From: canslim-owner@xmission.com To: canslim-digest@xmission.com Subject: canslim Digest V1 #89 Reply-To: canslim@xmission.com Errors-To: canslim-owner@xmission.com Precedence: canslim Digest Thursday, 20 February 1997 Volume 01 : Number 089 In this issue: Re: [CANSLIM] Hi folks Re: [CANSLIM] Hi folks Re: [CANSLIM] Hi folks [CANSLIM] A quickie re: [CANSLIM] A quickie [CANSLIM] RE: IDB Volume Tables Deleted Re: [CANSLIM] A quickie Re: [CANSLIM] ESOL [CANSLIM] Dime Financial Corp. (DIBK) Dime Savings Bank Re: [CANSLIM] Hi folks Re: [CANSLIM] A quickie Re: [CANSLIM] Dime Financial Corp. (DIBK) Dime Savings Bank Re: [CANSLIM] A quickie [CANSLIM] Market Comments 2/19/97 Re: [CANSLIM] RE: IDB Volume Tables Deleted Re: [CANSLIM] ESOL Re: [CANSLIM] Whoa is Me! - FESX Re: [CANSLIM] ESOL [CANSLIM] Options expiration Re: [CANSLIM] A quickie See the end of the digest for information on subscribing to the canslim or canslim-digest mailing lists and on how to retrieve back issues. ---------------------------------------------------------------------- From: Dave Dubinsky Date: Wed, 19 Feb 1997 21:41:44 -0800 Subject: Re: [CANSLIM] Hi folks > and getting things like IBD and DG in > a timely manner is at best difficult, if not impossible, so direct > access has all of us excited. Here Here. Finally, I found a way to look at the volume tables when my IBD does not arrive. And then they take it away from us. How about a password for those of us already paying over $1,000 a year for both DG and IBD? ------------------------------ From: "tom worley" Date: Wed, 19 Feb 1997 23:09:04 -0500 Subject: Re: [CANSLIM] Hi folks Hey Joseph, probably not fair to inundate you right after you are nice (brave?) enough to intro yourself in a fanatical CANSLIM group, but any suggestions off the record on how we can pass along our thoughts in a way that can get some action? I know when I had a home delivery of IBD (when I was still an active broker) I would call IBD and complain every time it was not on my front lawn by 5:30AM or so. Eventually IBD (back then was just ID) changed the local distributor to a more reliable one. BTW Dave, that's my 2cents worth until IBD is truly "net accessible". Of course, back then net access was not even a glimmer in Wm O'Neill's eye. tom w - ---------- > From: Dave Dubinsky > To: canslim@xmission.com > Subject: Re: [CANSLIM] Hi folks > Date: Thursday, February 20, 1997 12:41 AM > > > and getting things like IBD and DG in > > a timely manner is at best difficult, if not impossible, so direct > > access has all of us excited. > > > Here Here. Finally, I found a way to look at the volume tables when my > IBD does not arrive. And then they take it away from us. How about a > password for those of us already paying over $1,000 a year for both DG > and IBD? ------------------------------ From: "Richard S." Date: Wed, 19 Feb 1997 22:18:27 -0600 Subject: Re: [CANSLIM] Hi folks Welcome to the group. Its nice to know we have an "insider" with us. Don't be afraid to ask questions, they make us all think about the answers, even if we don't respond. << Richard S. >> - ---------- : From: Joseph Vaughn-Perling : To: canslim@xmission.com : Subject: [CANSLIM] Hi folks : Date: Wednesday, February 19, 1997 10:10 AM : : I'm new to the list, just thought I say hello. : : I'm a technologist working for Willaim O'Neil & Co. on the W.O.N.D.A. : (William O'Neil Direct Access) project, as well as more recently the : DailyGraphs Online project. I was hired by O'Neil (about 2 years ago) for : my technical acumen not my stock selection ability but I've been learning : all I can. : ------------------------------ From: Zoran Mitrovski Date: Wed, 19 Feb 1997 23:51:36 -0500 (EST) Subject: [CANSLIM] A quickie 1. You gotta love HDCO. Dived 8 pts today. My fingers itched to short it at 49 at the open on volume that reached the average daily in just 20 minutes after the open, but I chickened out. I've never shorted a baby before. So now I think it closed at 46 which is right where I first sold it in November. So much for "hold your ..." whatever. 2. Motley Fools. If they had known of their recent performance record ahead of time, I'm sure they'd been much more carefull with the name pick. ;^) I wonder how would their portfolio results look like without AOL and IOM? And how can they explain sticking to IOM after the remarkable plunge last year? Wrong question...They sure DO "explain" a lot. Too much for my taste. I personally use them as a reference point relative to which I grade the advances in my investing knowledge. When I just remember how fascinated I was last spring while reading their book and seeing their performance. 3. 02/19/97 Wed Bought NATI (Yep, I think it broke another resistance barrier) eps=97 rs=87 ad=B grs=B pe=30 Short base: 34 x 35 Pivot: 35 Bought: 35 3/4 (pivot + 2%, vol at buying 26k, bid 35 1/4) Stop: TOP SECRET Avg vol: 31k Closing vol: 57k Closing price: 35 5/8 x 36 Earnings: Late April 4. 02/19/97 Wed Bought ROBN (Robbins & Myers) eps=90 rs=85 ad=C grs=D pe=14 Pivot: 27 1/2 Bought: 29 1/2 (pivot + 7%, vol at buying 70k, bid 28 1/2) Stop: TOP SECRET Avg vol: 43k Closing vol: 122k Closing price: 28 1/2 x 29 1/2 Earnings: Mar 07 Over and out... Cheers, Zoran P.S. Have you noticed how majordomo has been chewing up messages recently? ------------------------------ From: Michael A Langston Date: Thu, 20 Feb 1997 00:12:12 -0500 Subject: re: [CANSLIM] A quickie > 1. You gotta love HDCO. Dived 8 pts today...I've > never shorted a baby before. but this one's your main squeeze zoran -- no guts no glory! 1/2 :) just keep a trailing (buy) stop as she descends, just as you would a trailing (sell) stop on one going up > 2. Motley Fools. If they had known of their the fools, the beardstown ladies, cabot and pristine, ptooey on all of em, but especially on the fools -- sometime i'll tell you how i really feel, heh heh heh > 3. 02/19/97 Wed Bought NATI (Yep, I think it broke another > resistance barrier) a b/o yes, but i see no resistance > Stop: TOP SECRET dang, i was gonna tell the MMs -- uh, that's BDs to you tom :) > 4. 02/19/97 Wed Bought ROBN (Robbins & Myers)... > Closing price: 28 1/2 x 29 1/2 a full point spread, mass huevos man! > Over and out... now zoran, radio ops may say "over," or they may say "out," but "over and out" is strictly hollywood-speak -- see what you can learn in a canslim group? mike ------------------------------ From: "Mike Artobello" Date: Wed, 19 Feb 1997 21:22:42 -0800 Subject: [CANSLIM] RE: IDB Volume Tables Deleted I'm also disappointed that these table were deleted. Maybe if we all email IBD and voice our collective disappointment they'll put them back, or at least make them available to subscribers of IDB or DG. Send email to ibdmktg@mailserver.investors.com Regards, Mike - ----------------------------------------------------------- Mike Artobello marto@ccnet.com http://www.ccnet.com/~marto/ - ----------------------------------------------------------- ------------------------------ From: Zoran Mitrovski Date: Thu, 20 Feb 1997 01:06:11 -0500 (EST) Subject: Re: [CANSLIM] A quickie mike wrote: > > 3. 02/19/97 Wed Bought NATI (Yep, I think it broke another > > resistance barrier) > > a b/o yes, but i see no resistance I agree. I wanted to say that I've been waiting for it to cross 35 on a decent volume. > > Stop: TOP SECRET > > dang, i was gonna tell the MMs -- uh, that's BDs to you tom :) Well, if they are ready to pay you for such info, I'm prepared to give them a 10% discount on a six-pack of my stops, and email them myself. You tell them that, mike. ;^) > > 4. 02/19/97 Wed Bought ROBN (Robbins & Myers)... > > Closing price: 28 1/2 x 29 1/2 > > a full point spread, mass huevos man! Si senor. Mucho mass. > > Over and out... > > now zoran, radio ops may say "over," or they may say "out," > but "over and out" is strictly hollywood-speak -- see what you > can learn in a canslim group? Absolutely fabulous! > mike Cheers, Zoran ------------------------------ From: Craig Griffin Date: Wed, 19 Feb 1997 14:46:49 -0500 Subject: Re: [CANSLIM] ESOL Agreed, I'm in there (with you I assume). We'll see. Thanks for the heads up! At 08:18 PM 2/19/97 +0100, you wrote: >ESOL looks good. ------------------------------ From: Greythound@aol.com Date: Wed, 19 Feb 1997 10:27:18 -0500 (EST) Subject: [CANSLIM] Dime Financial Corp. (DIBK) Dime Savings Bank Just when I was thinking of selling, Dime moves up two points in two days. It seems the local branch of Dime experienced a robbery the same day that the stock started to break out. My wifed deposited a check in our account there and left just before the robbery. I wonder if there is a connection. Hmm. Anyway, I've had a fifty percent gain, so perhaps it is time to sell. Douglas Herman ------------------------------ From: "David F. Cameron" Date: Wed, 19 Feb 1997 11:58:57 CST Subject: Re: [CANSLIM] Hi folks Joseph, Welcome aboard. I hope you can help us as much as we can help you. > > I'm a technologist working for Willaim O'Neil & Co. on the W.O.N.D.A. > (William O'Neil Direct Access) project, as well as more recently the > DailyGraphs Online project. I was hired by O'Neil (about 2 years ago) for > my technical acumen not my stock selection ability but I've been learning > all I can. > I'd like to ask a question as well. I understand that the DailyGraphs site requires Win95, but the IBD site does not. Do you know if this is a permanent plan? I have a UNIX box (Sun Sparc5) and obviously will never have Win95. I'd pay for DG on-line, but not if I can't get it on this computer. I don't mean to imply its your decision; I'm sure its not. So don't read this wrong. I'm just explaining why I am asking. Thanks, Dave Cameron dcameron@harper.cc.il.us ------------------------------ From: "tom worley" Date: Thu, 20 Feb 1997 06:49:42 -0500 Subject: Re: [CANSLIM] A quickie HDCO dropped to logical support, however I consider the 8 pt drop excessive and reflects several things: no recent consolidation after considerable gain; announced secondary; ratings and earnings cut by Alex Brown. However Brown still projects cur yr earnings of $3.32 (down from $3.44 only because of the addl 2 mil shares being offered), which gives it a projected PE of about 16. Best scenario is to base out here till the secondary done, which could then be excellent entry pt. Am trying to get details on the convertible notes, might be a good combo growth and income play for those who want to hold long term. I'll be watching DNA this am for a gap down on the open, if severe enough will try for a day trade bounce. Anybody notice the beginning of a breakout from a long handle off a decently formed cup on LTXX? Heavy vol last two days. CANSLIM nrs still lousy but should be improving, am trying to wait cuz earnings due out any day. what a crazy mkt! tom w - ---------- > From: Zoran Mitrovski > To: canslim@xmission.com > Cc: Zoran Mitrovski > Subject: [CANSLIM] A quickie > Date: Wednesday, February 19, 1997 11:51 PM > > > 1. You gotta love HDCO. Dived 8 pts today. > ------------------------------ From: "tom worley" Date: Thu, 20 Feb 1997 06:40:52 -0500 Subject: Re: [CANSLIM] Dime Financial Corp. (DIBK) Dime Savings Bank Dime, IMHO, is a very good CANSLIM type stock in one of the strongest groups right now. The key to success with CANSLIM is not whether you have a large enough profit, it's whether the stock still is performing and has the right characteristics. Hold your winners, sell the dogs. tom w - ---------- > From: Greythound@aol.com > To: canslim@xmission.com > Subject: [CANSLIM] Dime Financial Corp. (DIBK) Dime Savings Bank > Date: Wednesday, February 19, 1997 10:27 AM > > Just when I was thinking of selling, Dime moves up two points in two days. > > I wonder if there is a connection. Hmm. Anyway, I've had a fifty percent > gain, so perhaps it is time to sell. ------------------------------ From: "tom worley" Date: Thu, 20 Feb 1997 06:54:28 -0500 Subject: Re: [CANSLIM] A quickie Glad to see you've been staying awake in class, Mike. tom w - ---------- > From: Michael A Langston > To: canslim@xmission.com > Subject: re: [CANSLIM] A quickie > Date: Thursday, February 20, 1997 12:12 AM > > > Stop: TOP SECRET > > dang, i was gonna tell the MMs -- uh, that's BDs to you tom :) > ------------------------------ From: "tom worley" Date: Thu, 20 Feb 1997 07:24:32 -0500 Subject: [CANSLIM] Market Comments 2/19/97 Just some quick comments this am, then off to my real job. Lackluster mkt, trading flat all the way to final hour. Started off looking strong, NYSE in first half hour had 79 new highs, NASDAQ had 93. I was pretty much on target on the CPI, and right on target in how the mkt would react. Concensus seems to be that a drop was already factored in, thus coming in lower than expectation but still up was seen as a mild disappointment. Ridiculous, PPI and CPI don't go hand in hand, takes months for a drop in crude materials to translate, if it ever does, into finished materials. And producers/mfr's have been absorbing considerable price increases to date, about time they got a break, but would take months of drops at the producer level before I would expect a CPI drop. Market probably being affected by this Friday's double witching. Vol back up to prior levels, probably also related. No other apparent cause for the 50 pt reversal in final hour that I could find. Dollar remains strong despite more murmuring by the Bundesbank. Does not appear any sig effect on mkts from death of Deng Xiaoping. May set off further weakness in yen, which could drive dollar thru the 125 level. HP's great nrs helped a nr of other computer mfr's. Chips had another decent day. Some concern on HP nr, seems a good bit of the earnings came from cutting expenses, thus may not be repeated in future qtrs. At least encouraging to still see stocks behaving logically. Several I mentioned in yesterday's comments for pos earnings surprises were up for the day, one I mentioned as neg earnings surprise was down, Hadco sold off in face of secondary. Just some thoughts to brighten and enlighten your day. tom w As always, just OMHO any opinions expressed, recommendations made, or advice given are strictly my own and do not represent my employer ------------------------------ From: Johan Van Houtven Date: Thu, 20 Feb 1997 15:29:43 +0100 Subject: Re: [CANSLIM] RE: IDB Volume Tables Deleted Mike wrote: >I'm also disappointed that these table were deleted. Maybe if we all >email IBD and voice our collective disappointment they'll put them >back, or at least make them available to subscribers of IDB or DG. For me this was my ONLY source of 'New America' and Higest 'Vol % increase lists', because I can't get IBD here in Belgium. So of course I'm disappointed. On the otherhand one has to realise that they are running a business not a charity organisation. I hope it will return soon for a reasonable fee. In my opinion the should have at least warned the IBD site users and provided or annouced a fee-based service. >Send email to ibdmktg@mailserver.investors.com > >Regards, > >Mike >----------------------------------------------------------- >Mike Artobello >marto@ccnet.com >http://www.ccnet.com/~marto/ >----------------------------------------------------------- > > - --- Johan Van Houtven / Belgium ------------------------------ From: Johan Van Houtven Date: Thu, 20 Feb 1997 15:31:47 +0100 Subject: Re: [CANSLIM] ESOL I did not buy Craig. Had no time to do more research. Good luck! >Agreed, I'm in there (with you I assume). We'll see. Thanks for the heads up! > >At 08:18 PM 2/19/97 +0100, you wrote: >>ESOL looks good. > > - --- Johan Van Houtven / Belgium ------------------------------ From: Craig Griffin Date: Thu, 20 Feb 1997 10:11:37 -0500 Subject: Re: [CANSLIM] Whoa is Me! - FESX Jim, At 06:17 PM 2/19/97 -0500, you wrote: >I put in a buy for 1000 >shares between the bid, 16 and the ask, 16 3/8. >Should I have simply bought at market and not tried to go between the >spread? Should I have checked with my broker sooner? Yes and yes. When it is time to buy or sell, rarely is it worth trying to split the spread. Even on the NYSE where such things are more easily done, don't. If you want the stock, it is a breakout and within 10% of the pivot, don't quibble. With 1000 shares, you can typically place a market order. My practice is usually to place a limit order at the ask. So, in your example I would have said "I want to buy 1000 shares of FESX at 16 3/8 limit, good for the day". Then, I would keep my broker on the phone with me until it was filled because I am ready to buy the stock and am not going to chance missing it. The limit is to protect me in the situation where one of 3 market makers has his ask at 16 1/2, the other 2 are at 16 3/8, and yet he's the guy who manages to fill my order. If, while I'm on the phone holding for the report, the ask moves up 1/8 I will normally just replace my order with the new ask price and pick it up there. Why would the ask price go up? Two main reasons: 1- several orders to buy may have hit just before your order got there and they moved the bid up in the 15 seconds while your broker took your order. Your order goes in and then you request that your broker re-check the quote. If he says no they moved it, then perhaps you chase it with another limit order or convert it to market. 2- your order was for more than 1000 shares and that moves the market. Say you are buying 3000 shares at 16 3/8, the way the NASDAQ currently works, they must fill the first 1000 shares at the ask when they receive the order. Then they can move the ask to 16 1/2 and your other 2000 are still sitting there are 16 3/8 waiting to be filled. If this is early in a breakout, that's not likely to happen because the stock price is floating up like a balloon due to no overhead resistance. It may come back to your ask again, but more often than not, by waiting, I miss it. Here's why your order in the middle of the spread will almost never get filled. First, the market makers live off of the spread. Second, they know what a breakout is and they know the price is likely to continue to go higher, so they are a bit less likely to release inventory at a lower price. Third, there might be orders to buy 50,000 shares ahead of you in the middle of the spread. It is first in first out, so those 50,000 shares must be bought before your turn comes. If you do manage to get filled at that lower price, it may be a signal that something is wrong. It is usually the case that if you get the stock in the middle of the spread, the market makers are getting lots of sell orders. Eventually he has so much inventory that he wants to unload some to reduce his risk. When that happens, you turn into his outlet valve as he fills all the buy orders between the spread. As soon as he fills those buy orders, the price drops if he still has too much inventory. The main other way to get your order filled is for the price to pull back, and you will not be getting it in the middle of the spread after all. But at the point in the day where you were buying, you would not expect a pullback. What you hope for is a follow through where the price goes up another point or so from the breakout the day before and then pulls back from there a bit. The only reason to be buying at that point is to pyramid a bit or because you missed it earlier. Bottom line: you can never tell, but if you want the stock and you've done all this work, don't miss it by 1/8 or 1/4. Buy it at the market or at the ask but with a limit order. If you are selling, same is true. Paying that 1/8 point is a kind of insurance to make sure you accomplish your task. Tom and Linda's responses were perhaps better in that they are more to the point. I have tried to tell you why attempts to split the spread will usually fail, and counter to normal thinking, if you can manage to do it, you probably don't want to! Here is the great news. You picked a perfect cup with handle. Notice the beautiful volume dry up in the handle with the volume forming a descending slope to almost nothing prior to the breakout? That is the ideal volume pattern. Yesterday was of course the primary day to buy, but today would have been fine too, well within 10% early in the day. You recognized a valid breakout and were buying at the right point. Haven't checked the stock in DG, but assuming the numbers are behind it, it is in a leading group. So, you missed it, I have made similar mistakes within the last month. There are always more good stocks. And clearly you are recognizing the right ones! Congratulations. Best regards, Craig ------------------------------ From: Craig Griffin Date: Thu, 20 Feb 1997 10:11:41 -0500 Subject: Re: [CANSLIM] ESOL Johan, Here's a synopsis of what I see. Formed base beginning around 11/01 at 24 1/2. Cup with handle, but handle was only 2 or 3 days long (a bit too short, like at least a week). Broke out on about 150% vol. but with not follow through in weak NASDAQ mkt. Formed a "ledge" above the base (got this term from the Stock Farmer). Broke out of ledge yesterday on 150% vol. Stock is sort of hovering and waiting for earnings news due 03/07. Correct buying is as close to 24 1/2 as possible (of course). But for instance when the price action in the ledge dipped down to 23 1/2 and then came back out past 24 1/2 again was a good time. Relative strength line has also formed cup with handle. In a way the "ledge" is really a "high handle" for a cup that did not have one. Main negative is low GRS at 32. Best regards, Craig ------------------------------ From: "Hilton Steve" Date: 20 Feb 1997 09:11:38 -0600 Subject: [CANSLIM] Options expiration Hi, I am enjoying the reading on the list. Thanks to whoever pointed me to the archives for the pivot point discussion. Another newbie question, we are approaching an options expiration Friday and I was wondering what type of message about the market can be drawn from an up day or down day? Or perhaps no conclusions can be made if the market is flat? Thanks, Steve smirck@aol.com ------------------------------ From: Craig Griffin Date: Thu, 20 Feb 1997 10:40:50 -0500 Subject: Re: [CANSLIM] A quickie At 11:51 PM 2/19/97 -0500, you wrote: >1. You gotta love HDCO. Dived 8 pts today. >My fingers itched to short it at 49 at the open >on volume that reached the average daily in just >20 minutes after the open, but I chickened out. FWIW, O'Neil says it is 3 times as hard to short successfully as it is to buy successfully. He does not generally recommend it except in a bear mkt. ------------------------------ End of canslim Digest V1 #89 **************************** To subscribe to canslim Digest, send the command: subscribe canslim-digest in the body of a message to "majordomo@xmission.com". 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