From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #80 Reply-To: canslim Sender: owner-canslim-digest@lists.xmission.com Errors-To: owner-canslim-digest@lists.xmission.com Precedence: bulk canslim-digest Thursday, January 8 1998 Volume 02 : Number 080 In this issue: Re: [CANSLIM] Re: Learn and Profit Re: [CANSLIM] New Year's screening result Re: [CANSLIM] Stocks that make up indexes Re: [CANSLIM] Stocks that make up indexes Re: [CANSLIM] Economic Calendar, week of January 5, 1998 [CANSLIM] Economic Calendar [CANSLIM] W.O'Neill RE: [CANSLIM] My Watch List, "M" Re: [CANSLIM] Re: Learn and Profit Re: [CANSLIM] My Watch List, "M" Re: [CANSLIM] Re: Learn and Profit [CANSLIM] Dilay Market Data Re: [CANSLIM] New Year's Resolution Kept by De-lurker Re: [CANSLIM] Re: canslim-digest V2 #75 [CANSLIM] R2000 - long live the small caps!! Re: [CANSLIM] Re: canslim-digest V2 #75 Re: [CANSLIM] R2000 - long live the small caps!! [CANSLIM] New Highs ---------------------------------------------------------------------- Date: Tue, 06 Jan 1998 20:54:28 -0500 From: Chris Subject: Re: [CANSLIM] Re: Learn and Profit Tom, Thanks for clarifing the DG Online. I had just found the site, and saw the price. Gotta ask, at that price, can't you get the most of same info with a good data service, screening software and a charting/analysis software package. What I am using is Dial Data (though am just starting to beta test the new Quotes - plus which I'm sure is going to win on all counts) and Metastock. True, in Metastock I can't get IBD versionof RS, but Q+ has a very close approximation along with tons of fundimental data to use in screens. I get IBD now and religously upload any new issues in the Friday weekly roundup, so hopefully I pay special attention to the CANSLIM stocks. By not getting Daily Graphs, What am I missing? Now, please excuse my ignorance. Who is this WON I see refered to so often. He evidently wrote a popular book - HTMMSS? (guessing "How to make money in the stock s(market?)). Thanks in advance, and I do appriciate your and Connie's time, inputs and sharing. You guys remind me of a few of the great guys at Silicon Investor's TA threads, which have helped me greatly. All the best, Chris Hyde Tom Worley wrote: > > DG Online (an O'Neill product) is accessed once you have downloaded the > software from www.dailygraphs.com. You gotta go thru a billing process, then > they send you a user ID and password. After that, it's usually easy. Cost > now is set at $720/year, still cheaper than getting the books and you don't > have to wait till Monday or Tuesday, but still a high cost for not having > good screening software. But at least you get true WON data, and a whole lot > of it on one chart. > > They are still in beta testing, but this should end any day now. > > Any statements or opinions are strictly my own and not that of my employer. > My comments should not be interpreted as a recommendation of any kind. I am > a licensed (inactive) broker and an active investor. All investors should do > their own research prior to any investment, especially one learned about on > the Internet. Hopefully my comments will better inform and educate all > investors. > tom w - - ------------------------------ Date: Tue, 6 Jan 1998 21:01:25 -0500 From: "Tom Worley" Subject: Re: [CANSLIM] New Year's screening result Some general comments, then more specific. You sound like you like a large institutional presence, I am just the opposite. By the time the funds alone have 40% or more ownership, the management tends to have little at risk aside from stock options, and the likelihood of substantial further increase in buying by institutionals (representing buying in volume) is slight. However, the likelihood of selling in volume on any bad news is substantial, and the gap down before the individual investor can react is great. This would knock ROMC, CLCX and HCFP out of my consideration for this reason alone. PK only has 10% funds presence, however it is headquartered in Tennessee, and I have been burnt by scam companies there. May just be coincidence, but in my book that state has become a haven for scam cos just as Boca Raton in Florida has become known as the capital for boiler rooms and chop shops. I'm sure there are good cos there, I just won't take the risk again when there are so many other good shots available. STAF - 19% funds, but EPS only 57, and Q4 looks to me like it may continue the earnings decelleration as it is compared to steadily better quarters. PPD - -10% funds, but only 8% by management, and up/down only 0.5. I also have a personal prejudice from past experience and a personal doubt about the entire concept. However, all this aside, all of your picks do show good CS elements, and most also show very respectable growth both in earnings and profits. Chartwise, I did not see anything that alarmed me. Aside from my personal prejudices (when you get this old you carry a lot of excess baggage!), a nice list to watch. Any statements or opinions are strictly my own and not that of my employer. My comments should not be interpreted as a recommendation of any kind. I am a licensed (inactive) broker and an active investor. All investors should do their own research prior to any investment, especially one learned about on the Internet. Hopefully my comments will better inform and educate all investors. tom w - -----Original Message----- From: Chih Yu Chao To: canslim@mail.xmission.com Date: Tuesday, January 06, 1998 12:24 PM Subject: [CANSLIM] New Year's screening result > Hi, guys, I've made some new screening last night. The results are > as follows. > > ROMC, PK, STAF, CLCX, PPD, HCFP > > Amazingly, most of them are in the service industry, and all of them, > the institution ownership is under 60% besides CLCX(94%). > > Comments? > > ChihYu > >- > - - ------------------------------ Date: Tue, 06 Jan 1998 21:05:56 -0500 From: Chris Subject: Re: [CANSLIM] Stocks that make up indexes Ironheadmr wrote: > > In a message dated 98-01-06 13:09:36 EST, you write: > > << I'd like to load up data to chart for a number of stocks within some of > > the more popular indexes. Particularly the SPX (S&P 500) OEX (Nasdaq > > 100), DOW Transports and Utilities index and the SOX and the > > Philidelphia Technology index. >> > > maybe I'm mistaken but I thought that the OEX was the S&P 100 index, the 100 > largest stocks in the S&P 500, am I wrong? > > - Opps! Sheesh.... I made a goof. I won't do that again! . You're absolutely correct. I was meaning to write NDX. Some days the head finger pathway locks like RT 128 in MA at rush hour! Stuff going every which way and sometimes you just can't get to where you want to go. SOX was right though - I didn't mean Clinton's cat! ;-> Thanks, Chris H BTW the OEX is on the S&P site I posted in my follow-up. - - ------------------------------ Date: Tue, 6 Jan 1998 21:28:34 -0500 From: "Tom Worley" Subject: Re: [CANSLIM] Stocks that make up indexes You think your head-finger pathway has problems, try explaining to the boss how you entered an order to buy 10,000 shares of stock at 10 when it should have been a SELL!!!! (hey, it was just a "B" instead of an "S") (my classic, to date, blunder). Fortunately for my job, I stepped in s___ and came out smelling like a rose, as the firm ended up netting nearly $7000 when we unloaded the unintended position over the next week. And the client ended up even getting a slightly better price as well. Any statements or opinions are strictly my own and not that of my employer. My comments should not be interpreted as a recommendation of any kind. I am a licensed (inactive) broker and an active investor. All investors should do their own research prior to any investment, especially one learned about on the Internet. Hopefully my comments will better inform and educate all investors. tom w - -----Original Message----- From: Chris To: canslim@lists.xmission.com Date: Tuesday, January 06, 1998 9:08 PM Subject: Re: [CANSLIM] Stocks that make up indexes >> maybe I'm mistaken but I thought that the OEX was the S&P 100 index, the 100 >> largest stocks in the S&P 500, am I wrong? >> >Opps! Sheesh.... I made a goof. I won't do that again! . > You're absolutely correct. I was meaning to write NDX. Some days the >head finger pathway locks like RT 128 in MA at rush hour! Stuff going >every which way and sometimes you just can't get to where you want to >go. > - - ------------------------------ Date: Tue, 06 Jan 1998 22:09:55 -0500 From: "Frank V. Wolynski" Subject: Re: [CANSLIM] Economic Calendar, week of January 5, 1998 At 21:56 1/5/98 -0500, you wrote: >Time for my periodic reality check: is this product helping this group or >should it be discontinued? Let me know, please. > I find the weekly economic data usefull and appreciate the effort you go through to post it. It helps my development of market sentiment. Thank you, Frank Wolynski - - ------------------------------ Date: Wed, 07 Jan 1998 15:12:19 +0800 From: Viv Tansley Subject: [CANSLIM] Economic Calendar Happy New Year to all, Tom, I read your economic calendar, itīs a great help! Donīt stop. Viv Tansley - - ------------------------------ Date: Tue, 06 Jan 1998 23:41:10 -0800 From: leojung Subject: [CANSLIM] W.O'Neill Season's Greetings to all! W.O'Neill will be on Yahoo! chat on Wednesday Jan. 14 at 2pm Pacific Time. See you there. - - ------------------------------ Date: Wed, 7 Jan 1998 02:01:57 -0800 From: Mike Lucero Subject: RE: [CANSLIM] My Watch List, "M" I believe Monday gave a topping signal on the DOW, but at least Tuesday had lower volume. I guess last Tuesday wasn't the follow-through day, after all. Perhaps HTMMIS needs to be updated to say to start with day 4, as described in IBD, or you just can't trust the rules around a holiday. Mike On Saturday, January 03, 1998 8:13 AM, Tom Worley [SMTP:stkguru@netside.net] wrote: > Deletions this weekend: FTIC, MFAC (reluctantly), NSCF and THQI (just added > last week and only deleted due higher price exceeding my budget). > > Additions: MDC, FCY, CBIZ (high PE), OTRX, GMCC. > > I've got at least one other list I hope to review this weekend, so may have > a few more additions to make before Monday. > > Would like to get some discussion going on mkt conditions (the "M" of > CANSLIM). My read on it: downside volume on both NYSE and NASDAQ plunged > last week as tax related selling abated. Upside volume on NYSE remained low, > and improved slightly on NASDAQ. Overbot/sold on NYSE and NASDAQ soared to > levels not seen since late Oct. New highs/lows on NYSE steady, while on > NASDAQ finally converging from the negative to neutral. While on Russell > 2000 (my favorite right now) I am not encouraged by what looks to me to be a > very short term top. The RS has not regained levels of several months ago. > > Granted, the past several weeks are reasonably marked by low volume, but > unless the "value shoppers" come in starting on Monday, I am concerned about > another short term (2 weeks or less) correction as everyone (institutional > money mgrs, brokers, investors) get back in touch with the mkt and realize > they have some nice profits. This could wreck a "Santa Claus" rally before > it really gets started. > > Economically, there is a lot of reason to be optimistic, the Asian crises is > being managed, inflation is a non-event, growth is slowing as the Feds > expected even without the Asian crises, any Fed hike is unlikely for at > least two months or more, the bond mkt is now within 7 basis pts of an all > time (30 year) record low yield. On the other hand, many industry groups are > expected to slow their earnings and sales growth in 1998. I noted, among > others, that airlines are expected to show excellent Q4 nrs, then drop in > early 1998. Banks, which have been a leading group, are expected to slow > along with broker-dealers in early 1998. Already these groups seem to be > trading on expectations rather than upcoming Q4 results. Semi-conductors are > struggling amidst price cutting. There are doubts about the growth of PC > sales, as well as software. > > Already I am picking up concerns about recession even while economists are > expecting 2-2.5% economic growth. Clinton is already busy spending an as yet > unrealized budget surplus instead of trying to reduce the obscene nat'l > debt. There has been talk of the next action by the Feds being a rate cut to > stimulate the economy, while employment remains very strong (but weakening). > The NAPM report on Friday showed a slowing in mfr'ing activity, inventory > reduction slowing, order backlog increasing, prices paid declining, etc. > While we are beginning to see the effects of the Asian crises, the full > effect is not here yet. Will it be enough to shove an already slowing > domestic economy over the cliff? What will this do to the world economy? The > near record high US dollar, and the price of gold, both say "no inflation", > can we count on this continuing if the US economy is stopped in its tracks, > or are we facing the potential of stagflation (stagnant economy with > inflationary pressures still)?? > > OK, I've vented, now it's your turn. > > Any statements or opinions are strictly my own and not that of my employer. > My comments should not be interpreted as a recommendation of any kind. I am > a licensed (inactive) broker and an active investor. All investors should do > their own research prior to any investment, especially one learned about on > the Internet. Hopefully my comments will better inform and educate all > investors. > tom w > > > > - - ------------------------------ Date: Wed, 07 Jan 1998 12:50:11 GMT From: musicant@autobahn.org (Dan Musicant) Subject: Re: [CANSLIM] Re: Learn and Profit On Tue, 06 Jan 1998 20:54:28 -0500, you wrote: :Tom, : :Thanks for clarifing the DG Online. I had just found the site, and saw :the price.=20 : :Gotta ask, at that price, can't you get the most of same info with a :good data service, screening software and a charting/analysis software :package. What I am using is Dial Data (though am just starting to beta :test the new Quotes - plus which I'm sure is going to win on all counts) :and Metastock. True, in Metastock I can't get IBD versionof RS, but Q+ :has a very close approximation along with tons of fundimental data to :use in screens. : :I get IBD now and religously upload any new issues in the Friday weekly :roundup, so hopefully I pay special attention to the CANSLIM stocks. :By not getting Daily Graphs, What am I missing? : :Now, please excuse my ignorance. Who is this WON I see refered to so :often. He evidently wrote a popular book - HTMMSS? (guessing "How to :make money in the stock s(market?)). WON wrote the book, and your guess is close enough. WON =3D William J. O'Neill, who formulated the CANSLIM method for successful stock investing which is explained in HTMMIS and is the theme that powers and inspires this bulletin board. - -Dan : :Thanks in advance, and I do appriciate your and Connie's time, inputs :and sharing. You guys remind me of a few of the great guys at Silicon :Investor's TA threads, which have helped me greatly. : :All the best, :Chris Hyde : :Tom Worley wrote: :>=20 - - ------------------------------ Date: Wed, 7 Jan 1998 07:54:56 -0500 From: "Tom Worley" Subject: Re: [CANSLIM] My Watch List, "M" Right now, the biggest influence I see on the mkt is fears of the upcoming earnings cycle. Underlying this fear is, of course, the combination of a slowing economic growth (note: this is not a fear of recession so much as concern over our excessive rate of growth slowing to the levels sought by the Feds so they won't have to raise rates - another fear of the mkt, go figure!). And the question remains just how much growth will be reduced by the Asian crises, and what this will do to corp earnings, esp the big multi-nationals. Personally, I think most of the damage has been done, most neg surprises already pre-announced. There will still be some landmines, but mostly I suspect due to most corps being in the process of wrapping up their fiscal year and being audited, which tends to catch whatever was missed in the other nine months. Also, corps tend to take writeoffs in the fourth qtr rather than carry them into the new year. Of course, until the mkt thinks like I do, buy size volume may remain suppressed. Still, money continues to flow into funds, and we have the traditional seasonal increase of this from end of year bonuses and pay increases. It will have to go somewhere, and if in another one to two weeks the earnings reporting cycle is still going well, I would expect a major inflow of money to equities. Right now a lot of it appears to be going to the bond mkt, but I believe that will be short term. There is already more chatter than I like about the possibility of a Fed rate CUT at the Feb 2, 3 meeting (BTW I will likely not be in touch with the mkt on 2/2 as I am taking the day off of work to remember my wife's death). FWIW, I see no chance of either a rate hike or a rate cut at that meeting, nor do I see any chance of a cut before June or July at the earliest, if then. I agree, Wm O'Neill (WON) really needs to come out with edition three of How To Make Money In Stocks (HTMMIS) brought up to current times, volumes, increased nr of small caps trading, etc. While the basic rules have not changed, the environment has. Any statements or opinions are strictly my own and not that of my employer. My comments should not be interpreted as a recommendation of any kind. I am a licensed (inactive) broker and an active investor. All investors should do their own research prior to any investment, especially one learned about on the Internet. Hopefully my comments will better inform and educate all investors. tom w - -----Original Message----- From: Mike Lucero To: 'canslim@lists.xmission.com' Date: Wednesday, January 07, 1998 5:03 AM Subject: RE: [CANSLIM] My Watch List, "M" >I believe Monday gave a topping signal on the DOW, but at least Tuesday had >lower volume. I guess last Tuesday wasn't the follow-through day, after >all. Perhaps HTMMIS needs to be updated to say to start with day 4, as >described in IBD, or you just can't trust the rules around a holiday. > >Mike > >On Saturday, January 03, 1998 8:13 AM, Tom Worley >[SMTP:stkguru@netside.net] wrote: >> Would like to get some discussion going on mkt conditions (the "M" of >> CANSLIM). My read on it: downside volume on both NYSE and NASDAQ plunged >> last week as tax related selling abated. Upside volume on NYSE remained >low, >> and improved slightly on NASDAQ. Overbot/sold on NYSE and NASDAQ soared >to >> levels not seen since late Oct. New highs/lows on NYSE steady, while on >> NASDAQ finally converging from the negative to neutral. While on Russell >> 2000 (my favorite right now) I am not encouraged by what looks to me to >be a >> very short term top. The RS has not regained levels of several months >ago. >> - - ------------------------------ Date: Wed, 7 Jan 1998 08:06:27 -0500 From: "Tom Worley" Subject: Re: [CANSLIM] Re: Learn and Profit Chris, Because I am something of a CANSLIMaholic, I prefer to get my data directly from a true CANSLIM source, that is WON and Daily Graphs and IBD. Yes, at $720/year, DG Online is expensive and not for every investor. But if you want Daily Graphs (and until you have looked at one you can't appreciate the difference between them and many other often free charting services) then the online version is cheaper, faster, and more comprehensive than getting the printed version. Any statements or opinions are strictly my own and not that of my employer. My comments should not be interpreted as a recommendation of any kind. I am a licensed (inactive) broker and an active investor. All investors should do their own research prior to any investment, especially one learned about on the Internet. Hopefully my comments will better inform and educate all investors. tom w - -----Original Message----- From: Chris To: canslim@xmission.com Date: Tuesday, January 06, 1998 8:56 PM Subject: Re: [CANSLIM] Re: Learn and Profit >Tom, > >Thanks for clarifing the DG Online. I had just found the site, and saw >the price. > >Gotta ask, at that price, can't you get the most of same info with a >good data service, screening software and a charting/analysis software >package. What I am using is Dial Data (though am just starting to beta - - ------------------------------ Date: Wed, 07 Jan 1998 09:46:32 -0800 From: Talib Hirji Subject: [CANSLIM] Dilay Market Data Can somebody guide me to a Net site where I can see daily Market data as follows: DJIA, NYSE, NASDAQ indices McClellan Oscillator Summation Index Put/Call Ratio Advance/Decline Line Odd Lot Short Ratio New Highs and Lows Specialist Short Ratio Thank You, Talib - - ------------------------------ Date: Wed, 7 Jan 1998 11:02:49 -0700 (MST) From: John McDonald Subject: Re: [CANSLIM] New Year's Resolution Kept by De-lurker Tom Worley wrote: > >Don't fade away into the shadows now that you have visited the limelight. > Tom, thank you for the encouraging words. I felt these sites might be useful to some of the group. I do hope to participate, given time and more knowledge, but I'll certainly be hanging around :-) John McDonald Systar Inc. Software Engineer - - ------------------------------ Date: Wed, 7 Jan 1998 18:56:21 -0500 From: "sboone" Subject: Re: [CANSLIM] Re: canslim-digest V2 #75 Ameritrade, was my first choise, until I found out $8.00 is only for market orders. all limit orders are $5.00 more $13.00, I am curently with farsight.com. On the 12th they will be increasing to $20.00 an order, $40.00 a round trip. Toooo much. I don't like working for the broker. I usually trade at least once a day. 1*40*200=$9600 ten thousand dollars. Help!!!!! - -----Original Message----- From: David S. Pinhasik To: canslim@lists.xmission.com Date: Tuesday, January 06, 1998 2:37 AM Subject: Re: [CANSLIM] Re: canslim-digest V2 #75 >Hi Group! > >I have not read all the msgs so maybe someone has already commented, but how >is Ameritrade? They are only $8.00 a trade. > >Best Regards! > >David > > > > >At 06:27 02/01/98 -0700, you wrote: >>For a discount broker, try Scottsdale Securities. $9.00 a trade on the >>web. >> >>- >> >> >> > > >- > - - ------------------------------ Date: Wed, 7 Jan 1998 08:41:16 -0500 From: "Tom Worley" Subject: [CANSLIM] R2000 - long live the small caps!! Anybody else besides me hoping they are seeing a cup&handle on the Russell 2000 currently??? Any statements or opinions are strictly my own and not that of my employer. My comments should not be interpreted as a recommendation of any kind. I am a licensed (inactive) broker and an active investor. All investors should do their own research prior to any investment, especially one learned about on the Internet. Hopefully my comments will better inform and educate all investors. tom w - - ------------------------------ Date: Wed, 7 Jan 1998 20:28:09 -0500 From: "Tom Worley" Subject: Re: [CANSLIM] Re: canslim-digest V2 #75 When you trade at deep discount firms, you are not really "working for the broker" as there aren't any in the traditional sense, just order takers, if that. Be choosy in selecting a firm since you are an active trader, remember there is no such thing as a free lunch, as far too many learned on our two back to back record volume days recently. Most of these firms are staffed and equiped to handle normal days, with maybe some reserve personnel and equipment capacity to handle "busy" or even "heavy' days, but I doubt any even now have invested to the degree necessary to prevent collapse on "extraordinary" days. Be sure you have alternate ways, that work under heavy load, to still access your acct. BTW, I expect to see this trend towards higher charges continuing at most firms, depending on their capital, there's only so long they can do trades at a loss while they seek to increase mkt share. At some point, I would also expect to start seeing more mergers and acquisitions as well as the industry consolidates. Any statements or opinions are strictly my own and not that of my employer. My comments should not be interpreted as a recommendation of any kind. I am a licensed (inactive) broker and an active investor. All investors should do their own research prior to any investment, especially one learned about on the Internet. Hopefully my comments will better inform and educate all investors. tom w - -----Original Message----- From: sboone To: canslim@lists.xmission.com Date: Wednesday, January 07, 1998 7:57 PM Subject: Re: [CANSLIM] Re: canslim-digest V2 #75 >Ameritrade, was my first choise, until I found out $8.00 is only for market >orders. all limit orders are $5.00 more $13.00, I am curently with >farsight.com. On the 12th they will be increasing to $20.00 an order, >$40.00 a round trip. Toooo much. I don't like working for the broker. I - - ------------------------------ Date: Wed, 07 Jan 1998 21:02:28 -0800 From: Hemant Rotithor Subject: Re: [CANSLIM] R2000 - long live the small caps!! Tom Worley wrote: > > Anybody else besides me hoping they are seeing a cup&handle on the Russell > 2000 currently??? It could develop into a cup and a handle in the future, but is not clear at this point. For the time being, it is a rectangular consolidation between 420 and 442 which could break either up or down about 20 points when it does. Only if it breaks to the upside it will be a C & H. - -- Disclaimer: Opinions expressed in this document are those of the author. Digital Equipment Corp., 110 Spit Brook Rd, ZKO2-3/N30, Nashua, NH 03062 - - ------------------------------ Date: Thu, 8 Jan 1998 07:48:13 -0500 From: "Tom Worley" Subject: [CANSLIM] New Highs Anyone using the nr of new highs in their assessment of mkt conditions should be cautious with the total on NYSE. An unusually high percentage is currently coming from closed end funds, mostly tax free ones, that are being moved up solely because of plunging interest rates. Some of these are undoubtedly benefiting, just like the bond mkt, from the funds leaving the uncertainty of future earnings in equities. Any statements or opinions are strictly my own and not that of my employer. My comments should not be interpreted as a recommendation of any kind. I am a licensed (inactive) broker and an active investor. All investors should do their own research prior to any investment, especially one learned about on the Internet. Hopefully my comments will better inform and educate all investors. tom w - - ------------------------------ End of canslim-digest V2 #80 **************************** To unsubscribe to canslim-digest, send an email to "majordomo@xmission.com" with "unsubscribe canslim-digest" in the body of the message. For information on digests or retrieving files and old messages send "help" to the same address. Do not use quotes in your message.