RE: [CANSLIM] filter

From: Marc Deiter <dites@yahoo.com>
Subject: RE: [CANSLIM] filter
Date: Wed, 6 Aug 2003 13:57:25 -0700 (PDT)
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Hi Jeff,

Welcome to the group.  

I looked at your filter and I would suggest some modifications.  

EPS Qtr to Qtr growth - this is set at 70 in your screen.  I would
put this around 20-25.  

Sales Growth and ROE - I would add two criteria for Sales Growth Yr
over Yr and Qtr over Qtr.  I personally would set these around 20 -
adjust to your own rules and preferences.  For ROE criteria, WON
recommends 17% but I like to do around 12%.  

One other modification I would suggest is to remove or lower the
criteria you have put in for daily volume.  You want to see volume on
the breakout day be 50% above average.  The objective of running the
screen is to find stocks prior to break-out that are setting up. 
Ideally, the volume of a stock forming a handle will be much lower
than 50% above the daily average.

Marc


- --- Jeff Henderson <JHend746@cox.net> wrote:
> Ok, for the sake of organization here is a link to my filter:
>
http://moneycentral.msn.com/investor/invsub/finder/finderx.asp?Query=SV1
>
QF153Z04L70ZF131Z04L24ZF3Z00F233Z05L25000000ZF307Z04L80ZF5Z04L1%2e5F116M
> ZF116Z00F102Z04L10Z
>
<http://moneycentral.msn.com/investor/invsub/finder/finderx.asp?Query=SV
>
1QF153Z04L70ZF131Z04L24ZF3Z00F233Z05L25000000ZF307Z04L80ZF5Z04L1%2e5F116
> MZF116Z00F102Z04L10Z&Name=o%27neal&Tickers=25>
> &Name=o%27neal&Tickers=25
>  
> As I mentioned earlier I am using the EXACT recommendations from
> O'Neil's book but I am getting NO query results.  Why is this?  Are
> WON's standards too high?  What fundamentals should I be using?  I
> assume we all can agree on the CANSLIM methods but I guess there is
> disagreement in the specific numbers to be used.
>  
> -----Original Message-----
> From: owner-canslim@lists.xmission.com
> [mailto:owner-canslim@lists.xmission.com] On Behalf Of Katherine
> Malm
> Sent: Wednesday, August 06, 2003 2:46 PM
> To: canslim@lists.xmission.com
> Subject: RE: [CANSLIM] filter
>  
> Hi Gene,
>  
> Please see my follow up clarification post on the comment on "the
> prior
> 52 weeks."
>  
> I did not state nor intend to imply that MSN screeners weren't
> effective, but that they would not produce the same results as
> those you
> would get when using DGO/IBD RSRanks. It's worth noting for those
> that
> are unaware that the RS values at free screening sites such as MSN
> are
> *not* the same as those from IBD/DGO. The same is true of industry
> ranks, etc., as the methdologies are quite different.
>  
> It does leave a particular question, however, as to why you would
> find
> it necessary to use free MSN screeners when you use several
> different
> subscription services (HGSI and Vectorvest) and also use Metastock
> for
> screening (though I realize you probably use the QP2 data from the
> HGSI
> feed). HGSI, in particular, closely mirrors the IBD/DGO RSranks and
> includes EPS ranks as well. They also have a particularly
> comprehensive
> set of tools for performing analysis of a stock's technicals and
> fundamentals. Why use so many different tools? 
>  
> Katherine
>  
>  
>  -----Original Message-----
> From: owner-canslim@lists.xmission.com
> [mailto:owner-canslim@lists.xmission.com]On Behalf Of Gene Ricci
> Sent: Wednesday, August 06, 2003 2:31 PM
> To: canslim@lists.xmission.com
> Subject: Re: [CANSLIM] filter
> Hi Katherine, I'm pretty sure that the RS ranks are not based over
> the
> prior 52 weeks.
> And, I have found the MSN screener to be very effective. 
>  
> Gene
> ----- Original Message ----- 
> From: Katherine Malm <mailto:kmalm@earthlink.net>  
> To: canslim@lists.xmission.com 
> Sent: Wednesday, August 06, 2003 2:21 PM
> Subject: RE: [CANSLIM] filter
>  
> 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 <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
> 
=== message truncated ===


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