From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #305 Reply-To: canslim Sender: owner-canslim-digest@lists.xmission.com Errors-To: owner-canslim-digest@lists.xmission.com Precedence: bulk X-No-Archive: yes canslim-digest Friday, June 26 1998 Volume 02 : Number 305 In this issue: Re: [CANSLIM] Todays list of HGS candidates Re: [CANSLIM] Todays list of HGS candidates Re: [CANSLIM] Todays list of HGS candidates [CANSLIM] Greg CDWI Re: [CANSLIM] Greg CDWI Re: [CANSLIM] Greg CDWI Re: [CANSLIM] Todays list of HGS candidates Re: [CANSLIM] Todays list of HGS candidates Re: [CANSLIM] Stock Lists Re: [CANSLIM] Todays list of HGS candidates Re: [CANSLIM] Stock lists Re: [CANSLIM] Stock Lists Re: [CANSLIM] Stock Lists Re: [CANSLIM] Todays list of HGS candidates Re: [CANSLIM] Todays list of HGS candidates Re: [CANSLIM] Todays list of HGS candidates Fwd: Re: [CANSLIM] Stock lists Re: [CANSLIM] Todays list of HGS candidates [CANSLIM] Your Canslim Digest Re: [CANSLIM] Todays list of HGS candidates Re: [CANSLIM] buying/selling tactics [CANSLIM] Hats Off to the Lurkers!! Re: [CANSLIM] Greg CDWI [CANSLIM] Re: canslim-digest V2 #303 [CANSLIM] Glossary for the HGS file (as of 6-26-96) [CANSLIM] Tom-Program Buying [CANSLIM] Non Canslim off topic Re: [CANSLIM] Re: canslim-digest V2 #303 Re: [CANSLIM] buying/selling tactics ---------------------------------------------------------------------- Date: Fri, 26 Jun 1998 08:30:06 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] Todays list of HGS candidates <> It's not so much the level of volume as the volatility. As I've mentioned before, if volume and price move the OBV up (or down) and the volume then drops to a low level of volatility, you'll get the same effect as if you'd thrown a feather into the air and it just hung there (or dropped it down a well). <> I don't think that was Dan's intention. He was just providing the results of a computer scan for us to do with as we pleased. Some of them will be CS and some won't. That's for us to determine. In any case, these computer scans can be useful sources of material to investigate. Let's not ask those who provide them to screen them first or we may not be getting them at all. Suggestion: perhaps someone could take Dan's list and look up and post the EPS, RS and A/D numbers to do a preliminary weeding, like EPS/RS>80 and A/D of A or B. Johan? Got the time (if you have an IBD available)? - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Fri, 26 Jun 1998 17:55:06 +0200 From: Johan Van Houtven Subject: Re: [CANSLIM] Todays list of HGS candidates ><valuable >when the volume is so low?>> > >It's not so much the level of volume as the volatility. I was looking at it from the perspective that low volume is a danger signal for me, as it can mean high volatility. But low volume does not automatically imply high volatility. >In any case, these computer scans can be useful sources of material to >investigate. Let's not ask those who provide them to screen them >first or we may not be getting them at all. > >Suggestion: perhaps someone could take Dan's list and look up and post >the EPS, RS and A/D numbers to do a preliminary weeding, like >EPS/RS>80 and A/D of A or B. Johan? Got the time (if you have an IBD >available)? Sorry, I'm leaving for the weekend. My wife won a free weekend at one of the local resorts. I'll be spending 99% of my time with my kids for a change. The other 1% will be spend readings Ian Woodwards HGS 101 workbook. B) And if I were not leaving for the weekend, I would have better things to do. I thought Telescan provided similar numbers like EPS Rank and RS? - -- Johan Van Houtven - - ------------------------------ Date: Fri, 26 Jun 1998 09:14:59 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] Todays list of HGS candidates <> Dan, you are a truly superior human being. - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Fri, 26 Jun 1998 12:15:27 -0500 (CDT) From: mckeener@ix.netcom.com Subject: [CANSLIM] Greg CDWI Hello Greg, I am following this stock also. A CANSLIMER. Growth rate +43%, 0% debt, mgmt 24%, but no funds. That disturbs me. It's moving up today. It has a B timeliness, a leader in the retail-misc./diversified group. It may be extended at this point. I'm not sure. The 5-day stochastics looks as though it may be going down. Further comments are appreciated. Regards, Mary - - ------------------------------ Date: Fri, 26 Jun 1998 10:32:46 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] Greg CDWI <> Why would you call this a CS stock, Mary? It's been trading for only a year and a half and there's nothing proprietary about its products or services that I know of. Just wondering what it is you're looking at. - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Fri, 26 Jun 1998 13:39:39 EDT From: Subject: Re: [CANSLIM] Greg CDWI Extended? You bet. I like the point that Db brought up earlier in regards to 50%R. This stock appears ready for some profit taking. Haven't looked yet today at intraday chart but I would assume that the entry point has passed. Maybe I'll look harder when it retracts, assuming it does. Greg - - ------------------------------ Date: Fri, 26 Jun 1998 13:45:14 EDT From: Subject: Re: [CANSLIM] Todays list of HGS candidates Isn't this type of dialogue much more pleasant. I'm really learning here. Thanks All Greg - - ------------------------------ Date: Fri, 26 Jun 1998 12:21:26 -0600 From: Dan Sutton Subject: Re: [CANSLIM] Todays list of HGS candidates Ok, so here’s the question. Obviously not all of the scan criteria is needed, so which if any can be changed or deleted? Is there other information that would be more relevant to identifying proper candidates? What criteria can anyone recognize that correlates to the proper chart patterns, or is there any I should add that would help us? I plan on adding the stochastics data, as well as MACD and maybe one or two others. Keep in mind that I am limited to 40 criteria points, but scans that contain less than 36 work better. I find it interesting to sort by each column, then look at the trading action to see if there are any clues to quick purchase candidates. As an example, sort the column titled VL/30 (it is yesterdays volume divided by the 30 day average volume) in descending order. Now look at what the top stocks in the column did today..kind of interesting. So in my EXCEL spreadsheet I might give that column a heavier weight. - - ------------------------------ Date: Fri, 26 Jun 1998 15:07:52 -0400 From: Al French Subject: Re: [CANSLIM] Stock Lists Jeffry White wrote: > > Here's the list, trimmed personally by me: > > CATP AGTX IONAY LBOR LGTO MMCN PRGN PKS WHIT LU CSCO DELL MSFT > > - Good looking list, Jefffry, thanks for the prospects. ;-) I hold some of these too, including LGTO which today seems to be strongly breaking out of a deep cup (although some might say it's too steep for a cup). C - 56% and accelerating Qtr over Qtr A - 54% and over 5 years positive earnings growth. N - New high. April OEM deal with DEC S - Float 32M. Rather high for CS, but it moves briskly anyhow L - Leader in a leading group--GRS is 94, EPS 97, RS 97 A/D A I - Funds 29, Banks 6, Management 10 M - Your call I'd be pleased if anyone wants to buy some. If a lot of members did so I'd probably be _rewarded_ by the additional volume! Al French - - ------------------------------ Date: Fri, 26 Jun 1998 11:40:00 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] Todays list of HGS candidates <> It pretty much depends on why you're doing it and what you hope to get out of it. If you're doing it for yourself, you're going to get a different answer than if you're doing it as a service to the group. If the latter, the first thing I'd suggest is that you provide a glossary to your column headings. There are a lot of newcomers here, not only to investing, but to computers and programs and spreadsheets. What seems clear to you may seem like meaningless runes on a cave wall to many others. But save whatever post you put together so that you can repost it for those who'll miss it the first time and for those who subscribe to the list thereafter. You could just attach it to the bottom, but it might make the file too big for the server to handle. Then consider that you'll have a variety of investors using this info and they'll all have different priorities and criteria. Many couldn't care less about the TA and many couldn't care less about anything else. I'd start with the basics and work my way up until I ran out of room. If that's not enough for somebody, well then they can just take their lunch and eat all by themselves at the other end of the cafeteria. - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Fri, 26 Jun 1998 16:49:31 -0400 From: Ari Lawson Subject: Re: [CANSLIM] Stock lists Just because there are 800 members,doesn't mean there all going to post something twice a day.They could all contribute something,when they feel it's constuctive or have a question that we could all learn from. Tom Worley wrote: > Valid point, John. The email volume at times becomes unmanagable as it > is. On the other hand, I can't envision all that many members sharing > their ideas, much less their entire watch list. When I posted my watch > list, I usually did it on a weekly basis, typically over the weekend > after I got done with my reviews and updates. I don't expect to change > that, but hope to do it earlier in the weekend so other members have > time to look at it, if they so choose. > > When members post/mention individual picks, I do try to look at them > for my own benefit, and will sometimes respond with comments from DG. > > Tom W > > -----Original Message----- > From: John K > To: canslim@lists.xmission.com > Date: Friday, June 26, 1998 6:08 AM > Subject: Re: [CANSLIM] Stock lists > > >Well consider this, if all 800 members post 2x a day, that's 1600 > >e-mails daily!!! I think I'd have to unsubscribe! Maybe it's better > >that some of us lurkers don't post so much, and just listen to the > >wisdom of the more experienced "gurus". > > > >John K. > > > >Tom Worley wrote: > > > >> Yeah, but my "reviews" come with a price limit and at least a one > day > >> delay (and you probably hated 20 minute delayed stock quotes) while > I > >> get "positioned". You would still need someone to cover the higher > >> priced stocks I can't afford. > >> > >> Idealistically, it's not a bad idea. Realistically, those willing > to > >> share the "fruits of their labor" will do so, the rest won't, > and/or > >> will only benefit or try to scavenge from these "pearls of wisdom". > >> > >> I won't post this new list from DGO because I don't want to violate > >> the contract with DGO, and lose the service all together. Other > >> members may have similiar copyright restrictions. I do know that I > >> expect to make far more than what it cost to have access to DGO, > but > >> that's each member's own choice depending on his finances, and what > he > >> > >> or she may find free on the net, and how useful and profitable it > may > >> be. > >> > >> And, truth be, I honestly haven't felt like we're all working > >> together. With over 800 members, we only hear from or get > >> contributions from about 10% of the group membership, usually even > >> less. This is a pretty civil group, yet we get very little > >> participation from the majority of members. > >> > >> Tom W > >> > >> -----Original Message----- > >> From: SACADS@aol.com > >> To: canslim@lists.xmission.com > >> Date: Thursday, June 25, 1998 2:50 PM > >> Subject: Re: [CANSLIM] Stock lists > >> > >> >Jans, > >> > > >> >Of course it's not too much. Maybe I'm not explaining myself well > >> enough. > >> >Call me lazy, a communist, whatever but why if were all working > >> together, (are > >> >we not?) should every member of the group purchase this software > >> program, IBD, > >> >DGO, and the vast array of screening tools available? Why spend > >> hours of time > >> >each day screening when if we split the responsibility we all save > so > >> > >> much? > >> > > >> >If I own IBD and do weekly screens on stocks and you own QPv2 and > do > >> the same > >> >and we share this information with each other we both benefit. > Tom > >> throws in > >> >his DGO screening information, Connie works the TA side, DB keeps > us > >> posted on > >> >"M", i.e. everyone contributes and we all win. > >> > > >> >I suppose I'm being pretty unrealistic. "A" type personalities > are > >> not likely > >> >to share anything without a known "profit". But could you imagine > >> ten > >> >dedicated people sharing ideas and resources openly and honestly > >> without > >> >personal attacks? Humm, me neither. > >> > > >> >Greg > >> > > >> >- > >> > > >> > >> - > > > > > > > > > > > > > >- > > > > - - - ------------------------------ Date: Fri, 26 Jun 1998 17:31:00 -0400 From: Ari Lawson Subject: Re: [CANSLIM] Stock Lists Dear Jeffry, Thank you for your watch list! I have to admit at first I thought you probably were'nt watching anything special.However when looking at the chart for CATP, it confirms my opinion that such lists should be posted! C:43% Q-ending 3/98,.20 vs .14 A:GR.65% n:(?)6/98 CO/PREDICTIVE SYS INC,NETWORK CONSULTING/INTERGRATION FIRM,ANNOUNCED ENTERPRISE NETWORK MGMT SVCS STRATEGIC PACT.(Not sure what this means but it is "N" S:51.0 million,not so small but things have changed. L:RS=89,however,EPS is 99 I: Funds 23%, Banks 14%,Mgmt 9% (?) M: Your opinion? My question is when do i buy CATP?Or do I? Thanks again Jeffry! ARI - - ------------------------------ Date: Fri, 26 Jun 1998 17:31:00 -0400 From: Ari Lawson Subject: Re: [CANSLIM] Stock Lists Dear Jeffry, Thank you for your watch list! I have to admit at first I thought you probably were'nt watching anything special.However when looking at the chart for CATP, it confirms my opinion that such lists should be posted! C:43% Q-ending 3/98,.20 vs .14 A:GR.65% n:(?)6/98 CO/PREDICTIVE SYS INC,NETWORK CONSULTING/INTERGRATION FIRM,ANNOUNCED ENTERPRISE NETWORK MGMT SVCS STRATEGIC PACT.(Not sure what this means but it is "N" S:51.0 million,not so small but things have changed. L:RS=89,however,EPS is 99 I: Funds 23%, Banks 14%,Mgmt 9% (?) M: Your opinion? My question is when do i buy CATP?Or do I? Thanks again Jeffry! ARI - - ------------------------------ Date: Fri, 26 Jun 1998 15:32:29 -0600 From: Dan Sutton Subject: Re: [CANSLIM] Todays list of HGS candidates My plan is to post the file a couple times a week (if Jeff doesn't mind). That way there will be something for everyone to focus on besides each other. Hopefully it will provide a launching point for some people to find qualified candidates, and perhaps spark some discussion on specific stocks that everyone can watch or research. > If the latter, the first thing I'd suggest is that you provide a > glossary to your column headings. You are absolutely right about the glossary, since the file is already too big to be posted without Jeff approving it, I will just add it to the top of the list so it is attached with each message (if that's OK with Jeff). Are there any particular data points you would like included? - - ------------------------------ Date: Fri, 26 Jun 1998 17:33:22 -0400 From: Ari Lawson Subject: Re: [CANSLIM] Todays list of HGS candidates Great now there are so many freaking lists I'll never be able to keep up with them.Oh well i asked for it! ARI - - ------------------------------ Date: Fri, 26 Jun 1998 18:09:58 -0400 From: Ari Lawson Subject: Re: [CANSLIM] Todays list of HGS candidates HERE! HERE! SACADS@aol.com wrote: > Isn't this type of dialogue much more pleasant. I'm really learning here. > > Thanks All > > Greg > > - - - ------------------------------ Date: Fri, 26 Jun 1998 18:21:23 -0400 From: Mark Schiffner Subject: Fwd: Re: [CANSLIM] Stock lists Personally, I've only posted half a dozen times. Being fairly new to investing, I am trying to learn. I believe I learn fairly fast and am already getting the language down, but it is hard for me to have decent posts with the wide variance in knowledge. I am not confortable arguing points that I am just being to understand, especially with recent attacks going on. I have asked questions thought, and the group is wonderful about answering. I also find that a question I feel component to answer is usually answer multiple times and I do not need to give yet another answer. I have been reading HTMMIS again as a refresher now that I understand things better. I think my posting will increase as I become more knowledgable. Of course, people will appreciate my posts more at that point (I hope :-). I bet there are numerous people who feel that way. Lastly, if 50% of the people posted regularly, we would be flooded with e-mail. For me, the volume is a lot to keep up with already, heaven forbidden I don't read my e-mail for a few days. With all that said, thanks all for a great list to learn from. Mark Schiffner >And, truth be, I honestly haven't felt like we're all working >together. With over 800 members, we only hear from or get >contributions from about 10% of the group membership, usually even >less. This is a pretty civil group, yet we get very little >participation from the majority of members. > >Tom W - - ------------------------------ Date: Fri, 26 Jun 1998 15:37:09 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] Todays list of HGS candidates <> If you're asking me personally, I can't think of a better opportunity for people to begin contributing their ideas and opinions. Why don't those who have preferences on this let Dan know by tomorrow so that he can know what's wanted? I suggest private e-mail since he's going to have to go through all the responses either way. - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Fri, 26 Jun 1998 19:21:17 -0400 From: Ray Mathews Subject: [CANSLIM] Your Canslim Digest I have now had the pleasure (??) of perusing several issues of the digest. Since I don't have all day to watch stocks, this information can be of value to me, although I can (and have) come up with many of the choices of the group on my Tuesday (yes, not Saturday, and not Monday) morning IBD scans. I'm sure I won't be telling anyone something new when I mention that PitBull Investors also follow CANSLIM with some interesting variations. What the members of this group may not be aware of is an investment strategy called (wow) 'The Ultimate Stock Trading System'. This strategy uses canslim (mostly), again, with some interesting variations. You might see this fellow's ad in IBD as 'RETIRE EARLY investing our way. Guaranteed. Free Info. (+address) The strategy sells for $49.95 (+snail mail delivery). Putting CANSLIM, PitBull, and TUSTS together has given me a fairly good investment tool, but being a technician-type, I still rely heavily on trend lines, TL breaks, and buying at the bottom or selling at the top of channels when entering a trade. My faith in 'RS declines' has yet to be proven useful. If you have any comments on this, I'd certainly like to hear them. By the way, if you decide to invest in TUSTS, mention my name. I'll get credit for recruiting you (??). (I didn't intend for this to be a commercial - honest) I wait eagerly for your next issue of canslim digest. - - ------------------------------ Date: Fri, 26 Jun 1998 18:01:38 -0400 From: Ari Lawson Subject: Re: [CANSLIM] Todays list of HGS candidates Excuse my ignorance! How the hell do you keep up with this size stock list?????? AT A LOSS,ARI Dan Sutton wrote: > Duh, > All I had to do was clear all the formatting in EXCEL and turn off the > "wrap long lines" option in Netscape. Here are all the candidates with > the criteria for each. Again this is only a candidate list and will > require more research before even being added to a watch list. This list > reflects TELESCAN's numbers not IBD's. As far as amount of work > involved, once the criteria is decided on and the Prosearch is built, > the scan takes about 30 seconds each night. I have 4 TELESCAN searches > that I run each evening.I have some formulas that I use that weights > each criteria for importance, then I download a years worth of data from > TC2000 into my Supercharts program. I use Supercharts for the technical > trigger. I currently have 50 stocks that I download nightly prices and > have Supercharts analyze. These stocks include "mattress stuffers" like > Ford, Gillette, Albertsons, Disney, Dell, etc..and also HGS candidates. > > Any suggestions or questions, email me at dsutton1@cris.com > > Symbol Grp Price ERG EPSRk $Rank GrpRk cGRP3 Earns 1YrEg 3YrEg 1YrSa 1yPEG %cECu %cENx %cELt %cE-2 %cE-3 %cE-4 %Hi52 GPMQr AcDst 1-Wk 6-Wk 26-Wk ROE %InsH 10Brk 50MA 200MA EDATE Volum VL/30 PosS# P/E $/Sls > ANF RAP 43 98 99 121.5 123.6 5.3 1 103.9 74.8 11.8 47.9 150 45 1100 70 122.2 300 90.5 36.6 60 106.8 103.6 143.9 136.7 21 2 101.1 123 980514 704.8 93.2 3 41.3 3.8 A zillion companies removed... - - ------------------------------ Date: Fri, 26 Jun 1998 21:32:19 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] buying/selling tactics db, Again, if you choose to take this question as "provocative", that's your choice. But I am tired of being called "non canslim" so when I hear something being professed in a canslim site as part of a canslim strategy, and I never heard about it after 7 years of reading, studying, being trained in, and using canslim, then please expect me to ask a question or two. Maybe I need to learn more about canslim, maybe I just missed something in the book, maybe it's your own slant on applying canslim, but if it's a part of canslim and I don't know it I want to learn more. One thing I was taught by WON staffers was that it was normal and healthy for a stock to give back 25% of a move up. If it gave back 50% of that move, it was a bad sign and should be avoided. But I don't recall any discussion on half of a retracement (without respect to how that retracement compares to the move up, its base, MA, etc) being either an indicator for a handle to form, or for use as a buy point. Spent some time tonight going thru HTMMIS trying to learn more but found nothing specific. Most of what I have read on c&h formations suggests the best ones form the handle close to the same price as the left edge of the cup, not halfway up. I did reread the section in HTMMIS on page 26 (first ed) "When to Correctly Begin Buying a Stock" and it seems clear that you should be buying at or close to its high, not 50% of the retracement below. Please elaborate and educate. Tom W - -----Original Message----- From: dbphoenix To: canslim@lists.xmission.com Date: Friday, June 26, 1998 10:05 AM Subject: Re: [CANSLIM] buying/selling tactics > >Sorry. Yes. Take the most recent high and the most recent low and >find the difference. Take half that and add it to the low and that >gives you your *minimum* target for the handle. > - - ------------------------------ Date: Fri, 26 Jun 1998 22:16:07 -0400 From: Jeffry White <"postwhit@sover.net"@sover.net> Subject: [CANSLIM] Hats Off to the Lurkers!! Well, my hat's off to the lurkers who have come out of the bunker and collectively decided to push this group out of the mud hole I, and others, seem to have created by spinning wheels in place for so long. Thanks Dan, Greg, ARI and all others. Look forward to watching your work. Also look forward to helping where I can (most likely "M" and entry point), and it seems that Db and Connie Mack are behind you folks, as well. BTW, ARI, I think "M" is fine. And CATP? I'm looking at it closely and will comment on my "entry point" approach on a chart pattern like this one. Regards. JW - - ------------------------------ Date: Fri, 26 Jun 1998 22:37:19 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Greg CDWI Mary, Disagree (naturally) with db. Your comments are on target. CS data on this one are 99/99/B/A. GRS is also 90. No surprise it's #1 in its group, I'm sure Blockbuster Video had its naysayers when it was just starting as well (what's that so many have been saying about watching for new leadership?). As for the "N" of CANSLIM, it already fulfilled that with several recent new highs, which also meets Wm O'Neill's basic guidelines. And you are also correct in assessing it as too extended right now, after exploding out of a very nice base around 12 (another thing WON talks about in HTMMIS is watching the ones that hold up well and base along their highs in an adverse "M" - page 152). That's exactly what this one did. Because it's extended, and it's PE is high, and it's recent price move so sharp and recent, it is vulnerable to giving up some or all of its gains, thus not a buy just now. If it enters into a lengthy, or even short, basing action now, there will undoubtedly be profit takers that will get bored and take their profits. That could cause or add to a basing pattern or even a retracement. Definitely not a fresh buy right here, but has all the CS elements to justify keeping on a watch list. Just goes to show you can get more than one opinion on a stock. And no, I don't own a share nor have ever traded it. Tom W - -----Original Message----- From: dbphoenix To: canslim@lists.xmission.com Date: Friday, June 26, 1998 1:34 PM Subject: Re: [CANSLIM] Greg CDWI ><debt, >mgmt 24%, but no funds. That disturbs me. It's moving up today. It >has >a B timeliness, a leader in the retail-misc./diversified group. It may >be extended at this point. I'm not sure. The 5-day stochastics looks >as >though it may be going down. > >Further comments are appreciated. > >Regards, >Mary>> > >Why would you call this a CS stock, Mary? It's been trading for only >a year and a half and there's nothing proprietary about its products >or services that I know of. Just wondering what it is you're looking >at. > >--Db > > > > > > > >_________________________________________________________ >DO YOU YAHOO!? >Get your free @yahoo.com address at http://mail.yahoo.com > > >- > - - ------------------------------ Date: Fri, 26 Jun 1998 22:44:06 -0400 From: "H. Gary Kuzia" Subject: [CANSLIM] Re: canslim-digest V2 #303 In response to the post, not leaving a buy order in overnight. How do those of us who do not have the ability to execute a "buy order" after the market opens. I go to work at 7:00 am. The market opens at 9:30 am. I use DLJ Direct as my on-line broker. The only way I can affect the purchase price is to place a specific "buy order" at a certain price. I have done that on occasion and my order has NOT been filled because the stock did not reach that price. Any suggestions? Gary - - ------------------------------ Date: Fri, 26 Jun 1998 20:42:58 -0600 From: "Dan Sutton" Subject: [CANSLIM] Glossary for the HGS file (as of 6-26-96) Following is an "almost complete" glossary of the column headings included on the file I posted this morning. I will flesh it out a bit over the weekend. It is in the same order (or close enough to tell the difference) as the columns. ERG is the sum of three rankings EPS rank, price rank and group rank which sum is then ranked against all other companies. This allows you to use one indicator to search for stocks which are exhibiting the most momentum with respect to price, earnings and group strength EPS Rank combines a company's earnings performance over the past five years into a single indicator so that it can be used to rank earnings momentum against all other companies. It is computed as the weighted sum of the following earnings growth rates (over 5 years), with the heaviest weight on the most recent quarter: Last quarter percentage change in EPS, Previous quarter percentage change in EPS, 5-year percentage change in EPS and EPS stability, which is one standard deviation of data fit through five years of quarterly EPS data (three years are used if five years are not available). Price Rank measures a stock's price performance over a year, using the weighted sum of the stock's quarterly relative performance, with the heaviest weight on the most recent three months. Group Rank measures an industry group's strength over six months, using the sum of the group's relative performance, with the heaviest weighting on the most recent three months. Earnings Per Share (EPS) reflects the company's net after-tax earnings divided by the number of outstanding shares. (Telescan uses the reported primary earnings per share for the trailing 12 months through the most recently reported quarter, excluding extraordinary items.) Earnings Growth Rate indicators reveal how much a company's earnings per share have grown on an annual basis during some past period. A historical sales growth rate is the annualized compounded percentage growth rate over the past x-number of quarters. Five-year sales growth rate is used in ProSearch as a search indicator. Because sales generally precede earnings, a high sales growth rate is a barometer of potential earnings. Current FY Projected Earnings This indicator compares earnings estimates for the current fiscal year with actual earnings of the last fiscal year, to arrive at the projected change (EPS growth rate) in earnings, expressed as a percentage. (It is also referred to as a one-year projection.) For example, if a company's earnings for the fiscal year just ended were $1.00 and its projected earnings per share for the current fiscal year were $1.20, its current FY projected EPS growth rate would be 20 percent. Projected EPS % Change Current compares the projected earnings for the current quarter with actual earnings for the same quarter a year ago and divides the increase or decrease by the actual earnings for the same quarter a year ago. Projected EPS % Change Next compares the projected earnings for the next quarter with actual earnings for the same quarter a year ago and divides the increase or decrease by the actual earnings for the same quarter a year ago EPS % Change Last Quarter compares last quarter's earnings with the same quarter a year ago. EPS % Change 2 Quarters Ago compares earnings two quarters ago with the same quarter a year ago. EPS % Change 3 Quarters Ago compares earnings three quarters ago with the same quarter a year ago. EPS % Change 4 Quarters Ago compares earnings four quarters ago with the same quarter a year ago. % high value indicators express a stock's current price as a percentage of its highest price (including today) over 4, 6, 13, 26 or 52 weeks: Current price divided by the highest price times 100. Gross Profit Margin Last Quarter measures GPM for the last quarter. Gross profit margin (GPM) measures the percent of revenue remaining after paying all direct production costs. This indicator is not available for banks and insurance companies. Accumulation / Distribution ranks a stock's trading activity over the past 50 days with other companies. For each of those 50 days, the stock's volume is multiplied by its change in price; then those 50 numbers are combined into one value. Stocks with the highest values are those which have the most volume on their up days, which indicates that money is moving into the stock. Relative Performance compares a stock's performance with its own history, revealing how much the stock has gained or lost in price over a period of time. For example, a stock that has moved from $10 six weeks ago to $15 today, it would have a six-week relative performance of 150 (i.e., 150 percent of its previous price). Return on equity (ROE) is the most fundamental indication of a company's ability to increase its earnings per share. Theoretically, if a company has a 15 percent return on equity and is not paying out its earnings in dividends, you could expect its EPS growth rate to be approximately 15 percent per year or more if it can employ those earnings profitably. Percentage of Institutional Holdings is the percentage of outstanding shares owned by institutions, such as banks, mutual funds, and pension funds. A moving average breakout occurs when the stock price crosses its moving average. When the stock price crosses above the moving average, it is a positive signal; when it crosses below the moving average, it is a negative signal. The Estimated Date of Next EPS Release is an approximation of the next time that a company will release its earnings. Many times the exact date of the release is unknown, so by taking the last reported EPS date and adding approximately three months (one quarter) to it, an estimated date of next EPS release can be calculated. Today's Volume is calculated as the number of shares traded during the most recent trading day. This indicator compares a stock's trading volume on the most recent day with its 30-day average volume. EPS POS Surprise Last 4 Quarters calculates the number of times in the last 4 quarters that EPS has positively surprised. Stochastics measures the position of a stock, market, or industry group average as compared with its most recent trading range, indicating oversold and overbought conditions. Low value indicators express a stock's current price as a percentage of its lowest price (including today) over 4, 6, 13, 26 or 52 weeks: Current price divided by the lowest price times 100. P/E ratio (price-to-earnings ratio) shows the relationship of the stock price to its earnings per share. It is one of the most important indicators for determining overvaluation or undervaluation. Price-to-Sales Ratio is the relationship of a company's stock price to its annual sales (or revenues) per share. - - ------------------------------ Date: Fri, 26 Jun 1998 19:51:28 -0700 (PDT) From: Tannis Malone Subject: [CANSLIM] Tom-Program Buying Tom, There was an article in the WSJ today that reported on the program buying on the week ending June 12. It was mentioned that ~20% of the "buying" that week was program buying of undervalued stocks. Things got a little overzealous, I guess, and trading was stopped a number of times -typically it seems, midmorning and later afternoon. I've been reading this paper for years and have never noticed this type of report before. Is this consistent with what you know? Is 20% program buying high or low? During that time, I was trying to figure out who the next leaders would be, are these the people determining who the next leaders are? How could I have known? _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ Date: Fri, 26 Jun 1998 22:53:31 -0400 From: "Tom Worley" Subject: [CANSLIM] Non Canslim off topic Don't know how many noticed or cared, with all the focus on the yen, but the S. African rand underwent a major bear raid on the currency over the past day. Down over 8% despite intervention by TWO of the G7 partners (US Fed Reserve and Bank of England), and it's not even a G7 member, or even close. Gives you a clue to how important this may be. Led to more hedge selling by S. African gold producers as well. Could be another "hot spot" developing. Tom W - - ------------------------------ Date: Fri, 26 Jun 1998 23:11:11 EDT From: Subject: Re: [CANSLIM] Re: canslim-digest V2 #303 Gary, It's a tough spot that many of us find ourselves in. I personnally would never place a market order prior to 10:00 a.m. There's just to much early action and news releases for that. One thing I try to determine prior to the open is what type of "M" I can expect early in the day. Tom has done an excellent job at this in the past. You can pull up the international markets which often helps or watch an early a.m. talking heads show. As far as your limit orders not being excecuted don't worry. If after you've researched the stock you feel a valid entry is at 42.5 then set your day limit at that. If the stock doesn't drop or rise to that point then you've lost nothing. Use your lunch hour to research. Hamburger in left hand, keyboard with right. Watch out for the ketchup. If the stocks action is as you expected place your market order at that point. Donate heavily to the State Police Association and wear their decal in a prominent position as you race home to catch the market before it closes. If you start work at 7:00 and can't get home before 4:00 maybe you can log on at work. Try to be realistic yet conservative on limit orders placed on both sides. Hope this helps. Greg - - ------------------------------ Date: Fri, 26 Jun 1998 20:12:48 -0700 (PDT) From: dbphoenix Subject: Re: [CANSLIM] buying/selling tactics <> I'm going to assume that you had a bad day and that your tone is a result of that. Whether you are CANSLIM or not is not really a concern of mine. I wouldn't touch a microcap with a ten-foot pole, but it's your money. As far as the question you've addressed to me, I've said nothing to stir up anger in anyone. To begin with, I never advocated buying a stock that had fallen 50%. If I did, it was a brain burp. I virtually never buy a stock that's below its 200d, and a stock which falls 50% will probably be below that average. Second, O'N speaks in many places other than a ten-year-old book--online interviews, seminars, IBD articles, and so on. I don't feel compelled to dig through old IBDs to find everything they've written about cups and handles. My only responsibility is to convey what I know as accurately and fairly as I can. As far as the cups and handles themselves go, O'N says, in the book, that handles that form in the lower half of the cup are prone to fail. Handles that form in the upper half of the cup are prone to succeed. At the school I went to, the line that separates the lower half from the upper half is drawn at the halfway point. The halfway point represents a 50% retracement. A 50% retracement means a 50% retracement from the bottom of the cup, not the degree to which the stock fell. Again according to the book, the cup can represent as much as a 33% decline. If your trainers told you something different, that's between you, them, and O'N. As far as the buypoint goes, again according to the book, it need not be at the old high but can be as much as 10% below it. This is completely unrelated to the degree of retracement from the bottom. If a stock corrects at 30 for a 20% drop to 24 and retraces 50% of that amount, the 50% retracement level is pegged at (30-24)/2 + 24. In other words, 27. And how far below 30 is 27? 10%. If that still is not enough, then I suggest you look at the charts given as examples in the book. Many of those handles are noticeably more than 10% below the left rim of the cup. Take from that what you will. - --Db _________________________________________________________ DO YOU YAHOO!? Get your free @yahoo.com address at http://mail.yahoo.com - - ------------------------------ End of canslim-digest V2 #305 ***************************** 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.