RE: [CANSLIM] New Investors needs help... a short story

From: "Krueger, Kevin" <Kevin.Krueger@cardinal.com>
Subject: RE: [CANSLIM] New Investors needs help... a short story
Date: Mon, 4 Aug 2003 15:37:13 -0500
Next Article (by Date): Re: [CANSLIM] New Investors needs help... a short story Fanus
Previous Article (by Date): Re: [CANSLIM] Watchlist Generation Yien T Lung
Next in Thread: Re: [CANSLIM] New Investors needs help... a short story Fanus
Articles sorted by: [Date] [Author] [Subject]
This is a multi-part message in MIME format.

- ------_=_NextPart_001_01C35AC8.2FE2C97F
Content-Type: text/plain;
	charset="iso-8859-1"
Content-Transfer-Encoding: quoted-printable

Yien,
=20
I am not wise in the ways of CANSLIM and TA yet, but I'll reiterate the =
stop loss message loudly. I have had several losers get away from me =
recently without stop losses and they sucked the life out of my winners. =
A hard lesson to learn for me.=20
=20
Good luck,
Kevin

- -----Original Message-----
From: joe [mailto:lakbossa@hotmail.com]
Sent: Monday, August 04, 2003 1:35 PM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] New Investors needs help... a short story


first rule...always use a stop loss! i dont care what people say, the =
main goal is to protect your money.

- ----- Original Message -----=20
From: Yien T  <mailto:ylung@engin.umich.edu> Lung=20
To: canslim@lists.xmission.com=20
Sent: Monday, August 04, 2003 12:47 PM
Subject: [CANSLIM] New Investors needs help... a short story


Hi all,

I am quite new to this forum and I was hoping that some of you, more
experienced canslim users, would kindly offer me some starting tips or
share your procedure in the search for new potential buys.

Let me continue by sharing my initial experience with you guys. I =
started
investing 2 years ago after my friend recommended me to read books about
Value Investing, more specifially, books about Warren Buffett. I read =
and
summarized almost every single book I could get my hands on about Warren
Buffett...and was almost too eager to start my road to be a millionaire.

So what is value investing? Basically, I intepret it as investing in
securities that are currently being traded at a value below its true
"intrinsic value". The idea is that the market has been too harsh and
pessimist about the prospects of a particular stock,..and you as a
investor believes that this company has the potential to get back on =
track
and that the current problems it is facing is only temporary.

Sounds easy, but I found the hard way that it is not.

In my impulsive and eagerness to make money? I plunged my hard earned =
cash
into securities like Qwest (Q), Tyco (TYC),...among others. I bought Q
when it was trading around 8.50. I thought to myself...this is a company
that has a book value of at least 20 dollars. If only half of that book
value is written off, I will still be safe. So I bought the stock, and =
saw
it plunge in value to less than 1 dollar. Again, I thought it was ok
because I am a "value investor"...and I need to hold my buys for the =
"long
run"... A new management comes in and the stocks starts doing better...
However, the new management finds out that there are a lot of improver
entries and must restate earnings. That restatement totally wipes out =
the
book value of the company!!! This taught me never to believe on BS =
alone.
Now, even after two full years, the stock has not yet recouped to my
entry level.

My other experience was TYC. I bought it when it was 26. I read a lot of
news from respected value managers that Tyco is a very sound company =
with
a lot of small businesses that generate lots of free cash flow. Good =
hein?
Well, I thought so too. I bought it and it went up all the way to 35. I
thought, I should "stay for the long run" and let it run its way up.. =
But
the next thing, the stock began to go south. That was the time when =
there
was a lot of talk about the ex CEO being a crook and stuff like that. I
held the stock for quite some time...and I will be very hopeful if the
stock trades at around the price I got in....

So here I am today. After losing a lot of hard earned cash, I decided to
give Mr. O'Neill's methodology a try. If you read some of this value
investing, a lot of these people dont believe that technical analysis
works..and my friend (a Buffett believer) doesnt think too highly of Mr
O'Neills methodology. But I am willing to give it a try. Please help me
get started.

Thanks

Yien








- -
- -To subscribe/unsubscribe, email " majordomo@xmission.com"
- -In the email body, write "subscribe canslim" or
- -"unsubscribe canslim".  Do not use quotes in your email.



- ------_=_NextPart_001_01C35AC8.2FE2C97F
Content-Type: text/html;
	charset="iso-8859-1"
Content-Transfer-Encoding: quoted-printable

<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD>
<META HTTP-EQUIV=3D"Content-Type" CONTENT=3D"text/html; =
charset=3Diso-8859-1">


<META content=3D"MSHTML 6.00.2726.2500" name=3DGENERATOR>
<STYLE></STYLE>
</HEAD>
<BODY bgColor=3D#ffffff>
<DIV><SPAN class=3D276162420-04082003><FONT face=3DArial color=3D#0000ff =

size=3D2>Yien,</FONT></SPAN></DIV>
<DIV><SPAN class=3D276162420-04082003><FONT face=3DArial color=3D#0000ff =

size=3D2></FONT></SPAN>&nbsp;</DIV>
<DIV><SPAN class=3D276162420-04082003><FONT face=3DArial color=3D#0000ff =
size=3D2>I am=20
not wise in the ways of CANSLIM and TA yet, but I'll reiterate the stop =
loss=20
message loudly. I have had several losers get away from me recently =
without stop=20
losses and they sucked the life out of&nbsp;my winners. A hard lesson to =
learn=20
for me. </FONT></SPAN></DIV>
<DIV><SPAN class=3D276162420-04082003><FONT face=3DArial color=3D#0000ff =

size=3D2></FONT></SPAN>&nbsp;</DIV>
<DIV><SPAN class=3D276162420-04082003><FONT face=3DArial color=3D#0000ff =
size=3D2>Good=20
luck,</FONT></SPAN></DIV>
<DIV><SPAN class=3D276162420-04082003><FONT face=3DArial color=3D#0000ff =

size=3D2>Kevin</FONT></SPAN></DIV>
<BLOCKQUOTE dir=3Dltr style=3D"MARGIN-RIGHT: 0px">
  <DIV class=3DOutlookMessageHeader dir=3Dltr align=3Dleft><FONT =
face=3DTahoma=20
  size=3D2>-----Original Message-----<BR><B>From:</B> joe=20
  [mailto:lakbossa@hotmail.com]<BR><B>Sent:</B> Monday, August 04, 2003 =
1:35=20
  PM<BR><B>To:</B> canslim@lists.xmission.com<BR><B>Subject:</B> Re: =
[CANSLIM]=20
  New Investors needs help... a short story<BR><BR></FONT></DIV>
  <DIV><FONT face=3DGeorgia color=3D#000080>first rule...always use a =
stop loss! i=20
  dont care what people say, the main goal is to protect your=20
money.</FONT></DIV>
  <BLOCKQUOTE=20
  style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000080 2px solid; MARGIN-RIGHT: 0px">
    <DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
    <DIV=20
    style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
    <A title=3Dylung@engin.umich.edu =
href=3D"mailto:ylung@engin.umich.edu">Yien T=20
    Lung</A> </DIV>
    <DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
title=3Dcanslim@lists.xmission.com=20
    =
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
    </DIV>
    <DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Monday, August 04, 2003 =
12:47=20
    PM</DIV>
    <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> [CANSLIM] New =
Investors needs=20
    help... a short story</DIV>
    <DIV><BR></DIV><BR>Hi all,<BR><BR>I am quite new to this forum and I =
was=20
    hoping that some of you, more<BR>experienced canslim users, would =
kindly=20
    offer me some starting tips or<BR>share your procedure in the search =
for new=20
    potential buys.<BR><BR>Let me continue by sharing my initial =
experience with=20
    you guys. I started<BR>investing 2 years ago after my friend =
recommended me=20
    to read books about<BR>Value Investing, more specifially, books =
about Warren=20
    Buffett. I read and<BR>summarized almost every single book I could =
get my=20
    hands on about Warren<BR>Buffett...and was almost too eager to start =
my road=20
    to be a millionaire.<BR><BR>So what is value investing? Basically, I =

    intepret it as investing in<BR>securities that are currently being =
traded at=20
    a value below its true<BR>"intrinsic value". The idea is that the =
market has=20
    been too harsh and<BR>pessimist about the prospects of a particular=20
    stock,..and you as a<BR>investor believes that this company has the=20
    potential to get back on track<BR>and that the current problems it =
is facing=20
    is only temporary.<BR><BR>Sounds easy, but I found the hard way that =
it is=20
    not.<BR><BR>In my impulsive and eagerness to make money? I plunged =
my hard=20
    earned cash<BR>into securities like Qwest (Q), Tyco (TYC),...among =
others. I=20
    bought Q<BR>when it was trading around 8.50. I thought to =
myself...this is a=20
    company<BR>that has a book value of at least 20 dollars. If only =
half of=20
    that book<BR>value is written off, I will still be safe. So I bought =
the=20
    stock, and saw<BR>it plunge in value to less than 1 dollar. Again, I =
thought=20
    it was ok<BR>because I am a "value investor"...and I need to hold my =
buys=20
    for the "long<BR>run"... A new management comes in and the stocks =
starts=20
    doing better...<BR>However, the new management finds out that there =
are a=20
    lot of improver<BR>entries and must restate earnings. That =
restatement=20
    totally wipes out the<BR>book value of the company!!! This taught me =
never=20
    to believe on BS alone.<BR>Now, even after two full years, the stock =
has not=20
    yet recouped to my<BR>entry level.<BR><BR>My other experience was =
TYC. I=20
    bought it when it was 26. I read a lot of<BR>news from respected =
value=20
    managers that Tyco is a very sound company with<BR>a lot of small =
businesses=20
    that generate lots of free cash flow. Good hein?<BR>Well, I thought =
so too.=20
    I bought it and it went up all the way to 35. I<BR>thought, I should =
"stay=20
    for the long run" and let it run its way up.. But<BR>the next thing, =
the=20
    stock began to go south. That was the time when there<BR>was a lot =
of talk=20
    about the ex CEO being a crook and stuff like that. I<BR>held the =
stock for=20
    quite some time...and I will be very hopeful if the<BR>stock trades =
at=20
    around the price I got in....<BR><BR>So here I am today. After =
losing a lot=20
    of hard earned cash, I decided to<BR>give Mr. O'Neill's methodology =
a try.=20
    If you read some of this value<BR>investing, a lot of these people =
dont=20
    believe that technical analysis<BR>works..and my friend (a Buffett =
believer)=20
    doesnt think too highly of Mr<BR>O'Neills methodology. But I am =
willing to=20
    give it a try. Please help me<BR>get=20
    =
started.<BR><BR>Thanks<BR><BR>Yien<BR><BR><BR><BR><BR><BR><BR><BR><BR>-<B=
R>-To=20
    subscribe/unsubscribe, email "<A=20
    =
href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>-In=
 the=20
    email body, write "subscribe canslim" or<BR>-"unsubscribe =
canslim".&nbsp; Do=20
    not use quotes in your =
email.<BR></BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>

- ------_=_NextPart_001_01C35AC8.2FE2C97F--

- -
- -To subscribe/unsubscribe, email "majordomo@xmission.com"
- -In the email body, write "subscribe canslim" or
- -"unsubscribe canslim".  Do not use quotes in your email.
Go to Jeff Salisbury LWGate Home Page.