Go to Jeff Salisbury LWGate Home Page.From: Harold Josephson <hj@hjosephson.com>
Subject: RE: [CANSLIM] Stock screening criteria for value stocks
Date: Sat, 08 Mar 2003 11:46:28 -0800
Next Article (by Subject): [CANSLIM] Worley's Weekend Weeview "Tom Worley"
Previous Article (by Subject): RE: [CANSLIM] Numbers, was PRAA - Opinions "inderjit"
Articles sorted by: [Date]
[Author]
[Subject]
HI Katherine, I've been a lurking admirer of your thoughtful, incisive, gracious and especially helpful commentary for more than a year. I'm a relatively new but increasingly impressed VectorVest subscriber now contemplating the purchase of the Pro Trader module. Your advice would be welcome. Many thanks. Harold Harold Josephson hj@hjosephson.com - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com] On Behalf Of Katherine Malm Sent: Wednesday, March 05, 2003 5:46 AM To: canslim@lists.xmission.com Subject: RE: [CANSLIM] Stock screening criteria for value stocks 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. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
Next Article (by Subject): [CANSLIM] Worley's Weekend Weeview "Tom Worley"
Previous Article (by Subject): RE: [CANSLIM] Numbers, was PRAA - Opinions "inderjit"
Articles sorted by: [Date]
[Author]
[Subject]