as purist as on=
e
can get with it. The major exception that I make is that WON suggests tha=
t a
stock rise at least 25-30% from a previous base and be in an underlying
uptrend before entering a breakout. The longer the Bear goes on, the less
likely it is that one can find potential long positions meeting that
condition. For the purist of the pure CANSLIMers, that would be enough to
keep one primarily in cash for most of the last 3 years. However, WON als=
o
suggests that once a stock's old highs are more than 1 to 1-1/2 years awa=
y,
the less the old high applies to current trading conditions. That means o=
ne
has to be alert to what I refer to as "bottoming bases." If all other
conditions are met technically (RS, relationship to 200dMA, pattern, etc.=
)
and the fundamentals (especially turnaround conditions) are met, then it
becomes a viable candidate.
These are the primary CANSLIM issues that I've focused my attention on in
the last few years:
(1) Rising strength is more important than "top of the heap." This means
that bottoms up stock picking is far more effective than top down. While
industry strength matters, it should never be the first stop in a selecti=
on
process, rather an indicator of the direction of the move and the potenti=
al
strength of an impending breakout (or breakdown).
(2) Reading and re-reading WON has clearly indicated that fundamentals
should be considered on the preponderance of evidence. Despite the 20 rul=
es
of investing in the IBD, there are many exceptions to the >=3D25% growth,=
etc.
and WON has always laid them on the table as if/thens. Overly restrictive
fundamental searches leave out some of the very best candidates.
(3) Technicals first, fundamentals second. Both matter, but technicals le=
ad
the eye to rising strength. The better one is at reading price/volume act=
ion
and technicals in general, the more they can rely on them for stock
selection and entry/exit. I rely more on the technical action of the stoc=
k
to tell me when to enter/exit. That means that the "8%" rule is generally
the last to kick in. I have a mental stop going into the trade that is se=
t
based on the technical action of the stock. Sometimes that is 4%, sometim=
es
it's 10%. It depends on the market and the stock itself.
(4) Disicipline and methodical, unemotional rule-based trading is the key=
to
consistent profits.
This approach works in all markets--trending or sideways.
I'd be interested in what others have learned in the last few years and h=
ope
folks will chime in with their personal observations/learning points as
well.
Katherine
- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Spencer48@aol.com
Sent: Monday, February 24, 2003 5:00 PM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] CANSLIM Hunting List 02/21/03 + Notes on CANSLIM
Mike:
I love it when people speak for me: It's so interesting to hear
another
person's voice attached to my apparent words.
I agree with the latter portion of your E-mail (being grateful to
Katherine for all her work and analyses), but I don't agree with the form=
er
(asking Katherine to tell us, in general, how she's been trading the last
couple of years).
At any rate, I believe such a query intrudes on personal matters
(financially speaking), and is sort of like asking someone to explain
oneself
(ie. putting Katherine on the defensive).
My point is: I don't mind the query-it's really not directed at me,
and
Katherine can answer it or not as she chooses. But I do mind someone whe=
n
someone says that he's speaking for me. And especially so when he fashio=
ns
his E-mail to make it appear that I agree with all he is saying.
jans
In a message dated 2/24/2003 11:58:49 AM Eastern Standard Time,
michael_niemotka@baxter.com writes:
<< Katherine, would you be willing to share with the group the "general"
type
of trading that you have been doing over the past couple of years, given
the "M"?
Have you spent the last couple years in mostly cash, or have you done som=
e
trading, and if so, how have you modified CANSLIM? Have you taken profits
much more quickly, ie at 10-20%, rather than risk a ride for higher gains=
?
Tightening the 8% loss rule to 5%?
I am not expecting details, but I think I speak for the group when I say
that we all value your insight into the application of CANSLIM.
Thanks
Mike
>>
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- -In the email body, write "subscribe canslim" or
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<HTML><BODY STYLE=3D"font:10pt verdana; border:none;"><DIV>wondering if a=
nyone has thoughts on yahoo-numbers in paper look good and possible break=
out?? PE of 109 . would appreciate some thoughts on this one=
as far as CANSLIM-thanks nancy</DIV> <DIV> </DIV> <BLOCKQUOTE=
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER=
- -LEFT: #000000 2px solid; MARGIN-RIGHT: 0px"> <DIV style=3D"FONT: 10pt Ar=
ial">----- Original Message -----</DIV> <DIV style=3D"BACKGROUND: #e4e4e4=
; FONT: 10pt Arial; COLOR: black"><B>From:</B> Katherine Malm</DIV> <DIV =
style=3D"FONT: 10pt Arial"><B>Sent:</B> Tuesday, February 25, 2003 10:09 =
AM</DIV> <DIV style=3D"FONT: 10pt Arial"><B>To:</B> canslim@lists.xmissio=
n.com</DIV> <DIV style=3D"FONT: 10pt Arial"><B>Subject:</B> RE: [CANSLIM]=
CANSLIM Hunting List 02/21/03 + Notes on CANSLIM</DIV> <DIV> </DIV>=
Hi jans & Mike,<BR><BR>jans... I understand Mike's question and belie=
ve he wasn't asking for<BR>personal details and I have to admit I've aske=
d similar questions of folks<BR>here in the group. Namely, "how has the e=
xperience of the last few years<BR>changed the way you trade?" I've also =
posted my own point of view on things<BR>CANSLIM in the past, so I won't =
go into great details, but will instead just<BR>give a quick overview of =
what I've been doing the last few years.<BR><BR>(1) No, I've not spent th=
e entire time in cash. In April 2000 I started<BR>shorting the market on =
downtrends. That's an aggressive strategy that<BR>compliments a CANSLIM l=
ong strategy, but is decidedly not CANSLIM. However,<BR>I kept things sim=
ple by shorting stocks in the former CANSLIM camp. That is,<BR>stocks tha=
t were rolling over; stocks that rolled over, rose and then<BR>started to=
fail again; etc. It's been an excellent learning experience, but<BR>I ha=
ve to say it was a lot easier to short in 2000-2001 than it has been in<B=
R>the last 6 months. When there are no clear signals in either direction,=
I'll<BR>stay in cash. I don't feel a need to trade all the time. My goal=
is to make<BR>money, not trade to make my day interesting.<BR><BR>(2) I =
still use CANSLIM for long strategies and I'm about as purist as one<BR>c=
an get with it. The major exception that I make is that WON suggests that=
a<BR>stock rise at least 25-30% from a previous base and be in an underl=
ying<BR>uptrend before entering a breakout. The longer the Bear goes on, =
the less<BR>likely it is that one can find potential long positions meeti=
ng that<BR>condition. For the purist of the pure CANSLIMers, that would b=
e enough to<BR>keep one primarily in cash for most of the last 3 years. H=
owever, WON also<BR>suggests that once a stock's old highs are more than =
1 to 1-1/2 years away,<BR>the less the old high applies to current tradin=
g conditions. That means one<BR>has to be alert to what I refer to as "bo=
ttoming bases." If all other<BR>conditions are met technically (RS, relat=
ionship to 200dMA, pattern, etc.)<BR>and the fundamentals (especially tur=
naround conditions) are met, then it<BR>becomes a viable candidate.<BR><B=
R>These are the primary CANSLIM issues that I've focused my attention on =
in<BR>the last few years:<BR>(1) Rising strength is more important than "=
top of the heap." This means<BR>that bottoms up stock picking is far more=
effective than top down. While<BR>industry strength matters, it should n=
ever be the first stop in a selection<BR>process, rather an indicator of =
the direction of the move and the potential<BR>strength of an impending b=
reakout (or breakdown).<BR>(2) Reading and re-reading WON has clearly ind=
icated that fundamentals<BR>should be considered on the preponderance of =
evidence. Despite the 20 rules<BR>of investing in the IBD, there are many=
exceptions to the >=3D25% growth, etc.<BR>and WON has always laid the=
m on the table as if/thens. Overly restrictive<BR>fundamental searches le=
ave out some of the very best candidates.<BR>(3) Technicals first, fundam=
entals second. Both matter, but technicals lead<BR>the eye to rising stre=
ngth. The better one is at reading price/volume action<BR>and technicals =
in general, the more they can rely on them for stock<BR>selection and ent=
ry/exit. I rely more on the technical action of the stock<BR>to tell me w=
hen to enter/exit. That means that the "8%" rule is generally<BR>the last=
to kick in. I have a mental stop going into the trade that is set<BR>bas=
ed on the technical action of the stock. Sometimes that is 4%, sometimes<=
BR>it's 10%. It depends on the market and the stock itself.<BR>(4) Disici=
pline and methodical, unemotional rule-based trading is the key to<BR>con=
sistent profits.<BR><BR>This approach works in all markets--trending or s=
ideways.<BR><BR>I'd be interested in what others have learned in the last=
few years and hope<BR>folks will chime in with their personal observatio=
ns/learning points as<BR>well.<BR><BR>Katherine<BR><BR>-----Original Mess=
age-----<BR>From: owner-canslim@lists.xmission.com<BR>[mailto:owner-cansl=
im@lists.xmission.com]On Behalf Of Spencer48@aol.com<BR>Sent: Monday, Feb=
ruary 24, 2003 5:00 PM<BR>To: canslim@lists.xmission.com<BR>Subject: Re: =
[CANSLIM] CANSLIM Hunting List 02/21/03 + Notes on CANSLIM<BR><BR><BR>Mik=
e:<BR><BR> I love it when people speak for me:&nb=
sp; It's so interesting to hear<BR>another<BR>person's voice attached to =
my apparent words.<BR><BR> I agree with the=
latter portion of your E-mail (being grateful to<BR>Katherine for all he=
r work and analyses), but I don't agree with the former<BR>(asking Kather=
ine to tell us, in general, how she's been trading the last<BR>couple of =
years).<BR><BR> At any rate, I believe such a que=
ry intrudes on personal matters<BR>(financially speaking), and is sort of=
like asking someone to explain<BR>oneself<BR>(ie. putting Katherine on t=
he defensive).<BR><BR> My point is: I don't=
mind the query-it's really not directed at me,<BR>and<BR>Katherine can a=
nswer it or not as she chooses. But I do mind someone when<BR>someo=
ne says that he's speaking for me. And especially so when he fashio=
ns<BR>his E-mail to make it appear that I agree with all he is saying.<BR=
><BR>jans<BR><BR><BR>In a message dated 2/24/2003 11:58:49 AM Eastern Sta=
ndard Time,<BR>michael_niemotka@baxter.com writes:<BR><BR><< Kather=
ine, would you be willing to share with the group the "general"<BR>type<B=
R>of trading that you have been doing over the past couple of years, give=
n<BR>the "M"?<BR><BR>Have you spent the last couple years in mostly cash,=
or have you done some<BR>trading, and if so, how have you modified CANSL=
IM? Have you taken profits<BR>much more quickly, ie at 10-20%, rather tha=
n risk a ride for higher gains?<BR>Tightening the 8% loss rule to 5%?<BR>=
<BR>I am not expecting details, but I think I speak for the group when I =
say<BR>that we all value your insight into the application of CANSLIM.<BR=
><BR>Thanks<BR><BR>Mike<BR> >><BR><BR>-<BR>-To subscribe/unsu=
bscribe, email "majordomo@xmission.com"<BR>-In the email body, write "sub=
scribe canslim" or<BR>-"unsubscribe canslim". Do not use quotes in =
your email.<BR><BR><BR><BR>-<BR>-To subscribe/unsubscribe, email "majordo=
mo@xmission.com"<BR>-In the email body, write "subscribe canslim" or<BR>-=
"unsubscribe canslim". Do not use quotes in your email.<BR></BLOCKQ=
UOTE></BODY></HTML>
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- -"unsubscribe canslim". Do not use quotes in your email.
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