RE: [CANSLIM] filter


From: "Katherine Malm" <kmalm@earthlink.net>
Subject: RE: [CANSLIM] filter
Date: Wed, 6 Aug 2003 14:21:08 -0500

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Hi Jeff,

I might add a note of caution on using the MSN screener. That is, their RS ranks
are based on a flat change in price over the prior 52 weeks. This is
significantly different than IBD's RS ranks, which are weighted so that the
price action in the most recent quarter carries more weight (40%), while
previous quarter's each carry 20% weight. The other difference in RS ranks is
that the database over which they are determined is very different. RS ranks for
the IBD are based on a universe of stocks which includes *only* common stocks on
the major US (NASDAQ, NYSE, AMEX) and Canadian exchanges, plus closed end bond
and equity funds. From what I remember, MSN RS ranks are calculated across all
equities in the US markets, including warrants and preferreds. While the RS
ranks at MSN are indeed useful, you would not be emulating the IBD rankings for
purposes of filtering your stocks.

Katherine
  -----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
    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

      To: Canslim

      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><SPAN class=3D281181619-06082003>Hi Jeff,</SPAN></DIV>
<DIV><SPAN class=3D281181619-06082003></SPAN>&nbsp;</DIV>
<DIV><SPAN class=3D281181619-06082003>I might add a note of caution on =
using the=20
MSN screener. That is, their RS ranks are based on a flat change in =
price over=20
the prior 52 weeks. This is significantly different than IBD's RS ranks, =
which=20
are weighted so that the price action in the most recent quarter carries =
more=20
weight (40%), while previous quarter's each carry 20% weight. The other=20
difference in RS ranks is that the database over which they are =
determined is=20
very different. RS ranks for the IBD are based on a universe of stocks =
which=20
includes *only* common stocks on the major US (NASDAQ, =
NYSE,&nbsp;AMEX)&nbsp;and=20
Canadian exchanges, plus closed end bond and equity funds. From what I =
remember,=20
MSN RS ranks are calculated across all equities in the US markets, =
including=20
warrants and preferreds. While the RS ranks at MSN are indeed useful, =
you would=20
not be emulating the IBD rankings for purposes of filtering your=20
stocks.</SPAN></DIV>
<DIV><SPAN class=3D281181619-06082003></SPAN>&nbsp;</DIV>
<DIV><SPAN class=3D281181619-06082003>Katherine</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>=20
  owner-canslim@lists.xmission.com=20
  [mailto:owner-canslim@lists.xmission.com]<B>On Behalf Of=20
  </B>DMC197807<BR><B>Sent:</B> Wednesday, August 06, 2003 2:08 =
PM<BR><B>To:</B>=20
  canslim@lists.xmission.com<BR><B>Subject:</B> Re: [CANSLIM]=20
  filter<BR><BR></FONT></DIV>
  <DIV><FONT face=3DArial size=3D2>Jeff,</FONT></DIV>
  <DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
  <DIV><FONT face=3DArial size=3D2>If you're using a free scanner, why =
don't you use=20
  the one Gene posted a couple of days ago (I'll repost his post) and =
play with=20
  the criteria there.&nbsp; If I adjust relative strength to 80 or above =
it=20
  spits out 15 names.</FONT></DIV>
  <DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
  <DIV><FONT face=3DArial size=3D2>As for CANSLIM criteria, after M one =
supposes=20
  they are all important, and my descending order is no better (could be =
a lot=20
  worse) than anyone else's.&nbsp; However, you are asking a question =
that I=20
  answered 2 days ago, at least from my perspective.&nbsp; This is from =
my note=20
  on 8/4 to Yien:</FONT></DIV>
  <DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
  <DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
  <DIV>&lt;&lt;Good, that's a bunch of information that you can't =
use.&nbsp;=20
  Now, for some you<BR>can.&nbsp; There are only 3 numbers which matter, =
when=20
  all the dust is settled.<BR>They are NOT p/e, d/e, current ratio, PEG, =
profit=20
  margin or inventory<BR>turnover.<BR><BR>THEY ARE:&nbsp; Price paid for =
shares,=20
  Price received for shares, Time held.<BR><BR>Now, MILSCAN (Canslim to =
some of=20
  you) is a very interesting approach, and<BR>can possibly, with strong =
position=20
  and money management systems, help you to<BR>buy low and sell high in =
a timely=20
  timeframe.<BR><BR>Here's how I think of these factors, in descending =
order of=20
  importance:<BR><BR>&lt;&lt;M is for the market and the market =
trend.&nbsp; We=20
  are at an inflection point<BR>here, so it's lookout below, or perhaps =
lookout=20
  above.<BR><BR>N is for new highs in the stock, breaking out above the =
pivot=20
  point<BR><BR>L is for an relative strength rating of 70 or =
better<BR><BR>A is=20
  for annual earnings growth (this is for additional comfort)<BR><BR>C =
is for=20
  current quarterly earnings (this is for additional comfort)<BR><BR>I =
is for=20
  institutional sponsorship&nbsp; (this is a timing issue--I think I=20
  trust<BR>the chart over this, for some reason)<BR><BR>S is for supply =
of stock=20
  (looking for a relatively low no. of shares--here I<BR>want to exclude =
the=20
  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=20
  TA and FA together is a good idea, but when in conflict,<BR>trust the=20
  TA.&nbsp; Remember, out of 7000 stocks we are looking for 1 or 2 =
names<BR>a=20
  week on which to carefully place our hopes.&nbsp;&gt;&gt;</DIV>
  <DIV>&nbsp;</DIV>
  <DIV><FONT face=3DArial size=3D2>DMC</FONT></DIV>
  <BLOCKQUOTE dir=3Dltr=20
  style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 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=3DJHend746@cox.net href=3D"mailto:JHend746@cox.net">Jeff =
Henderson</A>=20
    </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> Wednesday, August 06, =
2003 11:40=20
    AM</DIV>
    <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> RE: [CANSLIM] =
filter</DIV>
    <DIV><BR></DIV>
    <DIV class=3DSection1>
    <P class=3DMsoNormal><FONT face=3DArial color=3Dnavy size=3D2><SPAN=20
    style=3D"FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: Arial">Sorry =
about the=20
    misunderstanding I was using the CANSLIM acronym. <SPAN=20
    style=3D"mso-spacerun: yes">&nbsp;</SPAN>I=92ll explain my filter =
again.<SPAN=20
    style=3D"mso-spacerun: yes">&nbsp; </SPAN>First off I use MSN as my =
filter=20
    source. <SPAN style=3D"mso-spacerun: yes">&nbsp;</SPAN>Here is my =
filter that=20
    I use: current earnings per share (the same quarter a year =
ago)&gt;=3D70%,=20
    annual earnings per share over the past 5 years, &gt;=3D 24% =
compounded,=20
    shares outstanding&lt;25,000,000, relative strength&gt;=20
    80%.<o:p></o:p></SPAN></FONT></P>
    <P class=3DMsoNormal><FONT face=3DArial color=3Dnavy size=3D2><SPAN=20
    style=3D"FONT-SIZE: 10pt; COLOR: navy; FONT-FAMILY: =
Arial"><o:p>&nbsp;</o:p></SPAN></FONT></P>
    <P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT =
face=3DTahoma size=3D2><SPAN=20
    style=3D"FONT-SIZE: 10pt; FONT-FAMILY: Tahoma">-----Original=20
    Message-----<BR><B><SPAN style=3D"FONT-WEIGHT: =
bold">From:</SPAN></B>=20
    owner-canslim@lists.xmission.com =
[mailto:owner-canslim@lists.xmission.com]=20
    <B><SPAN style=3D"FONT-WEIGHT: bold">On Behalf Of=20
    </SPAN></B>DMC197807<BR><B><SPAN style=3D"FONT-WEIGHT: =
bold">Sent:</SPAN></B>=20
    </SPAN></FONT><st1:date Month=3D"8" Day=3D"6" Year=3D"2003"><FONT =
face=3DTahoma=20
    size=3D2><SPAN style=3D"FONT-SIZE: 10pt; FONT-FAMILY: =
Tahoma">Wednesday, August=20
    06, 2003</SPAN></FONT></st1:date><FONT face=3DTahoma size=3D2><SPAN=20
    style=3D"FONT-SIZE: 10pt; FONT-FAMILY: Tahoma"> =
</SPAN></FONT><st1:time=20
    Hour=3D"11" Minute=3D"23"><FONT face=3DTahoma size=3D2><SPAN=20
    style=3D"FONT-SIZE: 10pt; FONT-FAMILY: Tahoma">11:23=20
    AM</SPAN></FONT></st1:time><FONT face=3DTahoma size=3D2><SPAN=20
    style=3D"FONT-SIZE: 10pt; FONT-FAMILY: Tahoma"><BR><B><SPAN=20
    style=3D"FONT-WEIGHT: bold">To:</SPAN></B>=20
    canslim@lists.xmission.com<BR><B><SPAN=20
    style=3D"FONT-WEIGHT: bold">Subject:</SPAN></B> Re: [CANSLIM]=20
    filter</SPAN></FONT></P>
    <P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT =
face=3D"Times New Roman"=20
    size=3D3><SPAN style=3D"FONT-SIZE: =
12pt"><o:p>&nbsp;</o:p></SPAN></FONT></P>
    <DIV>
    <P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT face=3DArial =
size=3D2><SPAN=20
    style=3D"FONT-SIZE: 10pt; FONT-FAMILY: =
Arial">Jeff,</SPAN></FONT><o:p></o:p></P></DIV>
    <DIV>
    <P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT =
face=3D"Times New Roman"=20
    size=3D3><SPAN=20
    style=3D"FONT-SIZE: 12pt">&nbsp;<o:p></o:p></SPAN></FONT></P></DIV>
    <DIV>
    <P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT face=3DArial =
size=3D2><SPAN=20
    style=3D"FONT-SIZE: 10pt; FONT-FAMILY: Arial">I don't understand =
which=20
    filter/scan you are using, or what all your variables mean.&nbsp; If =
you're=20
    using a public scan or stockcharts, maybe you can put in a link=20
    here?</SPAN></FONT><o:p></o:p></P></DIV>
    <DIV>
    <P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT =
face=3D"Times New Roman"=20
    size=3D3><SPAN=20
    style=3D"FONT-SIZE: 12pt">&nbsp;<o:p></o:p></SPAN></FONT></P></DIV>
    <DIV>
    <P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT face=3DArial =
size=3D2><SPAN=20
    style=3D"FONT-SIZE: 10pt; FONT-FAMILY: Arial">If C =3D =
capitalization and you=20
    are using only the top 30% of stocks you've filtered out way too =
many stocks=20
    already.&nbsp; In capitalization I only filter out the very top =
stocks, but=20
    that's just me.&nbsp; I don't know what your S is.&nbsp; For =
relative=20
    strength I use the top 40% of the market, that is, stocks =
outperforming=20
    60%.</SPAN></FONT><o:p></o:p></P></DIV>
    <DIV>
    <P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT =
face=3D"Times New Roman"=20
    size=3D3><SPAN=20
    style=3D"FONT-SIZE: 12pt">&nbsp;<o:p></o:p></SPAN></FONT></P></DIV>
    <DIV>
    <P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT face=3DArial =
size=3D2><SPAN=20
    style=3D"FONT-SIZE: 10pt; FONT-FAMILY: Arial">I'm willing to let =
some other=20
    names in because after this scan gives me names, I'm happy to look =
through=20
    charts to find appropriate =
patterns.</SPAN></FONT><o:p></o:p></P></DIV>
    <DIV>
    <P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT =
face=3D"Times New Roman"=20
    size=3D3><SPAN=20
    style=3D"FONT-SIZE: 12pt">&nbsp;<o:p></o:p></SPAN></FONT></P></DIV>
    <DIV>
    <P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT face=3DArial =
size=3D2><SPAN=20
    style=3D"FONT-SIZE: 10pt; FONT-FAMILY: =
Arial">DMC</SPAN></FONT><o:p></o:p></P></DIV>
    <DIV>
    <P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT =
face=3D"Times New Roman"=20
    size=3D3><SPAN=20
    style=3D"FONT-SIZE: 12pt">&nbsp;<o:p></o:p></SPAN></FONT></P></DIV>
    <DIV>
    <P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT =
face=3D"Times New Roman"=20
    size=3D3><SPAN=20
    style=3D"FONT-SIZE: 12pt">&nbsp;<o:p></o:p></SPAN></FONT></P></DIV>
    <DIV>
    <P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT =
face=3D"Times New Roman"=20
    size=3D3><SPAN style=3D"FONT-SIZE: 12pt">----- Original Message =
- -----=20
    <o:p></o:p></SPAN></FONT></P></DIV>
    <BLOCKQUOTE=20
    style=3D"BORDER-RIGHT: medium none; PADDING-RIGHT: 0in; BORDER-TOP: =
medium none; PADDING-LEFT: 4pt; PADDING-BOTTOM: 0in; MARGIN: 5pt 0in 5pt =
3.75pt; BORDER-LEFT: black 1.5pt solid; PADDING-TOP: 0in; BORDER-BOTTOM: =
medium none">
      <DIV style=3D"font-color: black">
      <P class=3DMsoNormal=20
      style=3D"BACKGROUND: #e4e4e4; MARGIN-LEFT: 0.5in"><B><FONT =
face=3DArial=20
      size=3D2><SPAN=20
      style=3D"FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: =
Arial">From:</SPAN></FONT></B><FONT=20
      face=3DArial size=3D2><SPAN style=3D"FONT-SIZE: 10pt; FONT-FAMILY: =
Arial"> <A=20
      title=3DJHend746@cox.net href=3D"mailto:JHend746@cox.net">Jeff =
Henderson</A>=20
      <o:p></o:p></SPAN></FONT></P></DIV>
      <DIV>
      <P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><B><FONT =
face=3DArial=20
      size=3D2><SPAN=20
      style=3D"FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: =
Arial">To:</SPAN></FONT></B><FONT=20
      face=3DArial size=3D2><SPAN style=3D"FONT-SIZE: 10pt; FONT-FAMILY: =
Arial"> <A=20
      title=3Dcanslim@lists.xmission.com=20
      href=3D"mailto:canslim@lists.xmission.com">Canslim</A>=20
      <o:p></o:p></SPAN></FONT></P></DIV>
      <DIV>
      <P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><B><FONT =
face=3DArial=20
      size=3D2><SPAN=20
      style=3D"FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: =
Arial">Sent:</SPAN></FONT></B><FONT=20
      face=3DArial size=3D2><SPAN style=3D"FONT-SIZE: 10pt; FONT-FAMILY: =
Arial">=20
      </SPAN></FONT><st1:date Month=3D"8" Day=3D"6" Year=3D"2003"><FONT =
face=3DArial=20
      size=3D2><SPAN style=3D"FONT-SIZE: 10pt; FONT-FAMILY: =
Arial">Wednesday, August=20
      06, 2003</SPAN></FONT></st1:date><FONT face=3DArial size=3D2><SPAN =

      style=3D"FONT-SIZE: 10pt; FONT-FAMILY: Arial"> =
</SPAN></FONT><st1:time=20
      Hour=3D"9" Minute=3D"2"><FONT face=3DArial size=3D2><SPAN=20
      style=3D"FONT-SIZE: 10pt; FONT-FAMILY: Arial">9:02=20
      AM</SPAN></FONT></st1:time><FONT face=3DArial size=3D2><SPAN=20
      style=3D"FONT-SIZE: 10pt; FONT-FAMILY: =
Arial"><o:p></o:p></SPAN></FONT></P></DIV>
      <DIV>
      <P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><B><FONT =
face=3DArial=20
      size=3D2><SPAN=20
      style=3D"FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: =
Arial">Subject:</SPAN></FONT></B><FONT=20
      face=3DArial size=3D2><SPAN style=3D"FONT-SIZE: 10pt; FONT-FAMILY: =
Arial">=20
      [CANSLIM] filter<o:p></o:p></SPAN></FONT></P></DIV>
      <DIV>
      <P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT =
face=3D"Times New Roman"=20
      size=3D3><SPAN=20
      style=3D"FONT-SIZE: =
12pt"><o:p>&nbsp;</o:p></SPAN></FONT></P></DIV>
      <P class=3DMsoNormal style=3D"MARGIN-LEFT: 0.5in"><FONT =
face=3DArial=20
      size=3D2><SPAN style=3D"FONT-SIZE: 10pt; FONT-FAMILY: Arial">After =
reading=20
      O=92Neil=92s book I decided to use the filter C&gt;=3D70, =
A&gt;=3D5,=20
      S&lt;25,000,000, relative strength&gt;80 and last volume 1.5 =
average=20
      quarterly volume.<SPAN style=3D"mso-spacerun: yes">&nbsp; =
</SPAN>To my=20
      dismay, no stocks popped up.<SPAN style=3D"mso-spacerun: =
yes">&nbsp;=20
      </SPAN>How would you alter this=20
    =
filter?<o:p></o:p></SPAN></FONT></P></BLOCKQUOTE></DIV></BLOCKQUOTE></BLO=
CKQUOTE></BODY></HTML>

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