Re: [CANSLIM] Extrapolation

From: "DMC197807" <dmc197807@comcast.net>
Subject: Re: [CANSLIM] Extrapolation
Date: Sat, 26 Jul 2003 20:25:43 -0700

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Hong,

1.  On Topic.

I wonder as I look at CANSLIM, whether or not some people think one or two
of the elements are inapplicable.

To me, in particular, the no. of outstanding shares (the S of MILSCAN) may
or may not be very valuable.  I agree, you should screen out the companies
which have so many shares outstanding (the CSCOs, ORCLs, MSFTs of the world)
that it would take a huge move to move their stocks, but I'd rather have an
investment/speculation in a stock with 200 million shares outstanding than
one with 10 million shares.

Also, the I, the institutional sponsorship.  You want some but not too many?
I don't know how you screen for that, or whether it's all that important.
It would seem to be the chart will tell you.

Anyone else think this acronym could be shortened?

OT-- Off Topic

Yes, I'm looking into CANSLIM as a further development of TA generally, but
mostly as an interesting way to scan for investment candidates.  RRI was not
a CANSLIM (I call them MILSCAN) play, but a technical play based on a belief
that the risk/reward ratio was incredibly skewed toward those who were
willing to take the risk of an RRI bankruptcy.  I thought (and still think)
that the stock will be a $15 stock one day (my FA minded colleagues tell me
that).

Back in March, just as RRI faced another refinancing deadline as I recall
FERC issued a nasty report and whacked the stock.  It was too late to dump
so I just held (I should have added--this ain't canslim, after all).

http://www.ferc.gov/news/pressreleases/report3-26x.pdf

Also, we had quite a discussion going on RRI over at SI around this time,
you can read about 50 messages or so beginning about here if you're
interested.

http://www.siliconinvestor.com/stocktalk/msg.gsp?msgid=18756489

In this case I didn't have stop loss orders in and the stock moved too
quickly.


DMC



- ----- Original Message -----
From: "Hong Hsu" <honghsu@bellatlantic.net>
To: <canslim@lists.xmission.com>
Sent: Saturday, July 26, 2003 6:30 PM
Subject: Re: [CANSLIM] Extrapolation


>      DMC,
>
>   Thanks for detailed explanation.  I am new to the group and thought
> this group is for CANSLIM approach discussion.   Now I know at least
> certain percentage people do not apply the CANSLIM.
>
> Just a couple of question.  When you bought RRI around 2/1/2003, what
> convince you to hold 6 weeks without its breakout as it was VERY long
> time with my view?    Secondly when RRI plunged 23.75% on 3/26,  did you
> think it was noise?  If not, what let you decided to hold it?
>
> Thanks again,
> -Hong
>
>
>
>
>
> -
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