History Channel

Fundamental Analysis: P/S - I Love You=20 (Sometimes)
----------------------------------------------------------= - --
Investors=20 are always seeking ways to compare the value of stocks.
The = price-to-sales=20 ratio provides a simple approach: take the
company's market = capitalization=20 (the number of shares multiplied
by the share price) and divide it = by the=20 company's total sales
over the past twelve months. The lower the = ratio, the=20 more attractive
the investment. As easy as it sounds, price-to-sales = provides
a useful measure for sizing up stocks. But investors need = to
be=20 mindful of the ratio's potential pitfalls and possible =
unreliability.=20

Read this article at:
h= ttp://www.investopedia.com/articles/fundamental/03/032603.asp

- ------=_NextPart_000_010F_01C2F3D0.ECE4A5F0-- - - - -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, 26 Mar 2003 21:49:07 -0700 From: "Rolf Hertenstein" Subject: Re: [CANSLIM] "M" with references to WON books Thanks for the link. I'm bothered by his second graphic (New definition of Follow Through). He's starting to count on a day that closed lower (looks like 09/21/2001). That can't be right, can it? Rolf > Hi All, > > Here's a summary explanation of WON's guidelines for both the "old" and the > "new" definition of a FTD: > > http://www.market-tester.com/newft.htm > > My read on WON's guidelines is that 1%+ would be fine if it were accompanied > by a slew of breakouts. 2% is useful, but even it doesn't hold water without > a slew of stocks at least *setting up* for breakout. > > In either case, it only makes sense that the "market" is a summary indicator > of its individual components. If the majority of individual CANSLIM-quality > stocks are acting well, then our "market" is healthy. If the individual > CANSLIM-quality stocks are not acting well, it's a mine field. As Ed said, > grounds for stepping lightly. > > Katherine > > -----Original Message----- > From: owner-canslim@lists.xmission.com > [mailto:owner-canslim@lists.xmission.com]On Behalf Of Tim Katona > Sent: Friday, March 14, 2003 10:40 AM > To: canslim@lists.xmission.com > Subject: RE: [CANSLIM] "M" with references to WON books > > > Rolf, > That was the page I was looking for! > > From page 78 of WON's 24 lessons book, In bold letters: > "You only start counting a rally if the close is up from the prior day." > In this case, Wednesday March 12 did close higher than Tuesday. > > Also on page 78: > ""Follow-through" day. Index up 1% or more on increased volume from the day > before. Market is in new uptrend. Usually occurs fourth through seventh day > of an attempted rally." > > (Since 24 lessons was published WON did change the "Index up 1% or more on > increased volume from the day before" to 2% or more.) > > Also see HTMMIS third edition pages 64 and 65 on rally attempt, 2% reasoning > and follow-through day. Interesting, WON says that a follow-through could > even occur on the third day of a rally attempt if certain conditions exist. > Tim > > > -----Original Message----- > From: owner-canslim@lists.xmission.com > [mailto:owner-canslim@lists.xmission.com]On Behalf Of Rolf Hertenstein > Sent: Friday, March 14, 2003 8:16 AM > To: canslim@lists.xmission.com > Subject: Re: [CANSLIM] "M" > > > I've been following the example from 24 Lessons, pg. 78. The first day of > an attempted rally is a day in which an index closes up sans volume > considerations. A FTD day usually occurs on day 4 to 7 (higher volume, 2% > increase). From Tim's comments, IBD is following that criteria. > > I guess an 'attempted' rally becomes a 'confirmed' rally if a FTD occurs on > days 4 thru 7 (and as late as 10). I try to qualify 'attempts' based on the > action of the first day; we've had at least a couple of weak attempts (that > failed) lately. > > Rolf > > > > I think so, but welcome other opinions on this. > > > > ----- Original Message ----- > > From: "Rolf Hertenstein" > > To: > > Sent: Friday, March 14, 2003 10:20 AM > > Subject: Re: [CANSLIM] "M" > > > > > > Thanks, Tom. For my edification, do you think your count is in accordance > > with WON? > > > > Rolf > > > > > I start my count with yesterday, because of the combination of price > gain > > > and volume. On Wednesday, volume improved, but only sufficient to turn a > > > down day into a moderate loss. Historically, maybe Wednesday will prove > to > > > be a reversal day that marked a second bottom. But by itself I don't use > > it > > > as a starting point for counting. Thursday, on the other hand, can stand > > on > > > its own merits. > > > > > > It also does not hurt that every major index participated Thursday, > while > > > only most were benefiting on Wednesday > > > > > > ----- Original Message ----- > > > From: "Rolf Hertenstein" > > > To: > > > Sent: Friday, March 14, 2003 8:35 AM > > > Subject: Re: [CANSLIM] "M" > > > > > > > > > Does anyone count yesterday other than day 2, and if so, what and why? > > > > > > Rolf > > > > > > > strictly market days, Mike > > > > > > > > ----- Original Message ----- > > > > From: "Mike" > > > > To: > > > > Sent: Friday, March 14, 2003 12:41 AM > > > > Subject: Re: [CANSLIM] "M" > > > > > > > > > > > > Certainly was a fine rally, the shorts are writhing in fear. I > wouldn't > > > be > > > > disappointed to see a retest soon, how that goes will be more telling. > > > > > > > > How are you counting the 4-7 days, market days or including weekends? > > > > Thanks, > > > > Mike > > > > > > > > > > > > >> > > > > OK, we got a good rally today, whether it was just a relief rally, or > > > short > > > > covering, or maybe even a real rally, with real sidelined cash flowing > > > back > > > > in. > > > > > > > > Mutual funds only have two weeks to invest any cash in excess of their > > > > limits, and may have contributed. A delay in a vote at the UN is being > > > > credited, so just may be news driven, here today, gone tomorrow. > > > > > > > > Nonetheless, we certainly got a 2+% gain on every index, and on volume > > > well > > > > exceeding daily average. And that comes in a period when daily volume > > has > > > > been typically well under average. > > > > > > > > So, is anybody starting to count the days, looking for the follow thru > > day > > > > 4-7 days out? Coincidentally, that period might also fall just after > war > > > > with Iraq is unilaterally initiated by the USA, which would cause at > > least > > > > some minor relief rally. > > > > > > > > Does anyone trust today's gains? With so much news, can we trust > > > technicals? > > > > > > > > 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. > > > > > > > > > > > > - > > > -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, 27 Mar 2003 13:21:09 +0100 From: =?iso-8859-1?Q?S=E9bastien_Derks?= Subject: [CANSLIM] Historical data in excell Can anyone explain how to make a chart with historical date from finance.yahoo.com in Excel. I tried it with the stock and it tells me to put it into a certain order but it just does not work. Thanks. PS Maybe an example excel sheet would be nice. Thanks :). - - - -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, 27 Mar 2003 09:14:20 -0600 From: "Katherine Malm" Subject: RE: [CANSLIM] Historical data in excell Hi Sebastien, In order to used the canned stock price chart in Excel, you'll need to move the location of the "volume" column as exported from Yahoo. Here's a quick example so that you can see how the data needs to look: http://www.cwhcharts.com/katherine/ChartYahooData.xls Be very careful when using the exported Yahoo historical data, however, because when you do an export to Excel, they include the *adjusted* closing price rather than the actual closing price. That's not a problem when they pay stock dividends (splits) but a big problem when they pay cash dividends. In other words, your chart will not reflect the trading closes if the stock pays a cash dividend. Katherine - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of S�bastien Derks Sent: Thursday, March 27, 2003 6:21 AM To: canslim@lists.xmission.com Subject: [CANSLIM] Historical data in excell Can anyone explain how to make a chart with historical date from finance.yahoo.com in Excel. I tried it with the stock and it tells me to put it into a certain order but it just does not work. Thanks. PS Maybe an example excel sheet would be nice. Thanks :). - - - -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, 27 Mar 2003 10:35:13 -0500 From: "Tom Worley" Subject: Re: [CANSLIM] Fundamental Analysis: P/S - I Love You (Sometimes) This is a multi-part message in MIME format. - ------=_NextPart_000_009C_01C2F44C.8CFC6C00 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Gene, a p/s ratio of 1.0 or less is fine if you are looking for fallen = angels, bottom fishing, value shopping, etc. But I don't see what that = has to do with CANSLIM Because expectations drive price, and thus high expectations would = create a high p/s ratio, I am automatically suspicious whenever I find a = stock hitting new highs, with great CANSLIM fundamentals, but a = relatively low p/s ratio (generally under 2.0). It forces me to dig = deeper to figure out why the price does not already reflect a higher = premium. - ----- Original Message -----=20 From: Gene Ricci=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, March 26, 2003 8:50 PM Subject: [CANSLIM] Fundamental Analysis: P/S - I Love You (Sometimes) Appreciate comments on this article. Gene Fundamental Analysis: P/S - I Love You (Sometimes) - ------------------------------------------------------------ Investors are always seeking ways to compare the value of stocks.=20 The price-to-sales ratio provides a simple approach: take the=20 company's market capitalization (the number of shares multiplied=20 by the share price) and divide it by the company's total sales=20 over the past twelve months. The lower the ratio, the more attractive=20 the investment. As easy as it sounds, price-to-sales provides=20 a useful measure for sizing up stocks. But investors need to=20 be mindful of the ratio's potential pitfalls and possible=20 unreliability.=20 Read this article at: http://www.investopedia.com/articles/fundamental/03/032603.asp - ------=_NextPart_000_009C_01C2F44C.8CFC6C00 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable

Gene, a p/s ratio of 1.0 or less is fine if you = are=20 looking for fallen angels, bottom fishing, value shopping, etc. But I = don't see=20 what that has to do with CANSLIM

Because expectations drive price, and thus high=20 expectations would create a high p/s ratio, I am automatically = suspicious=20 whenever I find a stock hitting new highs, with great CANSLIM = fundamentals, but=20 a relatively low p/s ratio (generally under 2.0). It forces me to dig = deeper to=20 figure out why the price does not already reflect a higher = premium.

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

From: Gene Ricci =

To: canslim@lists.xmission.com=

Sent: Wednesday, March 26, 2003 8:50 PM

Subject: [CANSLIM] Fundamental Analysis: P/S - I Love You=20 (Sometimes)

Appreciate comments on this=20 article.

Gene

- ------=_NextPart_000_009C_01C2F44C.8CFC6C00-- - - - -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, 27 Mar 2003 10:55:06 -0500 From: "Jonathan Lobatto" Subject: Re: [CANSLIM] Fundamental Analysis: P/S - I Love You (Sometimes) This is a multi-part message in MIME format. - ------=_NextPart_000_00DF_01C2F44F.53C665A0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Not only that, but basically each industry has a P/S ratio that's = totally dependent on the typical profit margin of that industry. For = instance, a supermarket may have a P/S ratio far below 1.0 because they = operate on a miniscule margin. Ken Fisher published a newsletter about = 15-20 years ago that used a P/S ratio to pick stocks. It was not very = successful and he sold the letter to a woman who finally gave up the = whole approach. Not to say it's useless, but at the very least it's a = far cry from CANSLIM. ----- Original Message -----=20 From: Tom Worley=20 To: canslim@lists.xmission.com=20 Sent: Thursday, March 27, 2003 10:35 AM Subject: Re: [CANSLIM] Fundamental Analysis: P/S - I Love You = (Sometimes) Gene, a p/s ratio of 1.0 or less is fine if you are looking for fallen = angels, bottom fishing, value shopping, etc. But I don't see what that = has to do with CANSLIM Because expectations drive price, and thus high expectations would = create a high p/s ratio, I am automatically suspicious whenever I find a = stock hitting new highs, with great CANSLIM fundamentals, but a = relatively low p/s ratio (generally under 2.0). It forces me to dig = deeper to figure out why the price does not already reflect a higher = premium. ----- Original Message -----=20 From: Gene Ricci=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, March 26, 2003 8:50 PM Subject: [CANSLIM] Fundamental Analysis: P/S - I Love You (Sometimes) Appreciate comments on this article. Gene Fundamental Analysis: P/S - I Love You (Sometimes) ------------------------------------------------------------ Investors are always seeking ways to compare the value of stocks.=20 The price-to-sales ratio provides a simple approach: take the=20 company's market capitalization (the number of shares multiplied=20 by the share price) and divide it by the company's total sales=20 over the past twelve months. The lower the ratio, the more attractive=20 the investment. As easy as it sounds, price-to-sales provides=20 a useful measure for sizing up stocks. But investors need to=20 be mindful of the ratio's potential pitfalls and possible=20 unreliability.=20 Read this article at: http://www.investopedia.com/articles/fundamental/03/032603.asp - ------=_NextPart_000_00DF_01C2F44F.53C665A0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable

Not only that, but basically = each industry=20 has a P/S ratio that's totally dependent on the typical profit = margin of=20 that industry. For instance, a supermarket may have a P/S ratio far = below 1.0=20 because they operate on a miniscule margin. Ken Fisher published a = newsletter=20 about 15-20 years ago that used a P/S ratio to pick stocks. It was not = very=20 successful and he sold the letter to a woman who finally gave up the = whole=20 approach. Not to say it's useless, but at the very least it's a far cry = from=20 CANSLIM.

----- Original Message -----
From:=20 Tom=20 Worley

To: canslim@lists.xmission.com=

Sent: Thursday, March 27, 2003 = 10:35=20 AM

Subject: Re: [CANSLIM] = Fundamental=20 Analysis: P/S - I Love You (Sometimes)

Gene, a p/s ratio of 1.0 or less is fine if = you are=20 looking for fallen angels, bottom fishing, value shopping, etc. But I = don't=20 see what that has to do with CANSLIM

Because expectations drive price, and thus = high=20 expectations would create a high p/s ratio, I am automatically = suspicious=20 whenever I find a stock hitting new highs, with great CANSLIM = fundamentals,=20 but a relatively low p/s ratio (generally under 2.0). It forces me to = dig=20 deeper to figure out why the price does not already reflect a higher=20 premium.

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

From: Gene Ricci =

To: canslim@lists.xmission.com=

Sent: Wednesday, March 26, 2003 8:50 PM

Subject: [CANSLIM] Fundamental Analysis: P/S - I Love You=20 (Sometimes)

Appreciate comments on this = article.

Gene

Fundamental Analysis: P/S - I Love You=20 = (Sometimes)
----------------------------------------------------------= - --
Investors=20 are always seeking ways to compare the value of stocks.
The = price-to-sales=20 ratio provides a simple approach: take the
company's market = capitalization=20 (the number of shares multiplied
by the share price) and divide it = by the=20 company's total sales
over the past twelve months. The lower the = ratio,=20 the more attractive
the investment. As easy as it sounds, = price-to-sales=20 provides
a useful measure for sizing up stocks. But investors need = to=20
be mindful of the ratio's potential pitfalls and possible=20
unreliability.

Read this article at:
h= ttp://www.investopedia.com/articles/fundamental/03/032603.asp

- ------=_NextPart_000_00DF_01C2F44F.53C665A0-- - - - -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, 27 Mar 2003 11:43:08 -0600 From: "Gene Ricci" Subject: Re: [CANSLIM] Fundamental Analysis: P/S - I Love You (Sometimes) This is a multi-part message in MIME format. - ------=_NextPart_000_03D4_01C2F456.09876C30 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Thanks Tom! I might be all wet but I feel that companies will have a hard time = fudging this ratio. They can fudge EPS lots of different ways, but = there are few ways to fudge sales. There are some (particularly = software companies) that have in the past. Some used to book the entire = amount of a contract sales when it was signed, rather than book when it = was billed. But this practice has been under fire and is likely to go = away if it hasn't already.=20 Do you not look at fallen angels? If you do, what would your criteria = be? Thanks, Gene ----- Original Message -----=20 From: Tom Worley=20 To: canslim@lists.xmission.com=20 Sent: Thursday, March 27, 2003 9:35 AM Subject: Re: [CANSLIM] Fundamental Analysis: P/S - I Love You = (Sometimes) Gene, a p/s ratio of 1.0 or less is fine if you are looking for fallen = angels, bottom fishing, value shopping, etc. But I don't see what that = has to do with CANSLIM Because expectations drive price, and thus high expectations would = create a high p/s ratio, I am automatically suspicious whenever I find a = stock hitting new highs, with great CANSLIM fundamentals, but a = relatively low p/s ratio (generally under 2.0). It forces me to dig = deeper to figure out why the price does not already reflect a higher = premium. ----- Original Message -----=20 From: Gene Ricci=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, March 26, 2003 8:50 PM Subject: [CANSLIM] Fundamental Analysis: P/S - I Love You (Sometimes) Appreciate comments on this article. Gene Fundamental Analysis: P/S - I Love You (Sometimes) ------------------------------------------------------------ Investors are always seeking ways to compare the value of stocks.=20 The price-to-sales ratio provides a simple approach: take the=20 company's market capitalization (the number of shares multiplied=20 by the share price) and divide it by the company's total sales=20 over the past twelve months. The lower the ratio, the more attractive=20 the investment. As easy as it sounds, price-to-sales provides=20 a useful measure for sizing up stocks. But investors need to=20 be mindful of the ratio's potential pitfalls and possible=20 unreliability.=20 Read this article at: http://www.investopedia.com/articles/fundamental/03/032603.asp - ------=_NextPart_000_03D4_01C2F456.09876C30 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable

Thanks Tom!

I might be all wet = but I feel=20 that companies will have a hard time fudging this = ratio. =20 They can fudge EPS lots of different ways, but there are few ways = to fudge=20 sales. There are some (particularly software companies) that = have in=20 the past. Some used to book the entire amount of a contract sales = when it=20 was signed, rather than book when it was billed. But this practice = has=20 been under fire and is likely to go away if it hasn't already.=20

Do you not look at fallen angels? If = you do,=20 what would your criteria be?

Thanks,

Gene

----- Original Message -----
From:=20 Tom=20 Worley

To: canslim@lists.xmission.com=

Sent: Thursday, March 27, 2003 = 9:35=20 AM

Subject: Re: [CANSLIM] = Fundamental=20 Analysis: P/S - I Love You (Sometimes)

Gene, a p/s ratio of 1.0 or less is fine if = you are=20 looking for fallen angels, bottom fishing, value shopping, etc. But I = don't=20 see what that has to do with CANSLIM

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

From: Gene Ricci =

To: canslim@lists.xmission.com=

Sent: Wednesday, March 26, 2003 8:50 PM

Subject: [CANSLIM] Fundamental Analysis: P/S - I Love You=20 (Sometimes)

Appreciate comments on this = article.

Gene

- ------=_NextPart_000_03D4_01C2F456.09876C30-- - - - -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, 27 Mar 2003 13:04:21 -0500 From: "Tom Worley" Subject: Re: [CANSLIM] Fundamental Analysis: P/S - I Love You (Sometimes) This is a multi-part message in MIME format. - ------=_NextPart_000_00D5_01C2F461.61FD9910 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Hi Gene, I agree, the p/s ratio is hard to fudge, but even it can be adulterated = by crafty business managers (e.g. booking a sale that won't be delivered = until the next quarter, or even fiscal year, same stunt many have pulled = on earnings). My best guide still remains the "trend" of earnings, = sales, and the ratio between them, on a sequential quarterly basis. = While that doesn't guarantee any fudging, it at least means they are = more likely consistent in their fudging :)) I have seen (unfortunately even owned) companies that included sales for = merchandise that was still sitting on their loading dock, waiting to be = put on the truck and delivered, as of the end of the quarter. I went thru a period in one of my prior lives, before I was introduced = to CANSLIM, where I totally focused on fallen angels. I will still = occasionally consider a particularly attractive candidate, but usually = just for purposes of putting it on a watch list for further research, = observation of how it trades, etc. If I am going to tie up capital in a = stock moving sideways, I prefer it already be at a 12 month high, so at = least I don't have to overcome the overhead resistance. - ----- Original Message -----=20 From: Gene Ricci=20 To: canslim@lists.xmission.com=20 Sent: Thursday, March 27, 2003 12:43 PM Subject: Re: [CANSLIM] Fundamental Analysis: P/S - I Love You = (Sometimes) Thanks Tom! I might be all wet but I feel that companies will have a hard time = fudging this ratio. They can fudge EPS lots of different ways, but = there are few ways to fudge sales. There are some (particularly = software companies) that have in the past. Some used to book the entire = amount of a contract sales when it was signed, rather than book when it = was billed. But this practice has been under fire and is likely to go = away if it hasn't already.=20 Do you not look at fallen angels? If you do, what would your criteria = be? Thanks, Gene ----- Original Message -----=20 From: Tom Worley=20 To: canslim@lists.xmission.com=20 Sent: Thursday, March 27, 2003 9:35 AM Subject: Re: [CANSLIM] Fundamental Analysis: P/S - I Love You = (Sometimes) Gene, a p/s ratio of 1.0 or less is fine if you are looking for fallen = angels, bottom fishing, value shopping, etc. But I don't see what that = has to do with CANSLIM Because expectations drive price, and thus high expectations would = create a high p/s ratio, I am automatically suspicious whenever I find a = stock hitting new highs, with great CANSLIM fundamentals, but a = relatively low p/s ratio (generally under 2.0). It forces me to dig = deeper to figure out why the price does not already reflect a higher = premium. ----- Original Message -----=20 From: Gene Ricci=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, March 26, 2003 8:50 PM Subject: [CANSLIM] Fundamental Analysis: P/S - I Love You (Sometimes) Appreciate comments on this article. Gene Fundamental Analysis: P/S - I Love You (Sometimes) ------------------------------------------------------------ Investors are always seeking ways to compare the value of stocks.=20 The price-to-sales ratio provides a simple approach: take the=20 company's market capitalization (the number of shares multiplied=20 by the share price) and divide it by the company's total sales=20 over the past twelve months. The lower the ratio, the more attractive=20 the investment. As easy as it sounds, price-to-sales provides=20 a useful measure for sizing up stocks. But investors need to=20 be mindful of the ratio's potential pitfalls and possible=20 unreliability.=20 Read this article at: http://www.investopedia.com/articles/fundamental/03/032603.asp - ------=_NextPart_000_00D5_01C2F461.61FD9910 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable

Hi Gene,

I agree, the p/s ratio is hard to fudge, but = even it can=20 be adulterated by crafty business managers (e.g. booking a sale that = won't be=20 delivered until the next quarter, or even fiscal year, same stunt many = have=20 pulled on earnings). My best guide still remains the "trend" of = earnings, sales,=20 and the ratio between them, on a sequential quarterly basis. While that = doesn't=20 guarantee any fudging, it at least means they are more likely consistent = in=20 their fudging :))

I have seen (unfortunately even owned) companies = that=20 included sales for merchandise that was still sitting on their loading = dock,=20 waiting to be put on the truck and delivered, as of the end of the=20 quarter.

I went thru a period in one of my prior lives, = before I=20 was introduced to CANSLIM, where I totally focused on fallen angels. I = will=20 still occasionally consider a particularly attractive candidate, but = usually=20 just for purposes of putting it on a watch list for further research,=20 observation of how it trades, etc. If I am going to tie up capital in a = stock=20 moving sideways, I prefer it already be at a 12 month high, so at least = I don't=20 have to overcome the overhead resistance.

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

From: Gene Ricci =

To: canslim@lists.xmission.com=

Sent: Thursday, March 27, 2003 12:43 PM

Subject: Re: [CANSLIM] Fundamental Analysis: P/S - I Love = You=20 (Sometimes)

Thanks Tom!

Do you not look at fallen angels? If = you do,=20 what would your criteria be?

Thanks,

Gene

----- Original Message -----
From:=20 Tom=20 Worley

To: canslim@lists.xmission.com=

Sent: Thursday, March 27, 2003 = 9:35=20 AM

Subject: Re: [CANSLIM] = Fundamental=20 Analysis: P/S - I Love You (Sometimes)

Gene, a p/s ratio of 1.0 or less is fine if = you are=20 looking for fallen angels, bottom fishing, value shopping, etc. But I = don't=20 see what that has to do with CANSLIM

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

From: Gene Ricci =

To: canslim@lists.xmission.com=

Sent: Wednesday, March 26, 2003 8:50 PM

Subject: [CANSLIM] Fundamental Analysis: P/S - I Love You=20 (Sometimes)

Appreciate comments on this = article.

Gene

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