RE: [CANSLIM] LF

From: "Katherine Malm" <kmalm@earthlink.net>
Subject: RE: [CANSLIM] LF
Date: Thu, 3 Jul 2003 08:08:20 -0500

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Hi Dave,

Interesting observation on what has been moving. I also noticed an
interesting phenomenon that plays into your comments. That is, starting in
February and into about mid-April, the early movers tended to have strong
fundamentals. As the rally has worn on, I've noticed that lesser-quality
stocks (fundamentally) have been the ones breaking out. What's not really
clear to me is whether after such a long Bear that this is what one would
expect to see, i.e., at last most stocks are tending to move up, indicating
more money coming back into the market for good, or whether that's just a
sign of more bubbilicious behavior left over from the original brew. That
is, people are rushing into anything in sight just because they think
they've missed the boat and will get right back out at the least sign of
weakness. So hard to tell, but thankfully we have sell rules that take the
guess work out of it!

Katherine

- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Davellil5@aol.com
Sent: Thursday, July 03, 2003 5:51 AM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] LF


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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