From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #2545 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 Saturday, June 29 2002 Volume 02 : Number 2545 In this issue: Re: [CANSLIM] Too much information in IBD Re: [CANSLIM] Date: Fri, 28 Jun 2002 07:48:05 -0700 Re: [CANSLIM] Date: Fri, 28 Jun 2002 07:48:05 -0700 Re: [CANSLIM] Too much information in IBD RE: [CANSLIM] WCOM restatement Re: [CANSLIM] WCOM restatement RE: [CANSLIM] WCOM restatement RE: [CANSLIM] WCOM restatement RE: [CANSLIM] WCOM restatement [CANSLIM] Worley's Weekend Weeview ---------------------------------------------------------------------- Date: Fri, 28 Jun 2002 21:45:16 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Too much information in IBD This is a multi-part message in MIME format. - ------=_NextPart_000_0125_01C21EED.17743790 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable since I don't follow my own lists after I give them to the group, I = would be interested in any feedback as to how the green ones are doing = (hopefully the color selected is the correct one). - ----- Original Message -----=20 From: jch=20 To: canslim@lists.xmission.com=20 Sent: Friday, June 28, 2002 4:38 PM Subject: Re: [CANSLIM] Too much information in IBD Have been saving the spreadsheet every day past two months with the = intent of chaining them together then sorting to find multiple = appearances--recent IBD article noted multiple appearances on different = screens an important flag--however I believe it will only point to those = companies already well extended..when I save each file I alter it's = title to include date published.. I highlight every line in yellow where = A+194 exists & highlight Worley's watchlist in green(Usually sort by = symbol first to make spotting easy then resort back to original = format)..I think someone else has been saving these excel spreadsheets = for quite a while longer--would like to hear how they are being digested = by that person.. john heiman I recently started reviewing the "Screen of the Day" on the IBD = website everyday. It's a lot of information to digest and certainly = there are too many companies to perform a detailed analysis of each one = on each list. I welcome any comments on how you personally find this, = and other lists, useful and how you prioritize the myriad information = found on the IBD site/print edition. =20 Kelly --- Incoming mail is certified Virus Free. Checked by AVG anti-virus system (http://www.grisoft.com). Version: 6.0.372 / Virus Database: 207 - Release Date: 6/20/2002 - -------------------------------------------------------------------------= - ------- - --- Outgoing mail is certified Virus Free. Checked by AVG anti-virus system (http://www.grisoft.com). Version: 6.0.372 / Virus Database: 207 - Release Date: 6/20/2002 - ------=_NextPart_000_0125_01C21EED.17743790 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
since I don't follow my own lists after I give = them to the=20 group, I would be interested in any feedback as to how the green ones = are doing=20 (hopefully the color selected is the correct one).
 
----- Original Message -----=20
From: jch
To: canslim@lists.xmission.com=
Sent: Friday, June 28, 2002 4:38 PM
Subject: Re: [CANSLIM] Too much information in = IBD

Have been saving the spreadsheet every day past two = months with=20 the intent of chaining them together then sorting to find multiple=20 appearances--recent IBD article noted multiple appearances on different = screens=20 an important flag--however I believe it will only point to those = companies=20 already well extended..when I save each file I alter it's title to = include date=20 published.. I highlight every line in yellow where A+194 exists & = highlight=20 Worley's watchlist in green(Usually sort by symbol first to make = spotting easy=20 then resort back to original format)..I think  someone else has = been saving=20 these excel spreadsheets for quite a while longer--would like to hear = how they=20 are being digested by that person..
john heiman

I recently started reviewing the "Screen of the Day" on the = IBD website=20 everyday. It's a lot of information to digest and certainly there are = too many=20 companies to perform a detailed analysis of each one on each list. I = welcome=20 any comments on how you personally find this, and other lists, useful = and how=20 you prioritize the myriad information found on the IBD site/print=20 edition.
 
Kelly

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- ------=_NextPart_000_0125_01C21EED.17743790-- - - - -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, 28 Jun 2002 19:28:52 -0700 From: Jason Chen Subject: Re: [CANSLIM] Date: Fri, 28 Jun 2002 07:48:05 -0700 > This message is in MIME format. Since your mail reader does not understand this format, some or all of this message may not be legible. - --B_3108137333_729171 Content-type: text/plain; charset="ISO-8859-1" Content-transfer-encoding: quoted-printable I=B9m wondering how much of the small cap growth performance was due to buyin= g by funds benchmarked against the Russell indexes? I=B9m suspicious of small cap growth starting a new trend just yet... Jason On 6/28/02 6:18 PM, "Tom Worley" wrote: > sorry, I don't even have enough time to post here, but I don't post norma= lly > in any case on my stocks, as I deviate personally too far from CANSLIM ru= les > for most. > =20 > two days doesn't make a trend, but my piece of the small cap growth marke= t has > had two nice days here. Real money accounts up over 10%, VR Fund up over = 5%. A > few more days like this and I may start believing small cap growth is bac= k in > favor.=20 > =20 > at least it's not such big news when a little guy plays with his accounti= ng > principles. > =20 > ----- Original Message ----- > From: zillagirl > To: canslim@lists.xmission.com > Sent: Friday, June 28, 2002 10:46 AM > Subject: [CANSLIM] Date: Fri, 28 Jun 2002 07:48:05 -0700 >=20 > tom-I am trading a few small caps right now also. Do you go to the board= s at > clearstation. Some pretty good advice sometime and a trader called > dynodino(who was written up in IBD a couple of weeks ago,) trades small a= nd > has had good success. Please let me know if you start posting on their > boards-will follow. >=20 - --B_3108137333_729171 Content-type: text/html; charset="US-ASCII" Content-transfer-encoding: quoted-printable Re: [CANSLIM] Date: Fri, 28 Jun 2002 07:48:05 -0700 I’m wondering how much of the small cap growth p= erformance was due to buying by funds benchmarked against the Russell indexe= s? I’m suspicious of small cap growth starting a new trend just yet...=

Jason


On 6/28/02 6:18 PM, "Tom Worley" <stkguru@bellsouth.net> wr= ote:

sorry, I don't even have enough time = to post here, but I don't post normally in any case on my stocks, as I devia= te personally too far from CANSLIM rules for most.

two days doesn't make a trend, but my piece of th= e small cap growth market has had two nice days here. Real money accounts up= over 10%, VR Fund up over 5%. A few more days like this and I may start bel= ieving small cap growth is back in favor.

at least it's not such big news when a little guy= plays with his accounting principles.

- ----- Original Message -----
From: zillagirl <mailto:zillagirl@email.msn.com>  
To: canslim@lists.xmission.com
Sent: Friday, June 28, 2002 10:46 AM
Subject: [CANSLIM] Date: Fri, 28 Jun 2002 07:48:05 -0700

tom-I am trading a few small caps = right now also.  Do you go to the boards at clearstation.  Some pr= etty good advice sometime and a trader called dynodino(who was written up in= IBD a couple of weeks ago,) trades small and has had good success. Please l= et me know if you start posting on their boards-will follow.


- --B_3108137333_729171-- - - - -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, 28 Jun 2002 22:40:26 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Date: Fri, 28 Jun 2002 07:48:05 -0700 This is a multi-part message in MIME format. - ------=_NextPart_000_01F2_01C21EF4.CC05C960 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Re: [CANSLIM] Date: Fri, 28 Jun 2002 07:48:05 -0700I am sure it was a = factor, Jason, that's why these last two days of window dressing often = mean nothing once the new quarter starts on Monday. With next week being = a holiday shortened week, and a lot of investors, money managers, and = brokers taking Friday off, it is likely to be a very light volume week, = so may be the following week before a trend could emerge, if there is = one there. - ----- Original Message -----=20 From: Jason Chen=20 To: Canslim=20 Sent: Friday, June 28, 2002 10:28 PM Subject: Re: [CANSLIM] Date: Fri, 28 Jun 2002 07:48:05 -0700 I'm wondering how much of the small cap growth performance was due to = buying by funds benchmarked against the Russell indexes? I'm suspicious = of small cap growth starting a new trend just yet... Jason On 6/28/02 6:18 PM, "Tom Worley" wrote: sorry, I don't even have enough time to post here, but I don't post = normally in any case on my stocks, as I deviate personally too far from = CANSLIM rules for most. two days doesn't make a trend, but my piece of the small cap growth = market has had two nice days here. Real money accounts up over 10%, VR = Fund up over 5%. A few more days like this and I may start believing = small cap growth is back in favor.=20 at least it's not such big news when a little guy plays with his = accounting principles. ----- Original Message -----=20 From: zillagirl =20 To: canslim@lists.xmission.com=20 Sent: Friday, June 28, 2002 10:46 AM Subject: [CANSLIM] Date: Fri, 28 Jun 2002 07:48:05 -0700 tom-I am trading a few small caps right now also. Do you go to the = boards at clearstation. Some pretty good advice sometime and a trader = called dynodino(who was written up in IBD a couple of weeks ago,) trades = small and has had good success. Please let me know if you start posting = on their boards-will follow. - ------=_NextPart_000_01F2_01C21EF4.CC05C960 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Re: [CANSLIM] Date: Fri, 28 Jun 2002 07:48:05 = - -0700
I am sure it was a factor, Jason, that's why = these last=20 two days of window dressing often mean nothing once the new quarter = starts on=20 Monday. With next week being a holiday shortened week, and a lot of = investors,=20 money managers, and brokers taking Friday off, it is likely to be a very = light=20 volume week, so may be the following week before a trend could emerge, = if there=20 is one there.
 
----- Original Message -----=20
From: Jason Chen =
To: Canslim
Sent: Friday, June 28, 2002 10:28 PM
Subject: Re: [CANSLIM] Date: Fri, 28 Jun 2002 07:48:05=20 - -0700

I=92m wondering how much of the = small cap growth=20 performance was due to buying by funds benchmarked against the Russell = indexes?=20 I=92m suspicious of small cap growth starting a new trend just=20 yet...

Jason


On 6/28/02 6:18 PM, "Tom Worley" <stkguru@bellsouth.net>=20 wrote:

sorry, I don't even have enough time to = post=20 here, but I don't post normally in any case on my stocks, as I deviate = personally too far from CANSLIM rules for most.

two days doesn't make a = trend, but my=20 piece of the small cap growth market has had two nice days here. Real = money=20 accounts up over 10%, VR Fund up over 5%. A few more days like this = and I may=20 start believing small cap growth is back in favor.

at least it's not such = big news when=20 a little guy plays with his accounting principles.

----- Original Message -----
From: = zillagirl=20 <mailto:zillagirl@email.msn.com>  
To:=20 canslim@lists.xmission.com
Sent: Friday, June 28, 2002 = 10:46=20 AM
Subject: [CANSLIM] Date: Fri, 28 Jun 2002 07:48:05=20 -0700

tom-I am trading = a few small=20 caps right now also.  Do you go to the boards at clearstation. =  Some=20 pretty good advice sometime and a trader called dynodino(who was = written up in=20 IBD a couple of weeks ago,) trades small and has had good success. = Please let=20 me know if you start posting on their boards-will=20 follow.


- ------=_NextPart_000_01F2_01C21EF4.CC05C960-- - - - -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: Sat, 29 Jun 2002 06:37:38 -0500 From: Lois Subject: Re: [CANSLIM] Too much information in IBD This is a nice piece of software for beginners of CANSLIM. I'm still paper trading the picks at this point with good results, need to learn when to get in for best results. http://www.Investor-3000.com/strategy.html - - - -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: Sat, 29 Jun 2002 15:03:45 -0400 From: "Duke Miller" Subject: RE: [CANSLIM] WCOM restatement I have run an audited company and sat on the board of directors of one. Several years prior to selling the former, we were advised of the necessity to have a Big 8 audit in place in the event of a sale. Especially (as ended up the case) if a publicly traded company should be the suitor. The reason you MUST have a Big 8 audit, we were advised? For the sole purpose of validation and authentication of the numbers. That validation came easy, because the Big 8 firm provided much needed "guidance"; all we gave them was our sales and expenditures. The guidance ensured that our CFO recorded the sales and expenses and arrived at profit statements that, beyond any doubt and without question, CONFORMED to GAAP. Andersen is GUILTY of cooking the books in collusion with WCOM's CFO. Will having a list of Andersen's clients for the past three years help us? I thought so earlier this week when I started this string before going out of town. However, Thursday, in the middle of an endless speech by God knows who during my son's college orientation, a frightening thought occurred to me: All those crooked little Andersenites, with all the stealth of a worm virus, have infiltrated hundreds of firms, KPMG among them. Now they're everywhere! Must proceed with reading more. You guys must have had a field day while I was gone: 118 messages to go!! It's so good to be back. Duke - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com] On Behalf Of Tom Worley Sent: Wednesday, June 26, 2002 9:30 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] WCOM restatement I saw several reports that indicated they (WCOM) failed to follow GAAP. I also saw one report in which Andersen defended themselves by saying they didn't know what the CFO had done because they only looked at what the CFO gave them (funny, I thought that was the job of the auditor, to look at and investigate everything to be sure that all decisions taken throughout the year were done correctly and according to GAAP, isn't that why we call it an "audit" instead of a "rubber stamp party"??). - ----- Original Message ----- From: To: Sent: Wednesday, June 26, 2002 9:28 AM Subject: Re: [CANSLIM] WCOM restatement Tom: I've heard on TV that it wasn't a "deviation" from GAAP. From what I understand, there are options that an accountant/bookkeeper can use, and Anderson chose capital expensing what normally would be a regular expense item. In my opinion, it was just a matter of time before such horrendous manipulation of any company's books was discovered (The question isn't why did it take so long to discover, but rather, what company will be the next to reveal that they falsified records. And I wouldn't be at all surprised that there are a lot of them out there.) Unfortunately, accountants have learned from lawyers how to obfuscate the truth and maneuver the justice system in order that lying can be put in the best possible light, and truth and accuracy can be avoided. That's why GAAP (I believe) covered up (instead of revealing) WorldCom's problems. As for CANSLIM: I wonder how WON believes we can now fundamentally analyze a company-especially after its been revealed that WorldCom's Cash-Flow is bogus. A few weeks ago, WON said: Look at the cash-flow to see that earnings are really funneling down-into the bottom line. Now what's he going to say? Probably, look at the managers of the companies to see if they have a history of dishonesty. Unfortunately, though, I don't believe that will cut it. Even if the manager is scrupulously honest, Enron and WorldCom teach us that that is not enough. The ACCOUNTANTS also must be honest. So now will WON's injunction be to: Look at the history of the accounting firm, and the history of the accountants employed by the accounting firm, who work on the company's books? jans In a message dated 6/26/2002 12:53:51 AM Eastern Daylight Time, stkguru@bellsouth.net writes: << once again, Andersen strikes again, this time by signing off on Worldcom hiding over $3 billion in expenses as capital expenditures, and thus inflating cash flow. Restatement expected to take away last five quarters of profits and turn them into losses. Who gave this sanction to a deviation from GAAP (Generally Accepted Accounting Principles)?? >> - - - -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: Sat, 29 Jun 2002 16:01:21 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] WCOM restatement Duke, I will be my usual optimistic self and hope you are wrong. While the potential is there for former Andersen auditors to perpetuate their past shady practices onto their new employers, I think the opposite is more likely. The new employer, assuming they are ethical and not hiring them simply to learn new Andersen style tricks, knows where the new auditor came from, and should make it clear that they abide by GAAP. From the continuing string of massive corporate failures and scandals, most of whom used Andersen, it is clear to me that this was a company wide problem, not one limited to a single office. I choose to believe that most of the Andersen employees were honest, decent, professionals that knew the rules, but were forced into shady practices either by pressure from top management, or by the persuasive influence of the senior managers and auditors saying what they were doing was ok. - ----- Original Message ----- From: "Duke Miller" To: Sent: Saturday, June 29, 2002 3:03 PM Subject: RE: [CANSLIM] WCOM restatement I have run an audited company and sat on the board of directors of one. Several years prior to selling the former, we were advised of the necessity to have a Big 8 audit in place in the event of a sale. Especially (as ended up the case) if a publicly traded company should be the suitor. The reason you MUST have a Big 8 audit, we were advised? For the sole purpose of validation and authentication of the numbers. That validation came easy, because the Big 8 firm provided much needed "guidance"; all we gave them was our sales and expenditures. The guidance ensured that our CFO recorded the sales and expenses and arrived at profit statements that, beyond any doubt and without question, CONFORMED to GAAP. Andersen is GUILTY of cooking the books in collusion with WCOM's CFO. Will having a list of Andersen's clients for the past three years help us? I thought so earlier this week when I started this string before going out of town. However, Thursday, in the middle of an endless speech by God knows who during my son's college orientation, a frightening thought occurred to me: All those crooked little Andersenites, with all the stealth of a worm virus, have infiltrated hundreds of firms, KPMG among them. Now they're everywhere! Must proceed with reading more. You guys must have had a field day while I was gone: 118 messages to go!! It's so good to be back. Duke - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com] On Behalf Of Tom Worley Sent: Wednesday, June 26, 2002 9:30 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] WCOM restatement I saw several reports that indicated they (WCOM) failed to follow GAAP. I also saw one report in which Andersen defended themselves by saying they didn't know what the CFO had done because they only looked at what the CFO gave them (funny, I thought that was the job of the auditor, to look at and investigate everything to be sure that all decisions taken throughout the year were done correctly and according to GAAP, isn't that why we call it an "audit" instead of a "rubber stamp party"??). - ----- Original Message ----- From: To: Sent: Wednesday, June 26, 2002 9:28 AM Subject: Re: [CANSLIM] WCOM restatement Tom: I've heard on TV that it wasn't a "deviation" from GAAP. From what I understand, there are options that an accountant/bookkeeper can use, and Anderson chose capital expensing what normally would be a regular expense item. In my opinion, it was just a matter of time before such horrendous manipulation of any company's books was discovered (The question isn't why did it take so long to discover, but rather, what company will be the next to reveal that they falsified records. And I wouldn't be at all surprised that there are a lot of them out there.) Unfortunately, accountants have learned from lawyers how to obfuscate the truth and maneuver the justice system in order that lying can be put in the best possible light, and truth and accuracy can be avoided. That's why GAAP (I believe) covered up (instead of revealing) WorldCom's problems. As for CANSLIM: I wonder how WON believes we can now fundamentally analyze a company-especially after its been revealed that WorldCom's Cash-Flow is bogus. A few weeks ago, WON said: Look at the cash-flow to see that earnings are really funneling down-into the bottom line. Now what's he going to say? Probably, look at the managers of the companies to see if they have a history of dishonesty. Unfortunately, though, I don't believe that will cut it. Even if the manager is scrupulously honest, Enron and WorldCom teach us that that is not enough. The ACCOUNTANTS also must be honest. So now will WON's injunction be to: Look at the history of the accounting firm, and the history of the accountants employed by the accounting firm, who work on the company's books? jans In a message dated 6/26/2002 12:53:51 AM Eastern Daylight Time, stkguru@bellsouth.net writes: << once again, Andersen strikes again, this time by signing off on Worldcom hiding over $3 billion in expenses as capital expenditures, and thus inflating cash flow. Restatement expected to take away last five quarters of profits and turn them into losses. - - - -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: Sat, 29 Jun 2002 13:31:49 -0700 (PDT) From: Kent Norman Subject: RE: [CANSLIM] WCOM restatement Duke Welcome back. You haven't missed much. A lot of the chatter is off topic (I am also guilty of this and repent...). It is probably time for someone to call the group back to the intended subjects. Regards Kent Norman - --- Duke Miller wrote: > > Must proceed with reading more. You guys must have had a field day > while > I was gone: 118 messages to go!! > > It's so good to be back. > > Duke > > ===== Opportunities always look bigger going than coming. __________________________________________________ Do You Yahoo!? Yahoo! - Official partner of 2002 FIFA World Cup http://fifaworldcup.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: Sat, 29 Jun 2002 17:40:44 -0400 From: "Duke Miller" Subject: RE: [CANSLIM] WCOM restatement Tom: You would hope that in a "profession," the first thing the professional subscribes to is the trait that nowadays, unfortunately, is more the exception than the norm. It's called integrity. Company-wide at Andersen? Yes. However, each and every one of them had the power (and freedom) to walk away. But they didn't, because they worked for the then almighty Andersen. Duke PS: My analogy to a worm virus is tongue in cheek. What I really think is if they did get jobs elsewhere, they're so between the lines it's silly. - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com] On Behalf Of Tom Worley Sent: Saturday, June 29, 2002 4:01 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] WCOM restatement Duke, I will be my usual optimistic self and hope you are wrong. While the potential is there for former Andersen auditors to perpetuate their past shady practices onto their new employers, I think the opposite is more likely. The new employer, assuming they are ethical and not hiring them simply to learn new Andersen style tricks, knows where the new auditor came from, and should make it clear that they abide by GAAP. From the continuing string of massive corporate failures and scandals, most of whom used Andersen, it is clear to me that this was a company wide problem, not one limited to a single office. I choose to believe that most of the Andersen employees were honest, decent, professionals that knew the rules, but were forced into shady practices either by pressure from top management, or by the persuasive influence of the senior managers and auditors saying what they were doing was ok. - ----- Original Message ----- From: "Duke Miller" To: Sent: Saturday, June 29, 2002 3:03 PM Subject: RE: [CANSLIM] WCOM restatement I have run an audited company and sat on the board of directors of one. Several years prior to selling the former, we were advised of the necessity to have a Big 8 audit in place in the event of a sale. Especially (as ended up the case) if a publicly traded company should be the suitor. The reason you MUST have a Big 8 audit, we were advised? For the sole purpose of validation and authentication of the numbers. That validation came easy, because the Big 8 firm provided much needed "guidance"; all we gave them was our sales and expenditures. The guidance ensured that our CFO recorded the sales and expenses and arrived at profit statements that, beyond any doubt and without question, CONFORMED to GAAP. Andersen is GUILTY of cooking the books in collusion with WCOM's CFO. Will having a list of Andersen's clients for the past three years help us? I thought so earlier this week when I started this string before going out of town. However, Thursday, in the middle of an endless speech by God knows who during my son's college orientation, a frightening thought occurred to me: All those crooked little Andersenites, with all the stealth of a worm virus, have infiltrated hundreds of firms, KPMG among them. Now they're everywhere! Must proceed with reading more. You guys must have had a field day while I was gone: 118 messages to go!! It's so good to be back. Duke - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com] On Behalf Of Tom Worley Sent: Wednesday, June 26, 2002 9:30 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] WCOM restatement I saw several reports that indicated they (WCOM) failed to follow GAAP. I also saw one report in which Andersen defended themselves by saying they didn't know what the CFO had done because they only looked at what the CFO gave them (funny, I thought that was the job of the auditor, to look at and investigate everything to be sure that all decisions taken throughout the year were done correctly and according to GAAP, isn't that why we call it an "audit" instead of a "rubber stamp party"??). - ----- Original Message ----- From: To: Sent: Wednesday, June 26, 2002 9:28 AM Subject: Re: [CANSLIM] WCOM restatement Tom: I've heard on TV that it wasn't a "deviation" from GAAP. From what I understand, there are options that an accountant/bookkeeper can use, and Anderson chose capital expensing what normally would be a regular expense item. In my opinion, it was just a matter of time before such horrendous manipulation of any company's books was discovered (The question isn't why did it take so long to discover, but rather, what company will be the next to reveal that they falsified records. And I wouldn't be at all surprised that there are a lot of them out there.) Unfortunately, accountants have learned from lawyers how to obfuscate the truth and maneuver the justice system in order that lying can be put in the best possible light, and truth and accuracy can be avoided. That's why GAAP (I believe) covered up (instead of revealing) WorldCom's problems. As for CANSLIM: I wonder how WON believes we can now fundamentally analyze a company-especially after its been revealed that WorldCom's Cash-Flow is bogus. A few weeks ago, WON said: Look at the cash-flow to see that earnings are really funneling down-into the bottom line. Now what's he going to say? Probably, look at the managers of the companies to see if they have a history of dishonesty. Unfortunately, though, I don't believe that will cut it. Even if the manager is scrupulously honest, Enron and WorldCom teach us that that is not enough. The ACCOUNTANTS also must be honest. So now will WON's injunction be to: Look at the history of the accounting firm, and the history of the accountants employed by the accounting firm, who work on the company's books? jans In a message dated 6/26/2002 12:53:51 AM Eastern Daylight Time, stkguru@bellsouth.net writes: << once again, Andersen strikes again, this time by signing off on Worldcom hiding over $3 billion in expenses as capital expenditures, and thus inflating cash flow. Restatement expected to take away last five quarters of profits and turn them into losses. - - - -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: Sat, 29 Jun 2002 17:45:13 -0400 From: "Duke Miller" Subject: RE: [CANSLIM] WCOM restatement Kent: Good idea! I officially call this list back to CANSLIM. There! I just got the 3rd edition of HTMMIS. I can't remember the last time I nodded off so much in the first few chapters of a book. To those who haven't splurged the $12 or so, don't bother. Instead, pull up and study and read every one of the new Weblinks and continue to do so hereafter. They are the greatest learning tools for CANSLIM I've ever seen. IBD at its most candid, for sure. What I particularly like is how much you can learn from the loser scenarios. Much more informative than their 20-20 hindsight success stories. Have a great weekend. Duke - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com] On Behalf Of Kent Norman Sent: Saturday, June 29, 2002 4:32 PM To: canslim@lists.xmission.com Subject: RE: [CANSLIM] WCOM restatement Duke Welcome back. You haven't missed much. A lot of the chatter is off topic (I am also guilty of this and repent...). It is probably time for someone to call the group back to the intended subjects. Regards Kent Norman - --- Duke Miller wrote: > > Must proceed with reading more. You guys must have had a field day > while I was gone: 118 messages to go!! > > It's so good to be back. > > Duke > > ===== Opportunities always look bigger going than coming. __________________________________________________ Do You Yahoo!? Yahoo! - Official partner of 2002 FIFA World Cup http://fifaworldcup.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: Sat, 29 Jun 2002 18:28:03 -0400 From: "Tom Worley" Subject: [CANSLIM] Worley's Weekend Weeview This is a multi-part message in MIME format. - ------=_NextPart_000_0309_01C21F9A.B4CFB110 Content-Type: multipart/alternative; boundary="----=_NextPart_001_030A_01C21F9A.B4CFB110" - ------=_NextPart_001_030A_01C21F9A.B4CFB110 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable EARNINGS Confession season is essentially over, without significant or major = warnings. In another week we will start seeing actual results. First = Call is expecting a meager 0.2% improvement in Q2 earnings for the = S&P500 stocks, still better than the negative numbers seen for many = quarters now. And for Q3 First Call expects earnings growth of 17.6% and = 29.1% in the Fourth Quarter. Of course, that is assuming we can accept = and trust the accounting practices being used. - -------------------------------------------------------------------------= - ------- ECONOMICS Durable goods orders rose 0.6% in May, slightly better than expectations = of a 0.5% gain, and improving on April's 0.4% gain. This was the fifth = increase in six months, but was widely different by industry. New home sales jumped 8.1% in May, hitting a record high (1.03 million = annual units), and existing home sales close to a record high. The FOMC (Federal Open Market Committee) left interest rates unchanged, = and indicated the risk to the economy is equally matched between = economic weakness and inflation, thus leaving the bias at neutral. Growth in 1st quarter GDP was revised up from 5.6% annualized to 6.1%, = beating expectations for it to remain unchanged, and putting it even = further ahead of the 1.7% growth in the 4th quarter. Personal spending slipped 0.1% in May (expected to have been flat), = while personal income rose as expected 0.3%. - -------------------------------------------------------------------------= - ------- "M" Reasons to worry (not in order of priority or importance): Mid-East crises (Israel-Palestine) India-Pakistan nuclear war (likelihood diminishing) Lack of growth in earnings (but not declining) Accounting Practices (hard to overlook with CEOs quitting/being = fired/being arrested More terrorism attacks Wirehouse analysts hyping stocks while trashing them in internal memos Weak dollar / further loss of foreign investment money in US stocks Business spending still not picking up Unemployment still high Money flow to equity mutual funds negative Japanese exports being hurt by strong yen (vs. US $) Financial collapse of Japanese banks (less likely now that US economy is = dragging Japanese economy higher) Weak support for the Japanese Prime Minister continuing the pain = avoidance, inaction to clean up their economy Any major company that used Andersen as an auditor in the past several = years NASDAQ has undercut the September lows Reasons to keep watching, and be ready (not in order of priority or = importance): Lots of reasons to worry Corporate earnings likely to show strong growth by end of Q3 Lots of money on the sidelines Sentiment turning more bearish finally September lows being tested on indexes (or exceeded) Consumers still spending Unemployment improving, layoffs diminishing Inventories at record lows, and must be replenished Feds won't be raising rates until late in the year, or later Xerox only overstated revenues by $2 billion, not the $3 billion = estimated by SEC, or $6 billion reported by WSJ Housing markets strong NASDAQ has undercut the September lows Economy improving at a non-inflationary rate - -------------------------------------------------------------------------= - ------- WORLEY'S WATCHLIST WANNABES This list is in no way intended to recommend any stocks to the group. It = is a part of my regular assessment of the health of CANSLIM's "M" and, = as the name implies, only intended to identify some stocks with = constructive chart patterns that may be worth WATCHING (and of course = doing your own due diligence). I am employed in Operations by a US = Broker Dealer, however everything presented by me is strictly my own = ideas and in no way should be taken to reflect the views or opinions of = my employer. I typically list stocks with both RS and EPS ranking of 80 or better, = and try to exclude stocks undergoing any merger / acquisition / buyout = scenario. I also exclude those stocks I spot with earnings forecast for = this year and next that are not at least close to 20%. I do no other due = diligence, that is your responsibility. I will note any CANSLIM patterns = I see, such as c&h, double (or triple) bottoms, or flat bases (shown as = Bx where "x" is the # of weeks, IMO). I will also note LLUR (Lower Left = Upper Right) even though it is not exactly a CANSLIM pattern. The population of stocks I am reviewing this weekend reversed its = decline during the past week and grew measurably. Daily lists were not = even a page long at the start of the week, and nearly three pages by = Friday. The across the board slide in all indexes, including small cap = growth, has hurt a lot of otherwise good looking charts. Next week may = show whether we once again get a FTD, and attempt to reverse this long = slide in a bear market. ACMR - nice cup formed AMZ - LLUR APOL - completed the cup, watch for a handle to form, but if market = takes off may skip the handle, b/o failure then more likely APSG - c&h CECO - beginning of a LLUR? DLTR - 9 week consolidation EPIQ - RS only 55, good recovery on volume over the 50 and to the 200 = dma, at pivot, owned and VR Fund FNLY - B7 FSTW - confused chart, good growth, microcap, in my VR Fund HLYW - saucer HRH - B2 MMSI - nice b/o from the handle on Thursday on volume, held the b/o on = volume Friday MOVI - B3 MTH - double bottom, forecast under 20% but right industry OVRL - double bottom, base on base, don't care just making me money = (real and VR), at the pivot SYPR - possible handle forming on short cup, in my VR Fund WSH - B5, slight trend up Happy Hunting, Tom Worley stkguru@bellsouth.net AIM: TexWorley - ------=_NextPart_001_030A_01C21F9A.B4CFB110 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
EARNINGS
Confession season is essentially over, without = significant=20 or major warnings. In another week we will start seeing actual results. = First=20 Call is expecting a meager 0.2% improvement in Q2 earnings for the = S&P500=20 stocks, still better than the negative numbers seen for many quarters = now. And=20 for Q3 First Call expects earnings growth of 17.6% and 29.1% in the = Fourth=20 Quarter. Of course, that is assuming we can accept and trust the = accounting=20 practices being used.

ECONOMICS
Durable goods orders rose 0.6% in May, slightly = better=20 than expectations of a 0.5% gain, and improving on April's 0.4% gain. = This was=20 the fifth increase in six months, but was widely different by=20 industry.
 
New home sales jumped 8.1% in May, hitting a = record high=20 (1.03 million annual units), and existing home sales close to a record=20 high.
 
The FOMC (Federal Open Market Committee) left = interest=20 rates unchanged, and indicated the risk to the economy is equally = matched=20 between economic weakness and inflation, thus leaving the bias at=20 neutral.
 
Growth in 1st quarter GDP was revised up from = 5.6%=20 annualized to 6.1%, beating expectations for it to remain unchanged, and = putting=20 it even further ahead of the 1.7% growth in the 4th = quarter.
 
Personal spending slipped 0.1% in May (expected = to have=20 been flat), while personal income rose as expected = 0.3%.

"M"
Reasons to worry (not in order of priority or = importance):
Mid-East crises (Israel-Palestine)
India-Pakistan nuclear war (likelihood diminishing)
Lack of growth in earnings (but not declining)
Accounting Practices (hard to overlook with CEOs quitting/being = fired/being=20 arrested
More terrorism attacks
Wirehouse analysts hyping stocks while trashing them in internal=20 memos
Weak dollar / further loss of foreign investment money in US = stocks
Business spending still not picking up
Unemployment still high
Money flow to equity mutual funds negative
Japanese exports being hurt by strong yen (vs. US $)
Financial collapse of Japanese banks (less likely now that US = economy is=20 dragging Japanese economy higher)
Weak support for the Japanese Prime Minister continuing the pain = avoidance,=20 inaction to clean up their economy
Any major company that used Andersen as an auditor in the past = several=20 years
NASDAQ has undercut the September lows
 
Reasons to keep watching, and be ready (not in order of = priority or=20 importance):
Lots of reasons to worry
Corporate earnings likely to show strong growth by end of Q3
Lots of money on the sidelines
Sentiment turning more bearish finally
September lows being tested on indexes (or exceeded)
Consumers still spending
Unemployment improving, layoffs diminishing
Inventories at record lows, and must be replenished
Feds won't be raising rates until late in the year, or later
Xerox only overstated revenues by $2 billion, not the $3 billion = estimated=20 by SEC, or $6 billion reported by WSJ
Housing markets strong
NASDAQ has undercut the September lows
Economy improving at a non-inflationary rate

WORLEY'S WATCHLIST = WANNABES
This list is in no way intended to recommend any = stocks to=20 the group. It is a part of my regular assessment of the health of = CANSLIM's "M"=20 and, as the name implies, only intended to identify some stocks with=20 constructive chart patterns that may be worth WATCHING (and of course = doing your=20 own due diligence). I am employed in Operations by a US Broker Dealer, = however=20 everything presented by me is strictly my own ideas and in no way should = be=20 taken to reflect the views or opinions of my employer.
 
I typically list stocks with both RS and EPS = ranking of 80=20 or better, and try to exclude stocks undergoing any merger / acquisition = /=20 buyout scenario. I also exclude those stocks I spot with earnings = forecast for=20 this year and next that are not at least close to 20%. I do no other due = diligence, that is your responsibility. I will note any CANSLIM patterns = I see,=20 such as c&h, double (or triple) bottoms, or flat bases (shown as Bx = where=20 "x" is the # of weeks, IMO). I will also note LLUR (Lower Left Upper = Right) even=20 though it is not exactly a CANSLIM pattern.
 
The population of stocks I am reviewing this = weekend=20 reversed its decline during the past week and grew measurably. Daily = lists were=20 not even a page long at the start of the week, and nearly three pages by = Friday.=20 The across the board slide in all indexes, including small cap growth, = has hurt=20 a lot of otherwise good looking charts. Next week may show whether we = once again=20 get a FTD, and attempt to reverse this long slide in a bear = market.
 
ACMR - nice cup formed
AMZ - LLUR
APOL - completed the cup, watch for a handle to form, but if market = takes=20 off may skip the handle, b/o failure then more likely
APSG - c&h
CECO - beginning of a LLUR?
DLTR - 9 week consolidation
EPIQ - RS only 55, good recovery on volume over the 50 and to the = 200 dma,=20 at pivot, owned and VR Fund
FNLY - B7
FSTW - confused chart, good growth, microcap, in my VR Fund
HLYW - saucer
HRH - B2
MMSI - nice b/o from the handle on Thursday on volume, held the b/o = on=20 volume Friday
MOVI - B3
MTH - double bottom, forecast under 20% but right industry
OVRL - double bottom, base on base, don't care just making me money = (real=20 and VR), at the pivot
SYPR - possible handle forming on short cup, in my VR Fund
WSH - B5, slight trend up
 
Happy Hunting,
 
3D""
Tom Worley
stkguru@bellsouth.net
AIM: = TexWorley
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