Re: [CANSLIM] Low Volume Pullback Below Pivot

From: Spencer48@aol.com
Subject: Re: [CANSLIM] Low Volume Pullback Below Pivot
Date: Sun, 20 Jul 2003 14:23:41 EDT

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Dave & John:

     I agree with Katherine.  Putting money in BE would be a risky venture,=20
under the CANSLIM protocol. =20

     Not only is its earnings for the last 5 years volatile (to say the=20
least), but there is too much overhead resistance to-in my opinion-make it=20
acceptable (even though it has made a nice base with a rising 200 and 50 DMA=
. =20
Additonally, the volume on its bottoms are nice and the price of the stock i=
n=20
relation to its 2 Moving Averages bodes that the stock is short term strong)=
.

     However, the downside overtakes the upsides: Specifically, the number o=
f=20
funds (according to DGO) investing in BE is declining.  Also, the Mgt/Fund=20
ratio (funds hold 27% of the stock, while management holds only 1%)  is 27.=20=
=20
And, as I mentioned, the earnings are anything but CANSLIMMISH. =20

     Although, the industry is fine, to me this stock seems a laggard in its=
=20
industry.  At the most, I believe it will go up to 12=BD before pausing, and=
=20
with the weakness that the Mkt. appears to be signaling, the pause in BE cou=
ld=20
become a freefall back to its 2nd bottom of 6.

jans



In a message dated 7/18/2003 12:24:28 PM Eastern Daylight Time,=20
kmalm@earthlink.net writes:

<< While BE provided entry points closer to its bottom, I don't think it's
 provided a comfortable CANSLIM intermediate/term entry point just yet.
 Entries on pullbacks would then be a riskier venture, though highly do-able=
.
 If willing to take on the risk, I would look to the general price action
 itself to find a pullback entry much closer to the bottom of a logical
 support area if entering while the stock's still forming a more convincing
 RHS. If the market rolls over, then an entry here makes it easier to
 determine if the stock is going to roll over by itself or in response to
 generally weak market action.
  >>

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