From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #1648 Reply-To: canslim Sender: owner-canslim-digest@lists.xmission.com Errors-To: owner-canslim-digest@lists.xmission.com Precedence: bulk Content-Transfer-Encoding: quoted-printable X-No-Archive: yes canslim-digest Friday, September 7 2001 Volume 02 : Number 1648 In this issue: Re: [CANSLIM] On the fringes of CANSLIM :Watchlist nibbling Re: [CANSLIM] On the fringes of CANSLIM :Watchlist nibbling Re: [CANSLIM] On the fringes of CANSLIM :Watchlist nibbling ---------------------------------------------------------------------- Date: Fri, 7 Sep 2001 01:47:30 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] On the fringes of CANSLIM :Watchlist nibbling This is a multi-part message in MIME format. - ------=_NextPart_000_0096_01C1373F.0E7FAC00 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Hi Doug, I expected it would substantially cut down the population of stocks to = review. Once you also have Monday's index, you still should be able to = cut that number further just by figuring out where the S&P 500 trailing = PE is at, and doing the math to see what to use on a sort on trailing PE = for individual stocks. EPS and RS have always been the strongest numbers to use in O'Neil's = system. That's one of the reasons I have never become a group "groupie" = even tho WON often talks about the importance of group strength. He = contradicts this by using RS for ranking of stocks in any group, with = EPS being the tie breaker. It is not difficult to find stocks with far = superior RS and EPS as well, but in a group with lower GRS. I know this = is heresy to many here, but I will always consider more favorably a = strong stock in a weak group than a mediocre to moderately strong stock = in a strong group. That's how I found EPIQ (my biggest winner to date) = over two years ago. I never use GRS in any screening process. He also = provides in DG and DGO reports of stocks with top RS and top EPS, = without regard to their GRS, or any cut off based on GRS. Tom Worley stkguru@netside.net AIM: TexWorley ----- Original Message -----=20 From: DougC=20 To: canslim@lists.xmission.com=20 Sent: Friday, September 07, 2001 1:27 AM Subject: Re: [CANSLIM] On the fringes of CANSLIM :Watchlist nibbling Tom Thanks for the suggestion. That helps a great deal. I just downloaded = the index for tonite and exported it to excel and filtered for Qtr EPS % = change and RS. The EPS% change is for the latest quarter. I verified = that looking at the graphs. That gave me a list of 448 stocks vs. around = 1400 I went through this weekend. I think I will still have to visually = check PE because I'm looking at PE relative to the S&P and 5yr growth = rate. But 448 is still a much more manageable number.=20 I use to look through the Index only after additions and deletions = were made to it friday evenings because I wanted to use the fresh list = for the week and use GRS as one of my initial parameters. But after = studying Daily Graphs small booklet 'Forty great stock market winners' = and seeing that GRS seems to vary all the way from 10 to 99 from example = to example I've decided to give GRS less priority in my initial = selections. I might use it to break a tie. EPS and RS seem by far to be = the most important criteria.=20 At 12:26 AM 9/7/01 -0400, you wrote: Doug, =20 To make your work a little easier, you might want to save the = Printed Products Index from Monday, then download into Excel the one = from Thursday. Open the Monday one, and cut and paste the PE column from = it into the Thursday spreadsheet. That gives you two of the "rotating" = columns (PE and prior quarter's year to year comparison) plus Thursday's = RS column that you could then use the power of Excel to sort on. Should = drastically cut down the number of charts you then need to look at. =20 Easiest way I have found to do this is simply sort on your most = important criteria, then delete the rows below your cut off point. Then = do the same for the second criteria, then the third. If you try to sort = on all three at once, you have many rows you don't want to look at = between those you want to screen. =20 You may want to make sure that the rotating column in the Thursday = index list is truly only measuring %age change on the latest quarter. I = tried to find the precise definition in the glossary, and it's not = there. A quick email to DG CustServ should answer the question. =20 Tom Worley stkguru@netside.net AIM: TexWorley ----- Original Message -----=20 From: DougC=20 To: canslim@lists.xmission.com=20 Sent: Thursday, September 06, 2001 11:45 PM Subject: Re: [CANSLIM] On the fringes of CANSLIM :Watchlist = nibbling I exported the Daily Graphs Printed Products Company index to = Excel and did an Auto Filter for RS of 65. Then saved into a new excel file = and=20 imported that back into DGO. Then I just clicked through the graphs and = immediately deleted a stocks graph if it had last quarter earning less than 24%. If it = didnt=20 then I looked at the previous quarter to that for earnings greater than 24%, = then five=20 year growth, etc. At 08:16 PM 9/6/01 -0700, you wrote: >I would like to know how you do your screening? The DGO reports = don't have >all the data you screen by. How can you export all those tickers = and have >the info you screen by? > >Neal >----- Original Message ----- >From: DougC >To: >Sent: Thursday, September 06, 2001 7:03 PM >Subject: [CANSLIM] On the fringes of CANSLIM :Watchlist nibbling > > > > Ok I'll come out of hibernation only briefly enough to admit = I've been > > doing some nibbling. This weekend I went through the DGO list = of 2855 > > stocks with only RS 65 as my initial selection parameter. I = wanted to see > > what stocks if any were making base bottoms and/or starting to = come out of > > a bottom of a base. That initial screen came up with around = 1450 stocks. > > Still hoping DGO makes this easier sometime in the near = future. Then I > > started to look for stocks with last quarters year over year = earnings up > > greater than 24%. And then the second to last quarter greater = than 24%. If > > the last two quarters were between 24 and 70% then I looked = for 5 year > > growth rate greater than 25%. I also looked for debt less than = 50% and > > funds and bank ownership totaling less than 20%. And finally I = wanted > > stocks with PE less than 2x's the S&P PE and/or less than 70% = of the five > > year growth rate. I was also open to turn around situations = with last two > > quarter earnings greater than 70%. I fudged a little on all = these criteria > > depending on the charts and the other numbers. These are all = Mark Boucher > > influenced criteria. It's kind of a mix of growth, value and = momentum > > investing. I ended up with 9 stocks I thought were good enough = for serious > > consideration to buy. the only thing holding me back was the = fact the > > averages are getting closer to testing the April Lows, and = that there are > > lots of stocks making new lows again starting just this week. = It appears >we > > are finally close to a final shakeout of the averages. I'm = concerned that > > over half of the NAZ100 stocks have PE's greater than the PE = of 23 for the > > S&P. A third (just an estimate) appear to have PE's greater = than twice the > > S&P. don't know how much that matters. Nevertheless despite my = concerns > > that we havent quite hit bottom I succumbed to the temptation = to buy 7% > > positions of four different stocks. I was impressed with their >fundamentals > > and the fact that their bases have held up fairly well. With = possible > > exception of TRR. It peaked at around 55 and is now in a 35 to = 40 trading > > range. But it's fundamentals are so good and I though it was = worth trying > > again (I did very well with it during the April runup). the = others I >bought > > are DYII, MGAM, and POSS. The last one is the only turnaround = situation > > that looked worth getting into early. I really really want to = get into >ASW, > > it's got the absolute best numbers, but it appears I'm already = a little >too > > late. Currently it's too extended for me beyond it's 50dma but = if and when > > it comes back down to it I will buy it. Another one I'm = looking to buy is > > AMRN. If it hits 16 I'll buy it. The average float of these 6 = stocks is > > around 7 million. I'm getting addicted to these small caps. = the only thing > > that will save me is if the the larger caps start making = money. > > I'm still about 40% short (using puts) and doing pretty good = this week. >But > > I'm betting it's time to start making a transition to the long = side. The > > Heck with waiting for a followthru. Actually I'm only about = 25% long now > > and won't get much more on the long side until we do get a = followthru and > > there are more stocks with the numbers like the ones above. = But what do I > > know. I'm just an amateur. > > > > > > > > > > - > > -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. - ------=_NextPart_000_0096_01C1373F.0E7FAC00 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Hi Doug,
 
I expected it would substantially cut down the = population of=20 stocks to review. Once you also have Monday's index, you still should be = able to=20 cut that number further just by figuring out where the S&P 500 = trailing PE=20 is at, and doing the math to see what to use on a sort on trailing PE = for=20 individual stocks.
 
EPS and RS have always been the strongest numbers to = use in=20 O'Neil's system. That's one of the reasons I have never become a group = "groupie"=20 even tho WON often talks about the importance of group strength. He = contradicts=20 this by using RS for ranking of stocks in any group, with EPS being the = tie=20 breaker. It is not difficult to find stocks with far superior RS and EPS = as=20 well, but in a group with lower GRS. I know this is heresy to many here, = but I=20 will always consider more favorably a strong stock in a weak group than = a=20 mediocre to moderately strong stock in a strong group. That's how I = found EPIQ=20 (my biggest winner to date) over two years ago. I never use GRS in any = screening=20 process. He also provides in DG and DGO reports of stocks with top RS = and top=20 EPS, without regard to their GRS, or any cut off based on = GRS.
 
Tom Worley
stkguru@netside.net
AIM:=20 TexWorley
----- Original Message -----
From:=20 DougC =
To: canslim@lists.xmission.com =
Sent: Friday, September 07, = 2001 1:27=20 AM
Subject: Re: [CANSLIM] On the = fringes of=20 CANSLIM :Watchlist nibbling

Tom

Thanks for the suggestion. That helps a = great deal.=20 I just downloaded the index for tonite and exported it to excel and = filtered=20 for Qtr EPS % change and RS. The EPS% change is for the latest = quarter. I=20 verified that looking at the graphs. That gave me a list of 448 stocks = vs.=20 around 1400 I went through this weekend. I think I will still have to = visually=20 check PE because I'm looking at PE relative to the S&P and 5yr = growth=20 rate. But 448 is still a much more manageable number.

I use to = look=20 through the Index only after additions and deletions were made to it = friday=20 evenings because I wanted to use the fresh list for the week and use = GRS as=20 one of my initial parameters. But after studying Daily Graphs small = booklet=20 'Forty great stock market winners' and seeing that GRS seems to vary = all the=20 way from 10 to 99 from example to example I've decided to give GRS = less=20 priority in my initial selections. I might use it to break a tie. EPS = and RS=20 seem by far to be the most important criteria.


At 12:26 AM = 9/7/01=20 -0400, you wrote:
Doug,
 
To make=20 your work a little easier, you might want to save the Printed = Products Index=20 from Monday, then download into Excel the one from Thursday. Open = the Monday=20 one, and cut and paste the PE column from it into the Thursday = spreadsheet.=20 That gives you two of the "rotating" columns (PE and prior quarter's = year to=20 year comparison) plus Thursday's RS column that you could then use = the power=20 of Excel to sort on. Should drastically cut down the number of = charts you=20 then need to look at.
 
Easiest way = I have=20 found to do this is simply sort on your most important criteria, = then delete=20 the rows below your cut off point. Then do the same for the second = criteria,=20 then the third. If you try to sort on all three at once, you have = many rows=20 you don't want to look at between those you want to=20 screen.
 
You may want to make sure = that the=20 rotating column in the Thursday index list is truly only measuring = %age=20 change on the latest quarter. I tried to find the precise definition = in the=20 glossary, and it's not there. A quick email to DG CustServ should = answer the=20 question.
 
Tom Worley
stkguru@netside.net
AIM:=20 TexWorley
----- Original Message ----- =
From:=20 DougC
To: canslim@lists.xmission.com= =20
Sent: Thursday, September 06, 2001 11:45 = PM
Subject:=20 Re: [CANSLIM] On the fringes of CANSLIM :Watchlist = nibbling

I=20 exported the Daily Graphs Printed Products Company index to Excel=20 and
did an Auto Filter for RS of 65. Then saved into a new = excel file=20 and
imported that
back into DGO. Then I just clicked = through the=20 graphs and immediately deleted
a stocks graph if it had last = quarter=20 earning less than 24%. If it didnt
then I looked
at the = previous=20 quarter to that for earnings greater than 24%, then five
year = growth,=20 etc.




At 08:16 PM 9/6/01 -0700, you = wrote:
>I=20 would like to know how you do your screening?  The DGO = reports don't=20 have
>all the data you screen by. How can you export all = those=20 tickers and have
>the info you screen=20 by?
>
>Neal
>----- Original Message = - -----
>From:=20 DougC <dzc@qwest.net>
>To:=20 <canslim@lists.xmission.com= >
>Sent:=20 Thursday, September 06, 2001 7:03 PM
>Subject: [CANSLIM] On = the=20 fringes of CANSLIM :Watchlist nibbling
>
>
> = > Ok=20 I'll come out of hibernation only briefly enough to admit I've=20 been
> > doing some nibbling. This weekend I went through = the DGO=20 list of 2855
> > stocks with only RS 65 as my initial = selection=20 parameter. I wanted to see
> > what stocks if any were = making=20 base bottoms and/or starting to come out of
> > a bottom = of a=20 base. That initial screen came up with around 1450 stocks.
> = >=20 Still hoping DGO makes this easier sometime in the near future. = Then=20 I
> > started to look for stocks with last quarters year = over=20 year earnings up
> > greater than 24%. And then the = second to=20 last quarter greater than 24%. If
> > the last two = quarters were=20 between 24 and 70% then I looked for 5 year
> > growth = rate=20 greater than 25%. I also looked for debt less than 50% and
> = >=20 funds and bank ownership totaling less than 20%. And finally I=20 wanted
> > stocks with PE less than 2x's the S&P PE = and/or=20 less than 70% of the five
> > year growth rate. I was = also open=20 to turn around situations with last two
> > quarter = earnings=20 greater than 70%. I fudged a little on all these criteria
> = >=20 depending on the charts and the other numbers. These are all Mark=20 Boucher
> > influenced criteria. It's kind of a mix of = growth,=20 value and momentum
> > investing. I ended up with 9 = stocks I=20 thought were good enough for serious
> > consideration to = buy.=20 the only thing holding me back was the fact the
> > = averages are=20 getting closer to testing the April Lows, and that there = are
> >=20 lots of stocks making new lows again starting just this week. It=20 appears
>we
> > are finally close to a final = shakeout of=20 the averages.  I'm concerned that
> > over half of = the=20 NAZ100 stocks have PE's greater than the PE of 23 for the
> = >=20 S&P. A third (just an estimate) appear to have PE's greater = than twice=20 the
> > S&P. don't know how much that matters. = Nevertheless=20 despite my concerns
> > that we havent quite hit bottom I = succumbed to the temptation to buy 7%
> > positions of = four=20 different stocks. I was impressed with = their
>fundamentals
>=20 > and the fact that their bases have held up fairly well. With=20 possible
> > exception of TRR. It peaked at around 55 and = is now=20 in a 35 to 40 trading
> > range. But it's fundamentals = are so=20 good and I though it was worth trying
> > again (I did = very well=20 with it during the April runup). the others = I
>bought
> >=20 are DYII, MGAM, and POSS. The last one is the only turnaround=20 situation
> > that looked worth getting into early. I = really=20 really want to get into
>ASW,
> > it's got the = absolute=20 best numbers, but it appears I'm already a = little
>too
> >=20 late. Currently it's too extended for me beyond it's 50dma but if = and=20 when
> > it comes back down to it I will buy it. Another = one I'm=20 looking to buy is
> > AMRN. If it hits 16 I'll buy it. = The=20 average float of these 6 stocks is
> > around 7 million. = I'm=20 getting addicted to these small caps. the only thing
> > = that=20 will save me is if the the larger caps start making money.
> = >=20 I'm still about 40% short (using puts) and doing pretty good this=20 week.
>But
> > I'm betting it's time to start = making a=20 transition to the long side. The
> > Heck with waiting = for a=20 followthru. Actually I'm only about 25% long now
> > and = won't=20 get much more on the long side until we do get a followthru = and
>=20 > there are more stocks with the numbers like the ones above. = But what=20 do I
> > know. I'm just an amateur.
> >
>=20 >
> >
> >
> > -
> > -To=20 subscribe/unsubscribe, email "majordomo@xmission.com"
>= ;=20 > -In the email body, write "subscribe canslim" or
> > = -"unsubscribe canslim".  Do not use quotes in your=20 email.
>
>
>-
>-To subscribe/unsubscribe, = email=20 "majordomo@xmission.com"
>= ;-In=20 the email body, write "subscribe canslim" or
>-"unsubscribe=20 canslim".  Do not use quotes in your = email.


-
-To=20 subscribe/unsubscribe, email "majordomo@xmission.com"
-In= =20 the email body, write "subscribe canslim" or
-"unsubscribe=20 canslim".  Do not use quotes in your=20 email.
- ------=_NextPart_000_0096_01C1373F.0E7FAC00-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Fri, 07 Sep 2001 06:47:53 -0600 From: DougC Subject: Re: [CANSLIM] On the fringes of CANSLIM :Watchlist nibbling - --=====================_76320471==_.ALT Content-Type: text/plain; charset="us-ascii"; format=flowed Tom For the list you post here I think using DGO's list of stocks within 5% of new highs is good enough starting point. I don't use that DGO list because a lot can happen in a week when a stock is near it's high. And that list limits to stocks with RS of 80. If I use 65 then I get a heads up when a stock is beginning a move. I want to build a watchlist of stocks as they are completing a base and not just when they are nearing a breakout. ASW at 49.35 today is about 25% above it's 50dma. I've seen too many good stocks lately come crashing down when they get ahead of them selves. If ASW comes back to the 50dma, within the next week or so I hope, it can still be in an upward trend along the 50dma. And I would probably end up buying then instead of waiting for a base to develop. At 01:00 AM 9/7/01 -0400, you wrote: >Doug, > >I am just now looking thru the charts you mention, and I am impressed. >Looks like I need to do a similar review at least monthly to augment my >already large list on my watch list which is based only on stocks hitting >new highs, or at or within 5% of a new high. > >FWIW, I filled my GTC buy order for my VR mutual fund today on POSS just >under my limit of $13.20. Next few weeks will likely show how smart a move >that was. > >On ASW, with its top and bottom lines both showing such strong growth, its >forecasts this year and next so high, and its five year earnings growth >also so strong, you may want to use the very low trailing PE and the >projected PE as an excuse to take the risk of buying it without a good >chart formation (assuming your investment timeline horizons are not short >term). This stock just doesn't want to build a base and give any good >entry point signals. But the PEs are so low right now that it could easily >double from this current "extended" position. High risk situation for >many reasons, but I have my doubts this stock will give good entry >opportunities until it is more fully valued based on the earnings >expectations / forecasts. Volatility is very high, but the trend is >clearly positive right now. > >Tom Worley >stkguru@netside.net >AIM: TexWorley >>----- Original Message ----- >>From: DougC >>To: canslim@lists.xmission.com >>Sent: Thursday, September 06, 2001 10:03 PM >>Subject: [CANSLIM] On the fringes of CANSLIM :Watchlist nibbling >> >>Ok I'll come out of hibernation only briefly enough to admit I've been >>doing some nibbling. This weekend I went through the DGO list of 2855 >>stocks with only RS 65 as my initial selection parameter. I wanted to see >>what stocks if any were making base bottoms and/or starting to come out of >>a bottom of a base. That initial screen came up with around 1450 stocks. >>Still hoping DGO makes this easier sometime in the near future. Then I >>started to look for stocks with last quarters year over year earnings up >>greater than 24%. And then the second to last quarter greater than 24%. If >>the last two quarters were between 24 and 70% then I looked for 5 year >>growth rate greater than 25%. I also looked for debt less than 50% and >>funds and bank ownership totaling less than 20%. And finally I wanted >>stocks with PE less than 2x's the S&P PE and/or less than 70% of the five >>year growth rate. I was also open to turn around situations with last two >>quarter earnings greater than 70%. I fudged a little on all these criteria >>depending on the charts and the other numbers. These are all Mark Boucher >>influenced criteria. It's kind of a mix of growth, value and momentum >>investing. I ended up with 9 stocks I thought were good enough for serious >>consideration to buy. the only thing holding me back was the fact the >>averages are getting closer to testing the April Lows, and that there are >>lots of stocks making new lows again starting just this week. It appears we >>are finally close to a final shakeout of the averages. I'm concerned that >>over half of the NAZ100 stocks have PE's greater than the PE of 23 for the >>S&P. A third (just an estimate) appear to have PE's greater than twice the >>S&P. don't know how much that matters. Nevertheless despite my concerns >>that we havent quite hit bottom I succumbed to the temptation to buy 7% >>positions of four different stocks. I was impressed with their fundamentals >>and the fact that their bases have held up fairly well. With possible >>exception of TRR. It peaked at around 55 and is now in a 35 to 40 trading >>range. But it's fundamentals are so good and I though it was worth trying >>again (I did very well with it during the April runup). the others I bought >>are DYII, MGAM, and POSS. The last one is the only turnaround situation >>that looked worth getting into early. I really really want to get into ASW, >>it's got the absolute best numbers, but it appears I'm already a little too >>late. Currently it's too extended for me beyond it's 50dma but if and when >>it comes back down to it I will buy it. Another one I'm looking to buy is >>AMRN. If it hits 16 I'll buy it. The average float of these 6 stocks is >>around 7 million. I'm getting addicted to these small caps. the only thing >>that will save me is if the the larger caps start making money. >>I'm still about 40% short (using puts) and doing pretty good this week. But >>I'm betting it's time to start making a transition to the long side. The >>Heck with waiting for a followthru. Actually I'm only about 25% long now >>and won't get much more on the long side until we do get a followthru and >>there are more stocks with the numbers like the ones above. But what do I >>know. I'm just an amateur. >> >> >> >> >>- >>-To subscribe/unsubscribe, email >>"majordomo@xmission.com" >>-In the email body, write "subscribe canslim" or >>-"unsubscribe canslim". Do not use quotes in your email. - --=====================_76320471==_.ALT Content-Type: text/html; charset="us-ascii" Tom

For the list you post here I think using DGO's list of stocks within 5% of new highs is good enough starting point. I don't use that DGO list because a lot can happen in a week when a stock is near it's high. And that list limits to stocks with RS of 80. If I use 65 then I get a heads up when a stock is beginning a move. I want to build a watchlist of stocks as they are completing a base and not just when they are nearing a breakout.

ASW at 49.35 today is about 25% above it's 50dma. I've seen too many good stocks lately come crashing down when they get ahead of them selves. If ASW comes back to the 50dma, within the next week or so I hope, it can still be in an upward trend along the 50dma. And I would probably end up buying then instead of waiting for a base to develop.

At 01:00 AM 9/7/01 -0400, you wrote:
Doug,
 
I am just now looking thru the charts you mention, and I am impressed. Looks like I need to do a similar review at least monthly to augment my already large list on my watch list which is based only on stocks hitting new highs, or at or within 5% of a new high.
 
FWIW, I filled my GTC buy order for my VR mutual fund today on POSS just under my limit of $13.20. Next few weeks will likely show how smart a move that was.
 
On ASW, with its top and bottom lines both showing such strong growth, its forecasts this year and next so high, and its five year earnings growth also so strong, you may want to use the very low trailing PE and the projected PE as an excuse to take the risk of buying it without a good chart formation (assuming your investment timeline horizons are not short term). This stock just doesn't want to build a base and give any good entry point signals. But the PEs are so low right now that it could easily double from this current "extended" position.  High risk situation for many reasons, but I have my doubts this stock will give good entry opportunities until it is more fully valued based on the earnings expectations / forecasts. Volatility is very high, but the trend is clearly positive right now.
 
Tom Worley
stkguru@netside.net
AIM: TexWorley
----- Original Message -----
From: DougC
To: canslim@lists.xmission.com
Sent: Thursday, September 06, 2001 10:03 PM
Subject: [CANSLIM] On the fringes of CANSLIM :Watchlist nibbling

Ok I'll come out of hibernation only briefly enough to admit I've been
doing some nibbling. This weekend I went through the DGO list of 2855
stocks with only RS 65 as my initial selection parameter. I wanted to see
what stocks if any were making base bottoms and/or starting to come out of
a bottom of a base. That initial screen came up with around 1450 stocks.
Still hoping DGO makes this easier sometime in the near future. Then I
started to look for stocks with last quarters year over year earnings up
greater than 24%. And then the second to last quarter greater than 24%. If
the last two quarters were between 24 and 70% then I looked for 5 year
growth rate greater than 25%. I also looked for debt less than 50% and
funds and bank ownership totaling less than 20%. And finally I wanted
stocks with PE less than 2x's the S&P PE and/or less than 70% of the five
year growth rate. I was also open to turn around situations with last two
quarter earnings greater than 70%. I fudged a little on all these criteria
depending on the charts and the other numbers. These are all Mark Boucher
influenced criteria. It's kind of a mix of growth, value and momentum
investing. I ended up with 9 stocks I thought were good enough for serious
consideration to buy. the only thing holding me back was the fact the
averages are getting closer to testing the April Lows, and that there are
lots of stocks making new lows again starting just this week. It appears we
are finally close to a final shakeout of the averages.  I'm concerned that
over half of the NAZ100 stocks have PE's greater than the PE of 23 for the
S&P. A third (just an estimate) appear to have PE's greater than twice the
S&P. don't know how much that matters. Nevertheless despite my concerns
that we havent quite hit bottom I succumbed to the temptation to buy 7%
positions of four different stocks. I was impressed with their fundamentals
and the fact that their bases have held up fairly well. With possible
exception of TRR. It peaked at around 55 and is now in a 35 to 40 trading
range. But it's fundamentals are so good and I though it was worth trying
again (I did very well with it during the April runup). the others I bought
are DYII, MGAM, and POSS. The last one is the only turnaround situation
that looked worth getting into early. I really really want to get into ASW,
it's got the absolute best numbers, but it appears I'm already a little too
late. Currently it's too extended for me beyond it's 50dma but if and when
it comes back down to it I will buy it. Another one I'm looking to buy is
AMRN. If it hits 16 I'll buy it. The average float of these 6 stocks is
around 7 million. I'm getting addicted to these small caps. the only thing
that will save me is if the the larger caps start making money.
I'm still about 40% short (using puts) and doing pretty good this week. But
I'm betting it's time to start making a transition to the long side. The
Heck with waiting for a followthru. Actually I'm only about 25% long now
and won't get much more on the long side until we do get a followthru and
there are more stocks with the numbers like the ones above. But what do I
know. I'm just an amateur.




- -
- -To subscribe/unsubscribe, email "majordomo@xmission.com"
- -In the email body, write "subscribe canslim" or
- -"unsubscribe canslim".  Do not use quotes in your email.
- --=====================_76320471==_.ALT-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Fri, 7 Sep 2001 10:25:27 -0700 From: "Ian" Subject: Re: [CANSLIM] On the fringes of CANSLIM :Watchlist nibbling This is a multi-part message in MIME format. - ------=_NextPart_000_005C_01C13787.69D42CF0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Ahem! ASW built a base from September 199 until May of this year. I have = sent multiple posts to this list since January of this year on ASW, = particularly when it broke above its $24 resistance, and again at $29 = (one of only 3 stocks that I have defended vigourously here, when other = list members found something wrong with them). The dynamics have changed = considerably since JPM recommended it, and it sits alone in the growth = stock world :) I'm not buying at $49, but I was a buyer from $22 all the way up to $39. Ian - ----- Original Message -----=20 From: Tom Worley=20 To: canslim@lists.xmission.com=20 Sent: Thursday, September 06, 2001 10:00 PM Subject: Re: [CANSLIM] On the fringes of CANSLIM :Watchlist nibbling Doug, I am just now looking thru the charts you mention, and I am impressed. = Looks like I need to do a similar review at least monthly to augment my = already large list on my watch list which is based only on stocks = hitting new highs, or at or within 5% of a new high.=20 FWIW, I filled my GTC buy order for my VR mutual fund today on POSS = just under my limit of $13.20. Next few weeks will likely show how smart = a move that was. On ASW, with its top and bottom lines both showing such strong growth, = its forecasts this year and next so high, and its five year earnings = growth also so strong, you may want to use the very low trailing PE and = the projected PE as an excuse to take the risk of buying it without a = good chart formation (assuming your investment timeline horizons are not = short term). This stock just doesn't want to build a base and give any = good entry point signals. But the PEs are so low right now that it could = easily double from this current "extended" position. High risk = situation for many reasons, but I have my doubts this stock will give = good entry opportunities until it is more fully valued based on the = earnings expectations / forecasts. Volatility is very high, but the = trend is clearly positive right now. Tom Worley stkguru@netside.net AIM: TexWorley ----- Original Message -----=20 From: DougC=20 To: canslim@lists.xmission.com=20 Sent: Thursday, September 06, 2001 10:03 PM Subject: [CANSLIM] On the fringes of CANSLIM :Watchlist nibbling Ok I'll come out of hibernation only briefly enough to admit I've = been=20 doing some nibbling. This weekend I went through the DGO list of = 2855=20 stocks with only RS 65 as my initial selection parameter. I wanted = to see=20 what stocks if any were making base bottoms and/or starting to come = out of=20 a bottom of a base. That initial screen came up with around 1450 = stocks.=20 Still hoping DGO makes this easier sometime in the near future. Then = I=20 started to look for stocks with last quarters year over year = earnings up=20 greater than 24%. And then the second to last quarter greater than = 24%. If=20 the last two quarters were between 24 and 70% then I looked for 5 = year=20 growth rate greater than 25%. I also looked for debt less than 50% = and=20 funds and bank ownership totaling less than 20%. And finally I = wanted=20 stocks with PE less than 2x's the S&P PE and/or less than 70% of the = five=20 year growth rate. I was also open to turn around situations with = last two=20 quarter earnings greater than 70%. I fudged a little on all these = criteria=20 depending on the charts and the other numbers. These are all Mark = Boucher=20 influenced criteria. It's kind of a mix of growth, value and = momentum=20 investing. I ended up with 9 stocks I thought were good enough for = serious=20 consideration to buy. the only thing holding me back was the fact = the=20 averages are getting closer to testing the April Lows, and that = there are=20 lots of stocks making new lows again starting just this week. It = appears we=20 are finally close to a final shakeout of the averages. I'm = concerned that=20 over half of the NAZ100 stocks have PE's greater than the PE of 23 = for the=20 S&P. A third (just an estimate) appear to have PE's greater than = twice the=20 S&P. don't know how much that matters. Nevertheless despite my = concerns=20 that we havent quite hit bottom I succumbed to the temptation to buy = 7%=20 positions of four different stocks. I was impressed with their = fundamentals=20 and the fact that their bases have held up fairly well. With = possible=20 exception of TRR. It peaked at around 55 and is now in a 35 to 40 = trading=20 range. But it's fundamentals are so good and I though it was worth = trying=20 again (I did very well with it during the April runup). the others I = bought=20 are DYII, MGAM, and POSS. The last one is the only turnaround = situation=20 that looked worth getting into early. I really really want to get = into ASW,=20 it's got the absolute best numbers, but it appears I'm already a = little too=20 late. Currently it's too extended for me beyond it's 50dma but if = and when=20 it comes back down to it I will buy it. Another one I'm looking to = buy is=20 AMRN. If it hits 16 I'll buy it. The average float of these 6 stocks = is=20 around 7 million. I'm getting addicted to these small caps. the only = thing=20 that will save me is if the the larger caps start making money. I'm still about 40% short (using puts) and doing pretty good this = week. But=20 I'm betting it's time to start making a transition to the long side. = The=20 Heck with waiting for a followthru. Actually I'm only about 25% long = now=20 and won't get much more on the long side until we do get a = followthru and=20 there are more stocks with the numbers like the ones above. But what = do I=20 know. I'm just an amateur. - -To subscribe/unsubscribe, email "majordomo@xmission.com" -In the email body, write "subscribe canslim" or -"unsubscribe canslim". Do not use quotes in your email. - ------=_NextPart_000_005C_01C13787.69D42CF0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Ahem! ASW built a base from September 199 until May = of this=20 year. I have sent multiple posts to this list since January of this year = on ASW,=20 particularly when it broke above its $24 resistance, and again at $29 = (one of=20 only 3 stocks that I have defended vigourously here, when other = list=20 members found something wrong with them). The dynamics have changed = considerably=20 since JPM recommended it, and it sits alone in the growth stock world=20 :)
 
I'm not buying at $49, but I was a buyer from $22 = all the way=20 up to $39.
 
Ian
 
 
 
----- Original Message -----
From:=20 Tom = Worley=20
To: canslim@lists.xmission.com =
Sent: Thursday, September 06, = 2001 10:00=20 PM
Subject: Re: [CANSLIM] On the = fringes of=20 CANSLIM :Watchlist nibbling

Doug,
 
I am just now looking thru the charts you mention, = and I am=20 impressed. Looks like I need to do a similar review at least monthly = to=20 augment my already large list on my watch list which is based only on = stocks=20 hitting new highs, or at or within 5% of a new high.
 
FWIW, I filled my GTC buy order for my VR mutual = fund today=20 on POSS just under my limit of $13.20. Next few weeks will likely show = how=20 smart a move that was.
 
On ASW, with its top and bottom lines both showing = such=20 strong growth, its forecasts this year and next so high, and its five = year=20 earnings growth also so strong, you may want to use the very low = trailing PE=20 and the projected PE as an excuse to take the risk of buying it = without a good=20 chart formation (assuming your investment timeline horizons are not = short=20 term). This stock just doesn't want to build a base and give any good = entry=20 point signals. But the PEs are so low right now that it could easily = double=20 from this current "extended" position.  High risk situation for = many=20 reasons, but I have my doubts this stock will give good entry = opportunities=20 until it is more fully valued based on the earnings expectations / = forecasts.=20 Volatility is very high, but the trend is clearly positive right=20 now.
 
Tom Worley
stkguru@netside.net
AIM:=20 TexWorley
----- Original Message -----
From:=20 DougC =
To: canslim@lists.xmission.com =
Sent: Thursday, September 06, = 2001=20 10:03 PM
Subject: [CANSLIM] On the = fringes of=20 CANSLIM :Watchlist nibbling

Ok I'll come out of hibernation only briefly enough = to admit=20 I've been
doing some nibbling. This weekend I went through the = DGO list=20 of 2855
stocks with only RS 65 as my initial selection = parameter. I=20 wanted to see
what stocks if any were making base bottoms and/or = starting to come out of
a bottom of a base. That initial screen = came up=20 with around 1450 stocks.
Still hoping DGO makes this easier = sometime in=20 the near future. Then I
started to look for stocks with last = quarters=20 year over year earnings up
greater than 24%. And then the second = to last=20 quarter greater than 24%. If
the last two quarters were between = 24 and=20 70% then I looked for 5 year
growth rate greater than 25%. I = also looked=20 for debt less than 50% and
funds and bank ownership totaling = less than=20 20%. And finally I wanted
stocks with PE less than 2x's the = S&P PE=20 and/or less than 70% of the five
year growth rate. I was also = open to=20 turn around situations with last two
quarter earnings greater = than 70%.=20 I fudged a little on all these criteria
depending on the charts = and the=20 other numbers. These are all Mark Boucher
influenced criteria. = It's kind=20 of a mix of growth, value and momentum
investing. I ended up = with 9=20 stocks I thought were good enough for serious
consideration to = buy. the=20 only thing holding me back was the fact the
averages are getting = closer=20 to testing the April Lows, and that there are
lots of stocks = making new=20 lows again starting just this week. It appears we
are finally = close to a=20 final shakeout of the averages.  I'm concerned that
over = half of=20 the NAZ100 stocks have PE's greater than the PE of 23 for the =
S&P. A=20 third (just an estimate) appear to have PE's greater than twice the=20
S&P. don't know how much that matters. Nevertheless despite = my=20 concerns
that we havent quite hit bottom I succumbed to the = temptation=20 to buy 7%
positions of four different stocks. I was impressed = with their=20 fundamentals
and the fact that their bases have held up fairly = well.=20 With possible
exception of TRR. It peaked at around 55 and is = now in a=20 35 to 40 trading
range. But it's fundamentals are so good and I = though=20 it was worth trying
again (I did very well with it during the = April=20 runup). the others I bought
are DYII, MGAM, and POSS. The last = one is=20 the only turnaround situation
that looked worth getting into = early. I=20 really really want to get into ASW,
it's got the absolute best = numbers,=20 but it appears I'm already a little too
late. Currently it's too = extended for me beyond it's 50dma but if and when
it comes back = down to=20 it I will buy it. Another one I'm looking to buy is
AMRN. If it = hits 16=20 I'll buy it. The average float of these 6 stocks is
around 7 = million.=20 I'm getting addicted to these small caps. the only thing
that = will save=20 me is if the the larger caps start making money.
I'm still about = 40%=20 short (using puts) and doing pretty good this week. But
I'm = betting it's=20 time to start making a transition to the long side. The
Heck = with=20 waiting for a followthru. Actually I'm only about 25% long now =
and won't=20 get much more on the long side until we do get a followthru and =
there=20 are more stocks with the numbers like the ones above. But what do I=20
know. I'm just an amateur.




-
-To=20 subscribe/unsubscribe, email "majordomo@xmission.com"
-In= the=20 email body, write "subscribe canslim" or
-"unsubscribe = canslim".  Do=20 not use quotes in your = email.
- ------=_NextPart_000_005C_01C13787.69D42CF0-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ End of canslim-digest V2 #1648 ****************************** 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.