From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #3390 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, June 26 2003 Volume 02 : Number 3390 In this issue: [CANSLIM] MVL Re: [CANSLIM] MVL Re: [CANSLIM] MVL [CANSLIM] Sidewall Breakouts RE: [CANSLIM] When to Sell [CANSLIM] A Question for Bill O'Neil [T2003062500K0] ---------------------------------------------------------------------- Date: Thu, 26 Jun 2003 00:42:40 -0500 From: "Maria McAdams" Subject: [CANSLIM] MVL Investor's Corner of today's has "Tips On When To Hold A Leader Through Its Correction." It's interesting to see how IBD follows the leader. I learned much more from Katherine explaining the signs of potential climax runs. I appreciate the lessons, thank you. MLMcAdams Sent: Monday, June 23, 2003 12:31 PM Subject: RE: [CANSLIM] MVL > Hi Mike, > Since MVL's been running hard since late November (or January, depending how > you view it), you have to start looking for sell rules related to "extension > from the base." Here are some additional sell rules to review: > > Signs of potential climax runs: > If a stock's price is overextended from its base and: > (1) its price closes for a larger increase than on any prior up days > (ultimate top often occurs on heaviest volume day since the beginning of the > advance) > (2) if it has been advancing rapidly and opens on a gap up in price (advance > is probably near its peak) > (3) the stock's price breaks badly for several days and does not rally > (4) suddenly makes its greatest one-day price drop since the beginning of > the move (consider in context of additional sell signals,industry group > weakness, market weakness, fundamental weakness in stock) > (5) a stock split is announced and the stock runs up sharply for 1-2 weeks. > > Other signals of topping: > (1) Stock has advanced a number of months and price rises 25-50% on heavy > volume in a couple of weeks > (2) Churning: Stock trades on heavy volume but can't manage meaningful price > gains > (3) Wedging: New price highs on low volume > (4) Price repeatedly falls on high volume > (5) Leader in industry group puts in climax top > > Overextension from the base is a nebulous term, but generally you're into > "extended" territory when: > (1) the stock gets into "rubberband sell rule territory"--i.e. >=25% above > the 50dMA AND >=70% above the 200dMA > (2) the current forward PE has expanded to 120% of the trailing PE (i.e. > 2.2 times) at the time of the breakout. > > > Katherine > > -----Original Message----- > From: owner-canslim@lists.xmission.com > [mailto:owner-canslim@lists.xmission.com]On Behalf Of > michael_niemotka@baxter.com > Sent: Monday, June 23, 2003 11:00 AM > To: canslim@lists.xmission.com > Subject: [CANSLIM] MVL > > > Hello all > > I currently have a position in MVL, and am up nicely, currently 55%, and at > one point, was up 100%. I sold some when it hit 150% of the 50dMA per a > WON "rule", and today sold another 1/4 of my position at a 15% trailing > loss. > > For the remaining position, I am wondering if I should still hang on , or > if the action over the last couple of weeks (higher volume, price drops) > are warning signs to exit out totally. Earning are in a couple of weeks, > and rumor is that they will exceed expectations. > > Any thoughts? > > Thanks > > Mike > > > 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. ------------------------------ Date: Thu, 26 Jun 2003 09:13:32 -0700 (PDT) From: Bill Triffet Subject: Re: [CANSLIM] MVL My only concern (and a big one for me) has been that MVL is riding on "The Hulk" movie release and its associated licenses. It rose this year in anticipation of the release. Now it's out and critics are giving it mixed reviews. I think that is what has broken it down lately. Also the old "buy on the rumer - sell on the news" may be slightly working here as the movie is now released. Company info: "For the 3 months ended 3/31/03, revenues rose 53% to $87.4M. Net income applic. to Com. before accnt. change totalled $41.1M vs. a loss of $3.4M. Results reflect increased licensing revenues, and $4.3M in joint venture income." Bet a huge percentage of that $87.4M was for "The Hulk" licensing. I'd like to see it spread over a variety of charactor licenses - not all depending on one movies success. Now, that all said, "Spider Man" has done very very well so who knows? - -- Bill - -------Original Message------- From: michael_niemotka@baxter.com Sent: 06/25/03 01:39 PM To: canslim@lists.xmission.com Subject: [CANSLIM] MVL > > Looks like it is showing some support at the 50dMA, trying to work it's way back above. Today's action is what I think is referred to as a "tail up" since the close was near the high point of the day. The fact that it occurred on higher than ave volume is also a good sign. Anyone else have any thoughts on the stock today? Thanks Mike 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. ------------------------------ Date: Thu, 26 Jun 2003 11:32:09 -0500 From: michael_niemotka@baxter.com Subject: Re: [CANSLIM] MVL Also, don't forget X-men 2 which came out a few months ago. Of course movie success will help MVL, but from a pure reveune standpoint, they are usually capped on how much cash they get as a result of the movie success. The real money for them comes from the licensing fees on all the other stuff. Needless to say, there has been a TON of HULK stuff in the stores. Mike 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 "Bill Triffet" cc: Sent by: Subject: Re: [CANSLIM] MVL owner-canslim@lists.xm ission.com 06/26/2003 11:13 AM Please respond to canslim My only concern (and a big one for me) has been that MVL is riding on "The Hulk" movie release and its associated licenses. It rose this year in anticipation of the release. Now it's out and critics are giving it mixed reviews. I think that is what has broken it down lately. Also the old "buy on the rumer - sell on the news" may be slightly working here as the movie is now released. Company info: "For the 3 months ended 3/31/03, revenues rose 53% to $87.4M. Net income applic. to Com. before accnt. change totalled $41.1M vs. a loss of $3.4M. Results reflect increased licensing revenues, and $4.3M in joint venture income." Bet a huge percentage of that $87.4M was for "The Hulk" licensing. I'd like to see it spread over a variety of charactor licenses - not all depending on one movies success. Now, that all said, "Spider Man" has done very very well so who knows? - -- Bill - -------Original Message------- From: michael_niemotka@baxter.com Sent: 06/25/03 01:39 PM To: canslim@lists.xmission.com Subject: [CANSLIM] MVL > > Looks like it is showing some support at the 50dMA, trying to work it's way back above. Today's action is what I think is referred to as a "tail up" since the close was near the high point of the day. The fact that it occurred on higher than ave volume is also a good sign. Anyone else have any thoughts on the stock today? Thanks Mike 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. ------------------------------ Date: Thu, 26 Jun 2003 12:46:40 EDT From: Davellil5@aol.com Subject: [CANSLIM] Sidewall Breakouts In this market, I've been noticing a large number of stocks that have experienced one or more high-volume breakouts, some of them upgaps, along the right sidewalls of cups. In most instances, there were no handles prior to the breakouts. None of those stocks would have been bought on those occasions under the WON system. Yet, they seem like lost opportunities for gain. On reflection, it doesn't seem far-fetched to reason that, in a period of recovery from a bear market, investors are less likely to wait for full develpment of bases, but take positions at earlier stages in the recovery of individual stocks. Moreover, isn't it likely that several breakouts along the right wall of a cup increase the likelihood that a "real" WON breakout (after completion of cup and handle) on such a stock will be followed by a correction or even collapse, with the investor who buys on the WON breakout getting whipsawed? Does this explain some of the post-cup corrections, of which we've seen so many? Anyone else observed this phenomenon? Regards,k Dave - - - -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, 26 Jun 2003 12:40:08 -0700 From: "Harold Josephson" Subject: RE: [CANSLIM] When to Sell This is a multi-part message in MIME format. - ------=_NextPart_000_002A_01C33BE0.1712FFA0 Content-Type: text/plain; charset="US-ASCII" Content-Transfer-Encoding: quoted-printable Sold it. =20 Thanks =20 Harold Josephson Tel: 323.850.1333 Fax: 323.512.8968 hj@hjosephson.com=20 - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com] On Behalf Of Gene Ricci Sent: Tuesday, June 24, 2003 3:33 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] When to Sell =20 Harold, SAP... same questionable fundies.... had great 'technicals' = until the past week.... appears to be resting ... is it for a hill climb or parachute jump ???? =20 Gene - ----- Original Message -----=20 From: Harold Josephson =20 To: canslim@lists.xmission.com=20 Sent: Tuesday, June 24, 2003 3:21 AM Subject: RE: [CANSLIM] When to Sell =20 You're right, of course. =20 But I like their products and the way they conduct their U.S. marketing. >From a recent loss, they appear to be forecasting $0.80 and $1.26 for calendar 03 and 04. Even so, I bought it hoping that the started = breakout would continue. When it failed and the stock remained close to my cost = and no clear sell signals appeared, I wasn't sure what to do. I still own = it. Although its .6% decline today outperformed the market, I guess that I should sell it. You seem to feel the same. =20 Harold =20 P.S. Any thoughts on SAP? =20 Harold Josephson Tel: 323.850.1333 Fax: 323.512.8968 hj@hjosephson.com=20 - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com] On Behalf Of Gene Ricci Sent: Monday, June 23, 2003 12:57 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] When to Sell =20 Harold, are you discussing DT (Duetsche Telekom)?=20 =20 If so, it's not a stock that I would say is 'having good fundies'. Gene =20 =20 =20 =20 10/13 day m.a are short term support indicators=20 Harold Josephson wrote:=20 Would you sell here? =20 Harold Josephson Tel: 323.850.1333 Fax: 323.512.8968 hj@hjosephson.com=20 - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com] On Behalf Of Sol Mayer Sent: Monday, June 23, 2003 8:06 AM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] When to Sell =20 by the way DT pulled back to its 10/13 day moving avg. Harold Josephson wrote:=20 Hi Katherine, =20 Your advice, please. Prompted by my recent experience with DT, what criteria would you apply to the sale of a stock bought in anticipation = of a failed breakout if the stock continues to languish pennies below your = cost? =20 Thanks =20 Harold =20 _____ =20 Do you Yahoo!? SBC Yahoo! DSL - Now only $29.95 per month! _____ =20 Do you Yahoo!? SBC Yahoo! DSL - Now only $29.95 per month! - ------=_NextPart_000_002A_01C33BE0.1712FFA0 Content-Type: text/html; charset="US-ASCII" Content-Transfer-Encoding: quoted-printable

Sold = it.

 

Thanks

 

Harold Josephson
Tel: 323.850.1333
Fax: 323.512.8968
hj@hjosephson.com

-----Original = Message-----
From: owner-canslim@lists.xmissio= n.com = [mailto:owner-canslim@lists.xmissio= n.com] On Behalf Of Gene Ricci
Sent: Tuesday, June 24, = 2003 3:33 PM
To: = canslim@lists.xmission.com
Subject: Re: [CANSLIM] = When to Sell

 

Harold, SAP... = same questionable fundies.... had great 'technicals' until the past = week.... appears to be resting ... is it for a hill climb or parachute jump = ????

 

Gene

=

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

Sent: Tuesday, June 24, 2003 3:21 AM

Subject: RE: [CANSLIM] When to Sell

 

You’re right, of course.

 

But I like their products and the way they conduct their = U.S. marketing.  From a recent loss, they appear to be forecasting $0.80 = and $1.26 for calendar 03 and 04.  Even so, I bought it hoping that the started breakout would continue.  When it failed and the stock = remained close to my cost and no clear sell signals appeared, I wasn’t sure = what to do.  I still own it.  Although its .6% decline today = outperformed the market, I guess that I should sell it.  You seem to feel the = same.

 

Harold

 

P.S.  Any thoughts on SAP?

 

Harold Josephson
Tel: 323.850.1333
Fax: 323.512.8968
hj@hjosephson.com

-----Original = Message-----
From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com] On Behalf Of Gene Ricci
Sent: Monday, June 23, = 2003 12:57 PM
To: = canslim@lists.xmission.com
Subject: Re: [CANSLIM] = When to Sell

 

Harold, are you = discussing DT (Duetsche Telekom)?

 

If so, it's not a = stock that I would say is 'having good fundies'.

Gene

 

 

 

 

=

10/13 day m.a are short term support = indicators

Harold = Josephson <hj@hjosephson.com> wrote:

Would you sell here?

 

Harold Josephson
Tel: 323.850.1333
Fax: 323.512.8968
hj@hjosephson.com

-----Original = Message-----
From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com] On Behalf Of Sol Mayer
Sent: Monday, June 23, = 2003 8:06 AM
To: = canslim@lists.xmission.com
Subject: Re: [CANSLIM] = When to Sell

 

by the way DT pulled back to its 10/13 day = moving avg.

Harold = Josephson <hj@hjosephson.com> wrote:

Hi = Katherine,

 

Your advice, = please.  Prompted by my recent experience with DT, what criteria would you apply = to the sale of a stock bought in anticipation of a failed breakout if the stock continues to languish pennies below your cost?

 

Thanks

 

Harold

 

Do you Yahoo!?
SBC Yahoo! DSL - Now only $29.95 per month!

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- ------=_NextPart_000_002A_01C33BE0.1712FFA0-- - - - -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, 26 Jun 2003 16:09:09 -0500 From: "Gene Ricci" Subject: [CANSLIM] A Question for Bill O'Neil [T2003062500K0] This is a multi-part message in MIME format. - ------=_NextPart_000_0377_01C33BFD.46F4D140 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable FYI ... the free Ask Bill O'Neill feature at www.investors.com is a = great resource for gathering succinct IBD information in a timely = manner... feature is free to registered users (also free). Regards, Gene Hello Gene,=20 Thank you for the e-mail.=20 William J. O'Neil would like to answer all questions but due to the = sheer volume, he is not able to address every question personally on the = Web site. We can handle your inquiry here. There is no one minimum = criteria as each stock's ratings and chart needs analyzed along with the = general market trend. We do suggest looking for stocks with 80 and 80 = Ratings for EPS and RS and at least a C for Acc/Dis.=20 These Ask Bills from the Archive address very similar concerns and may = be helpful: Ask Bill O'Neil Archives Monday, April 28, 2003=20 =20 "Do you maintain a list of stocks that meet your CAN SLIM requirements? = If so, where do I find it?"=20 - - Submitted from Evergreen, Colo. =20 =20 Investor's Business Daily does not publish a list of stocks that = specifically meet the criteria spelled out in the CAN SLIM Investment = Research Tool. However, you can find screens that list stocks with many = of the CAN SLIM characteristics. The IBD 100, published each Monday, = shows companies with leading earnings growth, top relative price = performance and high IBD Composite Ratings (which include sales growth, = industry group ranking and other measurements). The Weekly Review, = published on Fridays, is a similar list. The Big Picture, Real Most = Active and The New America make it a habit to report on leading stocks, = which quite often are CAN SLIM-type stocks. But no matter which screen = or column you look at, keep in mind a couple of points. First, don't = assume that any good stock mentioned in IBD is a recommendation to buy. = Make sure you do the appropriate research and study the stock's chart. = Second, one of the characteristics of CAN SLIM is that the stock market = should be in an uptrend, otherwise any stock purchase carries inherently = higher risk. =20 Ask Bill O'Neil Archives Monday, December 11, 2000=20 =20 "I'm a new investor and subscriber to IBD. Would I be OK to just pick a = stock with an EPS Rating of 99, a Relative Price Strength Rating of 99 = and an 'A' in the other three ratings?"=20 - - Submitted from Greenfield, Ind.=20 =20 The IBD SmartSelect Corporate Ratings result from decades of study into = the greatest stock market winners. Each rating measures a different key = aspect of proper stock selection. Rather than buying stocks that have = the highest possible ratings (such as an EPS Rating of 99), you should = use the ratings to help you screen out stocks. For example you could = create a great research list by looking at all stocks with an EPS and RS = of 80 or higher and B B B or higher. From there start looking for the = stocks that are forming sound bases. Also disregard any stocks that are = extended from their base. By this time you should have a relatively = small list of quality stocks to choose from. By looking at their = SmartSelect Ratings, you should be able to easily see the strengths and = weaknesses of each stock. Then do your final in-depth research on each = of these stocks. Once you have your final list don't rush out and buy = them; you need to wait for them to break out of a proper base on heavy = volume. Remember, don't buy stocks that are extended more than 5% from = their pivot point. And always protect yourself by selling stocks if they = fall 8% from your purchase price. =20 Ask Bill O'Neil Archives Friday, July 27, 2001=20 =20 "What are the CAN SLIM criteria you mention sometimes?"=20 - - Submitted from Toms River, N.J.=20 =20 CAN SLIM is an acronym that describes the seven common characteristics = of stocks we found in our research of some of the greatest stocks over = the past 50 years, before each of these stocks made their huge price = gains. This is what each letter represents: C - Current earnings must be = strong. We look for earnings per share growth of at least 25% in the = most recent quarter, or an acceleration in recent earnings growth, or = both. Also, the latest three quarters of sales growth should be a = minimum of 25%. Otherwise, sales growth should be accelerating. A - = Strong annual earnings growth. We look for annual earnings growth for = the last three years of 25% or greater. Also, return on equity should be = at least 17%, and pretax profit margins should be increasing. N - New = products, services or leadership. If a company has a dynamic new product = or service, or is capitalizing on new conditions in the economy, this = can have a dramatic impact on the price of a stock. Also, buy stocks = just as they emerge from a sound "base" pattern and make new price = highs. S - Supply and demand. Watch the demand for shares by looking at = the percentage change in volume for each of your stocks. Analyze a = stock's daily and weekly price and volume changes. L- Look for leading = stocks in leading industry groups. Nearly 50% of a stock's price action = is a result of its industry group's performance. Focus on the top = industry groups, and within those groups select stocks with the best = price performance. The stock's Relative Price Strength Rating should be = in the 80s or 90s. I - Institutional sponsorship. You want at least a = few of the better performing mutual funds owning the stock. They're the = ones who will drive the stock up on a sustained basis. M - Market = direction should be positive. You can buy the best stocks, but if the = general market is weak, most likely your stocks will be weak also. You = need to study IBD's General Market & Sectors page and learn how to = interpret shifts in the market's trend.=20 The IBD Stock Checkup shows the data item of 3-Year Earnings Per Share = Growth Rate. The IBD Stock Checkup's Overall Rating (or Diagnosis) is = determined by a proprietary formula incorporating all five of the Stock = Diagnosis Ratings. These five ratings are not weighted equally. Stocks = with superior characteristics are rated A or A+, while low rated stocks = (D & E) reveal weakness that could negatively affect the price of a = stock. On a scale of 1-99, with 99 being best, a stock rated 90 places = in the top 10% of stocks. This rating is based on technical and = fundamental factors that most influence a stock's price, based on = current and historical studies of the greatest stock market winners. Also, Investors.com now offers Premium Services, a collection of = investment-research tools from Daily Graphs Online=AE, now being made = available directly from the investors.com home page. One of these is a powerful stock screening tool - Daily Graphs=AE Custom = Screen Wizard. This paid subscription service offers screening of over 8,000 stocks in = the William O'Neil Database=A9. You can use the Earnings section to = screen for stocks using the 3-Yr EPS Growth Rate, the 3 to 5-Yr Earnings = Growth Rate and many, many other criteria. Subscribers can screen over 50 criteria including SmartSelect=AE = Ratings, IBD's industry groups and sectors, earnings, price and more. = Many of the screening criteria are proprietary. The Custom Screen Wizard also provides guidance in developing quality = screens based on the characteristics of past market winners. The Custom Screen Wizard criteria are grouped into eight categories of = related items: =B7 IBD SmartSelect=AE Ratings =B7 Earnings =B7 Sales =B7 Industry & Sector =B7 Shares & Holdings =B7 Price & Volume =B7 Margins & Ratios =B7 General Daily Graphs Custom Screen Wizard is the only service that allows = individual investors to search the entire William O'Neil Database=A9 for = stocks that meet their own specific criteria. For further details and interactive tours of Daily Graphs Online=AE, the = Custom Screen Wizard and Industry Groups, please visit the following = link: http://www.investors.com/products/. We offer 7-day trial subscriptions of our Complete Equity Package, which = includes Daily Graphs Online=AE, Daily Graphs=AE Custom Screen Wizard, = and Daily Graphs=AE Industry Groups. For complete details on this and = other subscription packages, please go to this link: = http://www.investors.com/store/IBDpricing.asp. Do you have a friend or family member who might enjoy two FREE weeks of = Investor's Business Daily? Sign them up today with no obligation and = they will also receive trial access to the subscriber-only features of = investors.com absolutely free. Click the link below to take advantage of = this offer: Please email us again with any other comment or question. Sincerely,=20 Paul Investor's Business Daily www.investors.com - -------------------------------------------------------------------------= - --------- Question =3D I have limited time to find CANSLIM candidates. If I use = the IBD Stock Checkup feature, what is the minimum criteria that I must use = to determine a list that meets the minimum CANSLIM criteria? EPS =3D> ?? RS =3D> ?? SMR =3D> ?? A/D =3D> ?? Grp RS =3D> ?? Composite Rank =3D> ?? Do the stocks in the Top 100 list meet all of the CANSLIM citeria? Thank you, Gene - ------=_NextPart_000_0377_01C33BFD.46F4D140 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
FYI ... the free Ask Bill O'Neill feature at www.investors.com is a great = resource for=20 gathering succinct IBD information in a timely manner... feature is = free to=20 registered users (also free).
 
Regards,
Gene


Hello Gene, =

Thank you=20 for the e-mail.

William J. O'Neil would like to answer all = questions but=20 due to the sheer volume, he is not able to address every question = personally on=20 the Web site. We can handle your inquiry here. There is no one minimum = criteria=20 as each stock's ratings and chart needs analyzed along with the general = market=20 trend. We do suggest looking for stocks with 80 and 80 Ratings for EPS = and RS=20 and at least a C for Acc/Dis.

These Ask Bills from the Archive = address=20 very similar concerns and may be helpful:

Ask Bill O'Neil=20 Archives
Monday, April  28, 2003
 
 "Do you = maintain a=20 list of stocks that meet your CAN SLIM requirements? If so, where do I = find it?"=20
- Submitted from Evergreen, Colo. 
 
Investor's = Business=20 Daily does not publish a list of stocks that specifically meet the = criteria=20 spelled out in the CAN SLIM Investment Research Tool. However, you can = find=20 screens that list stocks with many of the CAN SLIM characteristics. The = IBD 100,=20 published each Monday, shows companies with leading earnings growth, top = relative price performance and high IBD Composite Ratings (which include = sales=20 growth, industry group ranking and other measurements). The Weekly = Review,=20 published on Fridays, is a similar list. The Big Picture, Real Most = Active and=20 The New America make it a habit to report on leading stocks, which quite = often=20 are CAN SLIM-type stocks. But no matter which screen or column you look = at, keep=20 in mind a couple of points. First, don't assume that any good stock = mentioned in=20 IBD is a recommendation to buy. Make sure you do the appropriate = research and=20 study the stock's chart. Second, one of the characteristics of CAN SLIM = is that=20 the stock market should be in an uptrend, otherwise any stock purchase = carries=20 inherently higher risk. 

Ask Bill O'Neil = Archives
Monday,=20 December 11, 2000
 
"I'm a new investor and subscriber to = IBD.=20 Would I be OK to just pick a stock with an EPS Rating of 99, a Relative = Price=20 Strength Rating of 99 and an 'A' in the other three ratings?"
- = Submitted=20 from Greenfield, Ind.
 
The IBD SmartSelect Corporate = Ratings result=20 from decades of study into the greatest stock market winners. Each = rating=20 measures a different key aspect of proper stock selection. Rather than = buying=20 stocks that have the highest possible ratings (such as an EPS Rating of = 99), you=20 should use the ratings to help you screen out stocks. For example you = could=20 create a great research list by looking at all stocks with an EPS and RS = of 80=20 or higher and B B B or higher. From there start looking for the stocks = that are=20 forming sound bases. Also disregard any stocks that are extended from = their=20 base. By this time you should have a relatively small list of quality = stocks to=20 choose from. By looking at their SmartSelect Ratings, you should be able = to=20 easily see the strengths and weaknesses of each stock. Then do your = final=20 in-depth research on each of these stocks. Once you have your final list = don't=20 rush out and buy them; you need to wait for them to break out of a = proper base=20 on heavy volume. Remember, don't buy stocks that are extended more than = 5% from=20 their pivot point. And always protect yourself by selling stocks if they = fall 8%=20 from your purchase price. 

Ask Bill O'Neil = Archives
Friday, July=20 27, 2001
 
 "What are the CAN SLIM criteria you mention = sometimes?"
- Submitted from Toms River, N.J.
 
CAN SLIM = is an=20 acronym that describes the seven common characteristics of stocks we = found in=20 our research of some of the greatest stocks over the past 50 years, = before each=20 of these stocks made their huge price gains. This is what each letter=20 represents: C - Current earnings must be strong. We look for earnings = per share=20 growth of at least 25% in the most recent quarter, or an acceleration in = recent=20 earnings growth, or both. Also, the latest three quarters of sales = growth should=20 be a minimum of 25%. Otherwise, sales growth should be accelerating. A - = Strong=20 annual earnings growth. We look for annual earnings growth for the last = three=20 years of 25% or greater. Also, return on equity should be at least 17%, = and=20 pretax profit margins should be increasing. N - New products, services = or=20 leadership. If a company has a dynamic new product or service, or is=20 capitalizing on new conditions in the economy, this can have a dramatic = impact=20 on the price of a stock. Also, buy stocks just as they emerge from a = sound=20 "base" pattern and make new price highs. S - Supply and demand. Watch = the demand=20 for shares by looking at the percentage change in volume for each of = your=20 stocks. Analyze a stock's daily and weekly price and volume changes. L- = Look for=20 leading stocks in leading industry groups. Nearly 50% of a stock's price = action=20 is a result of its industry group's performance. Focus on the top = industry=20 groups, and within those groups select stocks with the best price = performance.=20 The stock's Relative Price Strength Rating should be in the 80s or 90s. = I -=20 Institutional sponsorship. You want at least a few of the better = performing=20 mutual funds owning the stock. They're the ones who will drive the stock = up on a=20 sustained basis. M - Market direction should be positive. You can buy = the best=20 stocks, but if the general market is weak, most likely your stocks will = be weak=20 also. You need to study IBD's General Market & Sectors page and = learn how to=20 interpret shifts in the market's trend.

The IBD Stock Checkup = shows the=20 data item of 3-Year Earnings Per Share Growth Rate. The IBD Stock = Checkup's=20 Overall Rating (or Diagnosis) is determined by a proprietary formula=20 incorporating all five of the Stock Diagnosis Ratings. These five = ratings are=20 not weighted equally. Stocks with superior characteristics are rated A = or A+,=20 while low rated stocks (D & E) reveal weakness that could negatively = affect=20 the price of a stock. On a scale of 1-99, with 99 being best, a stock = rated 90=20 places in the top 10% of stocks. This rating is based on technical and=20 fundamental factors that most influence a stock's price, based on = current and=20 historical studies of the greatest stock market winners.

Also,=20 Investors.com now offers Premium Services, a collection of = investment-research=20 tools from Daily Graphs Online=AE, now being made available directly = from the=20 investors.com home page.

One of these is a powerful stock = screening tool=20 - - Daily Graphs=AE Custom Screen Wizard.

This paid subscription = service=20 offers screening of over 8,000 stocks in the William O'Neil Database=A9. = You can=20 use the Earnings section to screen for stocks using the 3-Yr EPS Growth = Rate,=20 the 3 to 5-Yr Earnings Growth Rate and many, many other=20 criteria.

Subscribers can screen over 50 criteria including = SmartSelect=AE=20 Ratings, IBD's industry groups and sectors, earnings, price and more. = Many of=20 the screening criteria are proprietary.

The Custom Screen Wizard = also=20 provides guidance in developing quality screens based on the = characteristics of=20 past market winners.

The Custom Screen Wizard criteria are = grouped into=20 eight categories of related items:

=B7 IBD SmartSelect=AE = Ratings
=B7=20 Earnings
=B7 Sales
=B7 Industry & Sector
=B7 Shares & = Holdings
=B7=20 Price & Volume
=B7 Margins & Ratios
=B7 = General

Daily Graphs=20 Custom Screen Wizard is the only service that allows individual = investors to=20 search the entire William O'Neil Database=A9 for stocks that meet their = own=20 specific criteria.

For further details and interactive tours of = Daily=20 Graphs Online=AE, the Custom Screen Wizard and Industry Groups, please = visit the=20 following link: http://www.investors.com/products/.

We offer 7-day trial subscriptions of = our=20 Complete Equity Package, which includes Daily Graphs Online=AE, Daily = Graphs=AE=20 Custom Screen Wizard, and Daily Graphs=AE Industry Groups. For complete = details on=20 this and other subscription packages, please go to this link: http://www.investors.com/store/IBDpricing.asp.

Do you have a friend or family member = who might=20 enjoy two FREE weeks of Investor's Business Daily?  Sign them up = today with=20 no obligation and they will also receive trial access to the = subscriber-only=20 features of investors.com absolutely free. Click the link below to take=20 advantage of this offer:
<http://ibd.infostreet.com/cgi-bin/freeoffer.cgi?source=3DA3V2GG3>

Please email us again with any = other comment=20 or question.

Sincerely,

Paul
Investor's Business=20 Daily
www.investors.com

------------------------------= - ----------------------------------------------------
Question=20 =3D I have limited time to find CANSLIM candidates. If I use the
IBD = Stock=20 Checkup feature, what is the minimum criteria that I must use = to
determine a=20 list that meets the minimum CANSLIM criteria?
EPS =3D> = ??
RS  =3D>=20 ??
SMR =3D> ??
A/D =3D> ??
Grp RS =3D> ??
Composite = Rank =3D>=20 ??

Do the stocks in the Top 100 list meet all of the CANSLIM=20 citeria?

Thank you,
Gene



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