Message

From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #3528 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 Friday, August 15 2003 Volume 02 : Number 3528 In this issue: RE: [CANSLIM] 2-3 month returns for WON stocks RE: [CANSLIM] OT: Worm Virus alert Re: [CANSLIM] NTST RE: [CANSLIM] What is your profession? RE: [CANSLIM] What is your profession? RE: [CANSLIM] What is your profession? [CANSLIM] RE: BCGI (was: What is your profession?) [CANSLIM] Fwd: Why I hate Investor's Business Daily (another HITK, Toby Smith story) RE: [CANSLIM] Fwd: Why I hate Investor's Business Daily (another HITK, Toby Smith story) Re: [CANSLIM] Fwd: Why I hate Investor's Business Daily (another HITK, Toby Smith story) ---------------------------------------------------------------------- Date: Thu, 14 Aug 2003 21:26:09 -0400 From: "inderjit" Subject: RE: [CANSLIM] 2-3 month returns for WON stocks This is a multi-part message in MIME format. - ------=_NextPart_000_00CC_01C362AA.AE70B450 Content-Type: text/plain; charset="us-ascii" Content-Transfer-Encoding: 7bit There are several "won"s The father of CANSLIM is Bill O'Neil, commonly known as won. You can even ask him questions, visit www.investors.com and bingo - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com] On Behalf Of joe Sent: Thursday, August 14, 2003 7:32 PM To: canslim@lists.xmission.com Subject: RE: [CANSLIM] 2-3 month returns for WON stocks what is won? - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com] On Behalf Of bflauaus Sent: Thursday, August 14, 2003 6:16 PM To: canslim@lists.xmission.com Subject: [CANSLIM] 2-3 month returns for WON stocks I was wondering if someone could share with the group the returns(using WON) gained over the past 2-3 months with the market in the shape it has been in. Specifically, I am trying to get a grasp for 1.) # of trades 2.) days held 3.) invidivual return 4.) total return over the period I am trying to understand whether or not using WON during this period has been successful. I know that several stocks broke out of bases earlier this year, but have any broken out the past 2-3 months. - ------=_NextPart_000_00CC_01C362AA.AE70B450 Content-Type: text/html; charset="us-ascii" Content-Transfer-Encoding: quoted-printable Message

There are several = “won”s

The father of CANSLIM is Bill O’Neil, commonly = known as won.

You can = even ask him questions, visit www.investors.com and bingo

-----Original Message-----
From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com] On Behalf Of joe
Sent: = Thursday, August 14, 2003 7:32 PM
To: = canslim@lists.xmission.com
Subject: RE: [CANSLIM] = 2-3 month returns for WON stocks

what is won?

-----Original Message-----
From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com] On Behalf Of bflauaus
Sent: = Thursday, August 14, 2003 6:16 PM
To: = canslim@lists.xmission.com
Subject: [CANSLIM] 2-3 = month returns for WON stocks

I was wondering if someone could share with the group the returns(using WON) gained over the past 2-3 months with the market = in the shape it has been in.

Specifically, I am trying to get a grasp for =

1.) # of trades

2.) days held

3.) invidivual return

4.) total return over the period

I am trying to understand whether or not using WON during = this period has been successful. I know that several stocks broke out = of bases earlier this year, but have any broken out the past 2-3 = months.

- ------=_NextPart_000_00CC_01C362AA.AE70B450-- - - - -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: Fri, 15 Aug 2003 07:00:10 -0500 (CDT) From: "Robert Gammon" Subject: RE: [CANSLIM] OT: Worm Virus alert Just to let everyone know, in spite of what the Register was saying about this virus, I have seen one of the variants of it active on at least two computers. The variant was doing a timed, forced shutdown of the machine, a shutdown that had no apparent way to stop. The cycle between shutdowns was getting shorter and shorter. I had to get to an OS/2 (or Linux, or Mac, I had OS/2 available) machine to get the fixes downloaded to diskette to clean the infected machines. Robert Gammon Houston, TX - - - -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: Fri, 15 Aug 2003 07:46:14 -0500 From: michael_niemotka@baxter.com Subject: Re: [CANSLIM] NTST Dave, That is a good point. But since it gained over 20% (15% over the pivot) it would need to have big pullback on light volume. My guess is that there will be a lot of people dumping today to grab the quick profit, but I could be wrong. Just out of curiosity, how much of a pullback would it take for you to enter if you missed it yesterday? 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 Davellil5@aol.com Sent by: To: canslim@lists.xmission.com owner-canslim@lists.xm cc: ission.com Subject: Re: [CANSLIM] NTST 08/14/2003 05:45 PM Please respond to canslim Maybe NTST will go into a correction, and you may then have a second chance at it, as it bounces up from the bottom. Don't abandon it yet! Many good CANSLIM stocks are doing that in this market. Davs S. - - - -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: Fri, 15 Aug 2003 08:07:54 -0500 From: "Kelly Short" Subject: RE: [CANSLIM] What is your profession? Non-retired. Heck, just getting started (put me in the under 30 = category). Technology, business development. Studied CANSLIM for 1 year before implementing. Very high degree of = success since then. Currently at over 100% annualized return using = CANSLIM. Plan to retire early! Kelly - -----Original Message----- From: Davellil5@aol.com [mailto:Davellil5@aol.com] Sent: Thursday, August 14, 2003 5:42 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] What is your profession? Retired! Formerly food product manufacturing, product development, and purchasing = executive. Also, enjoyed a career in industrial quality control. Using CANSLIM and variations thereof to maintain and improve net worth = of=20 assets in retirement. I'll bet the answers you receive to your email will reveal a fascinating = variety of high accomplishments by our pals in CANSLIM -- because it = requires such=20 intensive intellectual effort. Regards, Dave S. - - - -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: Fri, 15 Aug 2003 07:19:19 -0600 From: Subject: RE: [CANSLIM] What is your profession? Hello, I am in the under 30 crowd as well. I have been studying/using CANSLIM for over 4 years now and have had good success. I also use some other methods and regularly go short. I am a stockbroker who is in the process and almost done forming a long/short equity hedge fund. Being a broker and having seen a ton of different accounts I can say that 49% of trading/investing is risk control, 49% is discipline, and the remaining 2% is methodology. If you get anyhing from WON's books please practice risk control and use a ton of discipline. You can vault yourself from the bottom 10% of traders all the way to the top 30% in about 10 minutes by having a method and having discipline. - -David Taggart - -----Original Message----- From: Kelly Short [mailto:kelly.short@fw.us.neoris.com] Sent: Friday, August 15, 2003 7:08 AM To: canslim@lists.xmission.com Subject: RE: [CANSLIM] What is your profession? Non-retired. Heck, just getting started (put me in the under 30 category). Technology, business development. Studied CANSLIM for 1 year before implementing. Very high degree of success since then. Currently at over 100% annualized return using CANSLIM. Plan to retire early! Kelly - -----Original Message----- From: Davellil5@aol.com [mailto:Davellil5@aol.com] Sent: Thursday, August 14, 2003 5:42 PM To: canslim@lists.xmission.com Subject: Re: [CANSLIM] What is your profession? Retired! Formerly food product manufacturing, product development, and purchasing executive. Also, enjoyed a career in industrial quality control. Using CANSLIM and variations thereof to maintain and improve net worth of assets in retirement. I'll bet the answers you receive to your email will reveal a fascinating variety of high accomplishments by our pals in CANSLIM -- because it requires such intensive intellectual effort. Regards, Dave S. - - - -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: Fri, 15 Aug 2003 07:41:20 -0700 (PDT) From: Tomas Subject: RE: [CANSLIM] What is your profession? Hi, Me under the 30 crowd too. I am an engineer. Started actively trading using CS again for the last few months. Had started CS a few years ago, but stop completely due to bad bad economy. I can't cay that I had much success with my trades the last few months. Actually, I'm in the red (mainly due to BCGI). tomas - --- dctag@mavericktrading.com wrote: > Hello, > > I am in the under 30 crowd as well. I have been > studying/using CANSLIM for > over 4 years now and have had good success. I also > use some other methods > and regularly go short. I am a stockbroker who is > in the process and almost > done forming a long/short equity hedge fund. Being a > broker and having seen > a ton of different accounts I can say that 49% of > trading/investing is risk > control, 49% is discipline, and the remaining 2% is > methodology. If you get > anyhing from WON's books please practice risk > control and use a ton of > discipline. You can vault yourself from the bottom > 10% of traders all the > way to the top 30% in about 10 minutes by having a > method and having > discipline. > > -David Taggart > > -----Original Message----- > From: Kelly Short > [mailto:kelly.short@fw.us.neoris.com] > Sent: Friday, August 15, 2003 7:08 AM > To: canslim@lists.xmission.com > Subject: RE: [CANSLIM] What is your profession? > > > Non-retired. Heck, just getting started (put me in > the under 30 category). > Technology, business development. > > Studied CANSLIM for 1 year before implementing. Very > high degree of success > since then. Currently at over 100% annualized return > using CANSLIM. Plan to > retire early! > > Kelly > > -----Original Message----- > From: Davellil5@aol.com [mailto:Davellil5@aol.com] > Sent: Thursday, August 14, 2003 5:42 PM > To: canslim@lists.xmission.com > Subject: Re: [CANSLIM] What is your profession? > > > Retired! > > Formerly food product manufacturing, product > development, and purchasing > executive. Also, enjoyed a career in industrial > quality control. > > Using CANSLIM and variations thereof to maintain and > improve net worth of > assets in retirement. > > I'll bet the answers you receive to your email will > reveal a fascinating > variety of high accomplishments by our pals in > CANSLIM -- because it > requires such > intensive intellectual effort. > > Regards, > > Dave S. > > > - > -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. __________________________________ Do you Yahoo!? Yahoo! SiteBuilder - Free, easy-to-use web site design software http://sitebuilder.yahoo.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. ------------------------------ Date: Fri, 15 Aug 2003 09:51:31 -0500 From: "Katherine Malm" Subject: [CANSLIM] RE: BCGI (was: What is your profession?) Hi Tomas, Did you get caught up in the gap down after breakout? Did that one trade loss wipe out other good trades in the last few months? In doing a post analysis, what did you find? Katherine - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Tomas Sent: Friday, August 15, 2003 9:41 AM To: canslim@lists.xmission.com Subject: RE: [CANSLIM] What is your profession? Hi, Me under the 30 crowd too. I am an engineer. Started actively trading using CS again for the last few months. Had started CS a few years ago, but stop completely due to bad bad economy. I can't cay that I had much success with my trades the last few months. Actually, I'm in the red (mainly due to BCGI). tomas - - - -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: Fri, 15 Aug 2003 08:03:58 -0700 From: "Tim Katona" Subject: [CANSLIM] Fwd: Why I hate Investor's Business Daily (another HITK, Toby Smith story) All, A friend just sent me this and I thought you would be amused. I took out all the obvious sales pitches (try my site at...only $79 for 3 months, $499 for 2 years). This is the same site that is telling people to buy HITK in the low $20's, so take it with a grain of salt. Otherwise hit the 'delete' key. My intent is not to discuss if he is right or wrong, just FYI (no flames please!) Tim August 14, 2003 Dear WaveRider, I have a love/hate relationship with Investor's Business Daily (IBD). And it's important that you know why. So I'm going to tell you a little story. If you value wealth, take a couple minutes to hear me through. A subscriber just wrote me that he completely blew our SanDisk (SNDK) recommendation, and it cost him more than $100,000 in profits. Our research on demand for all-things digital showed these markets were booming and would accelerate over 2003 and 2004 into a massive ChangeWave. And this subscriber smartly started a position in SNDK at $20 as suggested. But he then made a HUGE mistake. He used the IBD strategy of "Sell ANY stock than drops more than 8% to protect yourself from catastrophic losses." So when we advised subscribers to "BUY MORE" and get their cost basis as LOW as possible after it dropped under $18, he passed. Later he patted himself on the back as SNDK dropped to around $16, thinking, "Toby's intelligence is wrong and boy am I a smart guy for getting out of this pig." The rest is sad history. SanDisk went from $16 to $55, where we advised subscribers to "SELL" and take their profits. (Well over 100% gains and even more if they averaged down.) He concludes, "In short, I'm mad at myself. I'm mad at IBD and I promise to never confuse fundamental and momentum investing again." Dude, you just said the magic words. NEVER confuse fundamental and momentum-based investing again. (... sales pitch) ATTACK OF THE CLONES I have nothing against Investor's Business Daily. In fact, I read it every day ... but not to find new stock ideas. Mostly I read it to find out which one of our stocks have hit the momentum investor universe I call the "momo zone." You MUST understand that there are a hundred thousand IBD followers out there (I call them IBD clones) who can take a stock up 100% and down 100% in a week for NO other reason than it appearing on their "speed charts." In the last six months, several of our recommended stocks have appeared on the IBD "hot list" at one time or another. If we are doing our job right, they should -- especially when you watch the 52-week new high list. I don't mind that at all. But when one of our stocks gets on the new "Top 100" stocks list or one of the hot lists in their stock ratings, I start to get worried. And you should, too. You now have people who will be buying your stock simply because it is going up -- don't kid yourself. They are attaching themselves to the bandwagon for as long as it's rolling, that's it. When it breaks a 20- or 50-day moving average to the down side, they are gone. And stocks get CRUSHED as the momo players crash the exits. HERE'S HOW TO SUCCEED (... sales pitch) If you are using fundamental research to find industries and companies that you are convinced have great growth ahead, DO NOT use the "sell if its 8% down" IBD rule. It will cost you tons over time. SELL only if your fundamental research is disproved. ADD MORE to your position if temporary market downdrafts give you a chance for a lower cost basis. That's how to nearly double your return on stocks like SanDisk. DO NOT use arbitrary "cut your losses at 8%" rules when you are riding secular transformational changes. Our ChangeWave Investing service gets you on these waves of growth before everybody else. This is how we make market-beating profits, for crying out loud. SELL your stock when it has reached what you consider to be full value based on the next 12-18 months of earnings potential. We recommended selling SanDisk at $55 because our analysis showed full valuation for the next six to 12 months at that level -- it was time to move on. DO monitor any stock you own if it starts to show up on the IBD speed charts. This means it will run up faster than normal and in all likelihood will reach full value much faster than if it was not. What is full value for a growth stock? If you don't know, subscribe (... sales pitch) You don't risk a penny on this trial subscription. If you don't make more money...if you don't have more fun, just call and cancel and it costs nothing. You can take a full three months to decide. Cancel anytime in that period-even the very last day-and your subscription costs NOTHING. Get all our current recommendations online immediately. (... sales pitch) Getting richer & loving it, Toby Smith ChangeWave Investing (... sales pitch) - - - -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: Fri, 15 Aug 2003 10:13:23 -0500 From: "Kelly Short" Subject: RE: [CANSLIM] Fwd: Why I hate Investor's Business Daily (another HITK, Toby Smith story) I love any sales pitch to investors that includes the use of the word = "Dude"... - -----Original Message----- From: Tim Katona [mailto:tkat17@earthlink.net] Sent: Friday, August 15, 2003 10:04 AM To: canslim@lists.xmission.com Subject: [CANSLIM] Fwd: Why I hate Investor's Business Daily (another HITK, Toby Smith story) All, A friend just sent me this and I thought you would be amused. I took out = all the obvious sales pitches (try my site at...only $79 for 3 months, $499 = for 2 years). This is the same site that is telling people to buy HITK in = the low $20's, so take it with a grain of salt. Otherwise hit the 'delete' = key. My intent is not to discuss if he is right or wrong, just FYI (no flames please!) Tim August 14, 2003 Dear WaveRider, I have a love/hate relationship with Investor's Business Daily (IBD). And it's important that you know why. So I'm going to tell you a little story. If you value wealth, take a couple minutes to hear me through. A subscriber just wrote me that he completely blew our SanDisk (SNDK) recommendation, and it cost him more than $100,000 in profits. Our research on demand for all-things digital showed these markets were booming and would accelerate over 2003 and 2004 into a massive ChangeWave. And this subscriber smartly started a position in SNDK at $20 as suggested. But he then made a HUGE mistake. He used the IBD strategy of "Sell ANY stock than drops more than 8% to protect yourself from catastrophic losses." So when we advised subscribers to "BUY MORE" and get their cost basis as LOW as possible after it dropped under $18, he passed. Later he patted himself on the back as SNDK dropped to around $16, thinking, "Toby's intelligence is wrong and boy am I a smart guy for getting out of this pig." The rest is sad history. SanDisk went from $16 to $55, where we advised subscribers to "SELL" and take their profits. (Well over 100% gains and even more if they averaged down.) He concludes, "In short, I'm mad at myself. I'm mad at IBD and I promise to never confuse fundamental and momentum investing again." Dude, you just said the magic words. NEVER confuse fundamental and momentum-based investing again. (... sales pitch) ATTACK OF THE CLONES I have nothing against Investor's Business Daily. In fact, I read it every day ... but not to find new stock ideas. Mostly I read it to find out which one of our stocks have hit the momentum investor universe I call the "momo zone." You MUST understand that there are a hundred thousand IBD followers out there (I call them IBD clones) who can take a stock up 100% and down 100% in a week for NO other reason than it appearing on their "speed charts." In the last six months, several of our recommended stocks have appeared on the IBD "hot list" at one time or another. If we are doing our job right, they should -- especially when you watch the 52-week new high list. I don't mind that at all. But when one of our stocks gets on the new "Top 100" stocks list or one of the hot lists in their stock ratings, I start to get worried. And you should, too. You now have people who will be buying your stock simply because it is going up -- don't kid yourself. They are attaching themselves to the bandwagon for as long as it's rolling, that's it. When it breaks a 20- or 50-day moving average to the down side, they are gone. And stocks get CRUSHED as the momo players crash the exits. HERE'S HOW TO SUCCEED (... sales pitch) If you are using fundamental research to find industries and companies that you are convinced have great growth ahead, DO NOT use the "sell if its 8% down" IBD rule. It will cost you tons over time. SELL only if your fundamental research is disproved. ADD MORE to your position if temporary market downdrafts give you a chance for a lower cost basis. That's how to nearly double your return on stocks like SanDisk. DO NOT use arbitrary "cut your losses at 8%" rules when you are riding secular transformational changes. Our ChangeWave Investing service gets you on these waves of growth before everybody else. This is how we make market-beating profits, for crying out loud. SELL your stock when it has reached what you consider to be full value based on the next 12-18 months of earnings potential. We recommended selling SanDisk at $55 because our analysis showed full valuation for the next six to 12 months at that level -- it was time to move on. DO monitor any stock you own if it starts to show up on the IBD speed charts. This means it will run up faster than normal and in all likelihood will reach full value much faster than if it was not. What is full value for a growth stock? If you don't know, subscribe (... sales pitch) You don't risk a penny on this trial subscription. If you don't make more money...if you don't have more fun, just call and cancel and it costs nothing. You can take a full three months to decide. Cancel anytime in that period-even the very last day-and your subscription costs NOTHING. Get all our current recommendations online immediately. (... sales = pitch) Getting richer & loving it, Toby Smith ChangeWave Investing (... sales pitch) - - - -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: Fri, 15 Aug 2003 11:14:26 -0400 From: "Steve Goodwin" Subject: Re: [CANSLIM] Fwd: Why I hate Investor's Business Daily (another HITK, Toby Smith story) "momo zone"... right on dude. LOL. - - Steve sgoodwin@cfl.rr.com - ----- Original Message ----- From: "Kelly Short" To: Sent: Friday, August 15, 2003 11:13 AM Subject: RE: [CANSLIM] Fwd: Why I hate Investor's Business Daily (another HITK, Toby Smith story) I love any sales pitch to investors that includes the use of the word "Dude"... - -----Original Message----- From: Tim Katona [mailto:tkat17@earthlink.net] Sent: Friday, August 15, 2003 10:04 AM To: canslim@lists.xmission.com Subject: [CANSLIM] Fwd: Why I hate Investor's Business Daily (another HITK, Toby Smith story) All, A friend just sent me this and I thought you would be amused. I took out all the obvious sales pitches (try my site at...only $79 for 3 months, $499 for 2 years). This is the same site that is telling people to buy HITK in the low $20's, so take it with a grain of salt. Otherwise hit the 'delete' key. My intent is not to discuss if he is right or wrong, just FYI (no flames please!) Tim August 14, 2003 Dear WaveRider, I have a love/hate relationship with Investor's Business Daily (IBD). And it's important that you know why. So I'm going to tell you a little story. If you value wealth, take a couple minutes to hear me through. A subscriber just wrote me that he completely blew our SanDisk (SNDK) recommendation, and it cost him more than $100,000 in profits. Our research on demand for all-things digital showed these markets were booming and would accelerate over 2003 and 2004 into a massive ChangeWave. And this subscriber smartly started a position in SNDK at $20 as suggested. But he then made a HUGE mistake. He used the IBD strategy of "Sell ANY stock than drops more than 8% to protect yourself from catastrophic losses." So when we advised subscribers to "BUY MORE" and get their cost basis as LOW as possible after it dropped under $18, he passed. Later he patted himself on the back as SNDK dropped to around $16, thinking, "Toby's intelligence is wrong and boy am I a smart guy for getting out of this pig." The rest is sad history. SanDisk went from $16 to $55, where we advised subscribers to "SELL" and take their profits. (Well over 100% gains and even more if they averaged down.) He concludes, "In short, I'm mad at myself. I'm mad at IBD and I promise to never confuse fundamental and momentum investing again." Dude, you just said the magic words. NEVER confuse fundamental and momentum-based investing again. (... sales pitch) ATTACK OF THE CLONES I have nothing against Investor's Business Daily. In fact, I read it every day ... but not to find new stock ideas. Mostly I read it to find out which one of our stocks have hit the momentum investor universe I call the "momo zone." You MUST understand that there are a hundred thousand IBD followers out there (I call them IBD clones) who can take a stock up 100% and down 100% in a week for NO other reason than it appearing on their "speed charts." In the last six months, several of our recommended stocks have appeared on the IBD "hot list" at one time or another. If we are doing our job right, they should -- especially when you watch the 52-week new high list. I don't mind that at all. But when one of our stocks gets on the new "Top 100" stocks list or one of the hot lists in their stock ratings, I start to get worried. And you should, too. You now have people who will be buying your stock simply because it is going up -- don't kid yourself. They are attaching themselves to the bandwagon for as long as it's rolling, that's it. When it breaks a 20- or 50-day moving average to the down side, they are gone. And stocks get CRUSHED as the momo players crash the exits. HERE'S HOW TO SUCCEED (... sales pitch) If you are using fundamental research to find industries and companies that you are convinced have great growth ahead, DO NOT use the "sell if its 8% down" IBD rule. It will cost you tons over time. SELL only if your fundamental research is disproved. ADD MORE to your position if temporary market downdrafts give you a chance for a lower cost basis. That's how to nearly double your return on stocks like SanDisk. DO NOT use arbitrary "cut your losses at 8%" rules when you are riding secular transformational changes. Our ChangeWave Investing service gets you on these waves of growth before everybody else. This is how we make market-beating profits, for crying out loud. SELL your stock when it has reached what you consider to be full value based on the next 12-18 months of earnings potential. We recommended selling SanDisk at $55 because our analysis showed full valuation for the next six to 12 months at that level -- it was time to move on. DO monitor any stock you own if it starts to show up on the IBD speed charts. This means it will run up faster than normal and in all likelihood will reach full value much faster than if it was not. What is full value for a growth stock? If you don't know, subscribe (... sales pitch) You don't risk a penny on this trial subscription. If you don't make more money...if you don't have more fun, just call and cancel and it costs nothing. You can take a full three months to decide. Cancel anytime in that period-even the very last day-and your subscription costs NOTHING. Get all our current recommendations online immediately. (... sales pitch) Getting richer & loving it, Toby Smith ChangeWave Investing (... sales pitch) - - - -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. ------------------------------ End of canslim-digest V2 #3528 ****************************** 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.