From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #2320 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 Wednesday, April 17 2002 Volume 02 : Number 2320 In this issue: Re: [CANSLIM] Current Holdings Re: [CANSLIM] Market -- Greenspan testimony Re: [CANSLIM] Tom or Ian Re: [CANSLIM] When to Buy Re: [CANSLIM] Current Holdings RE: [CANSLIM] When to Buy Re: [CANSLIM] When to Buy Re: [CANSLIM] When to Buy Re: [CANSLIM] When to Buy Re: [CANSLIM] When to Buy Re: [CANSLIM] When to Buy Re: [CANSLIM] When to Buy Re: [CANSLIM] Tom or Ian Re: [CANSLIM] When to Buy ---------------------------------------------------------------------- Date: Wed, 17 Apr 2002 15:14:42 -0700 (PDT) From: Simon Yang Subject: Re: [CANSLIM] Current Holdings Chris, I do show my holdings of the present time: 100% cash. I really do not know how you chose your stocks and took positions in such questionable markets. Do you use CANSLIM someway derived from O'Neil's? How have you been done for your portfolios? simoninvestments.net Simon - --- Ira Post wrote: > Nice list. Question on GISX. It's an intriguing > stock for a number of reasons, but I'm concerned > about the high debt. With interest rates probably > going up over the next year or so, are you concerned > about it? > > Ira > > ----- Original Message ----- > From: Vanchee1@aol.com > To: canslim@lists.xmission.com > Sent: Tuesday, April 16, 2002 9:14 PM > Subject: [CANSLIM] Current Holdings > > > Well, gang, periodically I like to post my current > holdings for the group to see what stocks this one > investor likes. I am NOT recommending anyone to buy > any of these stocks as we all have our own criteria. > I just like to share what I call my finds with the > group in hopes others will share theirs. This allows > us all to find the best of the best. I do realize > that 95% of the readers will not share their own > list, for some reason they feel its their list, they > did the research and why should they share. But IM > in this to make money and work as a team. > > GISX 98/95 ABB > ATPX 84/99 AAA > FDP 81/96 CBA > MTEC 80/98 CAA > NBSC 80/97 A > DLI 80/94 AA > PRX 80/22 EBD > JJSF 94/96 BCB WAITING FOR A PULLBACK TO RE-ENTER > > Chris > __________________________________________________ Do You Yahoo!? Yahoo! Tax Center - online filing with TurboTax http://taxes.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. ------------------------------ Date: Wed, 17 Apr 2002 15:22:20 -0700 (PDT) From: Simon Yang Subject: Re: [CANSLIM] Market -- Greenspan testimony Good work. but I do not pay so much attention to his speech or wordings. The markets is pretty smart to discount such expectations. Charts of markets and stocks tell more than his speech. simoninvestments.net Simon - --- Mona Guarino wrote: > Testimony of Chairman Alan Greenspan > Monetary policy and the economic outlook > Before the Joint Economic Committee, U.S. Congress > April 17, 2002 > > can be found at: > > www.federalreserve.gov/BoardDocs/Testimony/2002/20020417/ > > Interesting to me that he: > -- said little has changed from the Mar FOMC > meeting > -- weighed in on homebuilders indicating it's NOT a > speculative bubble > -- sees no reason with current level of inflation > to do anything until > there is solid recovery underway > -- thinks Japan IS now turning around > -- taked about the recovery as being like a 2-phase > rocket where > inventories being reduced and then repleneshed being > the 1st phase and > hiring being the second; now need to change monetary > policy until after 2nd > phase has fired > > So, sound like no rate hike at the next meeting and > that we are further in > the pre-recovery phase than when last he spoke. > > By Greenspan-speak standards, seemed more > straight-foward than usual. > Anyway, this is my take on what I heard. Interested > to hear anyone else's > thoughts. > > -- Mona > > > - > -To subscribe/unsubscribe, email > "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. __________________________________________________ Do You Yahoo!? Yahoo! Tax Center - online filing with TurboTax http://taxes.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. ------------------------------ Date: Wed, 17 Apr 2002 16:18:35 -0700 (PDT) From: Dimitri Katsaros Subject: Re: [CANSLIM] Tom or Ian Congrats on the price jump, but what happened to that rule about no stock below 12 or 15? Dimitri - --- Ian wrote: > Hi: > > I bought MRGE at around $4, and again around $5 > (both in late February). I > still own it - was planning on selling in the $9's > originally. Based on past > experience, these kind of short-term surges often > hit a brick wall at $10. > Sure was amazing volume today though. > > Ian > > > ----- Original Message ----- > From: > To: > Sent: Wednesday, April 17, 2002 8:01 AM > Subject: [CANSLIM] Tom or Ian > > > > Was wondering if you guys followed or had an > opinion on MRGE? I realize > it's > > not CANSLIM, but know ya'll watch a few micros > from time to time. Any > > thoughts much appreciated. > > > > - > > -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. ===== Quiquid latine dictum sit altum viditur __________________________________________________ Do You Yahoo!? Yahoo! Tax Center - online filing with TurboTax http://taxes.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. ------------------------------ Date: Wed, 17 Apr 2002 18:28:13 -0500 From: "Katherine Malm" Subject: Re: [CANSLIM] When to Buy This is a multi-part message in MIME format. - ------=_NextPart_000_0207_01C1E63D.A26F9620 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Hi John, I'm going to go out on a limb here and say that the stock is not forming = a base, but is currently in a pullback. See a marked chart at: http://WallStreet-LLC.com/canslim/BMS041702.jpg Katherine ----- Original Message -----=20 From: John Lessnau=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, April 17, 2002 4:44 PM Subject: [CANSLIM] When to Buy Assuming the stock in the attached graph had CANSLIM fundimentals what = would be the pivot point and when would be the best time to buy? My = guess would be when the stock hits 58 on increased volume of 400,000+ = ??? =20 - ------=_NextPart_000_0207_01C1E63D.A26F9620 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Hi John,
 
I'm going to go out on a limb here and say that the stock is not = forming a=20 base, but is currently in a pullback. See a marked chart at:
 
http://WallStree= t-LLC.com/canslim/BMS041702.jpg
 
Katherine
----- Original Message -----
From:=20 John = Lessnau
Sent: Wednesday, April 17, 2002 = 4:44=20 PM
Subject: [CANSLIM] When to = Buy

Assuming the stock in the attached graph had = CANSLIM=20 fundimentals what would be the pivot point and when would be the best = time to=20 buy?  My guess would be when the stock hits 58 on increased = volume of=20 400,000+ ???  
 
 
 
- ------=_NextPart_000_0207_01C1E63D.A26F9620-- - - - -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: Wed, 17 Apr 2002 20:27:16 EDT From: Vanchee1@aol.com Subject: Re: [CANSLIM] Current Holdings - --part1_152.c78cbd6.29ef6ce4_boundary Content-Type: text/plain; charset="US-ASCII" Content-Transfer-Encoding: 7bit Simon, I do try to follow the methodology of WO but only to s degree, I just like stocks with good growth, and a nice looking chart, weekly or monthly. I usually do well, but did have a negative year in 2000, but 1999 was up 120% so I just gave them some back. So far up about 20% this year, but feel the best is yet to come. Chris - --part1_152.c78cbd6.29ef6ce4_boundary Content-Type: text/html; charset="US-ASCII" Content-Transfer-Encoding: 7bit Simon, I do try to follow the methodology of WO but only to s degree, I just like stocks with good growth, and a nice looking chart, weekly or monthly.
I usually do well, but did have a negative year in 2000, but 1999 was up 120% so I just gave them some back. So far up about 20% this year, but feel the best is yet to come.

Chris - --part1_152.c78cbd6.29ef6ce4_boundary-- - - - -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: Wed, 17 Apr 2002 20:34:42 -0400 From: "Cefaloni, John L Jr. [AMSTA-AR-WEA]" Subject: RE: [CANSLIM] When to Buy The best time to buy would be on the left side of the chart. John C. - -----Original Message----- From: John Lessnau To: canslim@lists.xmission.com Sent: 4/17/02 5:44 PM Subject: [CANSLIM] When to Buy Assuming the stock in the attached graph had CANSLIM fundimentals what would be the pivot point and when would be the best time to buy? My guess would be when the stock hits 58 on increased volume of 400,000+ ??? <> - - - -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: Wed, 17 Apr 2002 19:59:13 -0700 From: DanC Subject: Re: [CANSLIM] When to Buy Erumpent wisdom to live by. "Cefaloni, John L Jr. [AMSTA-AR-WEA]" wrote: > The best time to buy would be on the left side of the chart. > > John C. > > -----Original Message----- > From: John Lessnau > To: canslim@lists.xmission.com > Sent: 4/17/02 5:44 PM > Subject: [CANSLIM] When to Buy > > Assuming the stock in the attached graph had CANSLIM fundimentals what > would be the pivot point and when would be the best time to buy? My > guess would be when the stock hits 58 on increased volume of 400,000+ > ??? > > > > <> > > - > -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. ------------------------------ Date: Wed, 17 Apr 2002 23:26:06 -0400 From: John Lessnau Subject: Re: [CANSLIM] When to Buy This is a multi-part message in MIME format. - --Boundary_(ID_SGF1aapfYiPn+GSzpCxAGQ) Content-type: text/plain; charset=iso-8859-1 Content-transfer-encoding: 7BIT Thanks for the info Katherine... I gather from your chart mark ups, it seems one should look for increased volume on the right side of the cup then a drop off in volume on the handle. I just checked some of the example cup & handles of the "great winners" in How to Make Money in Stocks and most of the examples do not seem to exactly follow this rule. See Control Data pg 146 and Levitz furniture pg 147. Both of these stocks had huge run ups on less perfect Cup & Handles that BMS is currently in. I'll continue to keep an eye on it... ----- Original Message ----- From: Katherine Malm To: canslim@lists.xmission.com Sent: Wednesday, April 17, 2002 7:28 PM Subject: Re: [CANSLIM] When to Buy Hi John, I'm going to go out on a limb here and say that the stock is not forming a base, but is currently in a pullback. See a marked chart at: http://WallStreet-LLC.com/canslim/BMS041702.jpg Katherine ----- Original Message ----- From: John Lessnau To: canslim@lists.xmission.com Sent: Wednesday, April 17, 2002 4:44 PM Subject: [CANSLIM] When to Buy Assuming the stock in the attached graph had CANSLIM fundimentals what would be the pivot point and when would be the best time to buy? My guess would be when the stock hits 58 on increased volume of 400,000+ ??? - --Boundary_(ID_SGF1aapfYiPn+GSzpCxAGQ) Content-type: text/html; charset=iso-8859-1 Content-transfer-encoding: 7BIT
Thanks for the info Katherine... I gather from your chart mark ups, it seems one should look for increased volume on the right side of the cup then a drop off in volume on the handle.  I just checked some of the example cup & handles of the "great winners" in How to Make Money in Stocks and most of the examples do not seem to exactly follow this rule.  See Control Data pg 146 and Levitz furniture pg 147.  Both of these stocks had huge run ups on less perfect Cup & Handles that BMS is currently in.  I'll continue to keep an eye on it...
----- Original Message -----
Sent: Wednesday, April 17, 2002 7:28 PM
Subject: Re: [CANSLIM] When to Buy

Hi John,
 
I'm going to go out on a limb here and say that the stock is not forming a base, but is currently in a pullback. See a marked chart at:
 
 
Katherine
----- Original Message -----
Sent: Wednesday, April 17, 2002 4:44 PM
Subject: [CANSLIM] When to Buy

Assuming the stock in the attached graph had CANSLIM fundimentals what would be the pivot point and when would be the best time to buy?  My guess would be when the stock hits 58 on increased volume of 400,000+ ???  
 
 
 
- --Boundary_(ID_SGF1aapfYiPn+GSzpCxAGQ)-- - - - -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: Wed, 17 Apr 2002 23:31:17 -0400 From: John Lessnau Subject: Re: [CANSLIM] When to Buy Please explain. Are you saying it's to late to buy or that 58 is the pivot and I should buy if it hits that on strong volume. - ----- Original Message ----- From: "Cefaloni, John L Jr. [AMSTA-AR-WEA]" To: Sent: Wednesday, April 17, 2002 8:34 PM Subject: RE: [CANSLIM] When to Buy > The best time to buy would be on the left side of the chart. > > John C. > > -----Original Message----- > From: John Lessnau > To: canslim@lists.xmission.com > Sent: 4/17/02 5:44 PM > Subject: [CANSLIM] When to Buy > > Assuming the stock in the attached graph had CANSLIM fundimentals what > would be the pivot point and when would be the best time to buy? My > guess would be when the stock hits 58 on increased volume of 400,000+ > ??? > > > > <> > > - > -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. ------------------------------ Date: Wed, 17 Apr 2002 23:33:11 -0400 From: John Lessnau Subject: Re: [CANSLIM] When to Buy ??? e=B7rum=B7pent Pronunciation Key (-rmpnt) adj. Bursting through or as if through a surface or covering. - ----- Original Message ----- =46rom: "DanC" To: Sent: Wednesday, April 17, 2002 10:59 PM Subject: Re: [CANSLIM] When to Buy > Erumpent wisdom to live by. > > "Cefaloni, John L Jr. [AMSTA-AR-WEA]" wrote: > > > The best time to buy would be on the left side of the chart. > > > > John C. > > > > -----Original Message----- > > From: John Lessnau > > To: canslim@lists.xmission.com > > Sent: 4/17/02 5:44 PM > > Subject: [CANSLIM] When to Buy > > > > Assuming the stock in the attached graph had CANSLIM fundimentals= what > > would be the pivot point and when would be the best time to buy? = My > > guess would be when the stock hits 58 on increased volume of 400,= 000+ > > ??? > > > > > > > > <> > > > > - > > -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. ------------------------------ Date: Wed, 17 Apr 2002 20:41:26 -0700 From: DanC Subject: Re: [CANSLIM] When to Buy John C. was joshing, or at least seemed to be to me. Just poking back a b= it. John Lessnau wrote: > ??? > > e=B7rum=B7pent Pronunciation Key (-rmpnt) > adj. > Bursting through or as if through a surface or covering. > > ----- Original Message ----- > From: "DanC" > To: > Sent: Wednesday, April 17, 2002 10:59 PM > Subject: Re: [CANSLIM] When to Buy > > > Erumpent wisdom to live by. > > > > "Cefaloni, John L Jr. [AMSTA-AR-WEA]" wrote: > > > > > The best time to buy would be on the left side of the chart. > > > > > > John C. > > > > > > -----Original Message----- > > > From: John Lessnau > > > To: canslim@lists.xmission.com > > > Sent: 4/17/02 5:44 PM > > > Subject: [CANSLIM] When to Buy > > > > > > Assuming the stock in the attached graph had CANSLIM fundimentals w= hat > > > would be the pivot point and when would be the best time to buy? M= y > > > guess would be when the stock hits 58 on increased volume of 400,00= 0+ > > > ??? > > > > > > > > > > > > <> > > > > > > - > > > -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. - - - -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: Wed, 17 Apr 2002 23:59:24 -0400 From: John Lessnau Subject: Re: [CANSLIM] When to Buy Understood. I guess I was hoping for some more in-depth analysis of the chart fro= m the group so we all could learn. Thank god we have Katherine in our grou= p. - ----- Original Message ----- =46rom: "DanC" To: Sent: Wednesday, April 17, 2002 11:41 PM Subject: Re: [CANSLIM] When to Buy John C. was joshing, or at least seemed to be to me. Just poking back= a bit. John Lessnau wrote: > ??? > > e=B7rum=B7pent Pronunciation Key (-rmpnt) > adj. > Bursting through or as if through a surface or covering. > > ----- Original Message ----- > From: "DanC" > To: > Sent: Wednesday, April 17, 2002 10:59 PM > Subject: Re: [CANSLIM] When to Buy > > > Erumpent wisdom to live by. > > > > "Cefaloni, John L Jr. [AMSTA-AR-WEA]" wrote: > > > > > The best time to buy would be on the left side of the chart. > > > > > > John C. > > > > > > -----Original Message----- > > > From: John Lessnau > > > To: canslim@lists.xmission.com > > > Sent: 4/17/02 5:44 PM > > > Subject: [CANSLIM] When to Buy > > > > > > Assuming the stock in the attached graph had CANSLIM fundimenta= ls what > > > would be the pivot point and when would be the best time to buy= ? My > > > guess would be when the stock hits 58 on increased volume of 40= 0,000+ > > > ??? > > > > > > > > > > > > <> > > > > > > - > > > -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. - - - -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. ------------------------------ Date: Wed, 17 Apr 2002 20:35:00 -0700 From: Ian Subject: Re: [CANSLIM] Tom or Ian Dimitri: I prefer to buy stocks in the $12-$15 range, but that is not what the market is offering right now. IMHO, the original 'S' in CANSLIM overrides price nits. In fact, the biggest hurdle I see to a long sustained move up in tech stocks is that they split way too many times in the 1998-2000 mania, leaving most of them horrendously over-priced on a P/S or P/E basis above $15. (I have long felt that the tech bear will finally be over when many of yesteryears winners start doing reverse splits - LU's recent announcement was encouraging). Remember that when WON did his original research, the median number of shares outstanding was 4,000,000! I would absolutely love to have a large selection of $15+ stocks with solid growth, and less than 10,000,000 shares outstanding. I just cannot find that many - although there are some: MTEC comes to mind - it is the poster child for CANSLIM IMHO, with less than 5,000,000 shares out. One of the reasons I rarely post picks here is that the issues I find with the most favourable risk/reward outlook (IMO), have been under $15 (and many sub $10) stocks for quite some time. I know that the majority of list readers are resolute in sticking to higher price stocks, so I try not to bring them up often (someone explicitly asked me about MRGE today - so I posted my position). I do not like being pedantic - I like to make money. I use all the letters in CANSLIM, giving 'S" far more weight than most people, but I don't worry too much about the 'extra' WON criteria like price and volume. Ian - ----- Original Message ----- From: Dimitri Katsaros To: Sent: Wednesday, April 17, 2002 4:18 PM Subject: Re: [CANSLIM] Tom or Ian > Congrats on the price jump, but what happened to that > rule about no stock below 12 or 15? > > Dimitri > > --- Ian wrote: > > Hi: > > > > I bought MRGE at around $4, and again around $5 > > (both in late February). I > > still own it - was planning on selling in the $9's > > originally. Based on past > > experience, these kind of short-term surges often > > hit a brick wall at $10. > > Sure was amazing volume today though. > > > > Ian > > > > > > ----- Original Message ----- > > From: > > To: > > Sent: Wednesday, April 17, 2002 8:01 AM > > Subject: [CANSLIM] Tom or Ian > > > > > > > Was wondering if you guys followed or had an > > opinion on MRGE? I realize > > it's > > > not CANSLIM, but know ya'll watch a few micros > > from time to time. Any > > > thoughts much appreciated. > > > > > > - > > > -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. > > > ===== > Quiquid latine dictum sit altum viditur > > __________________________________________________ > Do You Yahoo!? > Yahoo! Tax Center - online filing with TurboTax > http://taxes.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. - - - -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: Thu, 18 Apr 2002 00:29:57 -0500 From: "Katherine Malm" Subject: Re: [CANSLIM] When to Buy This is a multi-part message in MIME format. - ------=_NextPart_000_0064_01C1E670.2B1C86E0 Content-Type: multipart/alternative; boundary="----=_NextPart_001_0065_01C1E670.2B1C86E0" - ------=_NextPart_001_0065_01C1E670.2B1C86E0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Hi John, Though the more common volume pattern is a dry up at the bottom of the = base, there are other ways the stock will behave that do involve some = "spikey" high volume which shows support at that bottom. At the end of = this email is a recent "Ask Bill" that describes that action. There are = a couple of points worth noting however. First, on the examples from HTMMIS. Take a look at the Control Data = chart again and notice the volume at the beginning of the cup. It's high = and then decreases as the cup gets to the bottom. It then rises until = the pivot point, then falls away as the handle forms. The chart is flea = sized, so its darned hard to see. Levitz? That's a goofy chart, but the = one thing you'll notice is that the C&H is very lengthy (7 months), so = the volume pattern is more likely to have some serious volume spikes in = it and less likely to trace a smooth and more "normal" volume pattern as = a result. Think about it, why would a base take 7 months to form? The = stock is struggling to find footing and will have a lot of false starts = along the way. If you look at BMS, try stepping back from the chart and putting it into = context. The area you are identifying as a C&H is a pause in an uptrend. = Right now, it appears to be pulling back within that uptrending channel. = Here's another way to "see" what BMS is doing. Look at the charts for = PTV and OI which are also in the same container group. Notice what they = are doing. The only difference between those charts and BMS is that BMS = is more volatile. So, if you "play" a stock in an uptrend like that, = rather than buying after a valid consolidating base and breakout, you = have to buy when it pulls back in the trend and then you have to set = your exit accordingly, because you're out of the safe zone for entry = under those conditions. When JohnC said the time to buy was on the left = side of the chart, I read it as "the time to buy was back when it came = out of its double bottom or when it broke out of the post-9-11 = consolidation on volume." http://WallStreet-LLC.com/canslim/PTV041702.jpg http://WallStreet-LLC.com/canslim/OI041702.jpg - --Katherine Ask Bill O'Neil Archives Wednesday, April 10, 2002=20 =20 "Regarding a cup-with-handle base, do you want to see volume dry = up at the bottom of the cup or do you want to see high volume, which may = signal institutions are stepping in to support the stock?"=20 - Submitted from Saratoga, Calif.=20 =20 At the bottom of a cup-with-handle base, it is preferable to see = signs of supporting action or accumulation. This can be seen in a number = of ways, including tight areas of the base where the stock trades within = a very tight price range for a number of successive weeks; high-volume = weeks in which the stock closes up for the week; and high-volume = shakeouts, where the stock sells off badly, but closes in the upper = portion of the range. These are all signs of accumulation, and as such, = are positive features of a healthy base.=20 =20 ----- Original Message -----=20 From: John Lessnau=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, April 17, 2002 10:26 PM Subject: Re: [CANSLIM] When to Buy Thanks for the info Katherine... I gather from your chart mark ups, it = seems one should look for increased volume on the right side of the cup = then a drop off in volume on the handle. I just checked some of the = example cup & handles of the "great winners" in How to Make Money in = Stocks and most of the examples do not seem to exactly follow this rule. = See Control Data pg 146 and Levitz furniture pg 147. Both of these = stocks had huge run ups on less perfect Cup & Handles that BMS is = currently in. I'll continue to keep an eye on it... - ------=_NextPart_001_0065_01C1E670.2B1C86E0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Hi John,
 
Though the more common volume pattern is a dry up at the = bottom of the=20 base, there are other ways the stock will behave that do involve some = "spikey"=20 high volume which shows support at that bottom. At the end of = this=20 email is a recent "Ask Bill" that describes that action. There are = a couple=20 of points worth noting however.
 
First, on the examples from HTMMIS. Take a look at the Control Data = chart=20 again and notice the volume at the beginning of the cup. It's high and = then=20 decreases as the cup gets to the bottom. It then rises until the pivot = point,=20 then falls away as the handle forms. The chart is flea sized, so its = darned hard=20 to see. Levitz? That's a goofy chart, but the one thing you'll notice is = that=20 the C&H is very lengthy (7 months), so the volume pattern is more = likely to=20 have some serious volume spikes in it and less likely to trace a smooth = and more=20 "normal" volume pattern as a result. Think about it, why would a base = take 7=20 months to form? The stock is struggling to find footing and will have a = lot of=20 false starts along the way.
 
If you look at BMS, try stepping back from the chart and putting it = into=20 context. The area you are identifying as a C&H is a pause in an = uptrend.=20 Right now, it appears to be pulling back within that uptrending channel. = Here's=20 another way to "see" what BMS is doing. Look at the charts for PTV and = OI which=20 are also in the same container group. Notice what they are doing. The = only=20 difference between those charts and BMS is that BMS is more volatile. = So, if you=20 "play" a stock in an uptrend like that, rather than buying after a valid = consolidating base and breakout, you have to buy when it pulls back in = the trend=20 and then you have to set your exit accordingly, because you're out of = the safe=20 zone for entry under those conditions. When JohnC said the time to buy = was on=20 the left side of the chart, I read it as "the time to buy was back when = it came=20 out of its double bottom or when it broke out of the post-9-11 = consolidation on=20 volume."
 
http://WallStree= t-LLC.com/canslim/PTV041702.jpg
http://WallStreet= - -LLC.com/canslim/OI041702.jpg
 
--Katherine
 

Ask Bill O'Neil Archives

Wednesday, April 10, 2002=20
 
"Regarding a cup-with-handle base, do you want to see = volume dry=20 up at the bottom of the cup or do you want to see high volume, = which may=20 signal institutions are stepping in to support the = stock?"
- Submitted from Saratoga,=20 Calif.