Go to Jeff Salisbury LWGate Home Page.From: "rchodes" <rchodes@charter.net>
Subject: Re: [CANSLIM] Question about 5% rule
Date: Wed, 7 May 2003 21:36:56 -0700
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Ian: Thanks. That question was motivated by my interest in TPTH. Just =
as you suggested, good news came out before the open on Tues and it =
gapped up from about $4.20 to $5.50 on the open. This is not a strict =
CANSLIM stock since historical earnings are negative and the price was =
too low for WON, but it has some interesting CANSLIM characteristics. I =
decided it was too extended after the gap to buy but it rose again on =
WEDS 15%. =20
Bob
----- Original Message -----=20
From: Ian=20
To: canslim@lists.xmission.com=20
Sent: Wednesday, May 07, 2003 9:37 AM
Subject: Re: [CANSLIM] Question about 5% rule
Hi Bob:
I troll in these waters. For sub $10 stocks, I try to buy within 40 =
cents of the trigger point, but I'm flexible on the rule. A lot of it =
has to do with how technically extended the stock is at the breakout =
point. If its been a nice flatline base, you have a higher chance of =
being forced to 'pay up' greater than 5%, as the stock will probably gap =
away. If the stock has had a strong move up to the trigger point, it =
will be much more likely to pullback near the trigger point, and allow =
you to get in near 5%.
Ian
----- Original Message -----=20
From: rchodes=20
To: Canslim=20
Sent: Monday, May 05, 2003 8:00 PM
Subject: [CANSLIM] Question about 5% rule
I have a question about the rule not to buy a stock that has moved =
up in price more than 5% above the pivot point. This rule is easy to =
follow if the stock price is above $15. I know that some of you, such =
as Tom, follow small caps that may have a price below $10, perhaps in =
the $5 range. Well 5% of $5 is .25 and it's pretty hard to jump onto =
that sucker before it goes up .25 from the pivot point.
One can always cheat and buy before the anticipated breakout. Or =
you can expand the 5% rule to maybe 15% or so. To those of you who =
troll in these waters, what do you? Thanks.
Bob Hodes
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<DIV><FONT face=3DArial size=3D2>Ian: Thanks. That question =
was=20
motivated by my interest in TPTH. Just as you suggested, good news =
came=20
out before the open on Tues and it gapped up from about $4.20 to $5.50 =
on the=20
open. This is not a strict CANSLIM stock since historical earnings =
are=20
negative and the price was too low for WON, but it has some interesting =
CANSLIM=20
characteristics. I decided it was too extended after the gap to =
buy but it=20
rose again on WEDS 15%. </FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Bob</FONT></DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Dianstm@shaw.ca href=3D"mailto:ianstm@shaw.ca">Ian</A> =
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Wednesday, May 07, 2003 =
9:37=20
AM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] Question =
about 5%=20
rule</DIV>
<DIV><BR></DIV>
<DIV><FONT size=3D2>Hi Bob:</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=3D2>I troll in these waters. For sub $10 stocks, I try =
to buy=20
within 40 cents of the trigger point, but I'm flexible on the rule. A =
lot of=20
it has to do with how technically extended the stock is at the =
breakout point.=20
If its been a nice flatline base, you have a higher chance of being =
forced to=20
'pay up' greater than 5%, as the stock will probably gap away. If the =
stock=20
has had a strong move up to the trigger point, it will be much more =
likely to=20
pullback near the trigger point, and allow you to get in near =
5%.</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=3D2>Ian</FONT></DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV>----- Original Message ----- </DIV>
<BLOCKQUOTE=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Drchodes@charter.net =
href=3D"mailto:rchodes@charter.net">rchodes</A>=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
title=3Dcanslim@lists.xmission.com=20
href=3D"mailto:canslim@lists.xmission.com">Canslim</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Monday, May 05, 2003 =
8:00=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> [CANSLIM] Question =
about 5%=20
rule</DIV>
<DIV><BR></DIV>
<DIV><FONT face=3DArial size=3D2>I have a question about the rule =
not to buy a=20
stock that has moved up in price more than 5% above the pivot =
point. =20
This rule is easy to follow if the stock price is above $15. I =
know=20
that some of you, such as Tom, follow small caps that may have a =
price below=20
$10, perhaps in the $5 range. Well 5% of $5 is .25 and it's =
pretty=20
hard to jump onto that sucker before it goes up .25 from the pivot=20
point.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>One can always cheat and buy before =
the=20
anticipated breakout. Or you can expand the 5% rule to maybe =
15% or=20
so. To those of you who troll in these waters, what do =
you? =20
Thanks.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Bob=20
Hodes</FONT></DIV></BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>
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