Re: [CANSLIM] Any reason why I should not buy APPX?

From: Spencer48@aol.com
Subject: Re: [CANSLIM] Any reason why I should not buy APPX?
Date: Thu, 15 May 2003 12:19:52 EDT

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Tomas:

     I've been following this stock also.  Not only are the fundies 
excellent, but the chart formation is nice also.  Moreover, there is a high 
short interest; high ADV; and low float (relative to these two).  

     The last point says to me  that once the stock takes off, the shorts 
will be covering, and because of the low float and high ADV, there will be a 
short squeeze, ie. the shorts will be competing among themselves to buy-and 
there is only so much stock available.  This will lead to the stock gapping 
up, most probably.

     But I am not buying now.  And this is why:  As I see it on the weekly, 
and even the daily, the stock has not BO yet on a closing basis.  The RSL 
(relative strength line) shows that weakness is to continue (it hasn't gone 
to a new high compared with the stock's RSL (relative strength line) when 
APPX formed its left lip).

     Coupled this with the fact that the market seems like it is very OB 
right now (however, I must admit, if APPX had BO on a closing basis with anew 
high in the RSL-I'd buy it).  This says to me that APPX will form a handle as 
the market corrects (probably to its uptrending 50).  

     (If I were a conspiracy theorist, I'd say that management is trying to 
manipulate the stock, or perhaps the funds know something (For example, that 
APPX's product (s) are for some reason  going to lead to an earnings bust))

jans

In a message dated 5/15/2003 12:10:45 AM Eastern Daylight Time, 
tomas986@yahoo.com writes:

<< APPX has very good fundies.  It has 15.13/18 from
 Katherine's CE (8.80/11 CEF and 6.33/7 CET), not too
 shabby..... Any reason why I should
not buy it tomorrow?>>

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