Re: [CANSLIM] LF

From: Davellil5@aol.com
Subject: Re: [CANSLIM] LF
Date: Thu, 3 Jul 2003 07:51:12 EDT

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My general impression is that, early in the present up-move of the market 
(April, May), the stocks that moved up along their right  sidewalls were the more 
exciting New America stocks.  Those are now post-breakout and losing some 
steam.

Now the somewhat less exciting New America stocks, like LF, are climbing 
their right sidewalls and approaching breakouts or have had very recent breakouts. 
 I suspect that this group of stocks will enjoy slower climbs than the first 
group.

The logic may be that in an up-move, investors first chase the glamorous 
stocks, then fall back to the more pedestrian ones.  Maybe when investors have 
finished exploiting the pedestrian New Americas, they'll begin chasing the 
household names, like MSFT, GE, IBM, etc., and that will signalm the temporary end 
of this up-blip. 

All of these New America stocks that have been getting chased have, in 
common, good CANSLIM numbers.  Some don't have good histories, but are great 
turn-ups or turn-arounds.  Some have good histories too.  But most have good 
near-term EPS growth prospects.  I think that the CANSLIM numbers separate the sheep 
from the goats most of the time, i.e., charts are the entry point, but due 
diligence is the safeguard.

Just some general observations to add perspective. 

Dave


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