Go to Jeff Salisbury LWGate Home Page.From: "inderjit" <inderjit@adelphia.net>
Subject: RE: [CANSLIM] CANSLIM Hunting List 02/21/03 + Notes on CANSLIM
Date: Tue, 25 Feb 2003 23:42:26 -0500
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Perfect pick. Heading in the right direction. Even Tom W rated this very
high approximately 3 years ago..
- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com] On Behalf Of NANCY POLCARO
Sent: Tuesday, February 25, 2003 9:44 PM
To: canslim
Subject: Re: [CANSLIM] CANSLIM Hunting List 02/21/03 + Notes on CANSLIM
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
folks
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
things
CANSLIM in the past, so I won't go into great details, but will instead
just
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.
However,
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,
but
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
make
money, not trade to make my day interesting.
(2) I still use CANSLIM for long strategies and I'm about as purist as
one
can get with it. The major exception that I make is that WON suggests
that 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
also
suggests that once a stock's old highs are more than 1 to 1-1/2 years
away,
the less the old high applies to current trading conditions. That means
one
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
selection
process, rather an indicator of the direction of the move and the
potential
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
rules
of investing in the IBD, there are many exceptions to the >=25% 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
lead
the eye to rising strength. The better one is at reading price/volume
action
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
stock
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
set
based on the technical action of the stock. Sometimes that is 4%,
sometimes
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
hope
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
former
(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
when
someone says that he's speaking for me. And especially so when he
fashions
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
some
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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<div class=3DSection1>
<p class=3DMsoNormal><font size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;
font-family:Arial'>Perfect pick. Heading in the right direction. Even =
Tom W
rated this very high approximately 3 years =
ago….<o:p></o:p></span></font></p>
<p class=3DMsoNormal><font size=3D2 color=3Dnavy face=3DArial><span =
style=3D'font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
face=3DTahoma><span
style=3D'font-size:10.0pt;font-family:Tahoma'>-----Original =
Message-----<br>
<b><span style=3D'font-weight:bold'>From:</span></b>
owner-canslim@lists.xmission.com =
[mailto:owner-canslim@lists.xmission.com] <b><span
style=3D'font-weight:bold'>On Behalf Of </span></b>NANCY POLCARO<br>
<b><span style=3D'font-weight:bold'>Sent:</span></b> Tuesday, February =
25, 2003
9:44 PM<br>
<b><span style=3D'font-weight:bold'>To:</span></b> canslim<br>
<b><span style=3D'font-weight:bold'>Subject:</span></b> Re: [CANSLIM] =
CANSLIM
Hunting List 02/21/03 + Notes on CANSLIM</span></font></p>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'><o:p> </o:p></span></font></p>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
face=3DVerdana><span
style=3D'font-size:10.0pt;font-family:Verdana'>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<o:p></o:p></span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
face=3DVerdana><span
style=3D'font-size:10.0pt;font-family:Verdana'> <o:p></o:p></span></=
font></p>
</div>
<blockquote style=3D'border:none;border-left:solid black =
1.5pt;padding:0in 0in 0in 4.0pt;
margin-left:3.75pt;margin-top:5.0pt;margin-right:0in;margin-bottom:5.0pt'=
>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial'>----- Original Message =
- -----<o:p></o:p></span></font></p>
</div>
<div>
<p class=3DMsoNormal =
style=3D'margin-left:.5in;background:#E4E4E4'><b><font size=3D2
color=3Dblack face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;
color:black;font-weight:bold'>From:</span></font></b><font size=3D2 =
color=3Dblack
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;color:black'>
Katherine Malm<o:p></o:p></span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><b><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;font-weight:bold'>Sent:</span=
></font></b><font
size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial'> Tuesday,
February 25, 2003 10:09 AM<o:p></o:p></span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><b><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;font-weight:bold'>To:</span><=
/font></b><font
size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial'>
canslim@lists.xmission.com<o:p></o:p></span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><b><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;font-weight:bold'>Subject:</s=
pan></font></b><font
size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial'> RE:
[CANSLIM] CANSLIM Hunting List 02/21/03 + Notes on =
CANSLIM<o:p></o:p></span></font></p>
</div>
<div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
face=3DVerdana><span
style=3D'font-size:10.0pt;font-family:Verdana'> <o:p></o:p></span></=
font></p>
</div>
<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
face=3DVerdana><span
style=3D'font-size:10.0pt;font-family:Verdana'>Hi jans & Mike,<br>
<br>
jans... I understand Mike's question and believe he wasn't asking =
for<br>
personal details and I have to admit I've asked similar questions of =
folks<br>
here in the group. Namely, "how has the experience 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 the 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 long strategy, but is decidedly not CANSLIM. =
However,<br>
I kept things simple by shorting stocks in the former CANSLIM camp. That =
is,<br>
stocks that 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 have to say it was a lot easier to short in 2000-2001 than it has been =
in<br>
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>
can 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 =
underlying<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 meeting that<br>
condition. For the purist of the pure CANSLIMers, that would be enough =
to<br>
keep one primarily in cash for most of the last 3 years. However, 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 trading conditions. That means =
one<br>
has to be alert to what I refer to as "bottoming bases." If =
all other<br>
conditions are met technically (RS, relationship to 200dMA, pattern, =
etc.)<br>
and the fundamentals (especially turnaround conditions) are met, then =
it<br>
becomes a viable candidate.<br>
<br>
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 never 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 breakout (or breakdown).<br>
(2) Reading and re-reading WON has clearly indicated 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 them on the table as if/thens. Overly =
restrictive<br>
fundamental searches leave out some of the very best candidates.<br>
(3) Technicals first, fundamentals second. Both matter, but technicals =
lead<br>
the eye to rising strength. 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 entry/exit. I rely more on the technical action of the =
stock<br>
to tell me when 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>
based 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) Disicipline and methodical, unemotional rule-based trading is the =
key to<br>
consistent profits.<br>
<br>
This approach works in all markets--trending or sideways.<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 observations/learning points =
as<br>
well.<br>
<br>
Katherine<br>
<br>
- -----Original Message-----<br>
From: owner-canslim@lists.xmission.com<br>
[mailto:owner-canslim@lists.xmission.com]On Behalf Of =
Spencer48@aol.com<br>
Sent: </span></font><st1:date Month=3D"2" Day=3D"24" Year=3D"2003"><font =
size=3D2
face=3DVerdana><span =
style=3D'font-size:10.0pt;font-family:Verdana'>Monday,
February 24, 2003</span></font></st1:date><font size=3D2 =
face=3DVerdana><span
style=3D'font-size:10.0pt;font-family:Verdana'> </span></font><st1:time =
Hour=3D"17"
Minute=3D"0"><font size=3D2 face=3DVerdana><span =
style=3D'font-size:10.0pt;font-family:
Verdana'>5:00 PM</span></font></st1:time><font size=3D2 =
face=3DVerdana><span
style=3D'font-size:10.0pt;font-family:Verdana'><br>
To: canslim@lists.xmission.com<br>
Subject: Re: [CANSLIM] CANSLIM Hunting List </span></font><st1:date =
Month=3D"2"
Day=3D"21" Year=3D"2003"><font size=3D2 face=3DVerdana><span =
style=3D'font-size:10.0pt;
font-family:Verdana'>02/21/03</span></font></st1:date><font size=3D2
face=3DVerdana><span style=3D'font-size:10.0pt;font-family:Verdana'> + =
Notes on
CANSLIM<br>
<br>
<br>
Mike:<br>
<br>
I love it when people speak for me: 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 her work and analyses), but I don't agree with the =
former<br>
(asking Katherine 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 query intrudes on
personal matters<br>
(financially speaking), and is sort of like asking someone to =
explain<br>
oneself<br>
(ie. putting Katherine on the defensive).<br>
<br>
My point is: I don't mind the query-it's =
really
not directed at me,<br>
and<br>
Katherine can answer it or not as she chooses. But I do mind =
someone when<br>
someone says that he's speaking for me. And especially so when he
fashions<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 Standard Time,<br>
michael_niemotka@baxter.com writes:<br>
<br>
<< Katherine, would you be willing to share with the group the
"general"<br>
type<br>
of trading that you have been doing over the past couple of years, =
given<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 CANSLIM? Have you taken =
profits<br>
much more quickly, ie at 10-20%, rather than 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>
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- -To subscribe/unsubscribe, email "majordomo@xmission.com"<br>
- -In the email body, write "subscribe canslim" or<br>
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