From: canslim-owner@xmission.com (canslim Digest) To: canslim-digest@xmission.com Subject: canslim Digest V1 #110 Reply-To: canslim@xmission.com Sender: canslim-owner@xmission.com Errors-To: canslim-owner@xmission.com Precedence: canslim Digest Monday, March 17 1997 Volume 01 : Number 110 In this issue: Re: [CANSLIM] can slim for Canada? Re: [CANSLIM] can slim for Canada? [CANSLIM] Re: ESOL [CANSLIM] Re: HOT Re: [CANSLIM] NUSFX closes up shop Re: [CANSLIM] So what happened to out group? Re: [CANSLIM] I'm baaaccckkkk!!! Re: [CANSLIM] I'm baaaccckkkk!!! Re: [CANSLIM] So what happened to out group? [CANSLIM] Re: Our Methodology [CANSLIM] Investment Question. 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. ---------------------------------------------------------------------- Date: Sun, 16 Mar 1997 20:25:18 -0500 From: "Tom Worley" Subject: Re: [CANSLIM] can slim for Canada? Sorry to hear you are so restricted, Claude. Not personally familiar with an RRSP type acct, but would suggest trying to pick companies with international exposure, as well as Canadian cos with NYSE/NASDAQ listings. tom w - ---------- > From: Claude Baril > To: canslim@mail.xmission.com > Subject: Re: [CANSLIM] can slim for Canada? > Date: Sunday, March 16, 1997 8:32 PM > > As these investments are within my RRSP, I must have 80% invested in > canadian stocks (or mutual investing in 80% canadian stocks). I had no > intention to touch any VSE stock :) ------------------------------ Date: Sun, 16 Mar 1997 22:16:40 -0500 (EST) From: Craig Griffin Subject: Re: [CANSLIM] can slim for Canada? There are a few CANSLIM Canadian stocks. The better ones tend to have a large number of shares outstanding. But sometimes big is better (ie. INTC the last 9 months). A couple that come to mind that have been doing ok are in a beaten up sector: telecom. Newbridge Networks and Northern Telecom (Nortel these days). I imagine there are maybe a dozen Canadian issues between the two DG's (NYSE and NASDAQ). If I run across any others, I will mention them. It might be worth getting a trial to DG (Daily Graphs) and going through for a look. The problem, of course, is that they may not be giving a buying opportunity based on a breakout anytime soon. And only some of them are leaders (COSFF is a big laggard that I would not consider buying right now, if ever). One could have done worse than owning NT during the last year, OTOH. Hope this helps. ------------------------------ Date: Sun, 16 Mar 1997 22:16:44 -0500 (EST) From: Craig Griffin Subject: [CANSLIM] Re: ESOL Just a note. Some of you may remember that I bought this stock on a "secondary breakout" from the "ledge" (or very short base) it formed at around $26. I was aware that earnings were due in a couple of weeks at the time I bought it and had no intention of holding through the earnings report unless they surprised me and reported very early. I reasoned that if this happened the news would likely be very good and thus the cause of the liftoff from the ledge. It did not develop good volume on the breakout (no followthrough) and shortly started pulling back towards the ledge, seemingly sputtering with the general market. I jumped out immediately and escaped with a tiny profit. If I had not already been out, I would have sold on 2/28/97 when it pulled back into the short base or ledge with high volume. If one had not already done so, any CANSLIM'r worth his salt should have been out on 3/12/97. At this point it had broken through the 50dma for the second time in a week, on high volume each time (with a sucker rally in between). Each break was a big percentage move for the day as well (down around 15%), so clearly volatility and volume were picking up on the downside in a big way. And just before the earnings were due to boot. The signs of trouble were written all over it. It's a good example of a stock that was "acting very badly" or "not acting right (in a big way)". Those 15% breaks also dropped the stock well down into the old base after a failed attempt to breakout. Even long term holders of the stock, looking at 500% profits would have known to get out if they could read the signs (a big tax bill is a whole lot better than no profit). PS. Welcome back Tom! You seem to be the glue that holds this list together, as well as the catalyst for more interaction. We missed you. ------------------------------ Date: Sun, 16 Mar 1997 22:16:42 -0500 (EST) From: Craig Griffin Subject: [CANSLIM] Re: HOT Welcome to the list S. Menon. HOT is not really a CANSLIM stock IMO. It looks like a great momentum stock. It has great revenue growth. It has a great chart. Group Rel. Strength (GRS) is not bad at 71. Relative strength line is outstanding, and Rel Str number is good at 94. But earnings are very spotty and EPS rank of 12 is kind of low. U/D is good at 1.8. Yield 3.6% is related to the fact it is a REIT. PE of 45 is basicly meaningless and unrelated to the stock's current pricing IMO. Market is completely looking to the future, the story, and the revenue growth it would seem. Not "pure" CANSLIM in any sense, but may work on a momentum basis. Momentum is only a part of CANSLIM in that we like to buy new highs from valid bases (price momentum) and we like strong earnings growth histories (earnings momentum). But there is so much more to CANSLIM, than that, of course. At the current time, HOT is extended from it's base by about 15%. Good luck with it. I can't really evaluate it, but maybe some of the above data will be useful to you. ------------------------------ Date: Sun, 16 Mar 1997 23:29:06 -0500 (EST) From: Zoran Mitrovski Subject: Re: [CANSLIM] NUSFX closes up shop Tom wrote: > Sorry you're so skeptical that you can't take the "Professor's" word for > it, but, yes, I know it for a fact. Tom, I wasn't skeptical. I just wanted to know whether that was a fact or just your assumption. Once you made it clear I have no reason not to take your word for it. > Having clients in the fund at the time, > I called the fund several times and checked on the degree of investing vs > cash. At the time, my firm also had an active account with O'Neill and our > acct rep also confirmed the high cash position that Ryan was taking. Well no wonder you jump into defending them against "skeptical" 'attackers' such as myself when you are obviously doing much more business with them than I would ever see myself doing. > The effect of the "limitations" I referred to are that had the fund been > required to be nearly fully invested, then Ryan would have put the money > into something, and at that time nearly everything including blue chips and > cyclicals were rising faster than money mkts. Thus, almost anything was > better than cash. So the reason was not the cash "limitation" but the fact that Ryan (and whoever elese was managing the fund) pretty much sucked at what they were doing. There was no other limitation apart from the limited quality of their decisions. > Granted, his inability to short probably saved a major loss. Whew! Good for them. ;^) > I would challenge your math, the front end load (which I think is 5%) is > paid out nearly entirely to the introducing brokerage firm. The maintenance > fee of about 1.5% is all the fund actually nets. I have no idea where you > come up with 8.9%. OK, I just added the numbers mike l posted and it's 8.69% not 8.9%: "... a 5% front load, a 1% 12b-1 fee and a 2.69% expense ratio, good grief!" I also didn't know about the "introducing brokerage" thing. Those folks sure skim the milk by merely introducing stuff. ;^) > Cheers > tom w Cheers, Zoran P.S. Tom, I hope I am not perceived as being too confrontational. It's just the way I talk/write. No hard feelings whatsoever. ------------------------------ Date: Mon, 17 Mar 1997 08:32:22 -0600 From: "Brenda" Subject: Re: [CANSLIM] So what happened to out group? As editor of a newsletter we have watched as our "Wall Chart", (a list of stocks whose graph - aka price patterns) have not yet broken down, has continued to dwindle. It has become quite a job to keep it over a hundred stocks. However, we have been able to continue to make money in this market, but not without a LOT more work than we used to have to do. Anybody can tout a stock in hindsight, but the real test is to do it in advance. We prefer stocks that are headed north rather than ones that "hopefully" are ready for a turnaround. We hope that some of our holdings will be ok such as CNC, ALTR, AMD, MLHR and WBPR. Stocks like DELGF have done a very good job for us buying Feb 24th and now showing a net 84% profit. Finding stocks like these has gotten to almost like the preverbial needle in the ole haystack. This week-end while looking over our base some stocks that you might want to take a look at, if you have graph viewing capabilities, are ACRG, AVY, CATB, CMM, CNS, CRE, ESS, ETH, FCAA, FTL, GFD, GFF, IMH, JANNF, LXMO, MU, SEH, SNA, SNTKY, SPK, TAN, THC, TII, TUES, TXN, USI, WLP, WMB. The S&P futures just closed down over 4 so of course this market is certainly in a precarious position. We have had a top five list since 1990. This past week is the FIRST and ONLY week that we did NOT have five stocks grade out higher than 95 and thusly we had NO TOP FIVE. Hope this helps you some and always interested in your comments. James - ---------- > From: Tom Worley > To: canslim@mail.xmission.com > Subject: Re: [CANSLIM] So what happened to out group? > Date: Sunday, March 16, 1997 11:49 AM > > I like to think the lack of email suggests a confusion factor, which should > be addressed by more discussion, not less. Money can still be made in a bad > mkt. > tom w > ---------- > > From: pwahl@postoffice.worldnet.att.net > > To: canslim@xmission.com > > Subject: Re: [CANSLIM] So what happened to out group? > > Date: Friday, March 14, 1997 3:40 AM > > > > Maybe the level of activity from the group is a good reading on the > > M(arket) part of Canslim. Pretty quiet means a bad market and no > > one has any stock selections? I sure don't anyway. > > ------------------------------ Date: Mon, 17 Mar 1997 08:42:39 -0600 From: "Brenda" Subject: Re: [CANSLIM] I'm baaaccckkkk!!! Tom, I finally broke down and bought a back-up system. Initially I bought the ditto because of all the hoopla and great things I had heard. For me, I was quite disappointed and returned it and got a HP800. It cost me about $150 and then I had THEM install it. Before, if I wanted to back up on disc it would have taken about 2 days and more discs than I owned. Now I have an internal tape back up and each day when I finally turn out the lights I load it up and it takes about an hour to back up my ENTIRE system. When I arise, I take it out and am ready to go again. It affords me a great sense of security to know at the very, very worst if things did crash I would only have to redo ONE days work. It really is a pretty good feeling for under $200. Good luck to you. Years ago mine did crash and when I turned it on it asked me what time it was. What a sick, sick feeling. You do scandisk and defrag regularly, right? Have a good day and best to you. James - ---------- > From: Tom Worley > To: canslim@mail.xmission.com > Subject: Re: [CANSLIM] I'm baaaccckkkk!!! > Date: Sunday, March 16, 1997 7:05 PM > > What's the fable about the shoemaker's kids going barefoot? Yeah, I know, I > should have had a backup, but I had so much stuff on the drive, it would > have taken so much time and so many floppies, etc etc etc. I did actually > consider buying a tape drive and doing a competent backup, but ..... > Oh well, I'm kinda back, but still feeling a little befuddled and confused. > Then again maybe that's just the shock effect setting in from the mkt. The > key to me right now is sell the dogs. If it ain't performin' kick it out. > This is a nasty time, and you gotta be tough. Get rid of anything below > expectation or late in reporting, ESOL being a classic example. There are > very few picks where good formations show, or even the 50DMA is crossing > the 200DMA to the upside (AOL being one of the few recent examples). And > who would have bet on such a badly managed co as AOL? > > tom w > ---------- > > From: Mike Artobello > > To: canslim@mail.xmission.com > > Subject: Re: [CANSLIM] I'm baaaccckkkk!!! > > Date: Sunday, March 16, 1997 1:48 AM > > > > Welcome back! We missed you. I guess this advice is a little late but > > you should always take regular backup's of your critical files, > especially > > before a major upgrade. I have a tape backup system and do a full > > > The market's been pretty bad lately and there's not many good Canslim > > stocks out there right now, which probably explains why the list has > > been so quiet. I made a post the other day on ESOL's fall in after > ------------------------------ Date: Mon, 17 Mar 1997 08:37:47 -0600 From: "Brenda" Subject: Re: [CANSLIM] I'm baaaccckkkk!!! - ---------- > From: Tom Worley > To: canslim@mail.xmission.com > Subject: Re: [CANSLIM] I'm baaaccckkkk!!! > Date: Sunday, March 16, 1997 7:05 PM > > What's the fable about the shoemaker's kids going barefoot? Yeah, I know, I > should have had a backup, but I had so much stuff on the drive, it would > have taken so much time and so many floppies, etc etc etc. I did actually > consider buying a tape drive and doing a competent backup, but ..... > Oh well, I'm kinda back, but still feeling a little befuddled and confused. > Then again maybe that's just the shock effect setting in from the mkt. The > key to me right now is sell the dogs. If it ain't performin' kick it out. > This is a nasty time, and you gotta be tough. Get rid of anything below > expectation or late in reporting, ESOL being a classic example. There are > very few picks where good formations show, or even the 50DMA is crossing > the 200DMA to the upside (AOL being one of the few recent examples). And > who would have bet on such a badly managed co as AOL? > > tom w > ---------- > > From: Mike Artobello > > To: canslim@mail.xmission.com > > Subject: Re: [CANSLIM] I'm baaaccckkkk!!! > > Date: Sunday, March 16, 1997 1:48 AM > > > > Welcome back! We missed you. I guess this advice is a little late but > > you should always take regular backup's of your critical files, > especially > > before a major upgrade. I have a tape backup system and do a full > > > The market's been pretty bad lately and there's not many good Canslim > > stocks out there right now, which probably explains why the list has > > been so quiet. I made a post the other day on ESOL's fall in after > ------------------------------ Date: Mon, 17 Mar 1997 09:58:42 -0500 From: Hemant Rotithor Subject: Re: [CANSLIM] So what happened to out group? Brenda wrote: > This week-end while looking over our base some stocks that you might > want to take a look at, if you have graph viewing capabilities, are ACRG, > AVY, CATB, CMM, CNS, CRE, ESS, ETH, FCAA, FTL, GFD, GFF, IMH, JANNF, LXMO, > MU, SEH, SNA, SNTKY, SPK, TAN, THC, TII, TUES, TXN, USI, WLP, WMB. > The S&P futures just closed down over 4 so of course this market is > certainly in a precarious position. We have had a top five list since 1990. > This past week is the FIRST and ONLY week that we did NOT have five stocks > grade out higher than 95 and thusly we had NO TOP FIVE. > Hope this helps you some and always interested in your comments. > James Thanks for the suggestions. Do you use CANSLIM in filtering these stocks? If not, what kind of methodology is used in selection? would be interested in your criteria. What is your suggestion to the subscribers of your news letter to do in these market condition? Thanks for your comments. Hemant ------------------------------ Date: Mon, 17 Mar 1997 09:58:38 -0600 From: "Brenda" Subject: [CANSLIM] Re: Our Methodology We began about 1990 and used TOTALLY the CANSLIM approach. Over the years we have incorporated some of Peter Lynch, Templeton and Berger's philosophies. Each Friday we do grade stocks using EPS, REL, ACC, Group, Sponsorship, Management and then we grade each stocks graph for volatility. We grade it both long term (1 year) and short term (30 days). We convert all A grades to 95, B 85, C 70, etc. Then we average all of the grades. If a stock does not make a grade of 95 average and we prefer 97 1/2 plus, it does not make our recommended list. We would love to own a $40 stock that appreciates $.25 a week for 52 weeks. It seems that not many investors seem to want many of these. We will take all of those we can buy. We also have a portfolio that does not have to adhere to the RIGID rules of "The System" but quite naturally the base of stocks is the same and being as we developed our system we will follow some of the rules we set up for "The System". What it does allow us to do is to buy a stock that IBD rates a group C (70 grade) that would not otherwise make our list. Hopefully, this helps you some. Currently, this market today is down a fair amount. In the accounts we manage the stocks held are holding up fairly well except for CNC. Those stocks in the accounts that we manage are: ALTR, AMD, WBPR, DELGF, FUBC, QCSB, CDX, DELGF, FDO, MLHR, SPW, ASMLF and ASTSF. We are watching ALL of these very carefully. We are very concerned about these market conditions but have found that the time we have been the most concerned are the very times that we have made the most. We are advising our subscribers to be extremely cautious and as always we tell them to stay with good stocks, with good earnings, headed in the right direction, hopefully breaking into new high ground, with good management and if these type stocks can't make it then none of the others are worth your time. Hope this answers some of your questions. James - ---------- > From: Hemant Rotithor > To: canslim@mail.xmission.com > Subject: Re: [CANSLIM] So what happened to out group? > Date: Monday, March 17, 1997 8:58 AM > > Brenda wrote: > > > This week-end while looking over our base some stocks that you might > > want to take a look at, if you have graph viewing capabilities, are ACRG, > > AVY, CATB, CMM, CNS, CRE, ESS, ETH, FCAA, FTL, GFD, GFF, IMH, JANNF, LXMO, > > MU, SEH, SNA, SNTKY, SPK, TAN, THC, TII, TUES, TXN, USI, WLP, WMB. > > The S&P futures just closed down over 4 so of course this market is > > certainly in a precarious position. We have had a top five list since 1990. > > This past week is the FIRST and ONLY week that we did NOT have five stocks > > grade out higher than 95 and thusly we had NO TOP FIVE. > > Hope this helps you some and always interested in your comments. > > James > > Thanks for the suggestions. > Do you use CANSLIM in filtering these stocks? > If not, what kind of methodology is used in selection? would be > interested > in your criteria. > What is your suggestion to the subscribers of your news letter to do in > these market condition? > Thanks for your comments. > > Hemant ------------------------------ Date: Mon, 17 Mar 1997 14:01:17 -0500 From: tbanerje@siac.com Subject: [CANSLIM] Investment Question. This is a multi-part message in MIME format. - --------------6ED76301D92 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit - -- Tapas Banerjee email: tbanerje@siac.com - --------------6ED76301D92 Content-Type: text/plain; charset=us-ascii; name="iom.Q" Content-Transfer-Encoding: 7bit Content-Disposition: inline; filename="iom.Q" I am a relatively new investor, I find it difficult to make any decision (BUY MORE, SELL, WAIT ) on the following two stocks I own, appreciate any expert canslimmers suggest on these. 1. IOMEGA(IOM): I bought this stock on 20 about 6 months ago, made a sell target at 26( after studying resistance on chart). It went to 26 but could not hit my limit order. Now the stock is about 14 3/8. I see lot of contradictory discussion on Internet, some say it will go to $5 or some says it will bounce back. What does the technical analysis suggests? 2. OBJECT DESIGN(ODIS): This company is leader of Object Oriented Database Management S/W, started trading at OTC about 4 months ago. I used this product, I thought It will be way to go for future DBMS. It opened at 7 and made nice strides to 15, I bought there. At went up for a day or two then started receding now it is at 6 5/8. I should have sold 8% below using O'Neils approach, every time I thought it can't go lower. The chart shows high volume, which I thought as accumulation. I heard the rumor that it was a takeover target by ORCL/MSFT. Seek your advise on this. Thanks, - Tapas - --------------6ED76301D92-- ------------------------------ End of canslim Digest V1 #110 ***************************** 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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