[CANSLIM] AUO: What to do

From: " Bob Hodes" <rchodes@charter.net>
Subject: [CANSLIM] AUO: What to do
Date: Mon, 18 Aug 2003 21:16:38 -0500

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I recently discovered AUO and it appears to be an interesting investment =
opportunity.  AUO makes LCD displays for consumer electronics including =
notebook computers, desktop computers, TVs, etc.  The company's sales =
and profit margins are expanding as the demand for large panel flat =
screen TVs increases.  The technicals are solid but the fundamentals are =
weak from a CANSLIM perspective.  It's also extended from it's pivot =
point of 9.75.

The chart appears to have a staircase quality recently. Recently, it =
bases for a month and then quickly moves upward only to base for a month =
again.  There's no real CWH, just a series of flat bases connected by =
breakouts.

So that's my question.  Is this "staircase" pattern an acceptable basing =
pattern where you can buy the stock after it breaks resistance for it's =
current "base" or is it wiser to wait for a CWH pattern to emerge?

I know that the fundamentals are not stellar but they are improving.  =
But that's not my concern right now, I'm just wondering if there's an =
empirically sound strategy for entering a stock with this type of basing =
pattern.  Also, am I interpreting the chart pattern correctly.  Thanks.

Bob Hodes
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<DIV><FONT face=3DArial size=3D2>I recently discovered AUO and it =
appears to be an=20
interesting investment opportunity.&nbsp; AUO makes LCD displays for =
consumer=20
electronics including notebook computers, desktop computers, TVs, =
etc.&nbsp; The=20
company's sales and profit margins are expanding as the demand for large =
panel=20
flat screen TVs increases.&nbsp; The technicals are solid but the =
fundamentals=20
are weak from a CANSLIM perspective.&nbsp; It's also extended from it's =
pivot=20
point of 9.75.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial size=3D2>The chart appears to have a staircase =
quality=20
recently.&nbsp;Recently, it bases for a month and then quickly moves =
upward only=20
to base for a month again.&nbsp; There's no real CWH, just a series of =
flat=20
bases connected by breakouts.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial size=3D2>So that's my question.&nbsp; Is this =
"staircase"=20
pattern an acceptable basing pattern where you can buy the stock after =
it breaks=20
resistance for it's current "base" or is it wiser to wait for a CWH =
pattern to=20
emerge?</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial size=3D2>I know that the fundamentals are not =
stellar but=20
they are improving.&nbsp; But that's not my concern right now, I'm just=20
wondering if there's an empirically sound strategy for entering a stock =
with=20
this type of basing pattern.&nbsp; Also, am I interpreting the chart =
pattern=20
correctly.&nbsp; Thanks.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial size=3D2>Bob Hodes</FONT></DIV></BODY></HTML>

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