Re: [CANSLIM] SCNYA and general questions

From: Dave Cameron <dfcameron@ameritech.net>
Subject: Re: [CANSLIM] SCNYA and general questions
Date: Fri, 16 Jul 1999 23:09:48 -0500

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I'll try my 2 cents:

SKutney@aol.com wrote:
> 
> Hi,
> 
>   I just subscribed to this canslim list. I''ve been interested in the stock
> market for years but everytime I purchased a stock I lost money. I purchased
> the tapes and Bill O'neil's plus I have read several other books which
> offered similiar ideas but not packaged so well.

Everytime!   Wow - seems you have a talent.   Why not just take your method
and reverse it?   This is partly tongue-in-cheek, but partly serious.  If
you've lost money on every purchase, and turn your buy/sell rules upside
down, you may make money on most purchases.
> 
>   I''ve purchased several stocks but I've allways get stopped out. Some of
> these stocks really shot down and others went back up.

I've had the same problem.   I've found that even if you pick the perfect
buy point on a good CANSLIM stock, you'll only make money 50% of the
time.   The key is to make more money on the winners than you lose on
the losers...    
> 
>   When I look at IBD I find so much data I get confused. It seems that I
> would do better if I had a short list. I want to get into a stock at a
> breakout and continue to stay in that stock for a year.  What do you use in
> IBD to help you determine which stocks to buy?

I look at the 'Stocks in the News' section.
> 
>   I think SCNYA was featured in the New America section of IBD.  I noticed
> that the
> fund rank is "D". According to YAHOO 13.3% of the stock is owned by
> institutions.
> This seems like the type of stock that Bill O'neil and David Ryan talk about.
> The reason that the EPS and RS ranks are so high is because of the small
> float and decent earnings.  Walter commented that his rough target would be
> 21 3/4. I don't
> understand what your calling the high volume breakout. I see higher relative
> volume
> during November 1998, March 99 and May 1999. Could you explain your formula
> of 12 3/4 + (12 3/4 - 3 3/4)?
> 
> How important is the fund rank? I purchased Bell Fuse A (BELFA) because it was
> shown on a Friday issue of IBD as a stock that was being purchased by "A"
> rated
> funds. The institutional ownership was low.  When I purchased the stock
> dropped like a rock.  I get a feeling that some of these funds buy into some
> of these stocks to drum-up some interest. They then jump out. I've noticed
> the real "kiss of death" is an article in Barrons or CBS marketwatch.com.

Astute.   Once a stock gets written up - its run is generally over.   As
far as fund rank - it depends.   If a LOT of 'A' funds are in it - it
may be too late.   If a few 'A' funds are in it, and very few 'B', 'C'
etc., you have a much better chance.

Good luck,

Dave Cameron
dfcameron@ameritech.net

> 
> Thanks,
> Steve
> 
> -

- -

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