Re: [CANSLIM] * OFF TOPIC * Anti CANSLIM ** Hit Delete

From: Davellil5@aol.com
Subject: Re: [CANSLIM] *** OFF TOPIC *** Anti CANSLIM ** Hit Delete
Date: Tue, 22 Jul 2003 19:41:35 EDT

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Vectorvest, like some other Advisories, bases its recommendations on an 
unstated premise, i.e., that -- at any given point in time -- each stock has some 
objective value.  Vectorvest uses a proprietary procedure to calculate that 
value.  If the current stock price is well below that objective price, then 
Vectorvest considers the stock under-valued by the market and expects that at some 
time the market will correct that "error" by bidding up the stock.

If one believes that each stock does have some objective value, then that 
logic makes sense.

I don't!  I believe that the value of a stock is whatever the market is 
willing to pay for it -- no more, no less.  WON's logic is to "up" the odds of 
winning by using charts to predict whether investors are going to be willing to 
pay more for a stock after one buys it.  The chart is a probabilistic indicator 
of investor intent.  But WON demands that a favorable chart indication be 
backed up by good performance numbers for the business.  This makes practical 
sense to me, especially if one factors in the current market direction.

Regards, Dave 

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