Re: [CANSLIM] canslIm

From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] cansl*I*m
Date: Sat, 19 Apr 2003 09:51:46 -0400

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Roger, I am still old fashioned when it comes to "I", and just stick to
small cap stocks, many of which have little or no institutional involvement
(so your #2 doesn't enter the equation for me). I do take conscious note of
mutual fund ownership, and whether it is increasing or decreasing, but the
lack of funds ownership has never stopped me buying a stock I otherwise
liked.

I do get nervous when I like a stock with a large funds ownership (over 20%
or so), unless there is a very large piece of the issue held by Management
(50% or more).

While in theory I would agree that it's best to be buying stocks also held
by / being bought by the best performing mutual funds, I have such a low
opinion these days of funds managers that I never even consider the quality
of funds in the stock. I have four different growth funds in my 401K, and I
routinely and easily outperform them both with my personally managed accts
(IRA & margin) as well as with my VR Fund. So, for me, my judgment is
sufficient, I don't need it validated by the presence of funds, in fact
generally prefer they stay away until I have my full position.

- ----- Original Message -----
From: "Roger Tawa" <rogerta@videotron.ca>
To: <canslim@lists.xmission.com>
Sent: Saturday, April 19, 2003 9:32 AM
Subject: [CANSLIM] cansl*I*m


Hi all,

The list seems a little quiet these days, so let me ask a newbie question
about the 'I' in CANSLIM.  From what I understand, there seems to be two
basic reasons why WON included 'I' as one of the seven criteria:

1. when institutions move into or out of a stock, this creates
tremendous pressure on the stock's price, either up or down.  You want to
buy a stock when its institutional sponsorship is not too high but
increasing.
2. sponsorship by the "better quality" institutions is like a sanity
check for fundamental analysis of the stock.  These large institutions spend
a lot of time looking at fundamentals before they buy, so watching what they
have been buying recently can give you an idea of stocks that probably have
strong fundamentals.

Msn seems to be a good source for #1.  Not sure about good sources for #2.

For the more experienced CANSLIMers on the list, how much do you use 'I' for
#1 and/or #2?  Thanks.

=================================================
Roger Tawa
http://tawacentral.net/
[One thing about paradigms: shift happens.]
[When you stop, you're done.]




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