Re: [CANSLIM] Break outs or pullbacks

From: Davellil5@aol.com
Subject: Re: [CANSLIM] Break outs or pullbacks
Date: Mon, 14 Jul 2003 09:05:51 EDT

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Gene, we have a good example of possible entry on pullback that is now being 
mentioned in these CANLIM emails -- SFCC.

After a triple-bottomed cup from February to June (with each bottom lower 
than the last), there was a handle for 15 trading days with a pivot around 19.50, 
until the stock broke out on July 8th with an upgap on over 4 times average 
volume, closing around 22, and hanging between 22 and 23.50 since then, with 
volume declining from the breakout day.

Since the breakout was a strong upgap, the O'Neil "Don't chase over 5% rule" 
doesn't apply.  Should we buy now?

The numbers show a strong turn-up in the Company's growth.  They're in the 
niche business of  contracting to run clinical tests on new drugs for FDA 
approval.  It's a small business with little Fund or broker interest.

But, if one wanted to buy SFCC, should he do so now?  Or wait for the 
pullback (which I've observed after most breakouts this year).

Buy -- or patiently wait for the pullback?

Dave 

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