From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #2302 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 Sunday, April 14 2002 Volume 02 : Number 2302 In this issue: Re: [CANSLIM] Bear Rally? Re: [CANSLIM] Bear Rally? Re: [CANSLIM] Bear Rally? RE: [CANSLIM] Bear Rally? ---------------------------------------------------------------------- Date: Sun, 14 Apr 2002 11:07:26 -0400 From: "Robert McGill" Subject: Re: [CANSLIM] Bear Rally? This is a multi-part message in MIME format. - ------=_NextPart_000_000A_01C1E3A4.8F5AAA70 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable I think that when discussing small cap it is impt to make a distinction = between growth and value. Value is currently leading. ----- Original Message -----=20 From: Katherine Malm=20 To: canslim@lists.xmission.com=20 Sent: Sunday, April 14, 2002 10:44 AM Subject: Re: [CANSLIM] Bear Rally? Duke, Tom, jans, I'll bet the small to large cap migration has more to do with the = length of the Secular Bull than anything else. In the early stages of a = new Bull market, small caps (especially those with high growth = characteristics) lead the market. It makes intuitive sense. As the bull = wears on, those "small caps" become "big caps" as more and more money = is drawn to the stock. It's the very thing that CANSLIM is looking for = in the "I"...that is, you watch for evidence of institutional monies = moving into the stock and then just follow their lead. Once the stocks = put in their 3rd and 4th stage bases, everybody knows about them and = their market caps are quite large in comparison to where they were when = they blew out of their first stage bases. Nearly every high flier late = in '98 and '99 was a late stage base. Only those companies that have the = wherewithal to survive as a business and expand their markets will set = up new first stage bases. Non-CANSLIMers are still chasing AOL, DELL, = CSCO, etc., all former winners and all large caps due to their huge runs = in the 90's. CANSLIMers know better....go to strength, regardless of = market cap. It just so happens small and mid-cap are leading right now = and that is one more piece of evidence for the "emerging new bull" point = of view. Katherine ----- Original Message -----=20 From: Tom Worley=20 To: canslim@lists.xmission.com=20 Sent: Sunday, April 14, 2002 9:20 AM Subject: Re: [CANSLIM] Bear Rally? Duke, We don't need a new letter, we already have "S". Of course, over the = years WON has redefined this letter. In my first edition of HTMMIS, this = letter was defined as "S=3DSupply and Demand: Small Capitalization Plus = Volume Demand" and WON indicated that you should look for a company with = only a few million shares outstanding. He also favored "Stocks that have a = large percentage of ownership by top management are generally your better prospects". He also noted that the "average capitalization of top = performing listed stocks from 1970 through 1982 was 11.8 million shares. The = median stock exhibited 4.6 million shares outstanding before advancing = rapidly in price." Of course, a lot has changed since my copy was published in 1991, = and I doubt either WON or IBD today would champion small cap stocks, much = less ones this small. WON went over to the big cap camp over five years = ago, and I have seen little evidence of him adhering to the "S" since then. Tom Worley stkguru@bellsouth.net AIM: TexWorley ----- Original Message ----- From: "Duke Miller" To: Sent: Sunday, April 14, 2002 9:55 AM Subject: RE: [CANSLIM] Bear Rally? Jans: Good thinking and input for the neighborhood. Can you say = "CANSLICM?" Not long ago we debated herein the capitalization definitions. Do = you suppose their (IBD's) definitions in the IC (<=3D1bb is small; = >=3D5bb is large; mid in between) conform to the S&P 600 (Small), 400 (mid), = and 500 (big)? Duke -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com] On Behalf Of = Spencer48@aol.com Sent: Sunday, April 14, 2002 1:15 AM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] Bear Rally? Katherine and Duke: In today's Investor's Corner (4/15) the column focuses on the = fact that small caps are doing well while the big caps are lagging. This = approach is interesting. Apparently one should look at: The Mkts ->The = Industry -> The Capitalization (whether the stock is a big cap or a small cap makes = a difference, according to the article, regarding the probability that = the stock will take off. If small caps are currently being favored = than investing in big caps is less likely to garner a winner.) -> (and finally) The Stock. So it looks as if one should go through the above checklist to = find a stock that will be a winner. (Apropos, I wonder if anyone has = compared the industry [I know CANSLIM uses a Strong Industry as a necessary forerunner of a strong stock] with the favored capitalization at the time. For instance, if XYZ industry is the industry that CANSLIM/WON favors at the present, would the capitalization of the stock that is in that industry make a significant difference as to its return, ie. do the = statistics confirm that not only the industry, but also the capitalization of the stock = in that industry, is a big factor in the movement up of that stock? ) jans In a message dated 4/13/2002 12:50:16 PM Eastern Daylight Time, kmalm@earthlink.net writes: << MessageHi Duke, I read the article and thought the same thing. I think the real = issue is that when all stocks are not in a Bull Market, you can't talk meaningfully about "THE Market" any longer. For example, the last couple of years = of "the great Bull", the Dow ran sideways while the NASDAQ screamed. The = article today only reinforces that notion. That is, some stocks are going = up, others are going down, others are moving sideways. That's always the case, = but when equities aren't the absolute best place to put your money for "sure" gains, the marginal dollars will flow to other investment classes and the = rest of the market will ebb and flow. If nothing else, it just reminds us as CANSLIM investors that we have to pick only the best candidates and follow = sound buy/sell rules. I don't think there's going to be a clear direction = for "the Market" as a whole for many years. We're going to have to read the health of the CANSLIM market (i.e. CANSLIM-quality stocks) and then go for strength within that. Katherine PS.... The term "rally" is used in many contexts, even within the = IBD and Investors.com. Is it an upswing? Is it action after a followthru = day? Is it a Bull? How persistent does an upswing need to be before it's no = longer considered "a rally"? Rally relative to what? relative to when? Geez....very confusing terminology. >> - ------=_NextPart_000_000A_01C1E3A4.8F5AAA70 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
I think that when discussing small cap = it is impt=20 to make a distinction between growth and value.  Value is currently = leading.
----- Original Message -----
From:=20 Katherine=20 Malm
Sent: Sunday, April 14, 2002 = 10:44=20 AM
Subject: Re: [CANSLIM] Bear = Rally?

Duke, Tom, jans,
 
I'll bet the small to large cap migration has more to do with the = length=20 of the Secular Bull than anything else. In the early stages of a new = Bull=20 market, small caps (especially those with high growth characteristics) = lead=20 the market. It makes intuitive sense. As the bull wears on, those = "small=20 caps"  become "big caps" as more and more money is drawn to the = stock.=20 It's the very thing that CANSLIM is looking for in the "I"...that is, = you=20 watch for evidence of institutional monies moving into the stock and = then just=20 follow their lead. Once the stocks put in their 3rd and 4th stage = bases,=20 everybody knows about them and their market caps are quite large in = comparison=20 to where they were when they blew out of their first stage bases. = Nearly every=20 high flier late in '98 and '99 was a late stage base. Only those = companies=20 that have the wherewithal  to survive as a business and expand = their=20 markets will set up new first stage bases.  Non-CANSLIMers = are=20 still chasing AOL, DELL, CSCO, etc., all former winners and all = large=20 caps due to their huge runs in the 90's. CANSLIMers know better....go = to=20 strength, regardless of market cap. It just so happens small and = mid-cap are=20 leading right now and that is one more piece of evidence for the=20 "emerging new bull" point of view.
 
Katherine
----- Original Message -----
From:=20 Tom=20 Worley
Sent: Sunday, April 14, 2002 = 9:20=20 AM
Subject: Re: [CANSLIM] Bear=20 Rally?

Duke,

We don't need a new letter, we already = have "S".=20 Of course, over the years
WON has redefined this letter. In my = first=20 edition of HTMMIS, this letter
was defined as "S=3DSupply and = Demand: Small=20 Capitalization Plus Volume
Demand" and WON indicated that you = should look=20 for a company with only a few
million shares outstanding. He also = favored=20 "Stocks that have a large
percentage of ownership by top = management are=20 generally your better
prospects". He also noted that the "average = capitalization of top performing
listed stocks from 1970 through = 1982 was=20 11.8 million shares. The median
stock exhibited 4.6 million = shares=20 outstanding before advancing rapidly in
price."

Of course, = a lot=20 has changed since my copy was published in 1991, and I
doubt = either WON=20 or IBD today would champion small cap stocks, much less
ones this = small.=20 WON went over to the big cap camp over five years ago, and
I have = seen=20 little evidence of him adhering to the "S" since then.

Tom=20 Worley
stkguru@bellsouth.net
AIM:=20 TexWorley
----- Original Message -----
From: "Duke Miller" = <dukemill@tampabay.rr.com>=
To:=20 <canslim@lists.xmission.com= >
Sent:=20 Sunday, April 14, 2002 9:55 AM
Subject: RE: [CANSLIM] Bear=20 Rally?


Jans:

Good thinking and input for the = neighborhood.=20 Can you say "CANSLICM?"

Not long ago we debated herein the=20 capitalization definitions.  Do you
suppose their (IBD's)=20 definitions in the IC (<=3D1bb is small; >=3D5bb is
large; = mid in=20 between) conform to the S&P 600 (Small), 400 (mid), and
500=20 (big)?

Duke

-----Original Message-----
From: owner-canslim@lists.xmis= sion.com
[mailto:owner-canslim@lists.xmission.com]=20 On Behalf Of Spencer48@aol.com
Sent: = Sunday, April=20 14, 2002 1:15 AM
To: canslim@lists.xmission.com=
Subject:=20 Re: [CANSLIM] Bear Rally?


Katherine and=20 Duke:

     In today's Investor's Corner = (4/15)=20 the column focuses on the fact
that
small caps are doing well = while=20 the big caps are lagging.  This = approach
is
interesting. =20 Apparently one should look at:  The Mkts ->The Industry=20 ->
The
Capitalization (whether the stock is a big cap or a = small=20 cap makes a
difference, according to the article, regarding the=20 probability that the

stock will take off.  If small caps = are=20 currently  being favored than
investing in big caps is less = likely=20 to garner a winner.)
-> (and finally) The=20 Stock.

     So it looks as if one should = go=20 through the above checklist to find
a
stock that will be a=20 winner.  (Apropos, I wonder if anyone has = compared
the
industry=20 [I know CANSLIM uses a Strong Industry as a necessary
forerunner = of
a=20 strong stock] with the favored capitalization at the=20 time.

     For instance, if XYZ industry = is the=20 industry that CANSLIM/WON
favors at
the present, would the=20 capitalization  of the stock that is in = that
industry
make a=20 significant difference as to its return, ie. do the=20 statistics
confirm
that not only the industry, but also the=20 capitalization of the stock in
that
industry, is a big factor = in the=20 movement up of that stock? )

jans



In a message = dated=20 4/13/2002 12:50:16 PM Eastern Daylight Time,
kmalm@earthlink.net=20 writes:

<< MessageHi Duke,

 I read the = article and=20 thought the same thing. I think the real issue
is
that when = all stocks=20 are not in a Bull Market, you can't talk
meaningfully
about = "THE=20 Market" any longer. For example, the last couple of years=20 of
"the
great Bull", the Dow ran sideways while the NASDAQ = screamed.=20 The article

today only reinforces that notion. That is, some = stocks=20 are going up,
others
are going down, others are moving = sideways.=20 That's always the case, but
when
equities aren't the absolute = best=20 place to put your money for "sure"
gains,
the marginal dollars = will=20 flow to other investment classes and the rest
of
the market = will ebb=20 and flow. If nothing else, it just reminds us = as
CANSLIM
investors=20 that we have to pick only the best candidates and follow=20 sound

buy/sell rules. I don't think there's going to be a = clear=20 direction for
"the
Market" as a whole for many years. We're = going to=20 have to read the
health of
the CANSLIM market (i.e. = CANSLIM-quality=20 stocks) and then go for
strength
within=20 that.

 Katherine

 PS.... The term "rally" is = used in=20 many contexts, even within the IBD
and
Investors.com. Is it an = upswing? Is it action after a followthru day? Is
it a
Bull? = How=20 persistent does an upswing need to be before it's no = longer
considered "a=20 rally"? Rally relative to what? relative to=20 when?
Geez....very
confusing terminology.=20 >>
- ------=_NextPart_000_000A_01C1E3A4.8F5AAA70-- - - - -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: Sun, 14 Apr 2002 10:25:10 -0500 From: "Katherine Malm" Subject: Re: [CANSLIM] Bear Rally? This is a multi-part message in MIME format. - ------=_NextPart_000_01A0_01C1E39E.A7BB6A60 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Robert, While Small Cap Value is leading, the small cap growth, mid cap growth, = mid cap value are also very strong and posting similar results. All of = them are dwarfing large cap value and growth. Since the most recent market bottom 9/21, here are the returns using the = ETF's as proxy: Small Cap Growth: +34.78% Mid Cap Growth: + 33.5% Small Cap Value: + 45.35% Mid Cap Value: + 34.8% Certainly nothing to sneeze at. See a chart at: http://stockcharts.com/webcgi/wb.exe?Perf.web+ijt,ijk,iwf,ijs,ijj,ive Katherine ----- Original Message -----=20 From: Robert McGill=20 To: canslim@lists.xmission.com=20 Sent: Sunday, April 14, 2002 10:07 AM Subject: Re: [CANSLIM] Bear Rally? I think that when discussing small cap it is impt to make a = distinction between growth and value. Value is currently leading. ----- Original Message -----=20 From: Katherine Malm=20 To: canslim@lists.xmission.com=20 Sent: Sunday, April 14, 2002 10:44 AM Subject: Re: [CANSLIM] Bear Rally? Duke, Tom, jans, I'll bet the small to large cap migration has more to do with the = length of the Secular Bull than anything else. In the early stages of a = new Bull market, small caps (especially those with high growth = characteristics) lead the market. It makes intuitive sense. As the bull = wears on, those "small caps" become "big caps" as more and more money = is drawn to the stock. It's the very thing that CANSLIM is looking for = in the "I"...that is, you watch for evidence of institutional monies = moving into the stock and then just follow their lead. Once the stocks = put in their 3rd and 4th stage bases, everybody knows about them and = their market caps are quite large in comparison to where they were when = they blew out of their first stage bases. Nearly every high flier late = in '98 and '99 was a late stage base. Only those companies that have the = wherewithal to survive as a business and expand their markets will set = up new first stage bases. Non-CANSLIMers are still chasing AOL, DELL, = CSCO, etc., all former winners and all large caps due to their huge runs = in the 90's. CANSLIMers know better....go to strength, regardless of = market cap. It just so happens small and mid-cap are leading right now = and that is one more piece of evidence for the "emerging new bull" point = of view. Katherine ----- Original Message -----=20 From: Tom Worley=20 To: canslim@lists.xmission.com=20 Sent: Sunday, April 14, 2002 9:20 AM Subject: Re: [CANSLIM] Bear Rally? Duke, We don't need a new letter, we already have "S". Of course, over = the years WON has redefined this letter. In my first edition of HTMMIS, this = letter was defined as "S=3DSupply and Demand: Small Capitalization Plus = Volume Demand" and WON indicated that you should look for a company with = only a few million shares outstanding. He also favored "Stocks that have a = large percentage of ownership by top management are generally your = better prospects". He also noted that the "average capitalization of top = performing listed stocks from 1970 through 1982 was 11.8 million shares. The = median stock exhibited 4.6 million shares outstanding before advancing = rapidly in price." Of course, a lot has changed since my copy was published in 1991, = and I doubt either WON or IBD today would champion small cap stocks, = much less ones this small. WON went over to the big cap camp over five years = ago, and I have seen little evidence of him adhering to the "S" since then. Tom Worley stkguru@bellsouth.net AIM: TexWorley ----- Original Message ----- From: "Duke Miller" To: Sent: Sunday, April 14, 2002 9:55 AM Subject: RE: [CANSLIM] Bear Rally? Jans: Good thinking and input for the neighborhood. Can you say = "CANSLICM?" Not long ago we debated herein the capitalization definitions. Do = you suppose their (IBD's) definitions in the IC (<=3D1bb is small; = >=3D5bb is large; mid in between) conform to the S&P 600 (Small), 400 (mid), = and 500 (big)? Duke -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com] On Behalf Of = Spencer48@aol.com Sent: Sunday, April 14, 2002 1:15 AM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] Bear Rally? Katherine and Duke: In today's Investor's Corner (4/15) the column focuses on the = fact that small caps are doing well while the big caps are lagging. This = approach is interesting. Apparently one should look at: The Mkts ->The = Industry -> The Capitalization (whether the stock is a big cap or a small cap = makes a difference, according to the article, regarding the probability = that the stock will take off. If small caps are currently being favored = than investing in big caps is less likely to garner a winner.) -> (and finally) The Stock. So it looks as if one should go through the above checklist = to find a stock that will be a winner. (Apropos, I wonder if anyone has = compared the industry [I know CANSLIM uses a Strong Industry as a necessary forerunner of a strong stock] with the favored capitalization at the time. For instance, if XYZ industry is the industry that = CANSLIM/WON favors at the present, would the capitalization of the stock that is in = that industry make a significant difference as to its return, ie. do the = statistics confirm that not only the industry, but also the capitalization of the = stock in that industry, is a big factor in the movement up of that stock? ) jans In a message dated 4/13/2002 12:50:16 PM Eastern Daylight Time, kmalm@earthlink.net writes: << MessageHi Duke, I read the article and thought the same thing. I think the real = issue is that when all stocks are not in a Bull Market, you can't talk meaningfully about "THE Market" any longer. For example, the last couple of = years of "the great Bull", the Dow ran sideways while the NASDAQ screamed. The = article today only reinforces that notion. That is, some stocks are going = up, others are going down, others are moving sideways. That's always the = case, but when equities aren't the absolute best place to put your money for = "sure" gains, the marginal dollars will flow to other investment classes and the = rest of the market will ebb and flow. If nothing else, it just reminds us = as CANSLIM investors that we have to pick only the best candidates and follow = sound buy/sell rules. I don't think there's going to be a clear = direction for "the Market" as a whole for many years. We're going to have to read the health of the CANSLIM market (i.e. CANSLIM-quality stocks) and then go for strength within that. Katherine PS.... The term "rally" is used in many contexts, even within the = IBD and Investors.com. Is it an upswing? Is it action after a followthru = day? Is it a Bull? How persistent does an upswing need to be before it's no = longer considered "a rally"? Rally relative to what? relative to when? Geez....very confusing terminology. >> - ------=_NextPart_000_01A0_01C1E39E.A7BB6A60 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Robert,
 
While Small Cap Value is leading, the small cap growth, mid cap = growth, mid=20 cap value are also very strong and posting similar results. All of them = are=20 dwarfing large cap value and growth.
 
Since the most recent market bottom 9/21, here are the returns = using the=20 ETF's as proxy:
Small Cap Growth: +34.78%
Mid Cap Growth: + 33.5%
Small Cap Value: + 45.35%
Mid Cap Value: + 34.8%
 
Certainly nothing to sneeze at.
 
See a chart at:
http://stockcharts.com/webcgi/wb.exe?Perf.web+ijt,ijk,iwf,ijs,ijj,i= ve
 
Katherine
----- Original Message -----
From:=20 Robert=20 McGill
Sent: Sunday, April 14, 2002 = 10:07=20 AM
Subject: Re: [CANSLIM] Bear = Rally?

I think that when discussing small = cap it is impt=20 to make a distinction between growth and value.  Value is = currently=20 leading.
----- Original Message -----
From:=20 Katherine=20 Malm
Sent: Sunday, April 14, 2002 = 10:44=20 AM
Subject: Re: [CANSLIM] Bear=20 Rally?

Duke, Tom, jans,
 
I'll bet the small to large cap migration has more to do with = the=20 length of the Secular Bull than anything else. In the early stages = of a new=20 Bull market, small caps (especially those with high growth = characteristics)=20 lead the market. It makes intuitive sense. As the bull wears on, = those=20 "small caps"  become "big caps" as more and more money is drawn = to the=20 stock. It's the very thing that CANSLIM is looking for in the = "I"...that is,=20 you watch for evidence of institutional monies moving into the stock = and=20 then just follow their lead. Once the stocks put in their 3rd and = 4th stage=20 bases, everybody knows about them and their market caps are quite = large in=20 comparison to where they were when they blew out of their first = stage bases.=20 Nearly every high flier late in '98 and '99 was a late stage base. = Only=20 those companies that have the wherewithal  to survive as a = business and=20 expand their markets will set up new first stage bases. =20 Non-CANSLIMers are still chasing AOL, DELL, CSCO, etc., all = former=20 winners and all large caps due to their huge runs in the 90's. = CANSLIMers=20 know better....go to strength, regardless of market cap. It just so = happens=20 small and mid-cap are leading right now and that is one more piece = of=20 evidence for the "emerging new bull" point of view.
 
Katherine
----- Original Message ----- =
From:=20 Tom=20 Worley
To: canslim@lists.xmission.com= =20
Sent: Sunday, April 14, = 2002 9:20=20 AM
Subject: Re: [CANSLIM] Bear = Rally?

Duke,

We don't need a new letter, we already = have=20 "S". Of course, over the years
WON has redefined this letter. = In my=20 first edition of HTMMIS, this letter
was defined as "S=3DSupply = and=20 Demand: Small Capitalization Plus Volume
Demand" and WON = indicated that=20 you should look for a company with only a few
million shares=20 outstanding. He also favored "Stocks that have a = large
percentage of=20 ownership by top management are generally your = better
prospects". He=20 also noted that the "average capitalization of top = performing
listed=20 stocks from 1970 through 1982 was 11.8 million shares. The = median
stock=20 exhibited 4.6 million shares outstanding before advancing rapidly=20 in
price."

Of course, a lot has changed since my copy = was=20 published in 1991, and I
doubt either WON or IBD today would = champion=20 small cap stocks, much less
ones this small. WON went over to = the big=20 cap camp over five years ago, and
I have seen little evidence = of him=20 adhering to the "S" since then.

Tom Worley
stkguru@bellsouth.net
AIM:=20 TexWorley
----- Original Message -----
From: "Duke Miller" = <dukemill@tampabay.rr.com>=
To:=20 <canslim@lists.xmission.com= >
Sent:=20 Sunday, April 14, 2002 9:55 AM
Subject: RE: [CANSLIM] Bear=20 Rally?


Jans:

Good thinking and input for the=20 neighborhood. Can you say "CANSLICM?"

Not long ago we = debated=20 herein the capitalization definitions.  Do you
suppose = their=20 (IBD's) definitions in the IC (<=3D1bb is small; >=3D5bb = is
large;=20 mid in between) conform to the S&P 600 (Small), 400 (mid), = and
500=20 (big)?

Duke

-----Original Message-----
From: owner-canslim@lists.xmis= sion.com
[mailto:owner-canslim@lists.xmission.com]=20 On Behalf Of Spencer48@aol.com
Sent: = Sunday,=20 April 14, 2002 1:15 AM
To: canslim@lists.xmission.com=
Subject:=20 Re: [CANSLIM] Bear Rally?


Katherine and=20 Duke:

     In today's Investor's Corner = (4/15)=20 the column focuses on the fact
that
small caps are doing = well while=20 the big caps are lagging.  This = approach
is
interesting. =20 Apparently one should look at:  The Mkts ->The Industry=20 ->
The
Capitalization (whether the stock is a big cap or = a small=20 cap makes a
difference, according to the article, regarding the = probability that the

stock will take off.  If small = caps are=20 currently  being favored than
investing in big caps is = less likely=20 to garner a winner.)
-> (and finally) The=20 Stock.

     So it looks as if one = should go=20 through the above checklist to find
a
stock that will be a=20 winner.  (Apropos, I wonder if anyone has = compared
the
industry=20 [I know CANSLIM uses a Strong Industry as a = necessary
forerunner=20 of
a strong stock] with the favored capitalization at the=20 time.

     For instance, if XYZ = industry is the=20 industry that CANSLIM/WON
favors at
the present, would the=20 capitalization  of the stock that is in = that
industry
make a=20 significant difference as to its return, ie. do the=20 statistics
confirm
that not only the industry, but also the=20 capitalization of the stock in
that
industry, is a big = factor in the=20 movement up of that stock? )

jans



In a = message dated=20 4/13/2002 12:50:16 PM Eastern Daylight Time,
kmalm@earthlink.net=20 writes:

<< MessageHi Duke,

 I read the = article=20 and thought the same thing. I think the real issue
is
that = when all=20 stocks are not in a Bull Market, you can't = talk
meaningfully
about=20 "THE Market" any longer. For example, the last couple of years=20 of
"the
great Bull", the Dow ran sideways while the NASDAQ = screamed.=20 The article

today only reinforces that notion. That is, = some stocks=20 are going up,
others
are going down, others are moving = sideways.=20 That's always the case, but
when
equities aren't the = absolute best=20 place to put your money for "sure"
gains,
the marginal = dollars will=20 flow to other investment classes and the rest
of
the market = will ebb=20 and flow. If nothing else, it just reminds us = as
CANSLIM
investors=20 that we have to pick only the best candidates and follow=20 sound

buy/sell rules. I don't think there's going to be a = clear=20 direction for
"the
Market" as a whole for many years. We're = going to=20 have to read the
health of
the CANSLIM market (i.e. = CANSLIM-quality=20 stocks) and then go for
strength
within=20 that.

 Katherine

 PS.... The term "rally" = is used=20 in many contexts, even within the IBD
and
Investors.com. Is = it an=20 upswing? Is it action after a followthru day? Is
it a
Bull? = How=20 persistent does an upswing need to be before it's no = longer
considered=20 "a rally"? Rally relative to what? relative to=20 when?
Geez....very
confusing terminology.=20 >>
- ------=_NextPart_000_01A0_01C1E39E.A7BB6A60-- - - - -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: Sun, 14 Apr 2002 11:32:59 EDT From: Davellil5@aol.com Subject: Re: [CANSLIM] Bear Rally? We CANSLIM-ers are momentum investors A momentum investor buys value stocks because he thinks that other investors will be of the same mind and the "market" will therefore accelerate in that direction. That's playing market momentum more than stock momentum. My observation of stocks going up in this spooky market is that they are mainly Companies whose EPS is expected to gain -- for reasons peculiar to those businesses -- even though the economy is still faltering. In other words, growth stocks. That's why so many of the rising stocks are smaller Companies at present. And, as I've previously observed, these are often niche businesses. Regards, Dave - - - -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: Sun, 14 Apr 2002 11:52:43 -0700 From: "Mona Guarino" Subject: RE: [CANSLIM] Bear Rally? This is a multi-part message in MIME format. - ------=_NextPart_000_005A_01C1E3AA.E2E839E0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: 7bit Katherine -- 1. on the one hand, due diligence on non-tech stocks may not be as exciting for the tech-minded among us, but as a newbie to the CANSLIM principles, I am finding that it forces me to stay focused on the investing process and I don't get as distracted by excitement of the the technology itself. For me, not a bad thing at the moment to have my focus enforced. 2. I agree that tech is very unlikely to lead as it did before. But, I don't see intuitively how any overall improvement in the market can occur without at least improving tech's current position. How does anyone to it cheaper / better / faster without an effect on tech? 3. In various messages, you seem to indicate that you believe the current directionlessness of the market will continue for years. Definietly think that that's where we are now and that it's not going to change in the next quarter or two, but wonder what suggests it will be many more years of this. - -- Mona - ------=_NextPart_000_005A_01C1E3AA.E2E839E0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Katherine --
 
1. on=20 the one hand, due diligence on non-tech stocks may not be as exciting = for the=20 tech-minded among us, but as a newbie to the CANSLIM principles, I am = finding=20 that it forces me to stay focused on the investing process and I don't = get as=20 distracted by excitement of the the technology itself. For me, not a bad = thing=20 at the moment to have my focus enforced.
 
2. I=20 agree that tech is very unlikely to lead as it did before. But, I don't = see=20 intuitively how any overall improvement in the market can occur without = at least=20 improving tech's current position. How does anyone to it cheaper / = better /=20 faster without an effect on tech?
 
3. In various messages, you seem to = indicate that=20 you believe the current directionlessness of the market will continue = for years.=20 Definietly think that that's where we are now and that it's not going to = change=20 in the next quarter or two, but wonder what suggests it will be many = more years=20 of this.
 
--=20 Mona
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