RE: [CANSLIM] filter


From: "Jeff Henderson" <JHend746@cox.net>
Subject: RE: [CANSLIM] filter
Date: Wed, 6 Aug 2003 14:18:10 -0500

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DMC,
 
Sorry about asking a repeated question but today is my first day on
here.
 
- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com] On Behalf Of DMC197807
Sent: Wednesday, August 06, 2003 2:08 PM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] filter
 
Jeff,
 
If you're using a free scanner, why don't you use the one Gene posted a
couple of days ago (I'll repost his post) and play with the criteria
there.  If I adjust relative strength to 80 or above it spits out 15
names.
 
As for CANSLIM criteria, after M one supposes they are all important,
and my descending order is no better (could be a lot worse) than anyone
else's.  However, you are asking a question that I answered 2 days ago,
at least from my perspective.  This is from my note on 8/4 to Yien:
 
 
<<Good, that's a bunch of information that you can't use.  Now, for some
you
can.  There are only 3 numbers which matter, when all the dust is
settled.
They are NOT p/e, d/e, current ratio, PEG, profit margin or inventory
turnover.

THEY ARE:  Price paid for shares, Price received for shares, Time held.

Now, MILSCAN (Canslim to some of you) is a very interesting approach,
and
can possibly, with strong position and money management systems, help
you to
buy low and sell high in a timely timeframe.

Here's how I think of these factors, in descending order of importance:

<<M is for the market and the market trend.  We are at an inflection
point
here, so it's lookout below, or perhaps lookout above.

N is for new highs in the stock, breaking out above the pivot point

L is for an relative strength rating of 70 or better

A is for annual earnings growth (this is for additional comfort)

C is for current quarterly earnings (this is for additional comfort)

I is for institutional sponsorship  (this is a timing issue--I think I
trust
the chart over this, for some reason)

S is for supply of stock (looking for a relatively low no. of
shares--here I
want to exclude the over-issued monsters like CSCO and INTC where it
will
take a ton of momentum to move the billions of shares outstanding).

In closing, using TA and FA together is a good idea, but when in
conflict,
trust the TA.  Remember, out of 7000 stocks we are looking for 1 or 2
names
a week on which to carefully place our hopes. >>
 
DMC
- ----- Original Message ----- 
From: Jeff Henderson <mailto:JHend746@cox.net>  
To: canslim@lists.xmission.com 
Sent: Wednesday, August 06, 2003 11:40 AM
Subject: RE: [CANSLIM] filter
 
Sorry about the misunderstanding I was using the CANSLIM acronym.  I'll
explain my filter again.  First off I use MSN as my filter source.  Here
is my filter that I use: current earnings per share (the same quarter a
year ago)>=70%, annual earnings per share over the past 5 years, >= 24%
compounded, shares outstanding<25,000,000, relative strength> 80%.
 
- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com] On Behalf Of DMC197807
Sent: Wednesday, August 06, 2003 11:23 AM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] filter
 
Jeff,
 
I don't understand which filter/scan you are using, or what all your
variables mean.  If you're using a public scan or stockcharts, maybe you
can put in a link here?
 
If C = capitalization and you are using only the top 30% of stocks
you've filtered out way too many stocks already.  In capitalization I
only filter out the very top stocks, but that's just me.  I don't know
what your S is.  For relative strength I use the top 40% of the market,
that is, stocks outperforming 60%.
 
I'm willing to let some other names in because after this scan gives me
names, I'm happy to look through charts to find appropriate patterns.
 
DMC
 
 
- ----- Original Message ----- 
From: Jeff Henderson <mailto:JHend746@cox.net>  
To: Canslim <mailto:canslim@lists.xmission.com>  
Sent: Wednesday, August 06, 2003 9:02 AM
Subject: [CANSLIM] filter
 
After reading O'Neil's book I decided to use the filter C>=70, A>=5,
S<25,000,000, relative strength>80 and last volume 1.5 average quarterly
volume.  To my dismay, no stocks popped up.  How would you alter this
filter?

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<div class=3DSection1>

<p class=3DMsoNormal><font size=3D2 color=3Dnavy face=3DArial><span =
style=3D'font-size:
10.0pt;font-family:Arial;color:navy'>DMC,<o:p></o:p></span></font></p>

<p class=3DMsoNormal><font size=3D2 color=3Dnavy face=3DArial><span =
style=3D'font-size:
10.0pt;font-family:Arial;color:navy'><o:p>&nbsp;</o:p></span></font></p>

<p class=3DMsoNormal><font size=3D2 color=3Dnavy face=3DArial><span =
style=3D'font-size:
10.0pt;font-family:Arial;color:navy'>Sorry about asking a repeated =
question but
today is my first day on here.<o:p></o:p></span></font></p>

<p class=3DMsoNormal><font size=3D2 color=3Dnavy face=3DArial><span =
style=3D'font-size:
10.0pt;font-family:Arial;color:navy'><o:p>&nbsp;</o:p></span></font></p>

<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
face=3DTahoma><span
style=3D'font-size:10.0pt;font-family:Tahoma'>-----Original =
Message-----<br>
<b><span style=3D'font-weight:bold'>From:</span></b>
owner-canslim@lists.xmission.com =
[mailto:owner-canslim@lists.xmission.com] <b><span
style=3D'font-weight:bold'>On Behalf Of </span></b>DMC197807<br>
<b><span style=3D'font-weight:bold'>Sent:</span></b> =
</span></font><st1:date
Month=3D"8" Day=3D"6" Year=3D"2003"><font size=3D2 face=3DTahoma><span =
style=3D'font-size:
 10.0pt;font-family:Tahoma'>Wednesday, August 06, =
2003</span></font></st1:date><font
size=3D2 face=3DTahoma><span =
style=3D'font-size:10.0pt;font-family:Tahoma'> </span></font><st1:time
Hour=3D"14" Minute=3D"8"><font size=3D2 face=3DTahoma><span =
style=3D'font-size:10.0pt;
 font-family:Tahoma'>2:08 PM</span></font></st1:time><font size=3D2 =
face=3DTahoma><span
style=3D'font-size:10.0pt;font-family:Tahoma'><br>
<b><span style=3D'font-weight:bold'>To:</span></b> =
canslim@lists.xmission.com<br>
<b><span style=3D'font-weight:bold'>Subject:</span></b> Re: [CANSLIM] =
filter</span></font></p>

<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'><o:p>&nbsp;</o:p></span></font></p>

<div>

<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial'>Jeff,</span></font><o:p></o:=
p></p>

</div>

<div>

<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'>&nbsp;<o:p></o:p></span></font></p>

</div>

<div>

<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial'>If you're using a free =
scanner, why
don't you use the one Gene posted a couple of days ago (I'll repost his =
post)
and play with the criteria there.&nbsp; If I adjust relative strength to =
80 or
above it spits out 15 names.</span></font><o:p></o:p></p>

</div>

<div>

<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'>&nbsp;<o:p></o:p></span></font></p>

</div>

<div>

<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial'>As for CANSLIM criteria, =
after M one
supposes they are all important, and my descending order is no better =
(could be
a lot worse) than anyone else's.&nbsp; However, you are asking a =
question that
I answered 2 days ago, at least from my perspective.&nbsp; This is from =
my note
on 8/4 to Yien:</span></font><o:p></o:p></p>

</div>

<div>

<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'>&nbsp;<o:p></o:p></span></font></p>

</div>

<div>

<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'>&nbsp;<o:p></o:p></span></font></p>

</div>

<div>

<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'>&lt;&lt;Good, that's a bunch of information =
that you
can't use.&nbsp; Now, for some you<br>
can.&nbsp; There are only 3 numbers which matter, when all the dust is =
settled.<br>
They are NOT p/e, d/e, current ratio, PEG, profit margin or =
inventory<br>
turnover.<br>
<br>
THEY ARE:&nbsp; Price paid for shares, Price received for shares, Time =
held.<br>
<br>
Now, MILSCAN (Canslim to some of you) is a very interesting approach, =
and<br>
can possibly, with strong position and money management systems, help =
you to<br>
buy low and sell high in a timely timeframe.<br>
<br>
Here's how I think of these factors, in descending order of =
importance:<br>
<br>
&lt;&lt;M is for the market and the market trend.&nbsp; We are at an =
inflection
point<br>
here, so it's lookout below, or perhaps lookout above.<br>
<br>
N is for new highs in the stock, breaking out above the pivot point<br>
<br>
L is for an relative strength rating of 70 or better<br>
<br>
A is for annual earnings growth (this is for additional comfort)<br>
<br>
C is for current quarterly earnings (this is for additional comfort)<br>
<br>
I is for institutional sponsorship&nbsp; (this is a timing issue--I =
think I
trust<br>
the chart over this, for some reason)<br>
<br>
S is for supply of stock (looking for a relatively low no. of =
shares--here I<br>
want to exclude the over-issued monsters like CSCO and INTC where it =
will<br>
take a ton of momentum to move the billions of shares outstanding).<br>
<br>
In closing, using TA and FA together is a good idea, but when in =
conflict,<br>
trust the TA.&nbsp; Remember, out of 7000 stocks we are looking for 1 or =
2
names<br>
a week on which to carefully place our =
hopes.&nbsp;&gt;&gt;<o:p></o:p></span></font></p>

</div>

<div>

<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'>&nbsp;<o:p></o:p></span></font></p>

</div>

<div>

<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial'>DMC</span></font><o:p></o:p>=
</p>

</div>

<blockquote style=3D'border:none;border-left:solid black =
1.5pt;padding:0in 0in 0in 4.0pt;
margin-left:3.75pt;margin-top:5.0pt;margin-right:0in;margin-bottom:5.0pt'=
>

<div>

<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial'>----- Original Message =
- ----- <o:p></o:p></span></font></p>

</div>

<div style=3D'font-color:black'>

<p class=3DMsoNormal =
style=3D'margin-left:.5in;background:#E4E4E4'><b><font size=3D2
face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;font-weight:bold'>From:</span=
></font></b><font
size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial'> <a
href=3D"mailto:JHend746@cox.net" title=3D"JHend746@cox.net">Jeff =
Henderson</a> <o:p></o:p></span></font></p>

</div>

<div>

<p class=3DMsoNormal style=3D'margin-left:.5in'><b><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;font-weight:bold'>To:</span><=
/font></b><font
size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial'> <a
href=3D"mailto:canslim@lists.xmission.com" =
title=3D"canslim@lists.xmission.com">canslim@lists.xmission.com</a>
<o:p></o:p></span></font></p>

</div>

<div>

<p class=3DMsoNormal style=3D'margin-left:.5in'><b><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;font-weight:bold'>Sent:</span=
></font></b><font
size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial'> Wednesday,
August 06, 2003 11:40 AM<o:p></o:p></span></font></p>

</div>

<div>

<p class=3DMsoNormal style=3D'margin-left:.5in'><b><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;font-weight:bold'>Subject:</s=
pan></font></b><font
size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial'> RE:
[CANSLIM] filter<o:p></o:p></span></font></p>

</div>

<div>

<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'><o:p>&nbsp;</o:p></span></font></p>

</div>

<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
color=3Dnavy face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;color:navy'>Sorry about the
misunderstanding I was using the CANSLIM acronym.<span
style=3D'mso-spacerun:yes'>&nbsp; </span>I&#8217;ll explain my filter =
again.<span
style=3D'mso-spacerun:yes'>&nbsp; </span>First off I use MSN as my =
filter source.<span
style=3D'mso-spacerun:yes'>&nbsp; </span>Here is my filter that I use: =
current
earnings per share (the same quarter a year ago)&gt;=3D70%, annual =
earnings per
share over the past 5 years, &gt;=3D 24% compounded, shares
outstanding&lt;25,000,000, relative strength&gt; =
80%.<o:p></o:p></span></font></p>

<p class=3DMsoNormal style=3D'margin-left:.5in'><font size=3D2 =
color=3Dnavy face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;color:navy'><o:p>&nbsp;</o:p>=
</span></font></p>

<p class=3DMsoNormal style=3D'margin-left:1.0in'><font size=3D2 =
face=3DTahoma><span
style=3D'font-size:10.0pt;font-family:Tahoma'>-----Original =
Message-----<br>
<b><span style=3D'font-weight:bold'>From:</span></b>
owner-canslim@lists.xmission.com =
[mailto:owner-canslim@lists.xmission.com] <b><span
style=3D'font-weight:bold'>On Behalf Of </span></b>DMC197807<br>
<b><span style=3D'font-weight:bold'>Sent:</span></b> =
</span></font><st1:date
Year=3D"2003" Day=3D"6" Month=3D"8"><font size=3D2 face=3DTahoma><span =
style=3D'font-size:
 10.0pt;font-family:Tahoma'>Wednesday, August 06, =
2003</span></font></st1:date><font
size=3D2 face=3DTahoma><span =
style=3D'font-size:10.0pt;font-family:Tahoma'> </span></font><st1:time
Minute=3D"23" Hour=3D"11"><font size=3D2 face=3DTahoma><span =
style=3D'font-size:10.0pt;
 font-family:Tahoma'>11:23 AM</span></font></st1:time><font size=3D2 =
face=3DTahoma><span
style=3D'font-size:10.0pt;font-family:Tahoma'><br>
<b><span style=3D'font-weight:bold'>To:</span></b> =
canslim@lists.xmission.com<br>
<b><span style=3D'font-weight:bold'>Subject:</span></b> Re: [CANSLIM] =
filter</span></font><o:p></o:p></p>

<p class=3DMsoNormal style=3D'margin-left:1.0in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'><o:p>&nbsp;</o:p></span></font></p>

<div>

<p class=3DMsoNormal style=3D'margin-left:1.0in'><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial'>Jeff,</span></font><o:p></o:=
p></p>

</div>

<div>

<p class=3DMsoNormal style=3D'margin-left:1.0in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'>&nbsp;<o:p></o:p></span></font></p>

</div>

<div>

<p class=3DMsoNormal style=3D'margin-left:1.0in'><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial'>I don't understand which =
filter/scan
you are using, or what all your variables mean.&nbsp; If you're using a =
public
scan or stockcharts, maybe you can put in a link =
here?</span></font><o:p></o:p></p>

</div>

<div>

<p class=3DMsoNormal style=3D'margin-left:1.0in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'>&nbsp;<o:p></o:p></span></font></p>

</div>

<div>

<p class=3DMsoNormal style=3D'margin-left:1.0in'><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial'>If C =3D capitalization and =
you are
using only the top 30% of stocks you've filtered out way too many stocks
already.&nbsp; In capitalization I only filter out the very top stocks, =
but
that's just me.&nbsp; I don't know what your S is.&nbsp; For relative =
strength
I use the top 40% of the market, that is, stocks outperforming =
60%.</span></font><o:p></o:p></p>

</div>

<div>

<p class=3DMsoNormal style=3D'margin-left:1.0in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'>&nbsp;<o:p></o:p></span></font></p>

</div>

<div>

<p class=3DMsoNormal style=3D'margin-left:1.0in'><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial'>I'm willing to let some =
other names
in because after this scan gives me names, I'm happy to look through =
charts to
find appropriate patterns.</span></font><o:p></o:p></p>

</div>

<div>

<p class=3DMsoNormal style=3D'margin-left:1.0in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'>&nbsp;<o:p></o:p></span></font></p>

</div>

<div>

<p class=3DMsoNormal style=3D'margin-left:1.0in'><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial'>DMC</span></font><o:p></o:p>=
</p>

</div>

<div>

<p class=3DMsoNormal style=3D'margin-left:1.0in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'>&nbsp;<o:p></o:p></span></font></p>

</div>

<div>

<p class=3DMsoNormal style=3D'margin-left:1.0in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'>&nbsp;<o:p></o:p></span></font></p>

</div>

<div>

<p class=3DMsoNormal style=3D'margin-left:1.0in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'>----- Original Message ----- =
<o:p></o:p></span></font></p>

</div>

<blockquote style=3D'border:none;border-left:solid black =
1.5pt;padding:0in 0in 0in 4.0pt;
margin-left:3.75pt;margin-top:5.0pt;margin-right:0in;margin-bottom:5.0pt'=
>

<div style=3D'font-color:black'>

<p class=3DMsoNormal =
style=3D'margin-left:1.0in;background:#E4E4E4'><b><font
size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial;font-weight:
bold'>From:</span></font></b><font size=3D2 face=3DArial><span =
style=3D'font-size:
10.0pt;font-family:Arial'> <a href=3D"mailto:JHend746@cox.net"
title=3D"JHend746@cox.net">Jeff Henderson</a> =
<o:p></o:p></span></font></p>

</div>

<div>

<p class=3DMsoNormal style=3D'margin-left:1.0in'><b><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;font-weight:bold'>To:</span><=
/font></b><font
size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial'> <a
href=3D"mailto:canslim@lists.xmission.com" =
title=3D"canslim@lists.xmission.com">Canslim</a>
<o:p></o:p></span></font></p>

</div>

<div>

<p class=3DMsoNormal style=3D'margin-left:1.0in'><b><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;font-weight:bold'>Sent:</span=
></font></b><font
size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial'> </span></font><st1:date
Year=3D"2003" Day=3D"6" Month=3D"8"><font size=3D2 face=3DArial><span =
style=3D'font-size:
 10.0pt;font-family:Arial'>Wednesday, August 06, =
2003</span></font></st1:date><font
size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial'> </span></font><st1:time
Minute=3D"2" Hour=3D"9"><font size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;
 font-family:Arial'>9:02 AM</span></font></st1:time><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial'><o:p></o:p></span></font></p=
>

</div>

<div>

<p class=3DMsoNormal style=3D'margin-left:1.0in'><b><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial;font-weight:bold'>Subject:</s=
pan></font></b><font
size=3D2 face=3DArial><span =
style=3D'font-size:10.0pt;font-family:Arial'> [CANSLIM]
filter<o:p></o:p></span></font></p>

</div>

<div>

<p class=3DMsoNormal style=3D'margin-left:1.0in'><font size=3D3 =
face=3D"Times New Roman"><span
style=3D'font-size:12.0pt'><o:p>&nbsp;</o:p></span></font></p>

</div>

<p class=3DMsoNormal style=3D'margin-left:1.0in'><font size=3D2 =
face=3DArial><span
style=3D'font-size:10.0pt;font-family:Arial'>After reading =
O&#8217;Neil&#8217;s
book I decided to use the filter C&gt;=3D70, A&gt;=3D5, S&lt;25,000,000, =
relative
strength&gt;80 and last volume 1.5 average quarterly volume.<span
style=3D'mso-spacerun:yes'>&nbsp; </span>To my dismay, no stocks popped =
up.<span
style=3D'mso-spacerun:yes'>&nbsp; </span>How would you alter this =
filter?<o:p></o:p></span></font></p>

</blockquote>

</blockquote>

</div>

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