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Subject: canslim-digest V2 #1483
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canslim-digest         Tuesday, June 12 2001         Volume 02 : Number 1483



In this issue:

       Re: [CANSLIM] Ask Bill O'Neil  re:KKD -Tim Fisher
       Re: [CANSLIM] ACLNF - I am curious if anyone has any pivot points in mind ...
       Re: [CANSLIM] Has IBD's 'The New America' always been the kiss of death?
       Re: [CANSLIM] Tom vs Gann & LLUR
       Re: [CANSLIM] Software to use with CANSLIM?
       Re: [CANSLIM] ADV ... <snip> from tomorrow's Investors Corner
       Re: [CANSLIM] ADV ... <snip> from tomorrow's Investors Corner
       Re: [CANSLIM] ACLNF - I am curious if anyone has any pivot points in mind ...
       Re: [CANSLIM] ADV ... <snip> from tomorrow's Investors Corner
       Re: [CANSLIM] ACLNF - I am curious if anyone has any pivot points in mind ...

----------------------------------------------------------------------

Date: Tue, 12 Jun 2001 23:45:12 -0400
From: "Tom Worley" <stkguru@netside.net>
Subject: Re: [CANSLIM] Ask Bill O'Neil  re:KKD -Tim Fisher

Tim, I mostly agree with you on the 4/19 trading pattern. Where I
disagree is on volume, which was about 1.8X ADV. However, the
chart clearly did not suggest an entry except for the high risk,
speculative day traders. By the close of the day, it had managed
to pass the highs of the prior 4 weeks, but that was hardly a
reason to have entered except possibly very late in the day. And
I don't know where in CANSLIM or HTMMIS there is a rule on
passing 4 week highs while still way below 4 or 6 month highs.

And no where on the chart surrounding that date was there any
kind of a decent base I can define.

Tom Worley
stkguru@netside.net
AIM: TexWorley

- ----- Original Message -----
From: Tim Fisher <Tim@OreRockOn.com>
To: <canslim@lists.xmission.com>
Sent: Tuesday, June 12, 2001 2:31 PM
Subject: Re: [CANSLIM] Ask Bill O'Neil re:KKD -Tim Fisher


I did not say KKD was not CANSLIM. Please re-read my post. I said
the
breakout from 17% below the 52-wk high in April was not a valid
breakout
since it was not accompanied by volume in my interpretation.
Also, KKD
never did form any recognizable chart pattern, there is no nearby
support,
and it wasn't CANSLIM until the last earnings were released.
Before then it
was marginal at best.

On 11:11 AM 6/12/01, Nicholas Barone Said:
>Hi Tim:
>
>I have seen mentioned in IBD a differing b/o point dates for
KKD- more
>than once  - Big Picture etc.
>
>I would submit May16th at 52-53 was another b/o - after short
handle and
>actually when I bought - which of course doesn't make it right.
>
>I have already sold though - thinking that the chart action in
late May
>was negative - maybe an error?
>
>I also wonder why you say that KKD is not canslim?
>
>
>NB
>
>
>
>>From: "Tim Fisher" <tim@orerockon.com>
>>Reply-To: canslim@lists.xmission.com
>>To: canslim@lists.xmission.com
>>Subject: Re: [CANSLIM] Ask Bill O'Neil
>>Date: 12 Jun 2001 06:02:50 -0700
>>
>>I have seen no one contradict WON here. No one has said that a
stock needs
>>to be at or above the old high in order to be buyable. Many
interpret "N"
>>as being "new price high". Obviously, for KKD, "N" was not "new
price
>>high", but "donut mania." That said, KKD is a horrible example
of a CANSLIM
>>chart pattern. If the breakout was 4/19 from a pivot of about
42.50
>>established about Dec 29, then vol was terrible. The subsequent
advance in
>>early May which actually did break the 52 wk high was on much
better vol.
>>If I had been a buyer of donut shops, I would have bot then,
not in April.
>>As usual, IBD makes their case with a liberal interpretation of
WON's
>>rules, ignoring ones like ADV when it is convenient.
>
>________________________________________________________________
_
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http://explorer.msn.com
>
>
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Tim Fisher
Ore-Rock-On and Pacific Fishery Biologists WWW Sites

Tim@OreRockOn.com
WWW: http://OreRockOn.com
See naked fish and rocks!


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------------------------------

Date: Tue, 12 Jun 2001 20:50:09 -0700
From: "Ian" <ianstm@home.com>
Subject: Re: [CANSLIM] ACLNF - I am curious if anyone has any pivot points in mind ...

Tom:

That boggles my mind. On FRIDAY the RS was just 61, with a closing price of
$28.96. Now 2 days later, at $33.49 the RS is already 83??? The price goes
up just 15% and the RS goes up 27%??? I would have thought the correlation
would go the other way.

Makes me want to start discounting the RS even more, and put extra emphasis
on chart-checking for resistance levels. I've always found RS a little
suspect - I had sort of figured that ACLNF would need to be over $40 before
the RS got over 80.


Ian


- ----- Original Message -----
From: Tom Worley <stkguru@netside.net>
To: <canslim@lists.xmission.com>
Sent: Tuesday, June 12, 2001 8:10 PM
Subject: Re: [CANSLIM] ACLNF - I am curious if anyone has any pivot points
in mind ...


> Hi Dick,
>
> As of tonight's DGO, it is now 83.
>
> I have warned a number of times about how RS can move quickly
> when the chart is moving up sharply, and in the process making
> new highs or approaching old ones.  You have to remember that it
> is weighted towards the latest quarter's price performance, so
> once it really starts moving, the numbers can go up quickly.
>
> That's just one example of why I try to be very liberal in my
> screening in terms of using either RS or EPS as absolute cutoffs.
> I much prefer to have a lot of leeway, then judge these two
> factors in terms of the chart and how the stock price, and
> sequential earnings, are trending.
>
> Tom Worley
> stkguru@netside.net
> AIM: TexWorley
>
> ----- Original Message -----
> From: Dick Wilkinson <dlgstocks@yahoo.com>
> To: <canslim@lists.xmission.com>
> Sent: Tuesday, June 12, 2001 9:16 AM
> Subject: Re: [CANSLIM] ACLNF - I am curious if anyone has any
> pivot points in mind ...
>
>
> It's interesting that yesterday's 3.5 point breakout
> raised the RS in IBD from 61 to 81. So after the
> ACLNF is extended, it appears in CANSLIM screen.
>
> Dick
>
> --- Tom Worley <stkguru@netside.net> wrote:
> > MessageThe ADV of 63,100 obviously will hold some
> > investors and funds back. But looks to me like today
> > was the buy point when it blasted past 31.10 on 6X
> > ADV for a new recent high.
> >
> > A 12% gain on heavy volume, on a down day like this,
> > must be respected.
> >
> > Tom Worley
> > stkguru@netside.net
> > AIM: TexWorley
> >
> >   ----- Original Message -----
> >   From: Ian
> >   To: canslim@lists.xmission.com
> >   Sent: Monday, June 11, 2001 10:38 AM
> >   Subject: [CANSLIM] ACLNF - I am curious if anyone
> > has any pivot points in mind ...
> >
> >
> >   Hi all:
> >
> >   I have already established my position in ACLNF. I
> > am curious if anyone sees any pivot points in the
> > chart that may trigger significant CANSLIM interest
> > among a large population of IBDers.
> >
> >   Thanks,
> >
> >   Ian
> >
>
>
> __________________________________________________
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>
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------------------------------

Date: Wed, 13 Jun 2001 00:04:20 -0400
From: "Tom Worley" <stkguru@netside.net>
Subject: Re: [CANSLIM] Has IBD's 'The New America' always been the kiss of death?

This is a multi-part message in MIME format.

- ------=_NextPart_000_00BB_01C0F39C.655215E0
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	charset="iso-8859-1"
Content-Transfer-Encoding: quoted-printable

Many, many years ago (more years than many of you knew what CANSLIM even =
meant, that's how old I am), then Investor's Daily (now Investor's =
Business Daily) carried a full page article on a single stock on the 3rd =
to last page. At the bottom of the article, it listed the single stock =
to be featured the next day.=20

I got ambitious, as I had several very wealthy clients that liked to =
gamble with huge positions (read that as big commissions for me), so I =
did a 3 month study to see if the feature would power the next day's =
feature stock higher for a day or two of quick trading on a large =
position.

I evaluated this opportunity for 3 months from two perspectives: first, =
since my ID was on my lawn about 5 AM, I could get to the office and =
study next day's feature stock, and talk to the clients, well before =
market opening. Thus, I could buy at or close to the opening. Second, I =
looked at that day's high vs the close of the next one, two and three =
days.

Using both these prices, I found that the client stood to net about 2% =
or so if everything went right, and lose about 10% if everything went =
wrong. I never recommended the practice.

Today, the circulation of IBD is far greater, and the number of =
individual investors also expanded. So the results using stocks in New =
America might differ. But I did a more casual study once they started =
the New America feature, and subjectively it didn't seem to do a lot of =
good towards blasting stocks out of a base.

It's kinda a bass ackward way of answering your question, simply put, I =
don't think features like this have much affect either way on the short =
term. If the fundies are really strong, and the company does its job =
well and continues to produce stellar earnings, then those earnings =
results will ultimately be the catalyst that blasts the stock higher.

You may also be seeing the traditional "sell on news" pattern of =
momentum traders. They may not have known the story feature was coming, =
but still may take it as a signal to sell on publicity, thus becoming a =
self fulfilling prophecy for the short term traders. A better test would =
be to use 3- 6 month old IBD editions, and see how those stocks in New =
America have fared since.

Tom Worley
stkguru@netside.net
AIM: TexWorley

  ----- Original Message -----=20
  From: Ian=20
  To: canslim@lists.xmission.com=20
  Sent: Tuesday, June 12, 2001 3:35 PM
  Subject: [CANSLIM] Has IBD's 'The New America' always been the kiss of =
death?


  In the last couple of weeks, 'The New America' has profiled ATRO, =
FRONY and SCVL - and appears to have been the trigger for a selloff in =
each. Has anyone noticed this trend before? Is it a magnet for shorts to =
collapse thinly traded issues?

  Thanks,

  Ian

- ------=_NextPart_000_00BB_01C0F39C.655215E0
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	charset="iso-8859-1"
Content-Transfer-Encoding: quoted-printable

<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD>
<META content=3D"text/html; charset=3Diso-8859-1" =
http-equiv=3DContent-Type>
<META content=3D"MSHTML 5.00.2314.1000" name=3DGENERATOR>
<STYLE></STYLE>
</HEAD>
<BODY bgColor=3D#ffffff>
<DIV><FONT size=3D2>Many, many years ago (more years than many of you =
knew what=20
CANSLIM even meant, that's how old I am), then Investor's Daily (now =
Investor's=20
Business Daily) carried a full page article on a single stock on the 3rd =
to last=20
page. At the bottom of the article, it listed the single stock to be =
featured=20
the next day. </FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV><FONT size=3D2>I got ambitious, as I had several very wealthy =
clients that=20
liked to gamble with huge positions (read that as big commissions for =
me), so I=20
did a 3 month study to see if the feature would power&nbsp;the next =
day's=20
feature stock higher for a day or two of quick trading on a large=20
position.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV><FONT size=3D2>I evaluated this opportunity for 3 months from two=20
perspectives: first, since my ID was on my lawn about 5 AM, I could get =
to the=20
office and study next day's feature stock, and talk to the clients, well =
before=20
market opening. Thus, I could buy at or close to the opening. Second, I =
looked=20
at that day's high vs the close of the next one, two and three=20
days.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV><FONT size=3D2>Using both these prices, I found that the client =
stood to net=20
about 2% or so if everything went right, and lose about 10% if =
everything went=20
wrong. I never recommended the practice.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV><FONT size=3D2>Today, the circulation of IBD is far greater, and =
the number=20
of individual investors also expanded. So the results using stocks in =
New=20
America might differ. But I did a more casual study once they started =
the New=20
America feature, and subjectively it didn't seem to do a lot of good =
towards=20
blasting stocks out of a base.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV><FONT size=3D2>It's kinda a bass ackward way of answering your =
question,=20
simply put, I don't think features like this have much affect either way =
on the=20
short term. If the fundies are really strong, and the company does its =
job well=20
and continues to produce stellar earnings, then those earnings results =
will=20
ultimately be the catalyst that blasts the stock higher.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV><FONT size=3D2>You may also be seeing the traditional "sell on =
news" pattern=20
of momentum traders. They may not have known the story feature was =
coming, but=20
still may take it as a signal to sell on publicity, thus becoming a self =

fulfilling prophecy for the short term traders. A better test would be =
to use 3-=20
6 month old IBD editions, and see how those stocks in New America have =
fared=20
since.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV>Tom Worley<BR><A=20
href=3D"mailto:stkguru@netside.net">stkguru@netside.net</A><BR>AIM:=20
TexWorley<BR></DIV>
<BLOCKQUOTE=20
style=3D"BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; MARGIN-RIGHT: =
0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
  <DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
  <DIV=20
  style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
  <A href=3D"mailto:ianstm@home.com" title=3Dianstm@home.com>Ian</A> =
</DIV>
  <DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
  href=3D"mailto:canslim@lists.xmission.com"=20
  title=3Dcanslim@lists.xmission.com>canslim@lists.xmission.com</A> =
</DIV>
  <DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Tuesday, June 12, 2001 =
3:35=20
PM</DIV>
  <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> [CANSLIM] Has IBD's =
'The New=20
  America' always been the kiss of death?</DIV>
  <DIV><BR></DIV>
  <DIV><FONT size=3D2>In the last couple of weeks, 'The New America' has =
profiled=20
  ATRO, FRONY and SCVL - and appears to have been the trigger for a =
selloff in=20
  each. Has anyone noticed this trend before? Is it a magnet for shorts =
to=20
  collapse thinly traded issues?</FONT></DIV>
  <DIV>&nbsp;</DIV>
  <DIV><FONT size=3D2>Thanks,</FONT></DIV>
  <DIV>&nbsp;</DIV>
  <DIV><FONT size=3D2>Ian</FONT></DIV></BLOCKQUOTE></BODY></HTML>

- ------=_NextPart_000_00BB_01C0F39C.655215E0--


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------------------------------

Date: Wed, 13 Jun 2001 00:11:05 -0400
From: "Tom Worley" <stkguru@netside.net>
Subject: Re: [CANSLIM] Tom vs Gann & LLUR

Hi Ernie,

You mean I am a ganner and didn't even know it?  :))

Sorry, couldn't resist. Gotta enjoy it when my mind works.

Over what kind of time period do you draw the 1X1 line?

Tom Worley
stkguru@netside.net
AIM: TexWorley

- ----- Original Message -----
From: Ernie Hill <ernieh@ev1.net>
To: <canslim@lists.xmission.com>
Sent: Tuesday, June 12, 2001 4:49 PM
Subject: [CANSLIM] Tom vs Gann & LLUR




Tom,

What you have described as LLUR is what I know as an uptrend
supported
by a Gann 1x1 line. In my intro. I mentioned that I use Gann
angle lines
as a part of my technical analysis in reference to entry points
and
placing stops. It is interesting that you mentioned that it looks
like a
flat base when your head is tilted at a 45 degree angle. This is
the
exact slope angle of a Gann 1x1 line.

I have found that placing an MIT order or buy stop along the
lower
support line of the uptrend allows me to get an excellent entry
point at
very low risk. I can then place a sell stop 3-5% below my entry
point.

This is one of my favorite patterns to trade when used in
conjunction
with a canslim stock. I have found that it can be effectively
used
anytime a stock has a break out from a pivot point or  into new
highs
after the stock has made its first reaction back to the 45 degree
angle
line. By this I mean draw a 45 Degree upward sloping line from
the low
where the uptrend began. After the price has touched this line
once and
moved up to the top of the channel, it can be bought the next
time it
returns to the 45 degree support line from the bottom.

This is a great low risk way to get on board a stock that has
become
extended above its base.



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------------------------------

Date: Tue, 12 Jun 2001 21:20:41 -0700
From: "Sisyphus" <sisyphus@thevine.net>
Subject: Re: [CANSLIM] Software to use with CANSLIM?

Michael,

I have Metastock 7.2, the end-of-day version.  It's a good program,=
 versatile, easy-to-use, plenty of indicators and system-testing=
 capability.  You will need an end-of-day data source, though.  Unless you=
 plan to seriously study technical analysis, though, and design trading=
 systems, it might be hard to justify the price.  You can probably get by=
 with a cheaper charting program if you only want it for canslim investing=
 (or use the charts at investors.com).

John

>
>P.S. I am currently looking at TC2000 v4.5 and MetaStock v.7.2



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------------------------------

Date: Wed, 13 Jun 2001 00:20:04 -0400
From: "Tom Worley" <stkguru@netside.net>
Subject: Re: [CANSLIM] ADV ... <snip> from tomorrow's Investors Corner

DISCRIMINATION!! Just because EPIQ was trading under $10 a year
ago, they ignore its nearly 500% return!

And its ADV today times price puts it somewhere around $4.2
million dollars of trading value.

Of course, it they used pre-split prices, then maybe I shouldn't
holler so much.

Tom Worley
stkguru@netside.net
AIM: TexWorley

- ----- Original Message -----
From: Norman <theboyd@tisd.net>
To: <canslim@lists.xmission.com>
Sent: Tuesday, June 12, 2001 8:22 PM
Subject: [CANSLIM] ADV ... <snip> from tomorrow's Investors
Corner


"While small caps are in vogue, not all of them will become
winners. Always
seek high-quality stocks, no matter how many - or few - shares
are traded
daily. Those that have the blessing of mutual funds and other
institutions
stand a better chance of beating the market.

Big winners in the past tended to trade at least 200,000-300,000
shares a
day, or $5 million in daily dollar volume. Have the standards
changed now
that small caps are leading the market? For the answer, IBD
searched for the
best stocks over the past 12 months. We accepted only stocks that
traded at
10 or higher a year ago. The stocks culled all had 12-month
returns of 200%
or more.

Only 24 met those standards, returning an average of 275%.
Average daily
volume a year ago was 276,000 shares - in line with past figures.
But take
out PeopleSoft (PSFT), which traded 4.1 million shares a year
ago, and
volume for the other 23 stocks drops to 102,000 shares."



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------------------------------

Date: Wed, 13 Jun 2001 00:25:40 -0400
From: "Tom Worley" <stkguru@netside.net>
Subject: Re: [CANSLIM] ADV ... <snip> from tomorrow's Investors Corner

My screens are done, among other factors, on new highs with that
day's volume of 1,000 to 250,000

Been doing that for months.

Tom Worley
stkguru@netside.net
AIM: TexWorley

- ----- Original Message -----
From: Norman <theboyd@tisd.net>
To: <canslim@lists.xmission.com>
Sent: Tuesday, June 12, 2001 10:42 PM
Subject: Re: [CANSLIM] ADV ... <snip> from tomorrow's Investors
Corner


My scans have dipped to around 50K or a month or so.  But I think
more care
will be necessary; looks to be more volatility than I am used to
down
there<grin>

norm
- ----- Original Message -----
From: "David Squires" <dcsquires1@home.com>
To: <canslim@lists.xmission.com>
Sent: Tuesday, June 12, 2001 9:26 PM
Subject: Re: [CANSLIM] ADV ... <snip> from tomorrow's Investors
Corner


> Well, well, well.....what do we have here. We have good
information that
low
> ADV stocks are working. Plan and simple the market is changing.
I have
> already dropped my scans from 200000 ADV to 100000 ADV because
of my own
> market observations. Ian is write...this is great information.
My scans
will
> now drop to 50000 ADV. To me the market is always right. What's
more
> important? Being right or making money? Of course, I chose
making money!!!
>
> DSquires
>
>
> ----- Original Message -----
> From: "Ian" <ianstm@home.com>
> To: <canslim@lists.xmission.com>
> Sent: Tuesday, June 12, 2001 7:55 PM
> Subject: Re: [CANSLIM] ADV ... <snip> from tomorrow's Investors
Corner
>
>
> > Norman:
> >
> > That is great information.
> >
> > I bet a lot of them started their runs in the 40,000 - 80,000
range. My
5
> > big winners from last year all started with ADV's well under
100,000:
DRAM
> > BEIQ CANI MTON SCOT
> >
> > I sold BEIQ in the $40's after it ran up last August. It
split, then
> dropped
> > down to $10 on no volume. As volume has re-entered the stock,
it is back
> up
> > to $37. There was a 3-week window in March right before it
broke out
again
> > where it barely traded at all!
> >
> > IMHO, the best thing about breakouts starting from low
volumes is that a
> > sustained increase in volume is much more apparent. The
entire trading
> > pattern of the stock changes as the volume kicks in.
> >
> >
> > Ian
> >
> > PS - Based on my volume delta theory, there is a good
probability that
> SCOT
> > breaks out again in the near future. Current IBD numbers are
77 85 D A
> C -
> > the poor industry group strength in this case is very
relevant, and
keeps
> me
> > out of the stock - but I like to watch and catalog
price/volume change
> > relationships for future reference.
> >
> >
> >
> >
> > ----- Original Message -----
> > From: Norman <theboyd@tisd.net>
> > To: <canslim@lists.xmission.com>
> > Sent: Tuesday, June 12, 2001 5:22 PM
> > Subject: [CANSLIM] ADV ... <snip> from tomorrow's Investors
Corner
> >
> >
> > > "While small caps are in vogue, not all of them will become
winners.
> > Always
> > > seek high-quality stocks, no matter how many - or few -
shares are
> traded
> > > daily. Those that have the blessing of mutual funds and
other
> institutions
> > > stand a better chance of beating the market.
> > >
> > > Big winners in the past tended to trade at least
200,000-300,000
shares
> a
> > > day, or $5 million in daily dollar volume. Have the
standards changed
> now
> > > that small caps are leading the market? For the answer, IBD
searched
for
> > the
> > > best stocks over the past 12 months. We accepted only
stocks that
traded
> > at
> > > 10 or higher a year ago. The stocks culled all had 12-month
returns of
> > 200%
> > > or more.
> > >
> > > Only 24 met those standards, returning an average of 275%.
Average
daily
> > > volume a year ago was 276,000 shares - in line with past
figures. But
> take
> > > out PeopleSoft (PSFT), which traded 4.1 million shares a
year ago, and
> > > volume for the other 23 stocks drops to 102,000 shares."
> > >
> > >
> > >
> > > -
> > > -To subscribe/unsubscribe, email "majordomo@xmission.com"
> > > -In the email body, write "subscribe canslim" or
> > > -"unsubscribe canslim".  Do not use quotes in your email.
> >
> >
> > -
> > -To subscribe/unsubscribe, email "majordomo@xmission.com"
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> > -"unsubscribe canslim".  Do not use quotes in your email.
>
>
> -
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------------------------------

Date: Tue, 12 Jun 2001 20:50:09 -0700
From: "Ian" <ianstm@home.com>
Subject: Re: [CANSLIM] ACLNF - I am curious if anyone has any pivot points in mind ...

Tom:

That boggles my mind. On FRIDAY the RS was just 61, with a closing price of
$28.96. Now 2 days later, at $33.49 the RS is already 83??? The price goes
up just 15% and the RS goes up 27%??? I would have thought the correlation
would go the other way.

Makes me want to start discounting the RS even more, and put extra emphasis
on chart-checking for resistance levels. I've always found RS a little
suspect - I had sort of figured that ACLNF would need to be over $40 before
the RS got over 80.


Ian


- ----- Original Message -----
From: Tom Worley <stkguru@netside.net>
To: <canslim@lists.xmission.com>
Sent: Tuesday, June 12, 2001 8:10 PM
Subject: Re: [CANSLIM] ACLNF - I am curious if anyone has any pivot points
in mind ...


> Hi Dick,
>
> As of tonight's DGO, it is now 83.
>
> I have warned a number of times about how RS can move quickly
> when the chart is moving up sharply, and in the process making
> new highs or approaching old ones.  You have to remember that it
> is weighted towards the latest quarter's price performance, so
> once it really starts moving, the numbers can go up quickly.
>
> That's just one example of why I try to be very liberal in my
> screening in terms of using either RS or EPS as absolute cutoffs.
> I much prefer to have a lot of leeway, then judge these two
> factors in terms of the chart and how the stock price, and
> sequential earnings, are trending.
>
> Tom Worley
> stkguru@netside.net
> AIM: TexWorley
>
> ----- Original Message -----
> From: Dick Wilkinson <dlgstocks@yahoo.com>
> To: <canslim@lists.xmission.com>
> Sent: Tuesday, June 12, 2001 9:16 AM
> Subject: Re: [CANSLIM] ACLNF - I am curious if anyone has any
> pivot points in mind ...
>
>
> It's interesting that yesterday's 3.5 point breakout
> raised the RS in IBD from 61 to 81. So after the
> ACLNF is extended, it appears in CANSLIM screen.
>
> Dick
>
> --- Tom Worley <stkguru@netside.net> wrote:
> > MessageThe ADV of 63,100 obviously will hold some
> > investors and funds back. But looks to me like today
> > was the buy point when it blasted past 31.10 on 6X
> > ADV for a new recent high.
> >
> > A 12% gain on heavy volume, on a down day like this,
> > must be respected.
> >
> > Tom Worley
> > stkguru@netside.net
> > AIM: TexWorley
> >
> >   ----- Original Message -----
> >   From: Ian
> >   To: canslim@lists.xmission.com
> >   Sent: Monday, June 11, 2001 10:38 AM
> >   Subject: [CANSLIM] ACLNF - I am curious if anyone
> > has any pivot points in mind ...
> >
> >
> >   Hi all:
> >
> >   I have already established my position in ACLNF. I
> > am curious if anyone sees any pivot points in the
> > chart that may trigger significant CANSLIM interest
> > among a large population of IBDers.
> >
> >   Thanks,
> >
> >   Ian
> >
>
>
> __________________________________________________
> Do You Yahoo!?
> Get personalized email addresses from Yahoo! Mail - only $35
> a year!  http://personal.mail.yahoo.com/
>
> -
> -To subscribe/unsubscribe, email "majordomo@xmission.com"
> -In the email body, write "subscribe canslim" or
> -"unsubscribe canslim".  Do not use quotes in your email.
>
>
>
> -
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------------------------------

Date: Wed, 13 Jun 2001 00:41:23 -0400
From: "Tom Worley" <stkguru@netside.net>
Subject: Re: [CANSLIM] ADV ... <snip> from tomorrow's Investors Corner

Trying to identify, and assess, the entry of a major buyer (be it
a mutual fund manager, an institutional like a pension fund
manager, or just a large and powerful portfolio manager) can be
tricky because rarely are they the displayed buyer. Most often,
they rely on a broker dealer to act on their behalf. And that
broker dealer typically is standing on the bid and using his best
judgment to get the best price. So if he sees the market
weakening, or a wave of small order selling, he may even drop his
bid a little.

What a broker dealer is normally doing is accumulating throughout
the trading day a quantity of shares in an internal account. Late
in the day, he will post the sale from that acct to the actual
buyer's acct as a block trade. If the stock has been very
volatile during the day, this execution may often be away from
the market. The size and price of that block, at the time of
execution, may be your best clue that someone was accumulating
for a major buyer.

The trouble with that is that you know neither the size of the
overall order, nor the limit price likely presented for
execution. The job of the broker dealer is to obtain that
quantity of shares, and at or below the limit price. The broker
dealer will typically get paid based on a few cents per share of
whatever part of the order he got done.

If the stock price runs away and the broker dealer fails to get a
sufficient quantity done, the buyer may turn around and dump the
block in a day or so, as they don't want an insufficient
quantity.

Those with Level II access to quotes may be able to see this more
clearly, as they can see what firm is standing on the bid, and
not offering stock at the same time unless it is well away from
the market.

The broker dealer wants to be flat on inventory at the close of
business, and he likely has an agreement to bill the real buyer
based on his average cost that day.  He is also restrained by
NASD rules on billing the buyer much beyond the then current
market price. So if the price starts to move sharply in either
direction, he may go ahead and bill the block right away and not
wait for close to the end of the day.

Tom Worley
stkguru@netside.net
AIM: TexWorley

- ----- Original Message -----
From: Ian <ianstm@home.com>
To: <canslim@lists.xmission.com>
Sent: Tuesday, June 12, 2001 11:28 PM
Subject: Re: [CANSLIM] ADV ... <snip> from tomorrow's Investors
Corner


I'm not really sure what you are asking. Once the volume kicks
in, the price
appreciation can be fairly dramatic, with lots of volatility. I
suspect most
funds trying to get large positions in these things try to do so
slowly in
the base when the volume is light. I suppose the other thing to
do would be
to add on the pullbacks after the initial breakout - just like
CANSLIM
pyramiding.

Ian


- ----- Original Message -----
From: Norman <theboyd@tisd.net>
To: <canslim@lists.xmission.com>
Sent: Tuesday, June 12, 2001 5:54 PM
Subject: Re: [CANSLIM] ADV ... <snip> from tomorrow's Investors
Corner


> Ian,
>
> There was an accompanying table of 15 of the stocks mentioned.
12 of them
> started with an ADV of under 80K a yr ago.
>
> Question:  It seems to my untrained 'eye' that it is easier to
get into
> stocks trading in the lower ranges (i.e. less than 100K)
because it takes
an
> institution longer to 'buy in'.  In a stock trading many more
shares it
only
> takes a day or 2 or 3, and it's over quickly before I can take
a position.
> In stocks with less trading vol it may take a week or longer
and if I miss
> the 1st or 2nd days there is still some buying going and thus
driving the
> price up and I can still get in with some upside potential to
offset the
> eventual downside risk.  I.E. I'm not getting in on top.  Is
this how it
> works?
>
> Norm
> ----- Original Message -----
> From: "Ian" <ianstm@home.com>
> To: <canslim@lists.xmission.com>
> Sent: Tuesday, June 12, 2001 7:55 PM
> Subject: Re: [CANSLIM] ADV ... <snip> from tomorrow's Investors
Corner
>
>
> > Norman:
> >
> > That is great information.
> >
> > I bet a lot of them started their runs in the 40,000 - 80,000
range. My
5
> > big winners from last year all started with ADV's well under
100,000:
DRAM
> > BEIQ CANI MTON SCOT
> >
> > I sold BEIQ in the $40's after it ran up last August. It
split, then
> dropped
> > down to $10 on no volume. As volume has re-entered the stock,
it is back
> up
> > to $37. There was a 3-week window in March right before it
broke out
again
> > where it barely traded at all!
> >
> > IMHO, the best thing about breakouts starting from low
volumes is that a
> > sustained increase in volume is much more apparent. The
entire trading
> > pattern of the stock changes as the volume kicks in.
> >
> >
> > Ian
> >
> > PS - Based on my volume delta theory, there is a good
probability that
> SCOT
> > breaks out again in the near future. Current IBD numbers are
77 85 D A
> C -
> > the poor industry group strength in this case is very
relevant, and
keeps
> me
> > out of the stock - but I like to watch and catalog
price/volume change
> > relationships for future reference.
> >
> >
> >
> >
> > ----- Original Message -----
> > From: Norman <theboyd@tisd.net>
> > To: <canslim@lists.xmission.com>
> > Sent: Tuesday, June 12, 2001 5:22 PM
> > Subject: [CANSLIM] ADV ... <snip> from tomorrow's Investors
Corner
> >
> >
> > > "While small caps are in vogue, not all of them will become
winners.
> > Always
> > > seek high-quality stocks, no matter how many - or few -
shares are
> traded
> > > daily. Those that have the blessing of mutual funds and
other
> institutions
> > > stand a better chance of beating the market.
> > >
> > > Big winners in the past tended to trade at least
200,000-300,000
shares
> a
> > > day, or $5 million in daily dollar volume. Have the
standards changed
> now
> > > that small caps are leading the market? For the answer, IBD
searched
for
> > the
> > > best stocks over the past 12 months. We accepted only
stocks that
traded
> > at
> > > 10 or higher a year ago. The stocks culled all had 12-month
returns of
> > 200%
> > > or more.
> > >
> > > Only 24 met those standards, returning an average of 275%.
Average
daily
> > > volume a year ago was 276,000 shares - in line with past
figures. But
> take
> > > out PeopleSoft (PSFT), which traded 4.1 million shares a
year ago, and
> > > volume for the other 23 stocks drops to 102,000 shares."
> > >
> > >
> > >
> > > -
> > > -To subscribe/unsubscribe, email "majordomo@xmission.com"
> > > -In the email body, write "subscribe canslim" or
> > > -"unsubscribe canslim".  Do not use quotes in your email.
> >
> >
> > -
> > -To subscribe/unsubscribe, email "majordomo@xmission.com"
> > -In the email body, write "subscribe canslim" or
> > -"unsubscribe canslim".  Do not use quotes in your email.
> >
> >
>
>
> -
> -To subscribe/unsubscribe, email "majordomo@xmission.com"
> -In the email body, write "subscribe canslim" or
> -"unsubscribe canslim".  Do not use quotes in your email.
>


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------------------------------

Date: Wed, 13 Jun 2001 00:47:53 -0400
From: "Tom Worley" <stkguru@netside.net>
Subject: Re: [CANSLIM] ACLNF - I am curious if anyone has any pivot points in mind ...

Ian,

Don't discount RS, it is like the popularity vote in a beauty
pageant. May not indicate the ultimate winner, but certainly
shows a strong contender.

When the price approaches both the 3 month and the 12 month high,
and is accelerating higher very quickly, the quantitative
percentile number of RS can move quickly. That is far more true
of a stock with a high EPS, but a low RS (say in the low 70s),
than of a stock already with an RS in the mid 90s. That is why I
caution about arbitrary cutoffs when you screen, much better to
bring in a greater population of stocks to look at, then let
human judgment make the final call rather than some heartless
computer relying solely on numbers.

Tom Worley
stkguru@netside.net
AIM: TexWorley

- ----- Original Message -----
From: Ian <ianstm@home.com>
To: <canslim@lists.xmission.com>
Sent: Tuesday, June 12, 2001 11:50 PM
Subject: Re: [CANSLIM] ACLNF - I am curious if anyone has any
pivot points in mind ...


Tom:

That boggles my mind. On FRIDAY the RS was just 61, with a
closing price of
$28.96. Now 2 days later, at $33.49 the RS is already 83??? The
price goes
up just 15% and the RS goes up 27%??? I would have thought the
correlation
would go the other way.

Makes me want to start discounting the RS even more, and put
extra emphasis
on chart-checking for resistance levels. I've always found RS a
little
suspect - I had sort of figured that ACLNF would need to be over
$40 before
the RS got over 80.


Ian


- ----- Original Message -----
From: Tom Worley <stkguru@netside.net>
To: <canslim@lists.xmission.com>
Sent: Tuesday, June 12, 2001 8:10 PM
Subject: Re: [CANSLIM] ACLNF - I am curious if anyone has any
pivot points
in mind ...


> Hi Dick,
>
> As of tonight's DGO, it is now 83.
>
> I have warned a number of times about how RS can move quickly
> when the chart is moving up sharply, and in the process making
> new highs or approaching old ones.  You have to remember that
it
> is weighted towards the latest quarter's price performance, so
> once it really starts moving, the numbers can go up quickly.
>
> That's just one example of why I try to be very liberal in my
> screening in terms of using either RS or EPS as absolute
cutoffs.
> I much prefer to have a lot of leeway, then judge these two
> factors in terms of the chart and how the stock price, and
> sequential earnings, are trending.
>
> Tom Worley
> stkguru@netside.net
> AIM: TexWorley
>
> ----- Original Message -----
> From: Dick Wilkinson <dlgstocks@yahoo.com>
> To: <canslim@lists.xmission.com>
> Sent: Tuesday, June 12, 2001 9:16 AM
> Subject: Re: [CANSLIM] ACLNF - I am curious if anyone has any
> pivot points in mind ...
>
>
> It's interesting that yesterday's 3.5 point breakout
> raised the RS in IBD from 61 to 81. So after the
> ACLNF is extended, it appears in CANSLIM screen.
>
> Dick
>
> --- Tom Worley <stkguru@netside.net> wrote:
> > MessageThe ADV of 63,100 obviously will hold some
> > investors and funds back. But looks to me like today
> > was the buy point when it blasted past 31.10 on 6X
> > ADV for a new recent high.
> >
> > A 12% gain on heavy volume, on a down day like this,
> > must be respected.
> >
> > Tom Worley
> > stkguru@netside.net
> > AIM: TexWorley
> >
> >   ----- Original Message -----
> >   From: Ian
> >   To: canslim@lists.xmission.com
> >   Sent: Monday, June 11, 2001 10:38 AM
> >   Subject: [CANSLIM] ACLNF - I am curious if anyone
> > has any pivot points in mind ...
> >
> >
> >   Hi all:
> >
> >   I have already established my position in ACLNF. I
> > am curious if anyone sees any pivot points in the
> > chart that may trigger significant CANSLIM interest
> > among a large population of IBDers.
> >
> >   Thanks,
> >
> >   Ian
> >
>
>
> __________________________________________________
> Do You Yahoo!?
> Get personalized email addresses from Yahoo! Mail - only $35
> a year!  http://personal.mail.yahoo.com/
>
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> -To subscribe/unsubscribe, email "majordomo@xmission.com"
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> -"unsubscribe canslim".  Do not use quotes in your email.
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>
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