Go to Jeff Salisbury LWGate Home Page.From: "Gene Ricci" <genr@swbell.net>
Subject: [CANSLIM] *** OFF TOPIC *** Anti CANSLIM ** Hit Delete
Date: Tue, 22 Jul 2003 18:11:38 -0500
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This is a multi-part message in MIME format. - ------=_NextPart_000_04C6_01C3507C.B1F0F030 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable A couple of days ago someone asked about VectorVest and CANSLIM. Here's = a person that thinks using VV is better than looking for CS candidates. = I removed his name. The following was posted on one of the VectorVest = Yahoo Groups this morning (by long time VV user).=20 Gene Anti CANSLIM =20 Much has been written about William O'Neil's stock selection and market = timing. Glowing reports of great results and performances overshadow = the errors in the system that prevent people from being successful = investors. Here's my opinion of the Hollywood Huckster's system. =20 1) William O'Neil has only one system of strategy - buying stocks = on breakouts. Some people claim that this is the holy grail, but others = have found that they're buying at the top of the stock, not the bottom = of a great beginning. My personal experience has been that after I buy = at a pivot point, the stock then plunges at least 20% so I have to dump = the stock and wait until my account is sufficient to buy with. I have = destroyed my account totally at least three times since beginning with = the system. I used CANSLIM from 1988 to 1998, and had only one good = year, 1991, when I matched the S&P. All other years I lost money. On = the contrary, VectorVest has an unlimited number of strategies that can = be implemented. =20 2) William O'Neil has no idea as to when to sell a stock. In the = book, How to Make Money in Stocks, he outlines 30 potential sell points. = What I gather is that HE DOESN'T KNOW!! =20 =20 3) William O'Neil suggest that one should buy stocks only priced = above 12 or 15 dollars a share. Sorry, fella, but penny stock = strategies are sound, as Zach's Zoomers has been a great success. =20 4) William O'Neil says you need to buy low cap stocks. What this = means is that you buy stocks with 1 million float or so. This is more = dangerous than ever, as the slightest activity of selling can sent the = stock crashing. =20 5) In Investor's Business Daily, you can find nothing that matches = VectorVest's Relative Safety feature. Basically, IBD's highly touted = stocks are a piece of trash that made it to the top rankings by earnings = increase alone. =20 6) The Relative Strength and Earnings Per Share rankings are of no = use when trying to find quality stocks. VectorVest's Relative Timing is = far superior as it gives an accurate picture of what the stock is doing = in recent performance. IBD's ranking implies there are a certain number = of stocks at 99, the same at 98 etc. Since the ranking is relative, you = can't tell if the market is going under accumulation or distribution. =20 7) Chart formation analysis is the bastion of IBD's system. = However, you take a look at some of the formations and you will swear = there is no rhyme or reason to buying the kind of stocks he suggests. = Chart formations are not automatic and do not guarantee results. The = cup and handle formation is not a trip to financial freedom as WON = suggests. 8) William O'Neil has no safe strategy with his system. Basically, = if you want to buy quality large cap stocks, you're out of luck. WON = ran a mutual fund in the 1960's, and he was first one year then last the = next. WON likes volatile stocks that move up and down fast for a wild = ride. Sustainable results? Not likely. Also whiz kid David Ryan ran a = mutual fund in the 1999's called the New USA Growth Fund. His = performance was mediocre and the fund was sold after 5 years. David = probably gave up as he wasn't getting spectacular results as well as he = got in his contest results in the 1980's. =20 9) The volume of chart formation reading makes CANSLIM a burden of = beast instead of a easy reference that VV gives. With VV, at the touch = of a button, I get 10 potential purchases. With CANSLIM I have to wade = through tons of material to reach my 7 stocks. It's so much work you = can't give any time to your life. =20 10) William O'Neil suggest to buy one or two stocks if you have $5K to = $10K and progress up to a 5 stock portfolio. Most beginning investors = have a limited amount of money and the burden of picking big winners is = very difficult. If they strike out on one or two stocks, how are they = to regain confidence? On the contrary, VectorVest suggests buying 10 = stocks at a time to diversify. CANSLIM does not diversify, in fact id = concentrates into a few stocks. I would not stray from legendary stock = guru John Templeton's way of diversification. =20 11) Try to find a short strategy like VectorVest has and you'll have a = hard time finding one in IBD. Because William O'Neil has been snuffed = out in more bear markets than he can remember. He tried to do it with = chart formations and it's not the way to go with shorts. VectorVest is = right on target with short strategies, and it's at the touch of a = button. =20 12) CANSLIM - CAN'T SWIM XXXXX - ------=_NextPart_000_04C6_01C3507C.B1F0F030 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML xmlns:o =3D "urn:schemas-microsoft-com:office:office"><HEAD> <META http-equiv=3DContent-Type content=3D"text/html; = charset=3Diso-8859-1"> <META content=3D"MSHTML 6.00.2800.1106" name=3DGENERATOR> <STYLE></STYLE> </HEAD> <BODY bgColor=3D#ffffff> <DIV><FONT face=3D"Comic Sans MS">A couple of days ago someone asked = about=20 VectorVest and CANSLIM. Here's a person that thinks using VV is better = than=20 looking for CS candidates. I removed his name. The following was = posted on=20 one of the VectorVest Yahoo Groups this morning (by long time VV=20 user).</FONT><FONT face=3D"Times New Roman"><FONT face=3D"Comic Sans = MS">=20 </FONT></FONT></DIV> <DIV><FONT face=3D"Times New Roman"><FONT=20 face=3D"Comic Sans MS"></FONT></FONT> </DIV> <DIV><FONT face=3D"Times New Roman"><FONT face=3D"Comic Sans = MS">Gene</FONT></DIV> <DIV> <P class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt"><FONT=20 face=3D"Times New Roman"></FONT> </P> <P class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt"><FONT face=3D"Times = New Roman">Anti=20 CANSLIM</FONT></P> <P class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt"><FONT=20 face=3D"Times New Roman"> <o:p></o:p></FONT></P> <P class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt"><FONT face=3D"Times = New Roman">Much=20 has been written about William O=92Neil=92s stock selection and market = timing.<SPAN=20 style=3D"mso-spacerun: yes"> </SPAN>Glowing reports of great = results and=20 performances overshadow the errors in the system that prevent people = from being=20 successful investors.<SPAN style=3D"mso-spacerun: yes"> = </SPAN>Here=92s my=20 opinion of the Hollywood Huckster=92s system.</FONT></P> <P class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt"><FONT=20 face=3D"Times New Roman"> <o:p></o:p></FONT></P> <P class=3DMsoNormal=20 style=3D"MARGIN: 0in 0in 0pt 0.5in; TEXT-INDENT: -0.25in; mso-list: l0 = level1 lfo1; tab-stops: list .5in"><FONT=20 face=3D"Times New Roman">1)<SPAN=20 style=3D"FONT: 7pt 'Times New Roman'"> =20 </SPAN>William O=92Neil has only one system of strategy =96 buying = stocks on=20 breakouts.<SPAN style=3D"mso-spacerun: yes"> </SPAN>Some people = claim that=20 this is the holy grail, but others have found that they=92re buying at = the top of=20 the stock, not the bottom of a great beginning.<SPAN=20 style=3D"mso-spacerun: yes"> </SPAN>My personal experience has = been that=20 after I buy at a pivot point, the stock then plunges at least 20% so I = have to=20 dump the stock and wait until my account is sufficient to buy with.<SPAN = style=3D"mso-spacerun: yes"> </SPAN>I have destroyed my account = totally at=20 least three times since beginning with the system.<SPAN=20 style=3D"mso-spacerun: yes"> </SPAN>I used CANSLIM from 1988 to = 1998, and=20 had only one good year, 1991, when I matched the S&P.<SPAN=20 style=3D"mso-spacerun: yes"> </SPAN>All other years I lost = money.<SPAN=20 style=3D"mso-spacerun: yes"> </SPAN>On the contrary, VectorVest = has an=20 unlimited number of strategies that can be implemented.</FONT></P> <P class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt"><FONT=20 face=3D"Times New Roman"> <o:p></o:p></FONT></P> <P class=3DMsoNormal=20 style=3D"MARGIN: 0in 0in 0pt 0.5in; TEXT-INDENT: -0.25in; mso-list: l0 = level1 lfo1; tab-stops: list .5in"><FONT=20 face=3D"Times New Roman">2)<SPAN=20 style=3D"FONT: 7pt 'Times New Roman'"> =20 </SPAN>William O=92Neil has no idea as to when to sell a stock.<SPAN=20 style=3D"mso-spacerun: yes"> </SPAN>In the book, How to Make Money = in=20 Stocks, he outlines 30 potential sell points.<SPAN=20 style=3D"mso-spacerun: yes"> </SPAN>What I gather is that HE = DOESN=92T=20 KNOW!!<SPAN style=3D"mso-spacerun: yes"> </SPAN></FONT></P> <P class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt"><FONT=20 face=3D"Times New Roman"> <o:p></o:p></FONT></P> <P class=3DMsoNormal=20 style=3D"MARGIN: 0in 0in 0pt 0.5in; TEXT-INDENT: -0.25in; mso-list: l0 = level1 lfo1; tab-stops: list .5in"><FONT=20 face=3D"Times New Roman">3)<SPAN=20 style=3D"FONT: 7pt 'Times New Roman'"> =20 </SPAN>William O=92Neil suggest that one should buy stocks only priced = above 12 or=20 15 dollars a share.<SPAN style=3D"mso-spacerun: yes"> = </SPAN>Sorry, fella,=20 but penny stock strategies are sound, as Zach=92s Zoomers has been a = great=20 success.</FONT></P> <P class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt"><FONT=20 face=3D"Times New Roman"> <o:p></o:p></FONT></P> <P class=3DMsoNormal=20 style=3D"MARGIN: 0in 0in 0pt 0.5in; TEXT-INDENT: -0.25in; mso-list: l0 = level1 lfo1; tab-stops: list .5in"><FONT=20 face=3D"Times New Roman">4)<SPAN=20 style=3D"FONT: 7pt 'Times New Roman'"> =20 </SPAN>William O=92Neil says you need to buy low cap stocks.<SPAN=20 style=3D"mso-spacerun: yes"> </SPAN>What this means is that you = buy stocks=20 with 1 million float or so.<SPAN style=3D"mso-spacerun: yes"> = </SPAN>This is=20 more dangerous than ever, as the slightest activity of selling can sent = the=20 stock crashing.</FONT></P> <P class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt"><FONT=20 face=3D"Times New Roman"> <o:p></o:p></FONT></P> <P class=3DMsoNormal=20 style=3D"MARGIN: 0in 0in 0pt 0.5in; TEXT-INDENT: -0.25in; mso-list: l0 = level1 lfo1; tab-stops: list .5in"><FONT=20 face=3D"Times New Roman">5)<SPAN=20 style=3D"FONT: 7pt 'Times New Roman'"> = </SPAN>In=20 Investor=92s Business Daily, you can find nothing that matches = VectorVest=92s=20 Relative Safety feature.<SPAN style=3D"mso-spacerun: yes"> = </SPAN>Basically,=20 IBD=92s highly touted stocks are a piece of trash that made it to the = top rankings=20 by earnings increase alone.</FONT></P> <P class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt"><FONT=20 face=3D"Times New Roman"> <o:p></o:p></FONT></P> <P class=3DMsoNormal=20 style=3D"MARGIN: 0in 0in 0pt 0.5in; TEXT-INDENT: -0.25in; mso-list: l0 = level1 lfo1; tab-stops: list .5in"><FONT=20 face=3D"Times New Roman">6)<SPAN=20 style=3D"FONT: 7pt 'Times New Roman'"> = </SPAN>The=20 Relative Strength and Earnings Per Share rankings are of no use when = trying to=20 find quality stocks.<SPAN style=3D"mso-spacerun: yes"> = </SPAN>VectorVest=92s=20 Relative Timing is far superior as it gives an accurate picture of what = the=20 stock is doing in recent performance.<SPAN style=3D"mso-spacerun: = yes"> =20 </SPAN>IBD=92s ranking implies there are a certain number of stocks at = 99, the=20 same at 98 etc.<SPAN style=3D"mso-spacerun: yes"> </SPAN>Since the = ranking=20 is relative, you can=92t tell if the market is going under accumulation = or=20 distribution.</FONT></P> <P class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt"><FONT=20 face=3D"Times New Roman"> <o:p></o:p></FONT></P> <P class=3DMsoNormal=20 style=3D"MARGIN: 0in 0in 0pt 0.5in; TEXT-INDENT: -0.25in; mso-list: l0 = level1 lfo1; tab-stops: list .5in"><FONT=20 face=3D"Times New Roman">7)<SPAN=20 style=3D"FONT: 7pt 'Times New Roman'"> = </SPAN>Chart=20 formation analysis is the bastion of IBD=92s system.<SPAN=20 style=3D"mso-spacerun: yes"> </SPAN>However, you take a look at = some of the=20 formations and you will swear there is no rhyme or reason to buying the = kind of=20 stocks he suggests.<SPAN style=3D"mso-spacerun: yes"> </SPAN>Chart = formations are not automatic and do not guarantee results.<SPAN=20 style=3D"mso-spacerun: yes"> </SPAN>The cup and handle formation = is not a=20 trip to financial freedom as WON suggests.</FONT></P> <P class=3DMsoNormal=20 style=3D"MARGIN: 0in 0in 0pt 0.5in; TEXT-INDENT: -0.25in; mso-list: l0 = level1 lfo1; tab-stops: list .5in"><FONT=20 face=3D"Times New Roman"></FONT> </P> <P class=3DMsoNormal=20 style=3D"MARGIN: 0in 0in 0pt 0.5in; TEXT-INDENT: -0.25in; mso-list: l0 = level1 lfo1; tab-stops: list .5in"><FONT=20 face=3D"Times New Roman">8)<SPAN=20 style=3D"FONT: 7pt 'Times New Roman'"> =20 </SPAN>William O=92Neil has no safe strategy with his system.<SPAN=20 style=3D"mso-spacerun: yes"> </SPAN>Basically, if you want to buy = quality=20 large cap stocks, you=92re out of luck.<SPAN style=3D"mso-spacerun: = yes"> =20 </SPAN>WON ran a mutual fund in the 1960=92s, and he was first one year = then last=20 the next. <SPAN style=3D"mso-spacerun: yes"> </SPAN>WON likes = volatile stocks=20 that move up and down fast for a wild ride.<SPAN=20 style=3D"mso-spacerun: yes"> </SPAN>Sustainable results?<SPAN=20 style=3D"mso-spacerun: yes"> </SPAN>Not likely.<SPAN=20 style=3D"mso-spacerun: yes"> </SPAN>Also whiz kid David Ryan ran a = mutual=20 fund in the 1999=92s called the New USA Growth Fund.<SPAN=20 style=3D"mso-spacerun: yes"> </SPAN>His performance was mediocre = and the=20 fund was sold after 5 years.<SPAN style=3D"mso-spacerun: yes"> = </SPAN>David=20 probably gave up as he wasn=92t getting spectacular results as well as = he got in=20 his contest results in the 1980=92s.</FONT></P> <P class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt"><FONT=20 face=3D"Times New Roman"> <o:p></o:p></FONT></P> <P class=3DMsoNormal=20 style=3D"MARGIN: 0in 0in 0pt 0.5in; TEXT-INDENT: -0.25in; mso-list: l0 = level1 lfo1; tab-stops: list .5in"><FONT=20 face=3D"Times New Roman">9)<SPAN=20 style=3D"FONT: 7pt 'Times New Roman'"> = </SPAN>The=20 volume of chart formation reading makes CANSLIM a burden of beast = instead of a=20 easy reference that VV gives.<SPAN style=3D"mso-spacerun: yes"> = </SPAN>With=20 VV, at the touch of a button, I get 10 potential purchases.<SPAN=20 style=3D"mso-spacerun: yes"> </SPAN>With CANSLIM I have to wade = through tons=20 of material to reach my 7 stocks.<SPAN style=3D"mso-spacerun: = yes"> =20 </SPAN>It=92s so much work you can=92t give any time to your = life.</FONT></P> <P class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt"><FONT=20 face=3D"Times New Roman"> <o:p></o:p></FONT></P> <P class=3DMsoNormal=20 style=3D"MARGIN: 0in 0in 0pt 0.5in; TEXT-INDENT: -0.25in; mso-list: l0 = level1 lfo1; tab-stops: list .5in"><FONT=20 face=3D"Times New Roman">10)<SPAN style=3D"FONT: 7pt 'Times New = Roman'"> =20 </SPAN><SPAN style=3D"mso-spacerun: yes"> </SPAN>William O=92Neil = suggest to=20 buy one or two stocks if you have $5K to $10K and progress up to a 5 = stock=20 portfolio.<SPAN style=3D"mso-spacerun: yes"> </SPAN>Most beginning = investors=20 have a limited amount of money and the burden of picking big winners is = very=20 difficult.<SPAN style=3D"mso-spacerun: yes"> </SPAN>If they strike = out on=20 one or two stocks, how are they to regain confidence?<SPAN=20 style=3D"mso-spacerun: yes"> </SPAN>On the contrary, VectorVest = suggests=20 buying 10 stocks at a time to diversify.<SPAN style=3D"mso-spacerun: = yes"> =20 </SPAN>CANSLIM does not diversify, in fact id concentrates into a few=20 stocks.<SPAN style=3D"mso-spacerun: yes"> </SPAN>I would not stray = from=20 legendary stock guru John Templeton=92s way of = diversification.</FONT></P> <P class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt"><FONT=20 face=3D"Times New Roman"> <o:p></o:p></FONT></P> <P class=3DMsoNormal=20 style=3D"MARGIN: 0in 0in 0pt 0.5in; TEXT-INDENT: -0.25in; mso-list: l0 = level1 lfo1; tab-stops: list .5in"><FONT=20 face=3D"Times New Roman">11)<SPAN style=3D"FONT: 7pt 'Times New = Roman'"> =20 </SPAN><SPAN style=3D"mso-spacerun: yes"> </SPAN>Try to find a = short strategy=20 like VectorVest has and you=92ll have a hard time finding one in = IBD.<SPAN=20 style=3D"mso-spacerun: yes"> </SPAN>Because William O=92Neil has = been snuffed=20 out in more bear markets than he can remember.<SPAN=20 style=3D"mso-spacerun: yes"> </SPAN>He tried to do it with chart = formations=20 and it=92s not the way to go with shorts.<SPAN style=3D"mso-spacerun: = yes"> =20 </SPAN>VectorVest is right on target with short strategies, and it=92s = at the=20 touch of a button.</FONT></P> <P class=3DMsoNormal style=3D"MARGIN: 0in 0in 0pt"><FONT=20 face=3D"Times New Roman"> <o:p></o:p></FONT></P> <P class=3DMsoNormal=20 style=3D"MARGIN: 0in 0in 0pt 0.5in; TEXT-INDENT: -0.25in; mso-list: l0 = level1 lfo1; tab-stops: list .5in"><FONT=20 face=3D"Times New Roman">12)<SPAN style=3D"FONT: 7pt 'Times New = Roman'"> =20 </SPAN>CANSLIM =96 CAN=92T SWIM</FONT></P> <P class=3DMsoNormal=20 style=3D"MARGIN: 0in 0in 0pt 0.5in; TEXT-INDENT: -0.25in; mso-list: l0 = level1 lfo1; tab-stops: list .5in"><FONT=20 face=3D"Times New Roman"></FONT> </P> <P class=3DMsoNormal=20 style=3D"MARGIN: 0in 0in 0pt">XXXXX</P></FONT></DIV></BODY></HTML> - ------=_NextPart_000_04C6_01C3507C.B1F0F030-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". 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