Re: [CANSLIM] You mijght want to check out CVU

From: "rchodes" <rchodes@charter.net>
Subject: Re: [CANSLIM] You mijght want to check out CVU
Date: Mon, 30 Jun 2003 23:16:23 -0700
Previous Article (by Subject): Re: [CANSLIM] You mijght want to check out CVU "Chris Jones"
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Chris:  I mentioned CVU not as a recommendation but rather to spur a =
discussion on the pros and cons of purchasing low priced stocks.  WON =
might say the stock is low priced for a reason but if the stock chart =
otherwise meets CANSLIM tecnhical criteria, it should=20
be worthy of discussion or at least some attention.  Certainly, it would =
be difficult for a stock to be this low priced and to have a long track =
record of earning and revenue increases.  Also, CVU is a real microcap =
(about $45M market capitalization) and that makes it inherently risky =
and makes me nervous.  Seems that these low priced stocks with small =
market floats can go south quickly and you would not be able to get out =
in time to protect your principle.  But there should be some =
CANSLIM-like strategy that might work.  But maybe not; maybe the risk to =
reward ratio will always be unfarvorable.  One of my points is that this =
should be an empirical question and I wonder if it's been studied.

Bob Hodes
- ----- Original Message -----=20
  From: Chris Jones=20
  To: canslim@lists.xmission.com=20
  Sent: Sunday, June 29, 2003 11:13 PM
  Subject: Re: [CANSLIM] You mijght want to check out CVU


  CVU certainly does have a nice chart pattern - though I am also only a =
novice.  It has 2.3% institutional ownership - which is toward the low =
end of the range - yet still acceptable since more is not necessarily =
better.  The fundamentals aren't the best, but according to =
CwHCharts.com (I think), fundamentals is often a lagging indicator.

  I think I'm gonna take a shot at this one.  Anyone else have an =
opinion?

  Chris
    ----- Original Message -----=20
    From: Bob Hodes=20
    To: canslim@lists.xmission.com=20
    Sent: Sunday, June 29, 2003 8:44 PM
    Subject: [CANSLIM] You mijght want to check out CVU


    The American Assn of Individual Investors provides, to subscribers, =
stock screens that model the stock selection strategies of various money =
managers including WON.   The IBD website recently had a link to the =
AAII article on CANSLIM.  I haven't checked recently to see if that link =
is still available.

    I just reviewed the AAII Canslim selections for this month and one =
chart looked pretty interesting.  Nice CWH, handle is sloping downward, =
volume dried up at the trough and in the handle, breakout on Friday on =
well above average volume.  So I send this along for your inspection. =20

    The price is too low to meet strict IBD criteria but the chart looks =
nice to the eyes of this novice CANSLIMER. You can check out the =
fundamentals yourself. =20

    I mention this stock b/c I'm trying to figure out how well CANSLIM =
does for below $10-15 stocks.  I've have only followed a few so far =
(AMI, ORCC, MRGE, and now CVU) and I was wondering if anyone has =
reported empirical data on these low priced stocks.  I assume WON's =
reticence with low priced stocks has to do with their lack of =
institutional ownership; is that correct and perhaps liquidity concerns. =
 Is that true?

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<DIV><FONT face=3DArial size=3D2>Chris:&nbsp; I mentioned CVU not as a=20
recommendation but rather to spur a discussion on the pros and cons of=20
purchasing low priced stocks.&nbsp; WON&nbsp;might say the stock is low =
priced=20
for a reason&nbsp;but if the stock chart otherwise meets CANSLIM =
tecnhical=20
criteria, it should </FONT></DIV>
<DIV><FONT face=3DArial size=3D2>be worthy of dis</FONT><FONT =
face=3DArial=20
size=3D2>cussion or at least some attention.&nbsp; Certainly, it would =
be=20
difficult for a stock to be this low priced and to have a long track =
record of=20
earning and revenue increases.&nbsp; Also, CVU is a real microcap (about =
$45M=20
market capitalization) and that makes it inherently risky and makes me=20
nervous.&nbsp; Seems that these low priced stocks with small market =
floats can=20
go south quickly and you would not be able to get out in time to protect =
your=20
principle.&nbsp; But there should be some CANSLIM</FONT><FONT =
face=3DArial=20
size=3D2>-l</FONT><FONT face=3DArial size=3D2>ike strategy that might =
work.&nbsp; But=20
maybe not; maybe the risk to reward ratio will always be =
unfarvorable.&nbsp; One=20
of my points&nbsp;</FONT><FONT face=3DArial size=3D2>is that this should =
be an=20
empirical question and I wonder if it's been studied.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial size=3D2>Bob Hodes</FONT></DIV>
<DIV>----- Original Message ----- </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=20
  style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
  <A title=3DSwingKid104@attbi.com =
href=3D"mailto:SwingKid104@attbi.com">Chris=20
  Jones</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> Sunday, June 29, 2003 =
11:13=20
PM</DIV>
  <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] You =
mijght want to=20
  check out CVU</DIV>
  <DIV><BR></DIV>
  <DIV><FONT face=3DArial size=3D2>CVU certainly does have a nice chart =
pattern -=20
  though I am also only a novice.&nbsp; It has 2.3% institutional =
ownership -=20
  which is toward the low end of the range - yet still acceptable since =
more is=20
  not necessarily better.&nbsp; The fundamentals aren't the best, but =
according=20
  to CwHCharts.com (I think), fundamentals is often a lagging=20
  indicator.</FONT></DIV>
  <DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
  <DIV><FONT face=3DArial size=3D2>I think I'm gonna take a shot at this =
one.&nbsp;=20
  Anyone else have an opinion?</FONT></DIV>
  <DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
  <DIV><FONT face=3DArial size=3D2>Chris</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=3Drchodes@charter.net =
href=3D"mailto:rchodes@charter.net">Bob Hodes</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@lists.xmission.com</A>=
=20
    </DIV>
    <DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Sunday, June 29, 2003 =
8:44=20
    PM</DIV>
    <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> [CANSLIM] You mijght =
want to=20
    check out CVU</DIV>
    <DIV><BR></DIV>
    <DIV><FONT face=3DArial size=3D2>The American Assn of Individual =
Investors=20
    provides, to subscribers, stock screens that model the stock =
selection=20
    strategies of various money managers including&nbsp;WON.&nbsp;&nbsp; =
The IBD=20
    website recently had a link to the AAII article on CANSLIM.&nbsp; I=20
    haven't&nbsp;checked recently to see if that link is still=20
    available.</FONT></DIV>
    <DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
    <DIV><FONT face=3DArial size=3D2>I&nbsp;just reviewed the AAII =
Canslim=20
    selections for this month&nbsp;and one chart looked pretty=20
    interesting.&nbsp; Nice CWH, handle is sloping downward, volume =
dried up at=20
    the trough and in the handle, breakout on Friday on well above =
average=20
    volume.&nbsp; So I send this along for your inspection.&nbsp; =
</FONT></DIV>
    <DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
    <DIV><FONT face=3DArial size=3D2>The price is too low to meet strict =
IBD=20
    criteria but the chart looks nice to the eyes of this novice =
CANSLIMER. You=20
    can check out the fundamentals yourself.&nbsp; </FONT></DIV>
    <DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
    <DIV><FONT face=3DArial size=3D2>I mention this stock b/c I'm trying =
to figure=20
    out how well CANSLIM does for below $10-15 stocks.&nbsp; I've have =
only=20
    followed a few so far (AMI, ORCC, MRGE, and now CVU) and I was =
wondering if=20
    anyone has reported empirical data on these low priced stocks.&nbsp; =
I=20
    assume WON's reticence with low priced stocks has to do with their =
lack of=20
    institutional ownership; is that correct and perhaps liquidity=20
    concerns.&nbsp; Is that=20
true?</FONT></DIV></BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>

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