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From: canslim-owner@xmission.com (canslim Digest) To: canslim-digest@xmission.com Subject: canslim Digest V1 #295 Reply-To: canslim@xmission.com Sender: canslim-owner@xmission.com Errors-To: canslim-owner@xmission.com Precedence: canslim Digest Monday, September 15 1997 Volume 01 : Number 295 In this issue: Re: [CANSLIM] Group Components Re: [CANSLIM] RE: IPIC Re: [CANSLIM] Group Components Re: [CANSLIM] Group Components Re: [CANSLIM] RE: IPIC Re: [CANSLIM] The Bear has scratched on my front door. [CANSLIM] a question about margin Re: [CANSLIM] CELL (BrightPoint) Re: [CANSLIM] UTI - Why? Re: [CANSLIM] Safety Components (ABAG) [CANSLIM] SOCR Re: [CANSLIM] a question about margin Re: [CANSLIM] Group Components Re: [CANSLIM] SOCR Re: [CANSLIM] eMail issues [CANSLIM] MSON - Non-Marginable [CANSLIM] Economic Calendar, week of Sept 15, 1997 [CANSLIM] Earnings/Revenues Disappointments warnings Re: [CANSLIM] MSON - Non-Marginable [CANSLIM] ACTC - Applied Cellular Re: [CANSLIM] a question about margin See the end of the digest for information on subscribing to the canslim or canslim-digest mailing lists and on how to retrieve back issues. ---------------------------------------------------------------------- Date: Mon, 15 Sep 1997 09:38:29 -0700 From: Jerry Sze <jerryz@orchidcapital.com> Subject: Re: [CANSLIM] Group Components Ron, Thanks for the info, one source for Industry Group might be from PitBull Investor, in addition to their PB stock picking books, they also offer an industry group listing. May be someone from CANSLIM-list has tried it? For users of Telescan, group components are available, while I question the assignment for some of the stocks, it still beats building groups from scratch as DailyGraphs is proposing. Jerry ------------------------------ Date: Mon, 15 Sep 1997 12:50:14 -0400 From: Connie Mack Rea <rea1@dp.net> Subject: Re: [CANSLIM] RE: IPIC - --------------2F725D80FB9B35272BC93615 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Gess Shankar wrote: > On 15 Sep 97 at 9:41, Connie Mack Rea wrote: > > > > > Do not take any action on IPIC. Believe they have had to recall > > couple of products. > > > > Why no action? Already profitable as a short trade. I expect the > price to be 15 1/2 tomorrow when the Redux recall hits the papers. > Not CANSLIM by any means, though. > > Gess Gess-- Technicals were weird on IPIC. Mine gave a buy on Friday. I set up my order for Monday. Looked over the stock this morning just to be sure I had the stops staggered right. Nothing amiss. So I posted. Not the trusting type, I always tape conversations with brokers, especially when I have staggered buys|sells. When I called to make the tape, I asked for any pre-market news. He said he hadn't seen any. I have a schedule of questions--six to be exact--that I always clear before cutting the transaction loose. One of my checks is to get a bid|ask. Christ! There is almost a 3 point difference. That's poison, whether up or down. Before I can get to the net for a search, CNBC is covering the recall. If you got off a short, Gess, you're a good man. How did you get one off? At what price? Or were you just commenting? Connie Mack - --------------2F725D80FB9B35272BC93615 Content-Type: text/html; charset=us-ascii Content-Transfer-Encoding: 7bit <HTML> Gess Shankar wrote: <BLOCKQUOTE TYPE=CITE>On 15 Sep 97 at 9:41, Connie Mack Rea wrote: > > Do not take any action on IPIC. Believe they have had to recall > couple of products. > Why no action? Already profitable as a short trade. I expect the price to be 15 1/2 tomorrow when the Redux recall hits the papers. Not CANSLIM by any means, though. Gess</BLOCKQUOTE> Gess-- Technicals were weird on IPIC. Mine gave a buy on Friday. I set up my order for Monday. Looked over the stock this morning just to be sure I had the stops staggered right. Nothing amiss. So I posted. Not the trusting type, I always tape conversations with brokers, especially when I have staggered buys|sells. When I called to make the tape, I asked for any pre-market news. He said he hadn't seen any. I have a schedule of questions--six to be exact--that I always clear before cutting the transaction loose. One of my checks is to get a bid|ask. Christ! There is almost a 3 point difference. That's poison, whether up or down. Before I can get to the net for a search, CNBC is covering the recall. If you got off a short, Gess, you're a good man. How did you get one off? At what price? Or were you just commenting? Connie Mack</HTML> - --------------2F725D80FB9B35272BC93615-- ------------------------------ Date: Mon, 15 Sep 1997 13:28:59 -0500 From: "Gess Shankar" <gess@earthchannel.com> Subject: Re: [CANSLIM] Group Components On 15 Sep 97 at 8:50, Jerry Sze wrote: > Hi there, > > How can I find out the stocks making up each of the indutry groups? > For example, what is in the Elec-Semiconductor Equip? > http://quote.yahoo.com Profiles of stocks also have the link to the industry and sub-group. They are not the IBD grouping, however. Gess ------------------------------ Date: Mon, 15 Sep 1997 14:00:22 -0400 From: Craig Griffin <cagriffin@mindspring.com> Subject: Re: [CANSLIM] Group Components O'Neil was talking about bringing back the IBD publication which was either quarterly or yearly (cost was about $10 I think) that used to list all of the industry groups. They removed it because they claimed others in the industry were using their groupings without paying for them (I think this was possibly - my speculation - that Telescan had started to hurt the sales of DG - Telescan was basicly using IBD groups for its groups at the time). Anyhow, as others have said - you can use Telescans groups and I think you can access them for free on their web pages. Probably as good as any. Take a look at url ===> http://www.tscn.com/wsc/Industry_Group_Analysis.html Regards, Craig At 08:50 AM 9/15/97 -0700, you wrote: >Hi there, > >How can I find out the stocks making up each of the indutry groups? For >example, what is in the Elec-Semiconductor Equip? > >Thanks, >Jerry > > ------------------------------ Date: Mon, 15 Sep 1997 13:47:52 -0500 From: "Gess Shankar" <gess@earthchannel.com> Subject: Re: [CANSLIM] RE: IPIC On 15 Sep 97 at 12:50, Connie Mack Rea wrote: > If you got off a short, Gess, you're a good man. How did you get > one off? At what price? Or were you just commenting? > I cannot take credit for it. I subscribe to a service provided by DayTraders Online (http://www.daytraders.com). They post calls live, primarily meant for quick trades (shorts, longs and scalps meant for people with enough risk capital to buy 1000 or 2000 shares. I wish I did, but make do with smaller lots). I have found them to be surprisingly good in calling intraday bottoms and tops of stocks trading high volume. The calls are done using a Web chat program and works fast enough to take advantage of a tick or two. When used with online order-entry like Datek's et al - it helps you make quick profits, if you can pull the trigger fast. IPIC was news in the presession trading. It was also posted in Briefing.com just before the market opened. So your broker is slow. It was possible to take profit in both directions. Gess ------------------------------ Date: Mon, 15 Sep 1997 15:01:27 -0700 From: Chune Lee <shen@sj.bigger.net> Subject: Re: [CANSLIM] The Bear has scratched on my front door. Group, There is an article by Herb Greenberg in today's SF Chronicle forIomega's drop. It is a razor / razor blade story in which Iomega holds the patents on the disks and expect to collect from disk sale. However, a French disk maker Nomai start plans to sell the razor blades after a German court overturn an injunction against Nomai from doing so. Brian Annis wrote: > > > I have studied the chart for the past three years, huge run up then > > down. If you mean the run up; it collapsed while the rest of the > > industry kept going. Other than that please explain. > > Sam > > The expectations and comments posted re current price action of IOM just > seemed inconsistent with what was visible on a multiyear chart, but had > (just) dropped off a 1yr chart. While its true that a potential > resistance level loses strength as time passes, there's nothing magical > about 1 year, and worth looking at the longer term also, for this and > other reasons. ------------------------------ Date: Mon, 15 Sep 1997 18:27:18 -0400 From: John Nogueira <noguej01@doc.mssm.edu> Subject: [CANSLIM] a question about margin <HTML> I've been thinking about opening a margin account with Datek and have a question that I hope someone can answer. (I've been sending messages to customer support at Datek - but no one ever responds... I wonder if this has anything to do with the cheap commissions). The question is, once I open a margin account, am I charged interest only when my "real cash balance" falls below zero, or always on 50% of the purchase price of my margineable holdings? For instance, suppose I have an account balance of $40,000 and buy $10,000 of XYZ. As far as I understand this, of the $10,000 used to buy XYZ, $5,000 would be my own, and the other $5000 would be from margin. Now, it would make sense to me that interest would not be accumulating at this point, since I still have a positive cash balance. But since I'm not completey sure, I'm basically asking whether or not I would be charged interest on $5000 used to buy XYZ. On another note... today I bought Amazon.com (amzn - a non-canslim stock). I have been tracking this stock for about 2 weeks now, climbing ever since. And ever since the favorable review last week by the Motley Fool (<A HREF="http://www.fool.com">www.fool.com</A>), I had been planning to supplement my Canslim stock(s) with this long-term hopeful. But I waited. Thinking the sharp run-up would be halted by profit-sharing... only to watch it jump another 17% on Friday. Darn... right??? But that's not the end of the story. I was determined to jump aboard. Though I was still weighed down by the thought of massive profit-taking, I decided that enough was enough... It's a long term buy - there is no reason to try and time this purchase. So I jumped aboard this morning. I did the right thing. Hours later, Amazon.com fell 16% to 37 1/8. I still think I did the right thing. Any thoughts? John Nogueira </HTML> ------------------------------ Date: Mon, 15 Sep 1997 15:55:40 -0700 (PDT) From: Tim Fisher <tfish@spiritone.com> Subject: Re: [CANSLIM] CELL (BrightPoint) At 01:07 AM 9/14/97 -0400, you wrote: >Is there anyone out there who closely tracks CELL? Better yet, did >anyone else BUY off of the last base ($30 range)? It climbed another 10% >this week on heavy volume (Friday's volume was about 4x ADV). U/D VOL up >to 1.6. I got in about 5 weeks ago at $29.37 and it's now at $43.87 >(+49%). It's due for a breather, so I'm guessing that it will cool off >and consolidate in the $40 range. > Yeah, bought on the prior breakout a few months back. >It formed a nice 12-week saucer (shallow cup), but skipped the handle. >What does this mean? > Who cares, it is going nuts off a long, solid base, the longer the better, what else could you ask for? Tim Fisher tfish@spiritone.com 1995 President - Pacific Fishery Biologists Keeper of the ORE-ROCK-ON Rockhounding in Oregon Home Page http://www.spiritone.com/~tfish ------------------------------ Date: Mon, 15 Sep 1997 15:55:44 -0700 (PDT) From: Tim Fisher <tfish@spiritone.com> Subject: Re: [CANSLIM] UTI - Why? At 12:28 AM 9/15/97 -0400, you wrote: >Having looked at the chart, I confess I am surprised at the >strength in the stock. Maybe part of it is the 3:1 split, not many >doing this large of a split, most are 3:2 or 2:1. DG Online is now >showing 13.1 mil shares in the float, I presume this is post split >from your data. As to the 5.9 mil shares to be sold, from your post >this sounds like shares already existing, maybe now just being >registered, so at a minimum already counted in the per share nrs, >and not all may go to mkt immediately. I would guess that Monday >and Tuesday will be the "test days" to see if the strength >continues. +2 on Monday - didn't see voulme but I assume it was high. I added to my position at the open. Tim Fisher tfish@spiritone.com 1995 President - Pacific Fishery Biologists Keeper of the ORE-ROCK-ON Rockhounding in Oregon Home Page http://www.spiritone.com/~tfish ------------------------------ Date: Mon, 15 Sep 1997 20:59:02 -0400 From: "Tom Worley" <stkguru@netside.net> Subject: Re: [CANSLIM] Safety Components (ABAG) Knew the co pretty well, was offered the chance to place a virtually unlimited nr of their shares when they went public on NMS at $10.00, then they discovered they were a "hot" issue, ended up getting nothing and stupidly didn't jump on them in the aftermkt a short time later when they announced a huge ordnance contract (an often overlooked part of the co as it's not that profitable). At the time they were supplying something like 40% of the airbags for one component systems supplier (TRW??? sticks in my mind) who put together the systems for about a dozen major auto makers. They were building a new plant to make airbags in Mexico which was going to double production. I was impressed with management, they seemed to know what they were doing and were well positioned. Have watched the stock off and on for the past several years, chart does look interesting and will have to find a spot to add it to my watch list. BTW, welcome to the group, and thanks for the stock pick. DG Online shows float at 2.2 mil shares, still small. I must admit, tho, I'm shocked you let your wife throw away the Monday IBD on Monday!! For shame, both of you! I'm all for recycling, but within reason, for heaven's sake. Any statements or opinions are strictly my own and not that of my employer. My comments should not be interpreted as a recommendation of any kind. I am a licensed (inactive) broker and an active investor. All investors should do their own research prior to any investment, especially one learned about on the Internet. Hopefully my comments will better inform and educate all investors. tom w - ---------- > From: Dave Kilty <KIlty@worldnet.att.net> > To: canslim@xmission.com > Subject: [CANSLIM] (no subject) > Date: Sunday, September 14, 1997 11:24 AM > > Another lurker responding.My name is Dave Kilty.I've lurked here on the > digest version for several months and would like to say thanks to all of > you!!!This stock may already be too far from breakout but to me it still > looks good.IBD 93 88 A Five million shares outstanding;1.8 million > float.Stock is ABAG.Would appreciate any insight and being as I > subscribe to Digest version could it be sent to kilty@worldnet.att.com > TIA and of course disclaimer:I'm new to CANSLIM and I have a substantial > position in this one. > Regards,Dave > P.S.IBD numbers are from memory as my wife already took Mondays issue to > garbage. > ------------------------------ Date: Mon, 15 Sep 1997 21:24:38 -0700 From: Sam Funchess <sam5@mindspring.com> Subject: [CANSLIM] SOCR What happened today Tom? Sam ------------------------------ Date: Mon, 15 Sep 1997 21:05:52 -0400 From: "Tom Worley" <stkguru@netside.net> Subject: Re: [CANSLIM] a question about margin Gess, thanks for waving the magic baton over this "invisible ink" post. Thought it was just me that couldn't see it. Anyway, excellent explanation of how a margin acct works. Any statements or opinions are strictly my own and not that of my employer. My comments should not be interpreted as a recommendation of any kind. I am a licensed (inactive) broker and an active investor. All investors should do their own research prior to any investment, especially one learned about on the Internet. Hopefully my comments will better inform and educate all investors. tom w - ---------- > From: Gess Shankar <gess@earthchannel.com> > To: canslim@mail.xmission.com > Subject: Re: [CANSLIM] a question about margin > Date: Monday, September 15, 1997 7:55 PM > > On 15 Sep 97 at 18:27, John Nogueira wrote: > > > I've been thinking about opening a margin account with Datek and > > have a question that I hope someone can answer. (I've been sending > > No, you would not be charged interest with a cash balance, but will > earn interest on the $30,000. > > Can you please turn HTML encoding when sending mail to the list. Not > every one reads mail with browsers. It is a pain to read tagged text > in mail. > > Gess ------------------------------ Date: Mon, 15 Sep 1997 21:13:29 -0400 From: "Tom Worley" <stkguru@netside.net> Subject: Re: [CANSLIM] Group Components Depends on who's grouping you are looking for. WON once published his group breakdown, as well as changes to it. However, in an attempt to copy CANSLIM, too many other sources were "borrowing" the info, so he quit publishing it. Keep in mind, tho, that all you have to do is think of a single stock in a top performing group (doesn't have to be a top stock in that group) and you can look at the DG chart for that stock and it will show the top five stocks for that group. As mentioned, you can also clip the list out of IBD (I did that for several years, what a bore in a day and age of computer technology!). For me at least, I am usually focusing on the top five in a group anyway, so not as concerned at knowing the members of the rest of the group. Any statements or opinions are strictly my own and not that of my employer. My comments should not be interpreted as a recommendation of any kind. I am a licensed (inactive) broker and an active investor. All investors should do their own research prior to any investment, especially one learned about on the Internet. Hopefully my comments will better inform and educate all investors. tom w - ---------- > From: Jerry Sze <jerryz@orchidcapital.com> > To: custserv@daulygraphs.com > Cc: Canslim List <canslim@xmission.com> > Subject: [CANSLIM] Group Components > Date: Monday, September 15, 1997 11:50 AM > > Hi there, > > How can I find out the stocks making up each of the indutry groups? For > example, what is in the Elec-Semiconductor Equip? > > Thanks, > Jerry ------------------------------ Date: Mon, 15 Sep 1997 21:28:08 -0400 From: "Tom Worley" <stkguru@netside.net> Subject: Re: [CANSLIM] SOCR Good question, probably all my fault, too, as I convinced a broker at work to buy some at 11.5. Looked for some time later like that was going to be the best he could buy it at today (in fact he only got a partial fill at 11.5 as the low offer quickly moved away), then the bid started dropping on light vol. Up to that point it had done more than double the daily average, setting a new high in the process. I've still got some buying power left, and was tempted to pick some more up at 11, but elected to wait till Tuesday (both for the economic reports - calendar to follow, as well as to be sure my acct doesn't get restricted for free riding MSON -there are a few advantages to running the back office!). I suspect it was more a case of short term traders taking profits when NASDAQ took a reversal and went into neg territory (even tho a new high on Russell 2000). Remember, I did warn that small caps would be riskier and needed a tighter trigger finger. They don't have the strong staying power of big institutional positions, and due to the small float, can move in wide extremes on relatively small nr of shares. The typical market maker on this stock is only good for several hundred shares at a time at either the bid or ask. If he's there by himself, takes nothing to move him out of the way. I could find no news, so believe it was just technical. Any statements or opinions are strictly my own and not that of my employer. My comments should not be interpreted as a recommendation of any kind. I am a licensed (inactive) broker and an active investor. All investors should do their own research prior to any investment, especially one learned about on the Internet. Hopefully my comments will better inform and educate all investors. tom w - ---------- > From: Sam Funchess <sam5@mindspring.com> > To: Can Slim <canslim@xmission.com> > Subject: [CANSLIM] SOCR > Date: Tuesday, September 16, 1997 12:24 AM > > What happened today Tom? > Sam > > ------------------------------ Date: Mon, 15 Sep 1997 21:48:29 -0500 From: "Gess Shankar" <gess@earthchannel.com> Subject: Re: [CANSLIM] eMail issues On 15 Sep 97 at 21:05, Tom Worley wrote: > Gess, thanks for waving the magic baton over this "invisible ink" > post. Thought it was just me that couldn't see it. Anyway, excellent > explanation of how a margin acct works. > Tom and everyone, The problem with some of the unreadable messages is due to the fact that many people now use mail clients which ship with browsers like Netscape Communicator, IE and some Lotus creations, which foist on HTML, MIME, weird attachments like vcards, dual encoding and whatnots on the unsuspecting recipients with "legacy" email systems which play by smtp rules. May I request all of you to turn off the fancy features when posting to the list? I run many mailing lists myself and this is one of the most vexing problems I face as an administrator, as such things mess up digesting, archiving etc. and sometimes crash older mail systems. Gess ------------------------------ Date: Mon, 15 Sep 1997 22:13:28 -0400 From: Craig Griffin <cagriffin@mindspring.com> Subject: [CANSLIM] MSON - Non-Marginable Tom and all, At 09:25 PM 9/10/97 -0400, you wrote: >MSON (Misonix) is a small cap stock, thus is not >marginable. Tried to reach the company today to see if they have >plans to list NMS ... How can one tell if a stock is small cap or NMS (National Market System?)? Is there a web site with this info. I had been under the (apparently) erroneous impression that if a stock was listed or on the NASDAQ and traded for $5 or more that it was marginable. But then, I have rarely held stocks not in the NMS (I guess). Thanks in advance for any info. Regards, Craig ------------------------------ Date: Mon, 15 Sep 1997 22:15:27 -0400 From: "Tom Worley" <stkguru@netside.net> Subject: [CANSLIM] Economic Calendar, week of Sept 15, 1997 Reported today, MONDAY: US Manufacturer's Profits up to average of 6.4% of sales in Q2, up from 6.3% in Q1, and up from 5.8% in Q2 FY96. Profits on durable goods declined, on non-durable goods increased. The annual rate of return on shareholder equity rose to 17.9% from 16.8% in Q1, but was down from Q2, FY96 when it was at 18.3%. US nonfinancial debt grew at 3.7% rate in Q2, down from 4.7% rate in Q1. Fed debt contracted at a 2.6% rate, while private nonfinancial debt grew at a rate of 5.9%. State and local govt borrowing grew at a 7.7% annual rate. Nonfinancial debt includes borrowing by all sectors of the economy except banks, thrifts, finance cos and other financial svcs providers. TUESDAY CPI, for August, was up 0.2%, expected up 0.3%, however core expected at up 0.2% (if we stay within these nrs, and I think we will, we should be ok) Industrial Production, for August, was up 0.2%, expected up 0.6%; Capacity Utilization expected to show a small rise to 83.3%. Again, we need to stay within these nrs, and I think we will. Business Inventories, for July (old data), was up 0.7%, expected is up only 0.2%. I think this nr is a tad conservative, but should still show a marked decrease in inventory increases over June. WEDNESDAY Housing Starts, for August, was 1.44 mil, expected only a minor increase to 1.46 mil THURSDAY Trade Balance, for July (old data again), was a negative $8.2 bil, expected is a moderate increase to neg $9.5bil. I am expecting something more in the neighborhood of $10.3 to $10.4 bil, with the US-Japan nr also expanding due the continued strength in the US-yen ratio and the general problems with currency in Asia in general (note, just today Kodak suggested that currency exchange rates will impact its bottom line for latest qtr at about $550 mil). Initial Jobless Claims, for week to Sep 13, last was 310,000 and expected is a small increase to 320,000 Money Supply - M2, for week to Sep 8, last was an increase of $18 bil, expected is a decrease of $4.0 bil I am not anticipating any alarming "inflationary" reports this week, nor do I expect any Fed rate hike at this month's FOMC meeting. Any statements or opinions are strictly my own and not that of my employer. My comments should not be interpreted as a recommendation of any kind. I am a licensed (inactive) broker and an active investor. All investors should do their own research prior to any investment, especially one learned about on the Internet. Hopefully my comments will better inform and educate all investors. tom w ------------------------------ Date: Mon, 15 Sep 1997 22:30:04 -0400 From: "Tom Worley" <stkguru@netside.net> Subject: [CANSLIM] Earnings/Revenues Disappointments warnings While most of the earnings and revenues commentaries being issued by public cos during the trading day seemed decidedly positive, those coming after the close had a nasty negative trend. Throughout the day, Ascend (ASND) was suffering from brokerage houses downgrading their prospects, warning of earnings shortfalls, and cutting earnings forecasts. It continued to trade down to 32 in the aftermarket, however rumors that it would preannounce a neg surprise after the close had not happened as of 7:30PM. Adding to the pressure was Eastman Kodak, which announced it would approximate last year's results, meaning it misses this year's estimates by about $1.00 a share. Not good. It was almost at 60 in aftermarket trading, giving up 4.5 pts there. And it's in the Dow 30, so could account for an easy 10-15 pts down on the open for that index if there is no rebound. Note, ASND made no comments that I could find, everything was coming from analysts at various brokerage houses. Other companies warning of shortfalls included Amer. Pad and Paper (AGP); York Int'l (YRK); Carriages Svcs (CRSV); and Proxim (PROX) which recently broke thru its last support at 20. PROX had been expected to report earnings of 17 cents, now expects to break even for the qtr. Any statements or opinions are strictly my own and not that of my employer. My comments should not be interpreted as a recommendation of any kind. I am a licensed (inactive) broker and an active investor. All investors should do their own research prior to any investment, especially one learned about on the Internet. Hopefully my comments will better inform and educate all investors. tom w ------------------------------ Date: Mon, 15 Sep 1997 22:39:21 -0400 From: "Tom Worley" <stkguru@netside.net> Subject: Re: [CANSLIM] MSON - Non-Marginable Used to be that you could look in IBD or any decent financial newspaper and they listed NASDAQ stocks in separate groups, NMS and all others. Tried IBD after I discovered my mistake and they only listed NMS. Don't know if it was just that day or is now policy, but the "NASDAQ" section was not labeled as NMS only, so no way to be sure. I should have used my computer at work, where I have a "master security directory index", which would have told me, but I was fooled by the price, made a stupid assumption from that, and guessed wrong. Price is not a positive criteria in whether a NASDAQ stock is NMS or small cap. Best bet is probably to ask a broker if you can't determine it from a newspaper listing, or else call the company and ask them. If the stock has been NMS for at least 30 days, and is over $5.00, it is likely to be marginable. Keep in mind that even listed stocks, while marginable, may have addl cash requirements. Stocks under $5.00/share typically have a 50% maintenance requirement (compared to 35% for higher priced stocks). And stocks that slip under $3.00/share will likely have a 100% maintenance requirement (effectively are not marginable). Likewise, if you buy an otherwise marginable stock below $5.00, some firms may not allow margin on it unless it closes over $5.00 by either trade or settlement date. And this restriction may last for the life of the position. Any statements or opinions are strictly my own and not that of my employer. My comments should not be interpreted as a recommendation of any kind. I am a licensed (inactive) broker and an active investor. All investors should do their own research prior to any investment, especially one learned about on the Internet. Hopefully my comments will better inform and educate all investors. tom w - ---------- > From: Craig Griffin <cagriffin@mindspring.com> > To: canslim@mail.xmission.com > Subject: [CANSLIM] MSON - Non-Marginable > Date: Monday, September 15, 1997 10:13 PM > > Tom and all, > > At 09:25 PM 9/10/97 -0400, you wrote: > >MSON (Misonix) is a small cap stock, thus is not > >marginable. Tried to reach the company today to see if they have > >plans to list NMS ... > > How can one tell if a stock is small cap or NMS (National Market System?)? > Is there a web site with this info. I had been under the (apparently) > erroneous impression that if a stock was listed or on the NASDAQ and traded > for $5 or more that it was marginable. But then, I have rarely held stocks > not in the NMS (I guess). > > Thanks in advance for any info. > > Regards, > > Craig > ------------------------------ Date: Mon, 15 Sep 1997 22:58:51 -0400 From: "Tom Worley" <stkguru@netside.net> Subject: [CANSLIM] ACTC - Applied Cellular Forgot to mention this one earlier, had been watching it consolidate and base out at the 6.5 level, broke out today on twice avg daily vol, but may be failing b/o or just reloading as NASDAQ backed up. Fits the pattern I am looking for on small caps. Not in top 5 of its group (computer-software, may have been hurt by Barron's -don't ask me what I think of this rag - article on MSFT). Float is 1.5 mil, total issue only 2.3 mil shares, RS 86, but EPS 75, that's OK for me from the patterns I have been seeing as is Timeliness at C. Did .19 last year, and forecast for .30 this year, up 58%). Already did .12 thru 6 mos (up 150% and 133% respectively for past two qtrs). Revenues for past four qtrs up 529%, 915%, 999% and 999% (which means over 10X since the revenue increase field is only 3 char long, was actually more like 1500% and 1300% increases). Trailing and projected PE is higher than I like, but with this kind of growth rate, I can tolerate it. Up/down ratio is 2.7, with no reported institutions having found it yet. Avg daily vol is 245K, did 560K today. Any statements or opinions are strictly my own and not that of my employer. My comments should not be interpreted as a recommendation of any kind. I am a licensed (inactive) broker and an active investor. All investors should do their own research prior to any investment, especially one learned about on the Internet. Hopefully my comments will better inform and educate all investors. tom w ------------------------------ Date: Tue, 16 Sep 1997 03:23:48 GMT From: musicant@autobahn.org (Dan Musicant) Subject: Re: [CANSLIM] a question about margin On Mon, 15 Sep 1997 18:27:18 -0400, you wrote: :<HTML> :I've been thinking about opening a margin account with Datek and have a :question that I hope someone can answer. (I've been sending messages to :customer support at Datek - but no one ever responds... I wonder if this :has anything to do with the cheap commissions). : :The question is, once I open a margin account, am I charged interest :only when my "real cash balance" falls below zero, or always on 50% of :the purchase price of my margineable holdings? For instance, suppose I :have an account balance of $40,000 and buy $10,000 of XYZ. As far as I :understand this, of the $10,000 used to buy XYZ, $5,000 would be my own, :and the other $5000 would be from margin. Now, it would make sense to me :that interest would not be accumulating at this point, since I still = have :a positive cash balance. But since I'm not completey sure, I'm basically :asking whether or not I would be charged interest on $5000 used to buy :XYZ. You know, John, it's funny because I was wondering the exactly same thing a couple of days ago. I opened a Datek account a few days ago and got my email confirmation that my check had cleared on Thursday. After reading the material I concluded that you will pay no margin rates until you are actually *borrowing* money to buy a stock. They have a button that activates your margin status. The default is no margin buying until you click that button. The button prompt is "I want margin!". Before you get to that you click a link called "Change margin status." In that window you read the following: - -------------------------------------------------------------------------= - ---- Changing Your Margin Status=20 If you are not sure if your account is a cash account or a margin account just check the upper left-hand section of your Portfolio page.=20 A margin account allows you to buy or sell on margin and to sell short. Trading on margin allows you to increase your buying power and to borrow against the value of your securities. You can only trade marginable stocks on margin or if you have any short postions. To determine if a stock is marginable simply get a quote on that stock at the Quotes and Order Entry page. If there is a "Yes" under the M (for marginable), the stock is marginable. For a more detailed discussion of margin please see Understanding Margin.=20 Datek Online currently charges 7% APR, compounded monthly, on your daily average balance for funds borrowed on margin. Please be aware that once you have switched your account to margin, you cannot switch it back to a cash account if any funds are still being borrowed on margin. For this reason, you cannot change your account from margin to cash through the Web. If you would like to disable your margin capability please call our trading hotline at 212.514.7124. To change your account from cash to margin, simply click on the button below. After you submit your request, your account will be changed immediately. You can see if your account is a margin account by checking the upper left-hand corner of your Portfolio page.=20 - -------------------------------------------------------------------------= - ---- If you read the above carefully the answer to the question can be inferred to be found at "Understanding Margin." This is not so easily found, but I did find it after poking around a bit. You can access it whether or not you have an account by looking for the FAQ. Here it is: - -------------------------------------------------------------------------= - ---- UNDERSTANDING MARGIN What is margin? When you trade on margin, you are taking a loan. The securities you buy are the collateral for the loan. Like all loans, you pay interest when you borrow funds on margin. Datek Online charges 7% APR on the daily closing balance, compounded monthly.=20 You can only trade certain stocks on margin. They are called marginable stocks. You can see if a stock is marginable by going to the Quotes and Order Entry page and getting a quote on the stock. If there is a Yes under the M, the stock is marginable. The Federal Reserve determines if stocks are marginable and how much the margin rate is =96 that is, how much you can borrow against the value of the stocks. At present, you can borrow up to half of the value of marginable stocks.=20 When you buy stocks on margin, part of the value of the stocks is your loan. The other part is your equity. You can find your equity on the Portfolio page. It is always equal to the Account Value. The loan amount will not change when your stocks go up and down in price. Your equity will. For example, suppose you buy $10,000 of XYZ on margin. You borrow $5,000 (the full 50% allowed). The remaining $5,000 which you contribute is your equity. Suppose XYZ subsequently declines in value and your position is now worth only $8,000. The loan you have taken remains $5,000. Your equity, however, decreases to $3,000. Likewise, if XYZ increased in value to, say, $12,000, your loan would be static at $5,000 and your equity would increase to $7,000.=20 The current margin rate, established by the Federal Reserve, is 50%. In other words, if you buy $10,000 worth of a marginable stock XYZ, you only have to pay $5,000 and you can borrow the rest. Or, if you own, say, $10,000 worth of a fully-paid marginable security, you can borrow $5,000 against the value of that stock. If you wish to purchase $10,000 worth of a non-marginable stock, you must pay the full amount. And, similarly, if you own $10,000 of a non-marginable security, you cannot borrow any money against the value of that stock.=20 What if my stocks bought on margin decrease in value?=20 =20 UNDERSTANDING MARGIN How do I get margin? You must enable your account for margin to be able to trade on margin. To enable your account for margin, just click on the Account Options link on the Order Entry page.=20 =20 UNDERSTANDING MARGIN Maintenance Call At present your account requires additional margin as indicated on the front of this notice in the Amount Due column. To satisfy this requirement you must promptly send this margin to us for credit to your account. In the event that the necessary margin is not received by us by the "Date Due", we will be required to liquidate sufficient securities in your account to satisfy the call due at the time of liquidation and to hold you responsible for any resulting deficiency.=20 In addition, we will ask you to send enough money so that your equity is greater than 30% of your account value. We will send you a warning when your equity dips below 40% of your account value.=20 In order to provide its low margin interest rates, Datek Online reserves the right to close out your account immediately if the equity drops to below 5% of the account value.=20 What if my stocks bought on margin increase in value? The loan remains the same, but your equity increases. =20 UNDERSTANDING MARGIN Shorting on Margin Your ability to short on margin is dollar for dollar the same as your ability to buy long on margin. That is, if you have $10,000 in your account, you can either buy $20,000 of a marginable stock to establish a long position or sell $20,000 of a marginable stock to establish a short position. On your Portfolio page, you will find that a short sale or a long buy of the same dollar amount will affect your Available Cash, Buying Power, and Account Value exactly the same.=20 =20 - -------------------------------------------------------------------------= - ---- :On another note... today I bought Amazon.com (amzn - a non-canslim = stock). :I have been tracking this stock for about 2 weeks now, climbing ever = since. :And ever since the favorable review last week by the Motley Fool (<A = HREF=3D"http://www.fool.com">www.fool.com</A>), :I had been planning to supplement my Canslim stock(s) with this = long-term :hopeful. But I waited. Thinking the sharp run-up would be halted by = profit-sharing... :only to watch it jump another 17% on Friday. Darn... right??? But that's :not the end of the story. I was determined to jump aboard. Though I was :still weighed down by the thought of massive profit-taking, I decided = that :enough was enough... It's a long term buy - there is no reason to try = and :time this purchase. So I jumped aboard this morning. I did the right = thing. : :Hours later, Amazon.com fell 16% to 37 1/8. : :I still think I did the right thing. : :Any thoughts? : :John Nogueira : </HTML> : ------------------------------ End of canslim Digest V1 #295 ***************************** To subscribe to canslim Digest, send the command: subscribe canslim-digest in the body of a message to "majordomo@xmission.com". 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