Go to Jeff Salisbury LWGate Home Page.From: Ian <ianstm@shaw.ca>
Subject: Re: [CANSLIM] "M" - the trend
Date: Mon, 28 Apr 2003 08:41:42 -0700
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Hi Harold and Rolf: My 'mining' technique is actually very, very simple, although it does take up a lot of time during earnings season. I manually look through every reporting companies earnings data within IBD's daily 'Earnings Ups' section. (During the peak of earnings season, there can be up to 340 entries a day. Perhaps the average is about 100.) I have found this to be the most comrehensive list of reporting companies - including all the nanocaps that might just be starting a great earnings trend. I am looking for traditional CANSLIM fundamental criteria - high revenue growth, higher EPS growth and good margins. I can then follow up on these by reading individual company press releases to see if the stated outlook warrants continued optimism. Then I can look at basic price-volume charts to see strength, and resistance/support levels. Although I personally filter against excessive high valuations, I wouldn't worry about it as much if we were in a powerful secular bull market. But apart from that, I don't worry about price or volume or market cap. I do like to see RS of 60 or better starting out, (60 is all I need, as often it takes very little movement for a nanocap to jump from 60 to 80+). I put all of my interesting tickers into an alert system that primarily is looking for a big jump in average daily volume. When I get an alert, I re-examine the chart to see if there is a sustained (4 days seems to be enough) jump in ADV, and/or moves through resistance levels. Hope this helps. Cheers, Ian - ----- Original Message ----- From: Harold Josephson <hj@hjosephson.com> To: <canslim@lists.xmission.com> Sent: Friday, April 25, 2003 11:01 AM Subject: RE: [CANSLIM] "M" - the trend > Hi Ian, > > Would you consider sharing how you mine for the small caps? > > Thanks, > > Harold > > > -----Original Message----- > From: owner-canslim@lists.xmission.com > [mailto:owner-canslim@lists.xmission.com] On Behalf Of Ian > Sent: Wednesday, April 23, 2003 2:43 PM > To: canslim@lists.xmission.com > Subject: Re: [CANSLIM] "M" - the trend > > Hi all: > > I'll add a couple of more 'M' trends - strictly personal observations: > > 1. Revenues are weak this quarter, in spite of generally solid earnings. > I > use daily IBD earnings reports as the basis of assembling a stock > universe, > and one of my key criterias is 20%+ revenue growth. I am finding fewer > qualified candidates this quarter than I have in a long time, in spite > of > the abundance of great EPS growth. > > 2. The nanocap and microcap CANSLIM candidates that I follow really seem > to > be the flavour du jour of this market. I have seen many huge runs over > the > last 6 weeks. > > 3. IBD's own recent publication of the 'IBD 100' confirms my personal > belief > that WON"s volume and price minimums are arbitrary, and in fact are an > obstacle to low-risk market-beating returns. The IBD 100 is chock full > of > stocks that started showing great revenue and EPS growth while the share > price was still in the single digits, and ADV was low. > > Some examples of stocks that first made my personal radar screen as > single-digit midgets over the past few years (I'd wager that many of the > other issues that I do not follow, started from similar humble > beginnings): > > (The Number is IBD's ranking in the IBD 100) > > 1. HITK - Was a nanocap when great earnings started hitting in the > spring of > '01. Volume was non-existant. The most recent 400% surge started last > September as HITK saw a quantum gap up in ADV. > 4. SSYS - Was a low single digit 'invisible' stock just 6 months ago. > 9. TARO - I believe it was $8 pre-split, when I first noticed their > great > earnings in the summer of 2000 > 11. BCGI - was in the sinlge digits just last fall. > 12. GSOF - a $7 no-volume stock when it broke out last September on > great > EPS growth. > 20. QSII - I remember trading it from $10 in the summer of '01 > 21. CEDC - Tom can attest to the fact that I sent him an email in > real-time > when it broke out on volume at $5.20 in July '01. CEDC was so illiquid > at > the time that I would have risk being laughed off of the list just for > bringing it up. > 29. JOSB - Nifty little clothier had a qunatum volume jump early last > year > when it was at $8 > 85. USNA - A dubious industry kept me away - but great earnings > kick-started > volume from just $2 early last year. I'm still kicking myself on this > one, > as I was watching the ticker as it jumped to $3 in a heartbeat. It > exhibited > the same kind of tremendous ' never look back' characterstic that WON > always > expects from winners - even from $2! > 88. JCOM - The quantum change in volume hit just 1 year ago, at $7. > > > Cheers, > > Ian > > ----- Original Message ----- > From: Tom Worley <stkguru@bellsouth.net> > To: CANSLIM <canslim@lists.xmission.com> > Sent: Tuesday, April 22, 2003 8:05 PM > Subject: [CANSLIM] "M" - the trend > > > > worth noting that virtually every index still looks alike, but now are > all > > in a several week uptrend. In each case, they moved above on today's > > trading, on above average volume, both of the recent high spikes of > 3/21 > and > > 4/7, and are approaching the calendar year highs set back in mid > January. > > > > RS lines are trending up, as are the 50 dma. The 200 dma appears to be > > bottoming, a continuation of the short term trend will also have this > line > > trending up. The increase in trading volume is likewise significant to > me, > > as I believe a large amount of cash has been, and continues to be, on > the > > sidelines. I also suspect a lot of buying power is still tied up in > short > > positions. > > > > Earnings reports so far appear to be muted, most meeting lowered > > expectations, which suggests to me the "real expectations" were far > worse. > > > > Tom Worley > > stkguru@bellsouth.net > > AIM: TexWorley > > > > > > > > - > > -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. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
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