From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #2882 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 Thursday, August 29 2002 Volume 02 : Number 2882 In this issue: Re: [CANSLIM] DOCC Re: [CANSLIM] DOCC Re: [CANSLIM] Shorting Re: [CANSLIM] CSTR [CANSLIM] Insider Trades Re: [CANSLIM] Insider Trades RE: [CANSLIM] Insider Trades ---------------------------------------------------------------------- Date: Wed, 28 Aug 2002 22:54:05 -0400 From: "Chas" <1440lda@tm.net> Subject: Re: [CANSLIM] DOCC Tom When i ran my weekend screen a couple of weeks ago DOCC was on the list of possibles. Is there any reason for the selloff? Took a quick look at chart, quite a drop for the trading volume. Chas - -----Original Message----- From: Tom Worley To: CANSLIM Date: Wednesday, August 28, 2002 9:43 AM Subject: [CANSLIM] DOCC >I normally don't mention my personal trades, but since this was discussed >here, wanted to mention I was just stopped out on a hard stop at 14.10. >Guess I shouldn't complain with the return, but I really wanted to avoid >short term capital gains taxes. > >I also put a hard stop in on EPIQ, I am reluctantly having to use hard stops >as I am too busy to keep an eye on the markets. > >Tom Worley >stkguru@bellsouth.net >AIM: TexWorley > > > >- >-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, 28 Aug 2002 23:10:52 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] DOCC I know of no reason, other than it has been bucking the trend for nearly a year. I put in a hard stop, was surprised Schwab even accepted it, after seeing it appear to be weakening at its new highs. My personal rule is that once I am up 100% or more, I must sell at least half on ANY sign of weakness. Picked my stop point primarily by the chart as a 15% trailing would be 13.93, just into the last short base. I figured if it went down that far, was likely to at least go to the bottom of that base (about 13), and of course after stopping me out at 14.10 it ran back over 14.85 just to taunt me. Most of the drop came late in the day, and not on most of the volume from what I saw. So by the end of day's close, I looked pretty brilliant even if I was not feeling that way earlier. My best guess is that the Market Makers were seeing very few buyers in the last few hours, and were quick to drop the bid on any kind of pressure. The volume weighed avg price was 13.665 on an avg trade size of 374 shares, so doesn't appear like institutional holders were dumping today. I had grown a little cautious as I was not so impressed with the revenue growth past two qtrs. - ----- Original Message ----- From: "Chas" <1440lda@tm.net> To: Sent: Wednesday, August 28, 2002 10:54 PM Subject: Re: [CANSLIM] DOCC Tom When i ran my weekend screen a couple of weeks ago DOCC was on the list of possibles. Is there any reason for the selloff? Took a quick look at chart, quite a drop for the trading volume. Chas - -----Original Message----- From: Tom Worley To: CANSLIM Date: Wednesday, August 28, 2002 9:43 AM Subject: [CANSLIM] DOCC >I normally don't mention my personal trades, but since this was discussed >here, wanted to mention I was just stopped out on a hard stop at 14.10. >Guess I shouldn't complain with the return, but I really wanted to avoid >short term capital gains taxes. > >I also put a hard stop in on EPIQ, I am reluctantly having to use hard stops >as I am too busy to keep an eye on the markets. > >Tom Worley >stkguru@bellsouth.net >AIM: TexWorley > > > >- >-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, 28 Aug 2002 20:50:07 -0700 From: Ian Subject: Re: [CANSLIM] Shorting This is a multi-part message in MIME format. - --Boundary_(ID_wbfHpdOhFFX1R7aNU8w98A) Content-type: text/plain; charset=iso-8859-1 Content-transfer-encoding: 7BIT About 10 days ago, I put in a short sale order on a stock at market when I was getting a quote of $29.25 bid X $29.30 ask. I saw several trades go by at $29.25 after my order was entered - so I assumed I was filled at that price. But they dropped the price to fill me at $29. There were definitely no ticks below my fill price. I have seen this kind of thing happen a few times too. These kind of personal observations are why I assumed that there was no uptick rule on the NAZ (I've never seen this happen on the NYSE). Ian ----- Original Message ----- From: Edward W. Gjertsen II To: canslim@lists.xmission.com Sent: Wednesday, August 28, 2002 6:59 AM Subject: [CANSLIM] Shorting The rule for shorting: NYSE, NASDAQ, AMEX - you can only short on an uptick or zero tick. The only issues you can short without this rule are the popular ETF's - QQQ, SPY, DIA, et al. This rule was implemented in 1938 to prevent "bear raids" from occurring. Ed Gjertsen II ed@macktracks.com - --Boundary_(ID_wbfHpdOhFFX1R7aNU8w98A) Content-type: text/html; charset=iso-8859-1 Content-transfer-encoding: 7BIT
About 10 days ago, I put in a short sale order on a stock at market when I was getting a quote of $29.25 bid X $29.30 ask. I saw several trades go by at $29.25 after my order was entered - so I assumed I was filled at that price. But they dropped the price to fill me at $29. There were definitely no ticks below my fill price.
 
I have seen this kind of thing happen a few times too.
 
These kind of personal observations are why I assumed that there was no uptick rule on the NAZ (I've never seen this happen on the NYSE).
 
Ian
 
 
----- Original Message -----
Sent: Wednesday, August 28, 2002 6:59 AM
Subject: [CANSLIM] Shorting

The rule for shorting: NYSE, NASDAQ, AMEX – you can only short on an uptick or zero tick.  The only issues you can short without this rule are the popular ETF’s – QQQ, SPY, DIA, et al.   This rule was implemented in 1938 to prevent “bear raids” from occurring. 

 

Ed Gjertsen II

ed@macktracks.com

- --Boundary_(ID_wbfHpdOhFFX1R7aNU8w98A)-- - - - -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, 28 Aug 2002 20:52:14 -0700 From: Ian Subject: Re: [CANSLIM] CSTR Yes. Personally, I usually wait for some sort of intra-day bounce/plateau. But really big price tanks/collapses kind of scare me off - although I've never really looked to see if they are statistically likely to keep falling. Ian - ----- Original Message ----- From: To: Sent: Wednesday, August 28, 2002 6:20 AM Subject: Re: [CANSLIM] CSTR > > Ian, > > So when something starts to tank,and if you think it was going even lower, > you can still short it? > > Mike Niemotka , PE > Sr. Principal Engineer > Baxter Healthcare Corporation > Route 120 & Wilson Road > Round Lake, IL 60073 > Tel (847) 270-4075 > Fax (847) 270-4525 > michael_niemotka@baxter.com > > > > Ian > Sent by: To: canslim@lists.xmission.com > owner-canslim@lists.xm cc: > ission.com Subject: Re: [CANSLIM] CSTR > > > 08/27/2002 11:11 PM > Please respond to > canslim > > > > > > > Mike: > > As far as I know, and my personal observations seem to have confirmed it, > there is no uptick rule on the NASDAQ. You can short at market if you like. > > Ian > > ----- Original Message ----- > From: > To: > Sent: Tuesday, August 27, 2002 1:12 PM > Subject: Re: [CANSLIM] CSTR > > > > > > Question about selling short: > > > > From what I understand, you can only sell short on an uptick, but is it > > possible to put in a short sell order, that you hope gets done if the > stock > > has a single uptick on it's way down? > > > > Thanks > > > > > > Mike Niemotka , PE > > Sr. Principal Engineer > > Baxter Healthcare Corporation > > Route 120 & Wilson Road > > Round Lake, IL 60073 > > Tel (847) 270-4075 > > Fax (847) 270-4525 > > michael_niemotka@baxter.com > > > > > > > > "david frank" > > canslim@lists.xmission.com > > .net> cc: > > Sent by: Subject: Re: > [CANSLIM] CSTR > > owner-canslim@lists.xm > > ission.com > > > > > > 08/27/2002 03:09 PM > > > Please respond to > > canslim > > > > > > > > > > > > > > Ian, what did you see in CSTR as a short sale, technically speaking; > don't > > see a H&S top, or 2-3 down shoulders, perhaps, a double top? Did you sell > > short during the pre-market or regular hours. Nice trade. dave > > ----- Original Message ----- > > From: "Ian" > > To: > > Sent: Tuesday, August 27, 2002 2:44 PM > > Subject: Re: [CANSLIM] CSTR > > > > > > > Mike: > > > > > > If it makes you feel better - I was looking for chart weakness so that > I > > > could intitate another short position - and I hadn't found any weakness > > > before today. I would say that technically, the stock has behaved > > extremely > > > strongly up until today - strong enough to scare me away from shorting > > it. > > > Just my 2 cents. > > > > > > Ian > > > > > > > > > ----- Original Message ----- > > > From: > > > To: > > > Sent: Tuesday, August 27, 2002 8:22 AM > > > Subject: RE: [CANSLIM] CSTR > > > > > > > > > > > > > > I appreciate all the advice that I have gotten. It is when stuff > like > > > this > > > > happens that makes me question a trading "method". I'm sure if CSTR > > stays > > > > down, it will only be a matter of time before I see and IBD write up > > using > > > > their famous 20-20 hindsight to show why it was destined to fall. > Does > > > > anyone else see anything in the price volume action that would lead > > them > > > to > > > > believe that this was going to happen, or is it the M that is still > not > > > > strong enough? > > > > > > > > Okay, now I feel a bit better after venting. Thank you all! > > > > > > > > > > > > Mike Niemotka , PE > > > > Sr. Principal Engineer > > > > Baxter Healthcare Corporation > > > > Route 120 & Wilson Road > > > > Round Lake, IL 60073 > > > > Tel (847) 270-4075 > > > > Fax (847) 270-4525 > > > > michael_niemotka@baxter.com > > > > > > > > > > > > > > > > "Edward W. Gjertsen > > > > II" To: > > > canslim@lists.xmission.com > > > > cc: > > > > Sent by: Subject: RE: > > > [CANSLIM] CSTR > > > > owner-canslim@lists.xm > > > > > > > ission.com > > > > > > > > > > > > 08/27/2002 10:09 AM > > > > Please respond to > > > > canslim > > > > > > > > > > > > > > > > > > > > > > > > > > > > Dear Mike > > > > > > > > CSTR was a favorite of many Canslimers - with the problems we faced > > with > > > > buying CVH recently (too many chasing too few) we are seeing similar > > > > results, which unfortunately are on the downside. You mentioned that > > > > you got into the office late. Remember - there are people who do > this > > > > for a living with millions at stake. A slight smell of weakness and > > > > they may sell some of their position to take some risk off the table > - > > > > selling begets selling and before you know it CSTR is down over 20%. > > We > > > > have been in this situation several times before - and sold quickly - > > > > and yes much to our chagrin - some stocks came roaring back - but in > > > > other cases the stock kept declining. Throw out your ego - sell - > and > > > > if CSTR sets up again look at buying it. I don't want to get too > deep > > > > into wash sale rules, but you can't take and loss on CSTR if you buy > it > > > > back within 30 days. Good luck > > > > > > > > Ed Gjertsen II > > > > ed@macktracks.com > > > > > > > > -----Original Message----- > > > > From: owner-canslim@lists.xmission.com > > > > [mailto:owner-canslim@lists.xmission.com] On Behalf Of > > > > michael_niemotka@baxter.com > > > > Sent: Tuesday, August 27, 2002 9:25 AM > > > > To: canslim@lists.xmission.com > > > > Subject: [CANSLIM] CSTR > > > > > > > > Does anyone know what is going on with this stock? Got in late to > the > > > > office today and it is down 18%!!! > > > > > > > > I know we are supposed to sell at 7-8%, but now do I sell anyway, or > > > > wait > > > > it out to see if the day may turn a bit? > > > > > > > > Thanks > > > > > > > > Mike Niemotka , PE > > > > Sr. Principal Engineer > > > > Baxter Healthcare Corporation > > > > Route 120 & Wilson Road > > > > Round Lake, IL 60073 > > > > Tel (847) 270-4075 > > > > Fax (847) 270-4525 > > > > michael_niemotka@baxter.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. > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > - > > > > -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. > > > > > > > > - > -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, 29 Aug 2002 07:52:40 -0500 From: "Katherine Malm" Subject: [CANSLIM] Insider Trades This is a multi-part message in MIME format. - ------=_NextPart_000_01FC_01C24F31.0CAD48F0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Hi All, This excerpt is from John Mendelson's Weekly report (Schwab Capital = Markets). I thought it interesting from a CANSLIM point of view, as = insider trading patterns are one of the secondary indicators under = buying/selling strategies. As insiders will be required to report more = quickly, I wonder if this will create more "noise" or provide more = information when looking at the charts. Thought I'd also include a link = for my favorite insider tracking site: = http://insider.thomsonfn.com/tfn/insider.asp?linkcode=3D7rdcg6divt9fsuu5a= wkj. - --Katherine =3D=3D=3D=3D=3D=3D=3D=3DMendelson Excerpt (highlighting is = mine)=3D=3D=3D=3D=3D=3D=3D=3D=3D Some recent market statistics look encouraging. Corporate executives = appear to be more optimistic on their own companies as the insider trading data for the week ended = August 16, 2002 showed a parity of sales to purchases (a ratio of 1.01), as opposed to the 4 to 1 ratio of = sales to purchases two months ago, according to Vickers Weekly Insider Report. Ratios close to 1 to 1 = between insider sales and purchases have been very unusual over the past thirty years with these events producing = a gain of about 30% in the popular market averages over the next year. An classic example of the insider = trading ratio dropping to around parity was the 1.18 reading for the week ended August 20, 1982, just after a = major bottom in the market. The recent August 16 ratio was three weeks after the July 24, 2002 low. Since most = corporate insiders acquire their stock in grants or by exercising options rather than by outright = purchases and because executives buy homes, educate children etc., selling normally outweighs buying. For years, I = have believed a ratio of less than 2 to 1 is a bullish sign....as noted above, the latest reading is 1.01 to 1. = This indicator may become even more=20 useful, as next month companies will be required to report insider = trades within two days of execution rather than the current regulation of reporting by the 10th of the month. - ------=_NextPart_000_01FC_01C24F31.0CAD48F0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Hi All,
 
This excerpt is from John Mendelson's Weekly report (Schwab Capital = Markets). I thought it interesting from a CANSLIM point of view, as = insider=20 trading patterns are one of the secondary indicators under = buying/selling=20 strategies. As insiders will be required to report more quickly, I = wonder if=20 this will create more "noise" or provide more information when looking = at the=20 charts. Thought I'd also include a link for my favorite insider tracking = site:=20 http://insider.thomsonfn.com/tfn/insider.asp?linkcode=3D7rdc= g6divt9fsuu5awkj.
 
--Katherine
=3D=3D=3D=3D=3D=3D=3D=3DMendelson Excerpt (highlighting is = mine)=3D=3D=3D=3D=3D=3D=3D=3D=3D

Some recent market statistics look encouraging. Corporate executives = appear=20 to be more optimistic

on their own companies as the insider trading data for the week ended = August=20 16, 2002 showed a parity of

sales to purchases (a ratio of 1.01), as opposed to the 4 to 1 ratio = of sales=20 to purchases two months ago,

according to Vickers Weekly Insider Report. Ratios close to 1 to 1 = between=20 insider sales and purchases have

been very unusual over the past thirty years with these events = producing a=20 gain of about 30% in the popular

market averages over the next year. An classic example of the insider = trading=20 ratio dropping to around parity

was the 1.18 reading for the week ended August 20, 1982, just after a = major=20 bottom in the market. The recent

August 16 ratio was three weeks after the July 24, 2002 low. Since = most=20 corporate insiders acquire their

stock in grants or by exercising options rather than by outright = purchases=20 and because executives buy homes,

educate children etc., selling normally outweighs buying. For years, = I have=20 believed a ratio of less than 2 to 1

is a bullish sign....as noted above, the latest reading is 1.01 to 1. = This=20 indicator may become even more

useful, as next month companies will be = required to=20 report insider trades within two days of execution = rather

than the current regulation of reporting by = the 10th=20 of the month.

- ------=_NextPart_000_01FC_01C24F31.0CAD48F0-- - - - -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, 29 Aug 2002 09:07:12 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Insider Trades This is a multi-part message in MIME format. - ------=_NextPart_000_0070_01C24F3B.75F9B8C0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable I have always ignored insider selling as "noise", since there are many = reasons behind it (buying a house, diversifying their finances, new car, = college tuition, options in the money and about to expire, etc.) that = have nothing to do with "M", their company, or anything else we could = care about. On the other hand, I know of only two good reasons for = insiders to be a buyer - hype the stock (build confidence), or to make = money (they see it as their best investment opportunity).=20 On the other hand, I have found few insiders that really understand the = markets and how the investment community behaves. And insiders that have = sold are prohibited from buying new shares within 12 months, I think, so = they can't trade their company stock. A parity ratio is indeed significant, especially given corporate = governance issues today, and the new rules on disclosure about to take = affect. But we also don't want bullish sentiment, we want everyone = scared of a total collapse!! With Martha Stewart now being sued by a = shareholder for selling her own company stock (presumably in = anticipation of it tanking eventually when her Imclone trade being = revealed, which both happened later), I also wonder how many insiders = may be deciding not to sell for fear of perception, especially if they = know there is anything questionable. Oh, I am so cynical these days!!! Guess that's what happens when I get = stopped out on two stocks in just one day, and I don't normally even use = hard stops. - ----- Original Message -----=20 From: Katherine Malm=20 To: canslim@lists.xmission.com=20 Sent: Thursday, August 29, 2002 8:52 AM Subject: [CANSLIM] Insider Trades Hi All, This excerpt is from John Mendelson's Weekly report (Schwab Capital = Markets). I thought it interesting from a CANSLIM point of view, as = insider trading patterns are one of the secondary indicators under = buying/selling strategies. As insiders will be required to report more = quickly, I wonder if this will create more "noise" or provide more = information when looking at the charts. Thought I'd also include a link = for my favorite insider tracking site: = http://insider.thomsonfn.com/tfn/insider.asp?linkcode=3D7rdcg6divt9fsuu5a= wkj. - --Katherine =3D=3D=3D=3D=3D=3D=3D=3DMendelson Excerpt (highlighting is = mine)=3D=3D=3D=3D=3D=3D=3D=3D=3D Some recent market statistics look encouraging. Corporate executives = appear to be more optimistic on their own companies as the insider trading data for the week ended = August 16, 2002 showed a parity of sales to purchases (a ratio of 1.01), as opposed to the 4 to 1 ratio of = sales to purchases two months ago, according to Vickers Weekly Insider Report. Ratios close to 1 to 1 = between insider sales and purchases have been very unusual over the past thirty years with these events producing = a gain of about 30% in the popular market averages over the next year. An classic example of the insider = trading ratio dropping to around parity was the 1.18 reading for the week ended August 20, 1982, just after a = major bottom in the market. The recent August 16 ratio was three weeks after the July 24, 2002 low. Since most = corporate insiders acquire their stock in grants or by exercising options rather than by outright = purchases and because executives buy homes, educate children etc., selling normally outweighs buying. For years, I = have believed a ratio of less than 2 to 1 is a bullish sign....as noted above, the latest reading is 1.01 to 1. = This indicator may become even more=20 useful, as next month companies will be required to report insider = trades within two days of execution rather than the current regulation of reporting by the 10th of the month. - ------=_NextPart_000_0070_01C24F3B.75F9B8C0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
I have always ignored insider selling as = "noise", since=20 there are many reasons behind it (buying a house, diversifying their = finances,=20 new car, college tuition, options in the money and about to expire, = etc.) that=20 have nothing to do with "M", their company, or anything else we could = care=20 about. On the other hand, I know of only two good reasons for insiders = to be a=20 buyer - hype the stock (build confidence), or to make money (they see it = as their best investment opportunity).
 
On the other hand, I have found few insiders=20 that really understand the markets and how the investment community = behaves. And insiders that have sold are prohibited from buying new = shares within 12 months, I think, so they can't trade their company = stock.
 
A parity ratio is indeed significant, especially = given=20 corporate governance issues today, and the new rules on disclosure about = to take=20 affect. But we also don't want bullish = sentiment,=20 we want everyone scared of a total collapse!! With Martha Stewart now = being sued=20 by a shareholder for selling her own company stock (presumably in = anticipation=20 of it tanking eventually when her Imclone trade being revealed, which = both=20 happened later), I also wonder how many insiders may be deciding not to = sell for=20 fear of perception, especially if they know there is anything=20 questionable.
 
Oh, I am so cynical these days!!! Guess that's = what=20 happens when I get stopped out on two stocks in just one day, and I = don't=20 normally even use hard stops.
 
----- Original Message -----
From: Katherine Malm=20
Sent: Thursday, August 29, 2002 8:52 AM
Subject: [CANSLIM] Insider Trades

Hi All,
 
This excerpt is from John Mendelson's Weekly report (Schwab Capital = Markets). I thought it interesting from a CANSLIM point of view, as = insider=20 trading patterns are one of the secondary indicators under = buying/selling=20 strategies. As insiders will be required to report more quickly, I = wonder if=20 this will create more "noise" or provide more information when looking = at the=20 charts. Thought I'd also include a link for my favorite insider tracking = site:=20 http://insider.thomsonfn.com/tfn/insider.asp?linkcode=3D7rdc= g6divt9fsuu5awkj.
 
--Katherine
=3D=3D=3D=3D=3D=3D=3D=3DMendelson Excerpt (highlighting is = mine)=3D=3D=3D=3D=3D=3D=3D=3D=3D

Some recent market statistics look encouraging. Corporate executives = appear=20 to be more optimistic

on their own companies as the insider trading data for the week ended = August=20 16, 2002 showed a parity of

sales to purchases (a ratio of 1.01), as opposed to the 4 to 1 ratio = of sales=20 to purchases two months ago,

according to Vickers Weekly Insider Report. Ratios close to 1 to 1 = between=20 insider sales and purchases have

been very unusual over the past thirty years with these events = producing a=20 gain of about 30% in the popular

market averages over the next year. An classic example of the insider = trading=20 ratio dropping to around parity

was the 1.18 reading for the week ended August 20, 1982, just after a = major=20 bottom in the market. The recent

August 16 ratio was three weeks after the July 24, 2002 low. Since = most=20 corporate insiders acquire their

stock in grants or by exercising options rather than by outright = purchases=20 and because executives buy homes,

educate children etc., selling normally outweighs buying. For years, = I have=20 believed a ratio of less than 2 to 1

is a bullish sign....as noted above, the latest reading is 1.01 to 1. = This=20 indicator may become even more

useful, as next month companies will be = required to=20 report insider trades within two days of execution = rather

than the current regulation of reporting by = the 10th=20 of the month.

- ------=_NextPart_000_0070_01C24F3B.75F9B8C0-- - - - -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, 29 Aug 2002 07:17:51 -0600 From: "David Taggart" Subject: RE: [CANSLIM] Insider Trades This is a multi-part message in MIME format. - ------=_NextPart_000_0031_01C24F2C.2F51A3B0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: 7bit I dont use it enough but I keep reminding myself to study insider buying/selling. As a general statement I agree on insider selling not being to important and insider buying being quite useful. I have read that in a few different books and interviews from people I pay attention to like Marty Zweig and Norman Fosback who wrote Stock Market Logic. But what I need to go research is the extremes of both. In Stock Market Wizards by Schwager he interviews Ahmet H. Okumus who says he uses insider buying/selling extensively talking about how regular insider activity doesnt have much predictive power but he goes and looks at the amount bought/sold compared to the insiders net worth and things like that and judging by his trading results it must work. But for right now I just do a cursory glance to see if they are buying or selling but dont use it as key decision making tool. David Taggart -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Tom Worley Sent: Thursday, August 29, 2002 7:07 AM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] Insider Trades I have always ignored insider selling as "noise", since there are many reasons behind it (buying a house, diversifying their finances, new car, college tuition, options in the money and about to expire, etc.) that have nothing to do with "M", their company, or anything else we could care about. On the other hand, I know of only two good reasons for insiders to be a buyer - hype the stock (build confidence), or to make money (they see it as their best investment opportunity). On the other hand, I have found few insiders that really understand the markets and how the investment community behaves. And insiders that have sold are prohibited from buying new shares within 12 months, I think, so they can't trade their company stock. A parity ratio is indeed significant, especially given corporate governance issues today, and the new rules on disclosure about to take affect. But we also don't want bullish sentiment, we want everyone scared of a total collapse!! With Martha Stewart now being sued by a shareholder for selling her own company stock (presumably in anticipation of it tanking eventually when her Imclone trade being revealed, which both happened later), I also wonder how many insiders may be deciding not to sell for fear of perception, especially if they know there is anything questionable. Oh, I am so cynical these days!!! Guess that's what happens when I get stopped out on two stocks in just one day, and I don't normally even use hard stops. ----- Original Message ----- From: Katherine Malm To: canslim@lists.xmission.com Sent: Thursday, August 29, 2002 8:52 AM Subject: [CANSLIM] Insider Trades Hi All, This excerpt is from John Mendelson's Weekly report (Schwab Capital Markets). I thought it interesting from a CANSLIM point of view, as insider trading patterns are one of the secondary indicators under buying/selling strategies. As insiders will be required to report more quickly, I wonder if this will create more "noise" or provide more information when looking at the charts. Thought I'd also include a link for my favorite insider tracking site: http://insider.thomsonfn.com/tfn/insider.asp?linkcode=7rdcg6divt9fsuu5awkj. --Katherine ========Mendelson Excerpt (highlighting is mine)========= Some recent market statistics look encouraging. Corporate executives appear to be more optimistic on their own companies as the insider trading data for the week ended August 16, 2002 showed a parity of sales to purchases (a ratio of 1.01), as opposed to the 4 to 1 ratio of sales to purchases two months ago, according to Vickers Weekly Insider Report. Ratios close to 1 to 1 between insider sales and purchases have been very unusual over the past thirty years with these events producing a gain of about 30% in the popular market averages over the next year. An classic example of the insider trading ratio dropping to around parity was the 1.18 reading for the week ended August 20, 1982, just after a major bottom in the market. The recent August 16 ratio was three weeks after the July 24, 2002 low. Since most corporate insiders acquire their stock in grants or by exercising options rather than by outright purchases and because executives buy homes, educate children etc., selling normally outweighs buying. For years, I have believed a ratio of less than 2 to 1 is a bullish sign....as noted above, the latest reading is 1.01 to 1. This indicator may become even more useful, as next month companies will be required to report insider trades within two days of execution rather than the current regulation of reporting by the 10th of the month. - ------=_NextPart_000_0031_01C24F2C.2F51A3B0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
I dont=20 use it enough but I keep reminding myself to study insider = buying/selling. =20 As a general statement I agree on insider selling not being to important = and=20 insider buying being quite useful.  I have read that in a few = different=20 books and interviews from people I pay attention to like Marty Zweig and = Norman=20 Fosback who wrote Stock Market Logic.  But what I need to go = research is=20 the extremes of both.  In Stock Market Wizards by Schwager he = interviews=20 Ahmet H. = Okumus who=20 says he uses insider buying/selling  extensively talking about how = regular=20 insider activity doesnt have much predictive power but he goes and looks = at the=20 amount bought/sold compared to the insiders net worth and things like = that and=20 judging by his trading results it must work.  But for right now I = just do a=20 cursory glance to see if they are buying or selling but dont use it as = key=20 decision making tool.
 
David = Taggart
-----Original Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of Tom=20 Worley
Sent: Thursday, August 29, 2002 7:07 AM
To: = canslim@lists.xmission.com
Subject: Re: [CANSLIM] Insider=20 Trades

I have always ignored insider selling as = "noise", since=20 there are many reasons behind it (buying a house, diversifying their = finances,=20 new car, college tuition, options in the money and about to expire, = etc.) that=20 have nothing to do with "M", their company, or anything else we could = care=20 about. On the other hand, I know of only two good reasons for insiders = to be a=20 buyer - hype the stock (build confidence), or to make money (they see = it=20 as their best investment opportunity).
 
On the other hand, I have found few insiders=20 that really understand the markets and how the investment = community=20 behaves. And insiders that have sold are prohibited from buying = new=20 shares within 12 months, I think, so they can't trade their = company=20 stock.
 
A parity ratio is indeed significant, = especially given=20 corporate governance issues today, and the new rules on disclosure = about to=20 take affect. But we also don't want = bullish=20 sentiment, we want everyone scared of a total collapse!! With Martha = Stewart=20 now being sued by a shareholder for selling her own company stock = (presumably=20 in anticipation of it tanking eventually when her Imclone trade being=20 revealed, which both happened later), I also wonder how many insiders = may be=20 deciding not to sell for fear of perception, especially if they know = there is=20 anything questionable.
 
Oh, I am so cynical these days!!! Guess that's = what=20 happens when I get stopped out on two stocks in just one day, and I = don't=20 normally even use hard stops.
 
----- Original Message -----
From: Katherine Malm=20
Sent: Thursday, August 29, 2002 8:52 AM
Subject: [CANSLIM] Insider Trades

Hi All,
 
This excerpt is from John Mendelson's Weekly report (Schwab = Capital=20 Markets). I thought it interesting from a CANSLIM point of view, as = insider=20 trading patterns are one of the secondary indicators under = buying/selling=20 strategies. As insiders will be required to report more quickly, I = wonder if=20 this will create more "noise" or provide more information when looking = at the=20 charts. Thought I'd also include a link for my favorite insider = tracking site:=20 http://insider.thomsonfn.com/tfn/insider.asp?linkcode=3D7rdc= g6divt9fsuu5awkj.
 
--Katherine
=3D=3D=3D=3D=3D=3D=3D=3DMendelson Excerpt (highlighting is = mine)=3D=3D=3D=3D=3D=3D=3D=3D=3D

Some recent market statistics look encouraging. Corporate = executives appear=20 to be more optimistic

on their own companies as the insider trading data for the week = ended=20 August 16, 2002 showed a parity of

sales to purchases (a ratio of 1.01), as opposed to the 4 to 1 = ratio of=20 sales to purchases two months ago,

according to Vickers Weekly Insider Report. Ratios close to 1 to 1 = between=20 insider sales and purchases have

been very unusual over the past thirty years with these events = producing a=20 gain of about 30% in the popular

market averages over the next year. An classic example of the = insider=20 trading ratio dropping to around parity

was the 1.18 reading for the week ended August 20, 1982, just after = a major=20 bottom in the market. The recent

August 16 ratio was three weeks after the July 24, 2002 low. Since = most=20 corporate insiders acquire their

stock in grants or by exercising options rather than by outright = purchases=20 and because executives buy homes,

educate children etc., selling normally outweighs buying. For = years, I have=20 believed a ratio of less than 2 to 1

is a bullish sign....as noted above, the latest reading is 1.01 to = 1. This=20 indicator may become even more

useful, as next month companies will be = required to=20 report insider trades within two days of execution = rather

than the current regulation of reporting = by the=20 10th of the month.

- ------=_NextPart_000_0031_01C24F2C.2F51A3B0-- - - - -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 #2882 ****************************** 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.