Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: RE: [CANSLIM] Reverse Due Diligence: SCHN
Date: Tue, 3 Jun 2003 17:22:11 -0500
Previous Article (by Date): Fw: [CANSLIM] breakouts to come "Ann Hollingworth"
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This is a multi-part message in MIME format. - ------=_NextPart_000_003A_01C329F4.AB13B3A0 Content-Type: text/plain; charset="us-ascii" Content-Transfer-Encoding: 7bit Hi Richard, Depending on your mining strategy, you may have seen this stock earlier in the year, making new 52 week highs and sporting a non-laggard RSRank>=70. It's hard to say what the EPS numbers were at the time, as back data isn't available. The problem, however, is that at the time, it traded at about 10-11K average daily volume. Depending on your personal cutoff point, it may have been running below your radar. The IBD often suggests a $12-$15 and 100,000 share minimum, and if this is your cutoff, then you wouldn't have seen it. Even as it was printing high volume up days, the IBD might not have noted it in WTBMIF and other spots simply because they, too, use a cutoff for price and ADV when reporting stock movement. This price/ADV cutoff is wildly inconsistent, even within the paper. Sometimes, the minimum is set at $10, other times as high as $20. If you perform top-down mining based on "top industries" you would also have missed the stock's individual strength, as the industry rank was quite low at the time: http://www.cwhcharts.com/katherine/MetalPrdsPipeFab053003.JPG That's why I personally prefer a bottoms-up mining strategy, looking for strength in individual stocks as they lead the industry up. I look to the industry itself and to other stocks in the industry to ascertain the risk the breakout will succeed. If you mine solely on fundamentals, then you might not have put an eye on this until late February, when they came out of a funk and posted good EPS growth for only the 2nd quarter in a row. Again, if your ADV cutoff was set above 10-11K, then you would've missed it once again. The main thing is that you would've had to have this in your radar earlier in the year to take advantage of the late February breakout. Technically, you might have noticed it make new highs in January and again February, as it set up to break out of its base. See it at: http://www.cwhcharts.com/katherine/SCHNWkly060303.JPG If it didn't cross your radar until later, you would have had to take a pullback entry as it faded to the 50dMA Katherine -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Richard Sent: Tuesday, June 03, 2003 10:53 AM To: canslim@lists.xmission.com Subject: [CANSLIM] Reverse Due Diligence: SCHN It looks like this really started to run about a week ago, particularly since it pierced its 52-week high. I had put it on a watch list based on IBD 100 mention, but it really stood out by holding up the last couple of days while the market's been shaky. What might I have noticed two weeks ago if I was looking at the right things? Is this a multi-year CWH? Looks like there was a positive earnings surprise in early April, but it didn't take off then. If it's a proper CWH, did the earnings report bump form the right rim of the cup before the handle shook out? Thanks, Richard - ------------------------------------------------------------------------------ Do you Yahoo!? Free online calendar with sync to Outlook(TM). - ------=_NextPart_000_003A_01C329F4.AB13B3A0 Content-Type: text/html; charset="us-ascii" Content-Transfer-Encoding: quoted-printable <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=3DContent-Type content=3D"text/html; = charset=3Dus-ascii"> <META content=3D"MSHTML 6.00.2800.1170" name=3DGENERATOR></HEAD> <BODY> <DIV><SPAN class=3D765115621-03062003>Hi Richard,</SPAN></DIV> <DIV><SPAN class=3D765115621-03062003></SPAN> </DIV> <DIV><SPAN class=3D765115621-03062003>Depending on your mining strategy, = you may=20 have seen this stock earlier in the year, making new 52 week highs and = sporting=20 a non-laggard RSRank>=3D70. It's hard to say what the EPS numbers = were at the=20 time, as back data isn't available. The problem, however, is that at the = time,=20 it traded at about 10-11K average daily volume. Depending on your = personal=20 cutoff point, it may have been running below your radar. The IBD often = suggests=20 a $12-$15 and 100,000 share minimum, and if this is your cutoff, then = you=20 wouldn't have seen it. Even as it was printing high volume up days, the = IBD=20 might not have noted it in WTBMIF and other spots simply because they, = too, use=20 a cutoff for price and ADV when reporting stock movement. This price/ADV = cutoff=20 is wildly inconsistent, even within the paper. Sometimes, the minimum is = set at=20 $10, other times as high as $20.</SPAN></DIV> <DIV><SPAN class=3D765115621-03062003></SPAN> </DIV> <DIV><SPAN class=3D765115621-03062003>If you perform top-down mining = based on "top=20 industries" you would also have missed the stock's individual strength, = as the=20 industry rank was quite low at the time:</SPAN></DIV> <DIV><SPAN class=3D765115621-03062003><A=20 href=3D"http://www.cwhcharts.com/katherine/MetalPrdsPipeFab053003.JPG">ht= tp://www.cwhcharts.com/katherine/MetalPrdsPipeFab053003.JPG</A></SPAN></D= IV> <DIV><SPAN class=3D765115621-03062003></SPAN> </DIV> <DIV><SPAN class=3D765115621-03062003>That's why I personally prefer a = bottoms-up=20 mining strategy, looking for strength in individual stocks as they lead = the=20 industry up. I look to the industry itself and to other stocks in the = industry=20 to ascertain the risk the breakout will succeed.</SPAN></DIV> <DIV><SPAN class=3D765115621-03062003></SPAN> </DIV> <DIV><SPAN class=3D765115621-03062003>If you mine solely on = fundamentals, then you=20 might not have put an eye on this until late February, when they came = out of a=20 funk and posted good EPS growth for only the 2nd quarter in a row. = Again, if=20 your ADV cutoff was set above 10-11K, then you would've missed it once=20 again.</SPAN></DIV> <DIV><SPAN class=3D765115621-03062003></SPAN> </DIV> <DIV><SPAN class=3D765115621-03062003>The main thing is that you = would've had to=20 have this in your radar earlier in the year to take advantage of the = late=20 February breakout. Technically, you might have noticed it make new highs = in=20 January and again February, as it set up to </SPAN><SPAN=20 class=3D765115621-03062003><SPAN class=3D765115621-03062003>break out of = its base.=20 </SPAN></SPAN><SPAN class=3D765115621-03062003><SPAN = class=3D765115621-03062003>See=20 it at:</SPAN></DIV> <DIV> <DIV><SPAN class=3D765115621-03062003><A=20 href=3D"http://www.cwhcharts.com/katherine/SCHNWkly060303.JPG">http://www= .cwhcharts.com/katherine/SCHNWkly060303.JPG</A></SPAN></DIV> <DIV><SPAN class=3D765115621-03062003></SPAN> </DIV> <DIV><SPAN class=3D765115621-03062003>If it didn't cross your radar = until later,=20 you would have had to take a pullback entry as it faded to the 50dMA=20 </SPAN></DIV></SPAN></DIV> <DIV><SPAN class=3D765115621-03062003></SPAN> </DIV> <DIV><SPAN class=3D765115621-03062003></SPAN><SPAN=20 class=3D765115621-03062003>Katherine</SPAN></DIV> <DIV><SPAN class=3D765115621-03062003></SPAN> </DIV> <DIV><SPAN class=3D765115621-03062003></SPAN> </DIV> <BLOCKQUOTE> <DIV class=3DOutlookMessageHeader dir=3Dltr align=3Dleft><FONT = face=3DTahoma=20 size=3D2>-----Original Message-----<BR><B>From:</B>=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]<B>On Behalf Of=20 </B>Richard<BR><B>Sent:</B> Tuesday, June 03, 2003 10:53 = AM<BR><B>To:</B>=20 canslim@lists.xmission.com<BR><B>Subject:</B> [CANSLIM] Reverse Due = Diligence:=20 SCHN<BR><BR></FONT></DIV> <P>It looks like this really started to run about a week ago, = particularly=20 since it pierced its 52-week high. I had put it on a watch list based = on IBD=20 100 mention, but it really stood out by holding up the last couple of = days=20 while the market's been shaky.</P> <P>What might I have noticed two weeks ago if I was looking at the = right=20 things? Is this a multi-year CWH? Looks like there was a positive = earnings surprise in early April, but it didn't take off then. If it's = a=20 proper CWH, did the earnings report bump form the right rim of the cup = before=20 the handle shook out? </P> <P>Thanks,<BR>Richard</P> <P> <HR SIZE=3D1> Do you Yahoo!?<BR>Free <A=20 = href=3D"http://us.rd.yahoo.com/mail_us/tag/*http://calendar.yahoo.com">on= line=20 calendar</A> with sync to Outlook(TM).</BLOCKQUOTE></BODY></HTML> - ------=_NextPart_000_003A_01C329F4.AB13B3A0-- - - - -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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