RE: [CANSLIM] AAII letter to the editor

From: "John Solarno" <workvirt@workvirtual.com>
Subject: RE: [CANSLIM] AAII letter to the editor
Date: Sun, 13 Jul 2003 23:53:21 -0400

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Yes indeed, his beef seemed to be limited to IBD, not the CANSLIM
methodology. =20

And Katherine is correct that people should not look to IBD to "predict"
what is about to happen, anymore than any newspaper can predict what's =
going
to happen next week.  That's why it's called "reporting" and not
"prognostication."=20

However, I recently hauled six months of back issues of IBD off to the
landfill for recycling. I remember seeing issue after issue with page =
one
lists of "leading stocks," most of which were shortly soon felled by the =
"7%
rule."

That's obviously not IBD's fault, but I must say that I found the =
overall
tone of IBD over these last two tough years to be much more upbeat than
facts would warrant.

John=20


- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com] On Behalf Of Gene Ricci
Sent: Sunday, July 13, 2003 11:11 PM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] AAII letter to the editor

John,=A0 when I read the article I felt that the writer's issue was with =
WON
and IBD,=A0not a criticism of CANSLIM per se. Is that your take?
=A0
While WON=A0may have announced the beginning of the bear in March of =
2000 ....
folks ask what did he=A0do after that? These same=A0folks have little =
regard for
WON, especially those that quote his full page letter,=A0published =
in=A0April or
May=A02001 when he declared the bear to be over.... I personally have an =
issue
with IBD's failure to alert their=A0followers that CANSLIM only works in =
an
uptrending market - for most investors. WON's lack of=A0shorting
tools/techniques is another area of personal criticism.=A0 I still =
bite=A0my lip
when I think of IBD telling me to practice for the day of the return of
CANSLIM versus getting off my butt and learning how to short....=20
=A0
Gene
=A0
=A0
=A0
=A0
- ----- Original Message -----=20
From: John Solarno=20
To: canslim@lists.xmission.com=20
Sent: Sunday, July 13, 2003 8:40 PM
Subject: [CANSLIM] AAII letter to the editor

I just received my July copy of the AAII Journal (published by the =
American
Association of Individual Investors.)=A0 In the letter to the editor =
section,
there is a blistering objection to an article in the June issue by =
William
O'Neill called "The Big Picture: How to Determine the Stock Market's
Direction."

The letter, written by a Jon A. Ford, says that O'Neil acknowledged, in =
his
June article, that the bear market began in March of 2000. "What he =
doesn't
say," writes Ford, "is that his Investor's Business Daily failed to =
notify
investors that it was time to go into cash until February 13, 2003 - =
long
after a large chunk of investment savings had gone up in smoke.

"O'Neil's 'cut your losses at 7% rule' did not help," Ford continues,
"because for almost the entire duration of the bear market, the
encouragement was to continue buying newly identified stocks with sale
proceeds. This effectively sets up a series of 7% to 8% stock market
losses."

Ford reminds readers that "as good as CANSLIM and related O'Neil media =
may
be, the bottom line is for people to buy and sell stocks - and surpass
others- but using O'Neil and company's merchandise."

"Finally, after three years and 25% to 35% or more annual deterioration =
in
investors' stock portfolios," says Ford, "Investor's Business Daily =
finally
advised readers to go to cash - a recommendation that, if acted upon, =
would
have effectively crystallized losses and kept investors from =
participating
in the market increases only a month later."

Ouch!=A0=20

I thought I'd throw this out to the group for comment.

John Solarno





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