Go to Jeff Salisbury LWGate Home Page.From: James Lackey <lackey1967@yahoo.com>
Subject: RE: [CANSLIM] Stock screening criteria for value stocks
Date: Thu, 6 Mar 2003 19:16:40 -0800 (PST)
Previous Article (by Date): RE: [CANSLIM] Stock screening criteria for value stocks "Katherine Malm"
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Does anyone have any statistics that verify that canslim works? The problem I see is that it can not be broken down into a falseafiable hypothesis. Thank you LACK - --- Katherine Malm <kmalm@earthlink.net> wrote: > Hi Sonnie, > > I now more clearly see your intent. There's really 2 issues at hand. I've > used VectorVest since early '98, so first, in order to "mimic Vectorvest", > I > am assuming that you are using their Value and Relative Value proprietary > rankings for selecting stocks such as FSTW and TALK. The bottom line is > that > VV's "Value" is a discounted future earnings stream. While the exact > calculations are proprietary, an article that I wrote last year more fully > explains how, in general, these numbers are derived. (For those not > familiar > with VV, the variable "GRT" to which I refer is forward earnings growth > rate.) See it at: > > http://www.cwhcharts.com/katherine/RVLesson.zip (This is a zipped Word for > Windows document with imbedded graphics.) > > Second, in a more general sense, a "value" investment approach can take > many > forms. Buffett, for example, will use a discounted free cash flow model > similar to that described in my RV Lesson to compute "value", but that is > only one of many criteria that he uses. In order to compute this, you need > *forward* estimates and expectations of interest rates and it's very > difficult to get reliable estimates off a simple screening program such as > MSN, not to mention that this is a calculation that you would have to do > with raw data, not something that can be "screened." In lieu of or in > addition to that, you also need some meaningful measure of value relative > to > price such as free cash flow to price, etc. MSN and other screening may > get > you there, but the problem with doing a more thorough "value" analysis is > that you really need quite a few years of historical data on not only cash > flow, but also profit margins, earnings, ROE's, etc. to do something more > thorough. If you're looking for a package that gives you a lower priced > alternative to VV and the *only* thing you are trying to get from VV is > Value/Relative value, you might consider AAII's Stock Investor Pro > software > which gives 7 or 8 years of historical fundamental data. This is data from > MarketGuide, but far more comprehensive than what you can get at the free > MarketGuide.com screening site. That said, you're *still* going to have to > use raw data to compute a discounted "value" similar to that in VV. ( > http://www.aaii.com/store/sipro/) If on the other hand you also want > graphing, price/volume back data, investing tools, etc., that are also > available in VV, then SI Pro won't cover the bases. > > Katherine > > -----Original Message----- > From: owner-canslim@lists.xmission.com > [mailto:owner-canslim@lists.xmission.com]On Behalf Of Sonnie Oratokhai > Sent: Tuesday, March 04, 2003 10:15 PM > To: canslim@lists.xmission.com > Subject: Re: [CANSLIM] Stock screening criteria for value stocks > > > Hi Tom, Katherine and Gene > > > Thanks for your response. Actually what I am looking for is a criteria to > determine intrinsic value on the MSN screen. Basically trying to mimic > vectorvest without paying for it. > > Most of the stocks I have found using this method are usually unheard of. > Examples are FSTW and TALK > > So if anyone know of ways of determing intrinsic value please share. > > Thanks > Sonnie > > > > > > >From: "Tom Worley" <stkguru@bellsouth.net> > >Reply-To: canslim@lists.xmission.com > >To: <canslim@lists.xmission.com> > >Subject: Re: [CANSLIM] Stock screening criteria for value stocks > >Date: Mon, 3 Mar 2003 23:05:56 -0500 > > > >understood. In that case, one criteria if you are using it is market cap. > >Keep it low, as I find most good value with still good CANSLIM criteria > are > >small caps and some mid caps. That also means keeping any screening > >criteria > >for ADV low (50,000 shares daily or even less). Also any lower price > >threshold for screening should be the lower teens or lower. > > > >Some of the best value is found in the unknown stocks, but that means > being > >patient and waiting for them to be "discovered" > > > >----- Original Message ----- > >From: "Sonnie Oratokhai" <sonnedo@hotmail.com> > >To: <canslim@lists.xmission.com> > >Sent: Monday, March 03, 2003 11:00 PM > >Subject: Re: [CANSLIM] Stock screening criteria for value stocks > > > > > >Yes I agree but das my tweak to canslim. I dont pratice pure CANSLIM > > > > > > > > > > > > > > > > >From: "Tom Worley" <stkguru@bellsouth.net> > > >Reply-To: canslim@lists.xmission.com > > >To: <canslim@lists.xmission.com> > > >Subject: Re: [CANSLIM] Stock screening criteria for value stocks > > >Date: Mon, 3 Mar 2003 22:41:18 -0500 > > > > > >other than CANSLIM and value stocks are contradictory terms? > > > > > >----- Original Message ----- > > >From: "Sonnie Oratokhai" <sonnedo@hotmail.com> > > >To: <canslim@lists.xmission.com> > > >Sent: Monday, March 03, 2003 10:33 PM > > >Subject: [CANSLIM] Stock screening criteria for value stocks > > > > > > > > >I currently have a cnslim screen on MSN that I will like to tweak so I > >can > > >pick just value stocks. > > > > > >Any ideas? > > > > > >Thanks for your help > > > > > >Sonnie > > > > > > > > > > > >_________________________________________________________________ > > >The new MSN 8: smart spam protection and 2 months FREE* > > >http://join.msn.com/?page=features/junkmail > > > > > > > > >- > > >-To subscribe/unsubscribe, email "majordomo@xmission.com" > > >-In the email body, write "subscribe canslim" or > > >-"unsubscribe canslim". Do not use quotes in your email. > > > > > > > > > > > >- > > >-To subscribe/unsubscribe, email "majordomo@xmission.com" > > >-In the email body, write "subscribe canslim" or > > >-"unsubscribe canslim". Do not use quotes in your email. > > > > > >_________________________________________________________________ > >The new MSN 8: smart spam protection and 2 months FREE* > >http://join.msn.com/?page=features/junkmail > > > > > >- > >-To subscribe/unsubscribe, email "majordomo@xmission.com" > >-In the email body, write "subscribe canslim" or > >-"unsubscribe canslim". Do not use quotes in your email. > > > > > > > >- > >-To subscribe/unsubscribe, email "majordomo@xmission.com" > >-In the email body, write "subscribe canslim" or > >-"unsubscribe canslim". Do not use quotes in your email. > > > _________________________________________________________________ > Add photos to your messages with MSN 8. Get 2 months FREE*. > http://join.msn.com/?page=features/featuredemail > > > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. > > > > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. __________________________________________________ Do you Yahoo!? Yahoo! Tax Center - forms, calculators, tips, more http://taxes.yahoo.com/ - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
Previous Article (by Date): RE: [CANSLIM] Stock screening criteria for value stocks "Katherine Malm"
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