From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #2859 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, August 24 2002 Volume 02 : Number 2859 In this issue: [CANSLIM] WORLEY'S WATCHLIST WANNABES, timesaving [CANSLIM] How to Make Money in Stocks Edition 3? [CANSLIM] CANSLIM Hunting List 08/23/02 Re: [CANSLIM] WORLEY'S WATCHLIST WANNABES, timesaving [CANSLIM] price objective Re: [CANSLIM] price objective [CANSLIM] Ask Bill--Does anybody really ask these questions? Re: [CANSLIM] Ask Bill--Does anybody really ask these questions? ---------------------------------------------------------------------- Date: Sat, 24 Aug 2002 19:35:48 -0500 From: Hermann Ertl Subject: [CANSLIM] WORLEY'S WATCHLIST WANNABES, timesaving I am surprised by the extend the selections change. Below are the selections since June 29; those marked with an "*" were dropped the following week - the vast majority in every week's list. Tom explains, "I still only look at each chart for about 20-30 seconds. My comments are my impression, strictly an opinion and worth every penny paid for it." We, who do DD on Tom's selections, can save a lot of time if we check only those selections of the previous week that were not dropped, in the latest case AF, BLUD, BRKL, FCN, nad SBMC. 29Jun 6Jul 13Jul 20Jul 27Jul 3Aug 10Aug 17Aug 24Aug ACMR* ALV* ACMR* BL* BLUD ALAB* FCN AF AF AMZ AMZ* APOL* BLUD CHCO* ANDE* FNBP ANDE* AGII APOL APOL ASL* CHCO CTSH APOL* HBEK* APOL* AMSG APSG APSG* FESX* CTSH FCBP* AROW* HRB* BLUD ANDE CECO* BY* FNLY* DOCC* HBEK* BLUD* NYCB* BRKL BLUD DLTR* CHBS* IBKC* EPIQ* CTSH* OSTE* CSG* BRKL EPIQ* COCO* INTU* FCN* DCOM* QSII CSTR* CVH FNLY CPS* ITLA* HBEK DOCC* SBMC* DCOM DCOM FSTW* CTSH* LBAI* PGC* DORL* SFNT DOCC* DF HRH* DOCC* OZRK* RLI* FCN TRBS DORL* EPIQ MMSI* ELK* PGC SCHN* FSTW* FCBP* EWBC MOVI* FNLY SCHN UCFC* PORT* FCN FCN MTH* INTU THO* VIBC* SBMC FNBP* FESX OVRL* JILL* VIBC WHI* SSNC* HBHC* FOSL SYPR* JJSF* ZAP* INVN* GGC WSH* KBH* NWRE* HARB LABS* PORT* HET LEN* QCBC* HRB LTD* QSII* IBKC MDC* SBMC ISLE MEDW* SFNT* PORT SSNC* SSNC* SBMC TRBS* TTWO TRYF* WFMI* - - - -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, 24 Aug 2002 20:25:12 EDT From: Pipdip21@aol.com Subject: [CANSLIM] How to Make Money in Stocks Edition 3? - --part1_57.107e5822.2a997de8_boundary Content-Type: text/plain; charset="US-ASCII" Content-Transfer-Encoding: 7bit Hi, I am an owner of the 2nd edition of the book. I see the newer version is from May 2002, 7 years after the 2nd edition. For those of you who have seen the newer edition, is it worth the upgrade? Thanks Derek - --part1_57.107e5822.2a997de8_boundary Content-Type: text/html; charset="US-ASCII" Content-Transfer-Encoding: 7bit Hi,

I am an owner of the 2nd edition of the book. I see the newer version is from May 2002, 7 years after the 2nd edition. For those of you who have seen the newer edition, is it worth the upgrade?

Thanks

Derek - --part1_57.107e5822.2a997de8_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: Sat, 24 Aug 2002 19:36:12 -0500 From: "Katherine Malm" Subject: [CANSLIM] CANSLIM Hunting List 08/23/02 This is a multi-part message in MIME format. - ------=_NextPart_000_0046_01C24BA5.810C4FF0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Hi All, I've uploaded an updated CANSLIM hunting list to: http://WallStreet-LLC.com/canslim/CANSLIMHunting082302.xls ( a bit slow = to load) or http://WallStreet-LLC.com/canslim/CANSLIMHunting082302.zip ( a zipped = version which you can download, somewhat faster) In order to make it to the list, the stock had to have a forward growth = rate of at least 15%, Price at least 6, Avg Daily Vol at least 30K, RS = at least 60, no more than 15% below the 50 day SMA, and at or above the = 200 day SMA. This is what I consider to be "bare bones" requirements for = CANSLIM quality stocks. Since the version of the hunting list I uploaded last month on 7/22, the = list has expanded substantially. Last month, just prior to the current = market low, there were only 210 stocks meeting these same criteria. This = month the list has expanded to 459 names. I see that as an indication = that the market for CANSLIM stocks is getting healthier. This, plus = other evidence, leads me to believe that the market status for = CANSLIMers is "OK-but proceed with caution." While many breakouts have = pulled back, most have done so in an orderly fashion. I'd like to see = more breakouts day to day and more breakouts that do not pull back = before I would consider this an "all systems go" Market. In the = meantime, following all the buy and sell rules will keep us out of = trouble on long positions. Of the list of 459 stocks this month, 152 are repeats, 307 are new = names. 58 names dropped from last month's list. You can see which names = were dropped or added by taking a look at this month's spreadsheet. = Other information included is industry name (slightly different than = DGO's names, but close enough!), price, avg vol, and links to graphs = and due diligence sites on the internet. If you'd like to look at last = month's hunting list, you will find it at: http://WallStreet-LLC.com/canslim/CANSLIMHunting072202.xls Happy Hunting! Katherine PS These files are created with the PC version of Excel 2000. Occasionally I will not have data for a stock and it will slip onto the = list even though the minimum technicals will not actually be met. Prices current as of market close 8/23/02. - ------=_NextPart_000_0046_01C24BA5.810C4FF0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable

Hi All,

I've uploaded an updated CANSLIM hunting list to:

ht= tp://WallStreet-LLC.com/canslim/C= ANSLIMHunting082302.xls (=20 a bit slow to load) or

ht= tp://WallStreet-LLC.com/canslim/C= ANSLIMHunting082302.zip=20 ( a zipped version which you can download, somewhat faster)

In order to make it to the list, the stock had to have a forward = growth=20 rate of at least 15%, Price at least 6, Avg Daily Vol at least 30K, RS = at least=20 60, no more than 15% below the 50 day SMA, and at or above the 200 day = SMA. This=20 is what I consider to be "bare bones" requirements for CANSLIM quality=20 stocks.

Since the version of the hunting list I uploaded last month on = 7/22, the=20 list has expanded substantially. Last month, just prior to the current = market=20 low, there were only 210 stocks meeting these same criteria. This month = the list=20 has expanded to 459 names. I see that as an indication that the market = for=20 CANSLIM stocks is getting healthier. This, plus other evidence, leads me = to=20 believe that the market status for CANSLIMers is "OK-but proceed with = caution."=20 While many breakouts have pulled back, most have done so in an orderly = fashion.=20 I'd like to see more breakouts day to day and more breakouts that do not = pull=20 back before I would consider this an "all systems go" Market. In the = meantime,=20 following all the buy and sell rules will keep us out of = trouble on=20 long positions.

Of the list of 459 stocks this month, 152 are repeats, 307 are new = names.=20 58 names dropped from last month's list. You can see which = names were=20 dropped or added by taking a look at this month's spreadsheet. Other = information=20 included is industry name (slightly different than DGO's names, but = close=20 enough!), price, avg vol, and links to graphs and due diligence = sites on=20 the internet. If you'd like to look at last month's hunting list, you = will find=20 it at:

http:= //WallStreet-LLC.com/canslim/CANSLIMHunting072202.xls

Happy Hunting!

Katherine

These files are created with the PC version of Excel 2000.

Occasionally I will not have data for a stock and it will slip onto = the=20 list even though the minimum technicals will not actually be met.

Prices current as of market close 8/23/02.

- ------=_NextPart_000_0046_01C24BA5.810C4FF0-- - - - -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, 24 Aug 2002 20:28:38 -0500 From: Gene Ricci Subject: Re: [CANSLIM] WORLEY'S WATCHLIST WANNABES, timesaving This is a multi-part message in MIME format. - ------=_NextPart_000_01CF_01C24BAC.D40E72D0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Herman, I don't know what you're trying to say here. Thanks in advance, Gene ----- Original Message -----=20 From: Hermann Ertl=20 To: canslim@lists.xmission.com=20 Sent: Saturday, August 24, 2002 7:35 PM Subject: [CANSLIM] WORLEY'S WATCHLIST WANNABES, timesaving I am surprised by the extend the selections change. Below are the selections since June 29; those marked with an "*" were dropped the following week - the vast majority in every week's list. Tom explains, "I still only look at each chart for about 20-30 seconds. My comments are my impression, strictly an opinion and worth every penny paid for it." We, who do DD on Tom's selections, can save a lot of time if we check only those selections of the previous week that were not dropped, in the latest case AF, BLUD, BRKL, FCN, nad SBMC. 29Jun 6Jul 13Jul 20Jul 27Jul 3Aug 10Aug 17Aug 24Aug ACMR* ALV* ACMR* BL* BLUD ALAB* FCN AF AF AMZ AMZ* APOL* BLUD CHCO* ANDE* FNBP ANDE* AGII APOL APOL ASL* CHCO CTSH APOL* HBEK* APOL* AMSG APSG APSG* FESX* CTSH FCBP* AROW* HRB* BLUD ANDE CECO* BY* FNLY* DOCC* HBEK* BLUD* NYCB* BRKL BLUD DLTR* CHBS* IBKC* EPIQ* CTSH* OSTE* CSG* BRKL EPIQ* COCO* INTU* FCN* DCOM* QSII CSTR* CVH FNLY CPS* ITLA* HBEK DOCC* SBMC* DCOM DCOM FSTW* CTSH* LBAI* PGC* DORL* SFNT DOCC* DF HRH* DOCC* OZRK* RLI* FCN TRBS DORL* EPIQ MMSI* ELK* PGC SCHN* FSTW* FCBP* EWBC MOVI* FNLY SCHN UCFC* PORT* FCN FCN MTH* INTU THO* VIBC* SBMC FNBP* FESX OVRL* JILL* VIBC WHI* SSNC* HBHC* FOSL SYPR* JJSF* ZAP* INVN* GGC WSH* KBH* NWRE* HARB LABS* PORT* HET LEN* QCBC* HRB LTD* QSII* IBKC MDC* SBMC ISLE MEDW* SFNT* PORT SSNC* SSNC* SBMC TRBS* TTWO TRYF* WFMI* - -To subscribe/unsubscribe, email "majordomo@xmission.com" -In the email body, write "subscribe canslim" or -"unsubscribe canslim". Do not use quotes in your email. - ------=_NextPart_000_01CF_01C24BAC.D40E72D0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable

Herman, I don't know what you're = trying to say=20 here.

Thanks in advance,

Gene

----- Original Message -----

From:=20 Hermann=20 Ertl

To: canslim@lists.xmission.com=

Sent: Saturday, August 24, 2002 = 7:35=20 PM

Subject: [CANSLIM] WORLEY'S = WATCHLIST=20 WANNABES, timesaving

I am surprised by the extend the selections change. = Below=20 are
the selections since June 29; those marked with an "*" = were
dropped=20 the following week - the vast majority in every week's
list. Tom = explains,=20 "I still only look at each chart for about
20-30 seconds. My = comments are=20 my impression, strictly an
opinion and worth every penny paid for=20 it."

We, who do DD on Tom's selections, can save a lot of time = if=20 we
check only those selections of the previous week that were=20 not
dropped, in the latest case AF, BLUD, BRKL, FCN, nad=20 SBMC.

29Jun 6Jul 13Jul 20Jul = 27Jul =20 3Aug   10Aug 17Aug 24Aug
ACMR* = ALV* =20 ACMR* BL*    BLUD   ALAB* =20 FCN    AF     = AF
AMZ   =20 AMZ* APOL* BLUD   CHCO* ANDE* =20 FNBP   ANDE* AGII
APOL   APOL =20 ASL*   CHCO   CTSH   APOL* = HBEK* =20 APOL* AMSG
APSG   APSG* FESX* = CTSH  =20 FCBP* AROW* HRB*   BLUD   = ANDE
CECO* =20 BY*   FNLY* DOCC* HBEK* BLUD* = NYCB* =20 BRKL   BLUD
DLTR* CHBS* IBKC* =20 EPIQ*         CTSH* = OSTE* =20 CSG*   BRKL
EPIQ* COCO* INTU* =20 FCN*          DCOM* = QSII   CSTR* CVH
FNLY   CPS* = ITLA* =20 HBEK          DOCC* = SBMC* DCOM   DCOM
FSTW* CTSH* LBAI* =20 PGC*          DORL* = SFNT   DOCC* DF
HRH*   DOCC* OZRK* =20 RLI*         =20 FCN    TRBS   DORL* EPIQ
MMSI* = ELK* PGC   =20 SCHN*        =20 FSTW*         FCBP* =20 EWBC
MOVI* FNLY SCHN  =20 UCFC*        =20 PORT*         = FCN   =20 FCN
MTH*   INTU THO*  =20 VIBC*        =20 SBMC          FNBP* = FESX
OVRL* JILL* VIBC  =20 WHI*         =20 SSNC*         HBHC* =20 FOSL
SYPR* JJSF*       =20 = ZAP*           &nb= sp;           =20 INVN* GGC
WSH*  =20 = KBH*           &nb= sp;           &nbs= p;            = ;=20 NWRE* HARB
      =20 = LABS*           &n= bsp;           &nb= sp;           =20 PORT* HET
      =20 = LEN*           &nb= sp;           &nbs= p;            = ;=20 QCBC* HRB
      =20 = LTD*           &nb= sp;           &nbs= p;            = ;=20 QSII* IBKC
      =20 = MDC*           &nb= sp;           &nbs= p;            = ;=20 SBMC   ISLE
      =20 = MEDW*           &n= bsp;           &nb= sp;           =20 SFNT* PORT
      =20 = SSNC*           &n= bsp;           &nb= sp;           =20 SSNC* =20 = SBMC
           = ;            =             &= nbsp;           =20 TRBS* =20 = TTWO
           = ;            =             &= nbsp;           =20 = TRYF*
          &nbs= p;            = ;            =              = WFMI*

-
-To subscribe/unsubscribe, email "majordomo@xmission.com"
-In= the=20 email body, write "subscribe canslim" or
-"unsubscribe = canslim". Do=20 not use quotes in your email.
- ------=_NextPart_000_01CF_01C24BAC.D40E72D0-- - - - -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, 24 Aug 2002 21:40:23 -0400 From: Roger Tawa Subject: [CANSLIM] price objective hi all, on page 22 of HTMMISv3, the book explains how to use the p/e ratio to calculate a price objective for a stock. in the example given, a stock with a p/e of 40 is used, this is multiplied by 130%, and the final result is 92. however, 40x1.30 is closer to 52 than 92. is this a typo in the book, or is WON saying that we need to add the original p/e to the calculated p/e? does anyone use this calculation as part of their sell rules? thanks. derek: i have not read HTMMISv2 so i can't compare it to v3, sorry. Roger Tawa [One thing about paradigms: shift happens.] Roger Tawa [One thing about paradigms: shift happens.] ________________________________________________ Get your own "800" number Voicemail, fax, email, and a lot more http://www.ureach.com/reg/tag - - - -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, 24 Aug 2002 20:54:45 -0500 From: "Katherine Malm" Subject: Re: [CANSLIM] price objective Hi Roger, The example given is for PE to expand not *to* 130% of its existing PE, but an *additional* 130%-- So, if at the break out the PE is 40, then you would expect it to expand to 40 + 130% of 40. 40 + 1.3 (40) = 40 * 2.3 = 92. Until you pointed out this passage, however, I hadn't noticed a subtle change in the text. In the old edition, the PE expansion was 125%! Katherine PS...yes, I use this as a sell "warning" or "yellow flag." - ----- Original Message ----- From: "Roger Tawa" To: Sent: Saturday, August 24, 2002 8:40 PM Subject: [CANSLIM] price objective | hi all, | | on page 22 of HTMMISv3, the book explains how to use the p/e ratio to calculate | a price objective for a stock. in the example given, a stock with a p/e of 40 | is used, this is multiplied by 130%, and the final result is 92. | | however, 40x1.30 is closer to 52 than 92. is this a typo in the book, or is | WON saying that we need to add the original p/e to the calculated p/e? | | does anyone use this calculation as part of their sell rules? | | thanks. | | derek: i have not read HTMMISv2 so i can't compare it to v3, sorry. | | Roger Tawa | [One thing about paradigms: shift happens.] | | | Roger Tawa | [One thing about paradigms: shift happens.] | | | ________________________________________________ | Get your own "800" number | Voicemail, fax, email, and a lot more | http://www.ureach.com/reg/tag | | - | -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, 24 Aug 2002 21:32:17 -0500 From: "Katherine Malm" Subject: [CANSLIM] Ask Bill--Does anybody really ask these questions? This is a multi-part message in MIME format. - ------=_NextPart_000_0091_01C24BB5.B8A91E10 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Here is today's "Ask Bill" column. Sound familiar? Question: Can you please define "swing trader"?=20 =20 - - Submitted from Texarkana, Texas=20 =20 Answer: A swing trader is one who trades short-term "swings" in the = market, stocks, options, etc. that last anywhere from a few days to just = a few weeks.=20 I'd sure like to know why so often these questions are exactly the same = topics that appear on our email list. Why pick up on stuff like this and = make up bogus "Ask Bills" when I've still got at least 2 questions asked = of them and never answered (I'm sure there are others who've written = questions that aren't answered). For example, why the heck does the IBD calculate the ROE based on the = average of 2 years data? Huh? Since when did anybody use 2 years for = such a measurement? Here's the Ask Bill I'm referring to (highlighting is mine): Ask Bill O'Neil Archives Wednesday, August 21, 2002=20 =20 "Why is it some stocks showing accelerating earnings and sales growth = still have relatively low return on equity? Would you make an exception = to your rule of buying stocks with ROE of 17% or better?" - - Submitted from Montgomery, Texas =20 One possible reason is the fact that IBD's measure of ROE (return on = equity) takes an average of the ROE over the past two fiscal years. If a = company posted weak earnings or a loss in the previous year, that would = dilute its ROE. Also keep in mind that ROE measures total operating = earnings divided by shareholders' equity. So even when the = year-over-year EPS growth is accelerating, if earnings per share are = small (say, only 4 or 8 cents), it may result in a relatively small = numerator in the ROE equation. This is why the best growth companies = with strong ROE tend to show strong growth over several years, not just = in a number of quarters. Regarding the rule of having ROE of at least = 17%, keep in mind that some of the best stocks had an ROE less than = that, including Emulex (8% before its big price run-up beginning in = December 1998), Millennium Pharmaceuticals (7%) and Qualcomm (8%). But = on average, the best stocks during the 1997-2000 period sported an = average ROE of 23%.=20 - --Katherine - ------=_NextPart_000_0091_01C24BB5.B8A91E10 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable

Here is today's "Ask Bill" column. Sound familiar?

Question: Can you please define "swing trader"?=20

=20

- Submitted from Texarkana, Texas=20

Answer: = A swing=20 trader is one who trades short-term "swings" in the market, stocks, = options,=20 etc. that last anywhere from a few days to just a few weeks.=20

I'd sure like to know why so often these questions are exactly the = same=20 topics that appear on our email list. Why pick up on stuff like this and = make up=20 bogus "Ask Bills" when I've still got at least 2 questions asked of = them=20 and never answered (I'm sure there are others who've written questions = that=20 aren't answered).

For example, why the heck does the IBD calculate the ROE based on = the=20 average of 2 years data? Huh? Since when did anybody use 2 years for = such a=20 measurement?

Here's the Ask Bill I'm referring to (highlighting is mine):

Ask Bill O'Neil Archives
Wednesday, August 21, 2002 =

"Why=20 is it some stocks showing accelerating earnings and sales growth still = have=20 relatively low return on equity? Would you make an exception to your = rule of=20 buying stocks with ROE of 17% or better?"
- Submitted from = Montgomery,=20 Texas

One possible reason is the fact that IBD's measure of ROE (return on equity) takes an = average of=20 the ROE over the past two fiscal years. If a company posted = weak=20 earnings or a loss in the previous year, that would dilute its ROE. Also = keep in=20 mind that ROE measures total operating earnings divided by shareholders' = equity.=20 So even when the year-over-year EPS growth is accelerating, if earnings = per=20 share are small (say, only 4 or 8 cents), it may result in a relatively = small=20 numerator in the ROE equation. This is why the best growth companies = with strong=20 ROE tend to show strong growth over several years, not just in a number = of=20 quarters. Regarding the rule of having ROE of at least 17%, keep in mind = that=20 some of the best stocks had an ROE less than that, including Emulex (8% = before=20 its big price run-up beginning in December 1998), Millennium = Pharmaceuticals=20 (7%) and Qualcomm (8%). But on average, the best stocks during the = 1997-2000=20 period sported an average ROE of 23%.

--Katherine

- ------=_NextPart_000_0091_01C24BB5.B8A91E10-- - - - -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, 24 Aug 2002 22:41:45 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Ask Bill--Does anybody really ask these questions? This is a multi-part message in MIME format. - ------=_NextPart_000_0276_01C24BBF.6D0276F0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable maybe while we weren't looking, we became the last CANSLIMers out there. = So they have to glean from our discussions just to have someone left to = "Ask Bill". Then again, maybe they just want to tackle the soft = questions. Maybe what we should do is every member flood IBD with "Ask Bill" = questions, and see if any get published from real people we actually = know, instead of an unnamed person from Texarkana or wherever. - ----- Original Message -----=20 From: Katherine Malm=20 To: canslim@lists.xmission.com=20 Sent: Saturday, August 24, 2002 10:32 PM Subject: [CANSLIM] Ask Bill--Does anybody really ask these questions? Here is today's "Ask Bill" column. Sound familiar? Question: Can you please define "swing trader"?=20 =20 - - Submitted from Texarkana, Texas=20 =20 Answer: A swing trader is one who trades short-term "swings" in the = market, stocks, options, etc. that last anywhere from a few days to just = a few weeks.=20 I'd sure like to know why so often these questions are exactly the same = topics that appear on our email list. Why pick up on stuff like this and = make up bogus "Ask Bills" when I've still got at least 2 questions asked = of them and never answered (I'm sure there are others who've written = questions that aren't answered). For example, why the heck does the IBD calculate the ROE based on the = average of 2 years data? Huh? Since when did anybody use 2 years for = such a measurement? Here's the Ask Bill I'm referring to (highlighting is mine): Ask Bill O'Neil Archives Wednesday, August 21, 2002=20 =20 "Why is it some stocks showing accelerating earnings and sales growth = still have relatively low return on equity? Would you make an exception = to your rule of buying stocks with ROE of 17% or better?" - - Submitted from Montgomery, Texas =20 One possible reason is the fact that IBD's measure of ROE (return on = equity) takes an average of the ROE over the past two fiscal years. If a = company posted weak earnings or a loss in the previous year, that would = dilute its ROE. Also keep in mind that ROE measures total operating = earnings divided by shareholders' equity. So even when the = year-over-year EPS growth is accelerating, if earnings per share are = small (say, only 4 or 8 cents), it may result in a relatively small = numerator in the ROE equation. This is why the best growth companies = with strong ROE tend to show strong growth over several years, not just = in a number of quarters. Regarding the rule of having ROE of at least = 17%, keep in mind that some of the best stocks had an ROE less than = that, including Emulex (8% before its big price run-up beginning in = December 1998), Millennium Pharmaceuticals (7%) and Qualcomm (8%). But = on average, the best stocks during the 1997-2000 period sported an = average ROE of 23%.=20 - --Katherine - ------=_NextPart_000_0276_01C24BBF.6D0276F0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable

maybe while we weren't looking, we became the = last=20 CANSLIMers out there. So they have to glean from our discussions just to = have=20 someone left to "Ask Bill". Then again, maybe they just want to tackle = the soft=20 questions.

Maybe what we should do is every member flood = IBD with=20 "Ask Bill" questions, and see if any get published from real people we = actually=20 know, instead of an unnamed person from Texarkana or = wherever.

----- Original Message -----=20

From: Katherine Malm=20

To: canslim@lists.xmission.com=

Sent: Saturday, August 24, 2002 10:32 PM

Subject: [CANSLIM] Ask Bill--Does anybody really ask these=20 questions?

Here is today's "Ask Bill" column. Sound familiar?

Question: Can you please define "swing trader"?=20

=20

- Submitted from Texarkana, Texas=20

Answer: = A swing=20 trader is one who trades short-term "swings" in the market, stocks, = options,=20 etc. that last anywhere from a few days to just a few weeks.=20

For example, why the heck does the IBD calculate the ROE based on = the=20 average of 2 years data? Huh? Since when did anybody use 2 years for = such a=20 measurement?

Here's the Ask Bill I'm referring to (highlighting is mine):

--Katherine

- ------=_NextPart_000_0276_01C24BBF.6D0276F0-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ End of canslim-digest V2 #2859 ****************************** To unsubscribe to canslim-digest, send an email to "majordomo@xmission.com" with "unsubscribe canslim-digest" in the body of the message. For information on digests or retrieving files and old messages send "help" to the same address. Do not use quotes in your message.