Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: RE: [CANSLIM] Profit taking... TIVO
Date: Mon, 7 Jul 2003 09:26:23 -0500
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Hi Ann,
Great point you made about following sell rules. I have a this "rule" that I
wrote for myself several years ago written on the front of my trading journal,
which sits on my desk in full view at all times:
"Fall in love with a product, fall in love with a company, but never fall in
love with a stock."
And welcome, Dave! When it comes to the complex world of sell rules, there are
many options one can take depending on one's goals at the time of purchase,
their risk tolerance, etc. The key, as Ann pointed out so well, is that *before*
you make the purchase, that you set out the rules of the game for that
particular position. If at the time you purchased, you made an intentional
decision to follow certain profit taking and loss protection guidelines for that
holding, then stick with them.
TIVO is a tough stock, very volatile and screaming back from a black hole of a
bottom. As a company, they have strong brand recognition and fierce customer
loyalty to the TIVO concept. However, they have the pesky problem of a very
complex licensing scheme, negative cash flow, and no earnings. If you've dug
into the financials and feel confident that they can pull off profitability,
that's one thing. However, as a CANSLIM candidate in the truest sense, they
haven't yet "proved" they are able to translate a good concept into a profitable
business that's capable of a sustainable growth rate in the future.
Katherine
-----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Ann Hollingworth
Sent: Monday, July 07, 2003 8:13 AM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] Profit taking... TIVO
Hi, Dave,
Welcome to the group. I don't post much, but identified with your attachment
to TIVO. I had/have a similar attachment to GRMN.
I have been in and out of the stock a couple of times since last fall, but
most recently was up 70% in a few months. Because I "loved" the stock and wasn't
using Sell Rules, I watched the stock drop (on heavy volume, which should have
been a Sell Signal for me), and ended up selling at a 39% profit.
Study WON's Sell Rules and try to be disciplined in your decision making.
Follow the chart (reality) with your head, rather than your heart.
Ann
----- Original Message -----
From: Dave Stem
To: canslim@lists.xmission.com
Sent: Monday, July 07, 2003 12:12 AM
Subject: [CANSLIM] Profit taking... TIVO
Hi all... I'm new to the group and also in Santa Monica... here's a question
re: profit taking directed at Katherine and other experienced investors... that
is, those who've actually had profits LOL...
I bought TIVO on the 6/2/03 breakout (8.58/share) and am sitting on a 50+%
profit in a month. Yes, it's due for a short term correction, but I love the
product and sales are doing very well. According to David Ryan (WON's disciple
from Market Wizards) I should take 30-50% off the table, with plans to reinvest
on any correctly forming base if I still like the stock. Or I could simply
place a stop under the recent support which is very strong and clear at 9.25.
I have such an attachment emotionally to this stock. I know it's wrong.
But the rapid success is clouding my judgement. The same with AMHC. I'm used
to selling at a loss, but find it hard to take a profit. Crazy. Any words of
wisdom from the vets?
Dave in Santa Monica
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<DIV><SPAN class=3D359481514-07072003>Hi Ann,</SPAN></DIV>
<DIV><SPAN class=3D359481514-07072003></SPAN> </DIV>
<DIV><SPAN class=3D359481514-07072003>Great point you made about =
following sell=20
rules. I have a this "rule" that I wrote for myself several years ago =
written on=20
the front of my trading journal, which sits on my desk in full view at =
all=20
times:</SPAN></DIV>
<DIV><SPAN class=3D359481514-07072003></SPAN> </DIV>
<DIV><SPAN class=3D359481514-07072003>"Fall in love with a product, fall =
in love=20
with a company, but never fall in love with a stock."</SPAN></DIV>
<DIV><SPAN class=3D359481514-07072003></SPAN> </DIV>
<DIV><SPAN class=3D359481514-07072003>And welcome, Dave! When it comes =
to the=20
complex world of sell rules, there are many options one can take =
depending on=20
one's goals at the time of purchase, their risk tolerance, etc. The key, =
as Ann=20
pointed out so well, is that *before* you make the purchase, that you =
set out=20
the rules of the game for that particular position. If at the time you=20
purchased, you made an intentional decision to follow certain profit =
taking and=20
loss protection guidelines for that holding, then stick with them. =
</SPAN></DIV>
<DIV><SPAN class=3D359481514-07072003></SPAN> </DIV>
<DIV><SPAN class=3D359481514-07072003>TIVO is a tough stock, very =
volatile and=20
screaming back from a black hole of a bottom. As a company, they have =
strong=20
brand recognition and fierce customer loyalty to the TIVO concept. =
However, they=20
have the pesky problem of a very complex licensing scheme, negative cash =
flow,=20
and no earnings. If you've dug into the financials and feel confident =
that they=20
can pull off profitability, that's one thing. However, as a CANSLIM =
candidate in=20
the truest sense, they haven't yet "proved" they are able to translate a =
good=20
concept into a profitable business that's capable of a sustainable =
growth rate=20
in the future.</SPAN></DIV>
<DIV><SPAN class=3D359481514-07072003></SPAN> </DIV>
<DIV><SPAN class=3D359481514-07072003>Katherine</SPAN></DIV>
<BLOCKQUOTE dir=3Dltr style=3D"MARGIN-RIGHT: 0px">
<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 </B>Ann=20
Hollingworth<BR><B>Sent:</B> Monday, July 07, 2003 8:13 =
AM<BR><B>To:</B>=20
canslim@lists.xmission.com<BR><B>Subject:</B> Re: [CANSLIM] Profit =
taking...=20
TIVO<BR><BR></FONT></DIV>
<DIV><FONT face=3D"Bookman Old Style" size=3D2>Hi, Dave,</FONT></DIV>
<DIV><FONT face=3D"Bookman Old Style" size=3D2></FONT> </DIV>
<DIV><FONT face=3D"Bookman Old Style" size=3D2>Welcome to the group. I =
don't post=20
much, but identified with your attachment to TIVO. I had/have a =
similar=20
attachment to GRMN.</FONT></DIV>
<DIV><FONT face=3D"Bookman Old Style" size=3D2></FONT> </DIV>
<DIV><FONT face=3D"Bookman Old Style" size=3D2>I have been in and out =
of the stock=20
a couple of times since last fall, but most recently was up 70% in a =
few=20
months. Because I "loved" the stock and wasn't using Sell Rules, I =
watched the=20
stock drop (on heavy volume, which should have been a Sell Signal for =
me), and=20
ended up selling at a 39% profit.</FONT></DIV>
<DIV><FONT face=3D"Bookman Old Style" size=3D2></FONT> </DIV>
<DIV><FONT face=3D"Bookman Old Style" size=3D2>Study WON's Sell Rules =
and try to=20
be disciplined in your decision making. Follow the chart (reality) =
with your=20
head, rather than your heart.</FONT></DIV>
<DIV><FONT face=3D"Bookman Old Style" size=3D2></FONT> </DIV>
<DIV><FONT face=3D"Bookman Old Style" size=3D2>Ann</FONT></DIV>
<DIV><FONT face=3D"Bookman Old Style" size=3D2></FONT> </DIV>
<BLOCKQUOTE=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=3Dcanslimdave2003@yahoo.com=20
href=3D"mailto:canslimdave2003@yahoo.com">Dave Stem</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>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Monday, July 07, 2003 =
12:12=20
AM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> [CANSLIM] Profit =
taking...=20
TIVO</DIV>
<DIV><BR></DIV>
<P>Hi all... I'm new to the group and also in Santa Monica... here's =
a=20
question re: profit taking directed at Katherine and other =
experienced=20
investors... that is, those who've actually had profits LOL... </P>
<P>I bought TIVO on the 6/2/03 breakout (8.58/share) and am sitting =
on a=20
50+% profit in a month. Yes, it's due for a short term =
correction, but=20
I love the product and sales are doing very well. According to =
David=20
Ryan (WON's disciple from Market Wizards) I should take 30-50% off =
the=20
table, with plans to reinvest on any correctly forming base if I =
still like=20
the stock. Or I could simply place a stop under the recent =
support=20
which is very strong and clear at 9.25.</P>
<P>I have such an attachment emotionally to this stock. I know =
it's=20
wrong. But the rapid success is clouding my judgement. =
The same=20
with AMHC. I'm used to selling at a loss, but find it hard to =
take a=20
profit. Crazy. Any words of wisdom from the vets?</P>
<P>Dave in Santa Monica</P>
<P>
<HR SIZE=3D1>
Do you Yahoo!?<BR><A=20
=
href=3D"http://pa.yahoo.com/*http://rd.yahoo.com/evt=3D1207/*http://promo=
.yahoo.com/sbc/">SBC=20
Yahoo! DSL</A> - Now only $29.95 per=20
month!</BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>
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Next Article (by Date): [CANSLIM] CANSLIM FAQ (Monthly Posting) "Katherine Malm"
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Top of Thread: Re: [CANSLIM] Profit taking... TIVO "Ann Hollingworth"
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