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- From: owner-canslim-digest@lists.xmission.com (canslim-digest)
- To: canslim-digest@lists.xmission.com
- Subject: canslim-digest V2 #1184
- Reply-To: canslim
- Sender: owner-canslim-digest@lists.xmission.com
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- canslim-digest Tuesday, March 6 2001 Volume 02 : Number 1184
-
-
-
- In this issue:
-
- Re: [CANSLIM] Stops
- Re: [CANSLIM] averaging up/dn & tax free vs taxable acct
- Re: [CANSLIM] Clearstation
- Re: [CANSLIM] DCS
- Re: [CANSLIM] Late IBD
- Re: [CANSLIM] Question on follow-through days?
- RE: [CANSLIM] spreadsheet of excel from qp2 data
- Re: [CANSLIM] averaging up/dn & tax free vs taxable acct
-
- ----------------------------------------------------------------------
-
- Date: Tue, 6 Mar 2001 21:43:10 -0500
- From: "Dan Forant" <dforant1@nycap.rr.com>
- Subject: Re: [CANSLIM] Stops
-
- C'mon, every one knows he was in Star Wars :)
-
- Dan F
-
- - ----- Original Message -----
- From: "Gary W. Horan Jr." <ghoran@home.com>
- To: <canslim@lists.xmission.com>
- Sent: Monday, March 05, 2001 9:22 PM
- Subject: Re: [CANSLIM] Stops
-
-
- >
- > Sorry for this question to all the veterans.
- >
- > What is Won?
- >
- >
-
-
-
- - -
-
- ------------------------------
-
- Date: Tue, 6 Mar 2001 20:47:56 -0600
- From: "Norman" <theboyd@tisd.net>
- Subject: Re: [CANSLIM] averaging up/dn & tax free vs taxable acct
-
- This is a multi-part message in MIME format.
-
- - ------=_NextPart_000_01E4_01C0A67E.B8DE9960
- Content-Type: text/plain;
- charset="Windows-1252"
- Content-Transfer-Encoding: quoted-printable
-
- Tom,
-
- Thanks for putting some thought into a response. I guess I'm pulled =
- between buying low/selling high and buying high and selling higher. I =
- think for my taxable account - can use it now money - I like CANSLIM. =
- For my Roth IRAs (most of which are in mutuals right now) I haven't =
- decided; I may buy some quality techs now while they are relatively low =
- and also play some CANSLIM with a portion of that money. I really can't =
- see AMAT, NOK, or the like, going completely belly-up ..... but there =
- was Xerox :-(
-
- Again, thanks for some thoughts.
-
- Norman
- ----- Original Message -----=20
- From: Tom Worley=20
- To: canslim@lists.xmission.com=20
- Sent: Tuesday, March 06, 2001 7:59 PM
- Subject: Re: [CANSLIM] averaging up/dn & tax free vs taxable acct
-
-
- WON's argument against averaging down is based on the belief that a =
- top performing stock does not give you that opportunity. Should you be =
- presented with that opportunity, then either you didn't pick a top =
- performing stock, or it is no longer a top performing stock. Either way, =
- you should be applying your stop loss rules.
-
- What your friend is doing is value shopping (or bottom fishing). =
- Nothing wrong in that, it is simply another strategy designed to =
- eventually make better profits than a savings account. I think the key =
- difference is that CANSLIM is designed around a set of rules intended to =
- protect you against a major loss of capital, and to force you into =
- taking profits at more or less the right time. Value shopping does not =
- have, in my opinion, any protection against even better opportunities to =
- average down in the future (e.g. no downside risk limitations) other =
- than pure value. And, bottom line, value is what all the investment =
- community collectively places on a stock, and that is usually based on =
- expectation. And expectations, being an emotional thing, is based on =
- what is seen for the future, which is usually earnings growth related.
-
- The issues of tax free (it's not really, only tax deferred) vs taxable =
- should not be a significant factor in either buy or sell decisions. =
- Granted, if it's December 28, and there are only two trading days to go =
- to force a profit into the new year, and delay paying taxes on the gains =
- for 15 or so months, then it might be a factor. Or if you are only a =
- week away from changing a gain from short term to long term, then the =
- difference in taxation might offset the loss in price you may pay. But a =
- deteriorating stock is a deteriorating stock, risking loss of profits, =
- or of capital.
-
- Before being introduced to CANSLIM, I got my master's degree in Value =
- Shopping, with a minor in Fundamentals. The sheepskin cost a hefty =
- price, one I did not soon forget. Took me many years to pay off that =
- student loan! I still get twinges sometimes, and hurriedly load Daily =
- Graphs and look at the chart, in particular the EPS and the chart trend. =
- That usually cures me. If that still doesn't work, I look at the support =
- bases, and ask myself "if it breaks that base, how much lower could it =
- still go?". That one always does the trick.
-
- Tom Worley
- stkguru@netside.net
- ICQ # 5568838
-
-
- ----- Original Message -----=20
- From: Norman=20
- To: canslim@lists.xmission.com=20
- Sent: Tuesday, March 06, 2001 1:10 PM
- Subject: [CANSLIM] averaging up/dn & tax free vs taxable acct
-
-
-
- Recently there was an article in IBD on averaging up as a stock =
- moves up and
- cautioning against averaging down.
-
- I have a friend who routinely averages down in what we both agree =
- are
- quality tech 'blue chip' companies with good revenue growth and =
- earnings.
- He is trading 9-10 stocks in an IRA account.
-
- I am still learning CANSLIM and how to apply the method, but as I =
- understand it WON's method is
- primarily short/intermediate term investing. If an investors time =
- horizon
- is long (say 5 years) how does a buy-at-52-week-lows method compare =
- with
- CANSLIM?
-
- My friend and I have 'compared' CANSLIM vs buy-n-hold tech blue =
- chips at
- length. My delimma is that I find both mehtods 'logical' when used =
- in the
- right type of account: CANSLIM in any type account, and b-n-h in a =
- long term account such as retirement money. I am not particularly drawn =
- to b-n-h, but the way
- he is doing it, it seems logical, especially in the current market. =
- Has any one else thought about this: CANSLIM vs buy-n-hold in a =
- long-term account? =20
-
- Norman Boyd
-
- - ------=_NextPart_000_01E4_01C0A67E.B8DE9960
- Content-Type: text/html;
- charset="Windows-1252"
- Content-Transfer-Encoding: quoted-printable
-
- <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
- <HTML><HEAD>
- <META http-equiv=3DContent-Type content=3D"text/html; =
- charset=3Dwindows-1252">
- <META content=3D"MSHTML 5.50.4522.1800" name=3DGENERATOR>
- <STYLE></STYLE>
- </HEAD>
- <BODY bgColor=3D#ffffff>
- <DIV>Tom,</DIV>
- <DIV> </DIV>
- <DIV>Thanks for putting some thought into a response. I guess I'm =
- pulled=20
- between buying low/selling high and buying high and selling =
- higher. I=20
- think for my taxable account - can use it now money - I like =
- CANSLIM. For=20
- my Roth IRAs (most of which are in mutuals right now) I haven't =
- decided; I=20
- may buy some quality techs now while they are relatively low and also =
- play some=20
- CANSLIM with a portion of that money. I really can't see AMAT, =
- NOK, or the=20
- like, going completely belly-up ..... but there was Xerox :-(</DIV>
- <DIV> </DIV>
- <DIV>Again, thanks for some thoughts.</DIV>
- <DIV> </DIV>
- <DIV>Norman</DIV>
- <BLOCKQUOTE dir=3Dltr=20
- style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
- BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
- <DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
- <DIV=20
- style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
- black"><B>From:</B>=20
- <A title=3Dstkguru@netside.net href=3D"mailto:stkguru@netside.net">Tom =
- Worley</A>=20
- </DIV>
- <DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
- title=3Dcanslim@lists.xmission.com=20
- =
- href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
- </DIV>
- <DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Tuesday, March 06, 2001 =
- 7:59=20
- PM</DIV>
- <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] =
- averaging up/dn=20
- & tax free vs taxable acct</DIV>
- <DIV><BR></DIV>
- <DIV><FONT size=3D2>WON's argument against averaging down is based on =
- the belief=20
- that a top performing stock does not give you that opportunity. Should =
- you be=20
- presented with that opportunity, then either you didn't pick a top =
- performing=20
- stock, or it is no longer a top performing stock. Either way, you =
- should be=20
- applying your stop loss rules.</FONT></DIV>
- <DIV> </DIV>
- <DIV><FONT size=3D2>What your friend is doing is value shopping (or =
- bottom=20
- fishing). Nothing wrong in that, it is simply another strategy =
- designed to=20
- eventually make better profits than a savings account. I think the key =
-
- difference is that CANSLIM is designed around a set of rules intended =
- to=20
- protect you against a major loss of capital, and to force you into =
- taking=20
- profits at more or less the right time. Value shopping does not have, =
- in my=20
- opinion, any protection against even better opportunities to average =
- down in=20
- the future (e.g. no downside risk limitations) other than pure value. =
- And,=20
- bottom line, value is what all the investment community collectively =
- places on=20
- a stock, and that is usually based on expectation. And expectations, =
- being an=20
- emotional thing, is based on what is seen for the future, which is =
- usually=20
- earnings growth related.</FONT></DIV>
- <DIV> </DIV>
- <DIV><FONT size=3D2>The issues of tax free (it's not really, only tax =
- deferred)=20
- vs taxable should not be a significant factor in either buy or sell=20
- decisions. Granted, if it's December 28, and there are only two =
- trading=20
- days to go to force a profit into the new year, and delay paying taxes =
- on the=20
- gains for 15 or so months, then it might be a factor. Or if you =
- are only=20
- a week away from changing a gain from short term to long term, then =
- the=20
- difference in taxation might offset the loss in price you may pay. But =
- a=20
- deteriorating stock is a deteriorating stock, risking loss of profits, =
- or of=20
- capital.</FONT></DIV>
- <DIV> </DIV>
- <DIV><FONT size=3D2>Before being introduced to CANSLIM, I got my =
- master's degree=20
- in Value Shopping, with a minor in Fundamentals. The sheepskin cost a =
- hefty=20
- price, one I did not soon forget. Took me many years to pay off that =
- student=20
- loan! I still get twinges sometimes, and hurriedly load Daily =
- Graphs and=20
- look at the chart, in particular the EPS and the chart trend. That =
- usually=20
- cures me. If that still doesn't work, I look at the support bases, and =
- ask=20
- myself "if it breaks that base, how much lower could it still go?". =
- That one=20
- always does the trick.</FONT></DIV>
- <DIV><FONT size=3D2><BR>Tom Worley<BR><A=20
- href=3D"mailto:stkguru@netside.net">stkguru@netside.net</A><BR>ICQ #=20
- 5568838</FONT></DIV>
- <DIV> </DIV>
- <DIV><FONT size=3D2></FONT> </DIV>
- <BLOCKQUOTE=20
- style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
- BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
- <DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
- <DIV=20
- style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
- black"><B>From:</B>=20
- <A title=3Dtheboyd@tisd.net =
- href=3D"mailto:theboyd@tisd.net">Norman</A> </DIV>
- <DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
- title=3Dcanslim@lists.xmission.com=20
- =
- href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
- =20
- </DIV>
- <DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Tuesday, March 06, 2001 =
- 1:10=20
- PM</DIV>
- <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> [CANSLIM] averaging =
- up/dn=20
- & tax free vs taxable acct</DIV>
- <DIV><BR></DIV>
- <DIV>
- <DIV> </DIV>
- <DIV>Recently there was an article in IBD on averaging up as a stock =
- moves=20
- up and<BR>cautioning against averaging down.<BR><BR>I have a friend =
- who=20
- routinely averages down in what we both agree are<BR>quality tech =
- 'blue=20
- chip' companies with good revenue growth and earnings.<BR>He is =
- trading 9-10=20
- stocks in an IRA account.<BR><BR>I am still learning CANSLIM =
- and how to=20
- apply the method, but as I understand it WON's method =
- is<BR>primarily=20
- short/intermediate term investing. If an investors time =
- horizon<BR>is=20
- long (say 5 years) how does a buy-at-52-week-lows method =
- compare=20
- with<BR>CANSLIM?<BR><BR>My friend and I have 'compared' CANSLIM vs=20
- buy-n-hold tech blue chips at<BR>length. My delimma is that I =
- find=20
- both mehtods 'logical' when used in the<BR>right type of =
- account: =20
- CANSLIM in any type account, and b-n-h in a long term account =
- such as=20
- retirement money. I am not particularly drawn to b-n-h, but =
- the=20
- way<BR>he is doing it, it seems logical, especially in the current=20
- market. Has any one else thought about this: CANSLIM vs =
- buy-n-hold in=20
- a long-term account? </DIV>
- <DIV> </DIV>
- <DIV>Norman Boyd</DIV></DIV></BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>
-
- - ------=_NextPart_000_01E4_01C0A67E.B8DE9960--
-
-
- - -
-
- ------------------------------
-
- Date: Tue, 06 Mar 2001 19:54:48 -0700
- From: esetser <esetser@covad.net>
- Subject: Re: [CANSLIM] Clearstation
-
- esetser is my name there and most places.
-
- At 07:32 AM 3/6/01 -0800, you wrote:
- >Earl, what name do you use on clearstation?
- >Tony
- >--- esetser <esetser@covad.net> wrote:
- >> Or, you could chose to post your picks elsewhere for
- >> those that are
- >> interested. I put my portfolio on Clearstation, so
- >> anyone from this group
- >> that is interested can check on it, or even
- >> subscribe to it. I think
- >> that's a good way to share for those who are
- >> interested.
- >
- >__________________________________________________
- >Do You Yahoo!?
- >Get email at your own domain with Yahoo! Mail.
- >http://personal.mail.yahoo.com/
- >
- >-
- >
- >
- >
-
- - -
-
- ------------------------------
-
- Date: Tue, 06 Mar 2001 20:04:51 -0700
- From: esetser <esetser@covad.net>
- Subject: Re: [CANSLIM] DCS
-
- The weekend review provides a snapshot of strong candidate stocks. It's a
- list of all stocks with both EPS and RS of 85 or better, price above $7 and
- price within 15% of the 52 week high. That doesn't mean these stocks are
- buyable, but it does represent a VERY GOOD list of candidates to look
- through. In addition, the list is presented in order of Group rank, so the
- top groups are first.
-
- Also, each Friday there are 25 or so stock charts presented with the
- Weekend Review. I'm not sure how they pick the charts, but it seems like
- they pick a group, or maybe the top A stocks, or B stocks. I don't believe
- there is any technical review before they pick the particular stocks to be
- charted.
-
-
- At 05:17 PM 3/2/01 -0700, you wrote:
- >I don't subscribe to IBD so I'm not familiar with the purpose of the
- >weekend graphic review. I just use DGO for my stock selection.
- >Is the review just to show what the basic base patterns might look
- >like? Cause that's about the only reason I see for highlighting this
- >stock. It does look like a double bottom pattern. But then again it
- >could be a triple bottom, or even a quadruple bottom. From abs. peak
- >of 21.25 on 08/24 to abs. low of 15.50 on 10/26 is a 37% range. Pretty
- >steep I think for a mundane stock in the Aerospace/Defense Group.
- >Do they give any description or discussion of why they highlight it?
- >The numbers don't look all that great. And the debt is 147%. GRS is 66.
- >Funds 26%. the last Quarter ending Dec 31 has rev increase over previous
- >years quarter of only 4% but earnings jump 239%. And as far as the
- >current place that the price is at is concerned I'd be willing to bet that
- >that at some point in time soon, before it goes up much further,
- >it's going to jump down to the 50dma which is currently
- >at 19..around 16% below the current price of 22bucks. Just my humble
- >opinion. Overall way too risky for me especially considering this 'oversold'
- >market. But you're a risk-taker right? Good luck.
- >
- >At 05:24 PM 3/2/01 -0500, you wrote:
- >>DCS 91/98 BCB per IBD Fri. On back page weekend graphic review, looks like a
- >>W formation from Nov 4 to today. What do you think?
- >>
- >>Chris
- >>
- >>-
- >
- >-
- >
- >
- >
-
- - -
-
- ------------------------------
-
- Date: Tue, 6 Mar 2001 22:00:44 -0500
- From: "Tom Worley" <stkguru@netside.net>
- Subject: Re: [CANSLIM] Late IBD
-
- Ben, I should have pointed it out before, but missed the point.
- You should recognize that IBD and DG/DGO are completely separate
- corporations, or at least operating units. They are, in a very
- big sense, direct competitors often (usually) competing for the
- same group of customers. So it is unlikely that one would offer
- services of the other in return for their own failure to deliver
- quality service.
-
- Tom Worley
- stkguru@netside.net
- ICQ # 5568838
-
-
- - ----- Original Message -----
- From: esetser <esetser@covad.net>
- To: <canslim@lists.xmission.com>
- Sent: Tuesday, March 06, 2001 9:33 PM
- Subject: Re: [CANSLIM] Late IBD
-
-
- Ben, I believe IBD has a money-back guarantee as far as issues
- you have not
- yet received. (I could be wrong, of course) Given that, you
- should be
- able to get a refund on the rest of your subscription.
-
- At 10:32 PM 3/4/01 -0700, you wrote:
- >
- >I am very unhappy with IBD's service. About three months ago,
- they started
- >delivery to Western Colorado. Over the last three months, on
- average, I
- >received no more then 2-3 papers a week and I would call or
- submit my
- >missed deliveries for credit which was always pleasantly given.
- Apologies
- >were always offered and calls to the supervisors were always
- placed.
- >
- >Two weeks ago, I had had it and asked Bill to allow me to view
- the DGO just
- >until reliable service was in place because the company could
- not deliver
- >as promised. He has not had the courtesy to respond to what I
- think is a
- >reasonable request considering their poor delivery service. If
- IBD
- >personnel are in fact reading this listserv, perhaps they can
- encourage
- >better service and responsiveness from the founder of CANSLIM.
- >
- >Because of their delivery problems, I've had to request that
- mail service
- >be reinstated so at least I'd get the papers two or three days
- late but get
- >them.
- >
- >Ben Heffer
- >
- >
- >
- >
- >
- >
- >-
- >
- >
- >
-
- - -
-
-
-
- - -
-
- ------------------------------
-
- Date: Tue, 06 Mar 2001 20:08:19 -0700
- From: esetser <esetser@covad.net>
- Subject: Re: [CANSLIM] Question on follow-through days?
-
- From tomorrow's Big Picture:
-
- "But Tuesday=92s session had something else going for it. It was a
- follow-through confirmation of the attempted rally that began Thursday. T=
- he
- Nasdaq=92s better-than-1% gain in heavier volume came on the fourth day o=
- f
- the rally."
-
- IBD went on to caution against quick decisions and to wait for quality
- stocks to begin breaking out of well-formed bases. =20
-
- At 09:05 AM 3/6/01 -0800, you wrote:
- >The NASDAQ bottomed last Thursday, and finished up for the day (day 1). =
- That
- >makes today day '4'. Since yesterdays volume was anemic, we are sure to=
- be
- >up 1%+ on much greater volume today. Is this an 'official' follow-throug=
- h
- >day? Or am I supposed to start counting 'day 1' last Friday?
- >
- >Thanks,
- >
- >Ian
- >
- >
- >-
- >
- >
- >
-
- - -
-
- ------------------------------
-
- Date: Tue, 06 Mar 2001 20:10:16 -0700
- From: esetser <esetser@covad.net>
- Subject: RE: [CANSLIM] spreadsheet of excel from qp2 data
-
- I think we still have the capability to post files on the xmission ftp
- server. You should be able to find instructions at:
-
- http://www.xmission.com/~mcjathan/canslim/canslim.htm
-
- At 08:45 PM 3/6/01 -0600, you wrote:
- > I don’t mind sharing the spreadsheet code If some one will
- >tell me how to cram it into the xmission. I think it would be better if we
- >took it in a stepwise fashion. You have to set up excel to receive the dll
- >file. The sequence is complicated the first time it is used. If you can get
- >to the part you click on qp2com.xla the complicated part is over. Open
- >excel/tools/addins/browse/qp2data/excel(DON’T GET CONFUSED HERE YOU
- >WILL HAVE QP2DATA IN THE LOOKIN BOX/qp2com.xla Now you are setup each time
- >you start thereafter I then open a spreadsheet in excel /qp2data/excel/
- >price data.xls Enter the stock you want to evaluate into cell A1
- >press ENTER and you will immediately get 532 days of data. (If I
- >haven’t lost everyone ) One then is able to add to this spreadsheet
- >and may import any data in qp2 database at the same time. For those hardy
- >souls interested let me know and I will parcel out the additional at
- >intervals. It is really a very different way of looking at stocks from
- >graphs. You get exact numbers and percentages and numerical relationships .
- >I feel more comfortable with exact numbers and percentages than graphs. I
- >still look at graphs but only after I am satisfied the volume indicates
- >there Is an increasing demand.I am very conscious of woodards “Rust
- >and Blackspot “ -----Original Message-----
- > From: owner-canslim@lists.xmission.com
- >[mailto:owner-canslim@lists.xmission.com]On Behalf Of curtis
- > Sent: Tuesday, March 06, 2001 8:06 PM
- > To: canslim@lists.xmission.com
- > Subject: RE: [CANSLIM] importing from qp2 into excel John; Are you
- >going to share the code or a .xla file? Did you reverse engineer the
- >O’Neill .dll functions? Curtis -----Original Message-----
- > From: owner-canslim@lists.xmission.com
- >[mailto:owner-canslim@lists.xmission.com]On Behalf Of John Adair
- > Sent: Monday, March 05, 2001 10:11 PM
- > To: Canslim@Lists.Xmission.Com
- > Subject: [CANSLIM] importing from qp2 into excel <> I am developing
- >a spreadsheet using the dll files in quotes plus to down load about 500
- >days of data on any stock in their database. I import into excel, date,
- >open, hi, lo, close, volume, qrs,. To this data I program the 20 day mov
- >of volume, 50 day mov of volume,% off the 50 day mov of volume. I
- >program the accumulation/dist days based on Oneals formula. I then enter
- >any stock in cell A1of excel and all the data instantly appear. If the
- >volume is not up in all columns. I consider there is not accumulation of
- >this stock and not worth further evaluation. Note the accumulation and the
- >% off hi columns are surprising . I note accumulation for months but the
- >volume will not be that much up I think I need to rework my formula for
- >this portion. Btw If you haven’t tried the dll files in quotes plus
- >to download data into excel you might like it. Actually any piece if data
- >in quotes plus may be imported into excel at the same time. I would send a
- >spreadsheet but I don’t think it would fit In the xmission . I
- >submit this for criticism and comment.
-
- - -
-
- ------------------------------
-
- Date: Tue, 6 Mar 2001 22:20:10 -0500
- From: "Tom Worley" <stkguru@netside.net>
- Subject: Re: [CANSLIM] averaging up/dn & tax free vs taxable acct
-
- This is a multi-part message in MIME format.
-
- - ------=_NextPart_000_017A_01C0A68B.9C27E8A0
- Content-Type: text/plain;
- charset="Windows-1252"
- Content-Transfer-Encoding: quoted-printable
-
- Norman, I have to agree, despite XRX (my best play in a paper portfolio =
- in high school, split several times that year, and that was so long ago =
- that a copy was not yet known as "making a xerox" - in fact, back then =
- we were actually still using manual typewriters, with colored carbon =
- manifolds for copies!! - yeah, I really am that old, and taught myself =
- to program using an acoustic coupler running at 300 baud, try that =
- nowadays, you youngsters!!) Oh, for the days of punchcards, especially =
- when you tripped and dropped the entire stack.
-
- But if I had hit the state lottery recently, I admit that I would be =
- socking away quite a few multi-thousand share blocks of some of the best =
- names in tech stocks. They would be long term, true mattress stuffers. =
- Buy them and forget them, for the most part. But make sure they are =
- survivors (check cash flow, cash positions, earnings and revenues =
- trends, debt, etc). Try to understand their edge on their niche in the =
- market, product or service wise. You got to do a lot more homework when =
- you value shop, than when you buy on CANSLIM principles, IMO. I do think =
- there is a different mentality in buying a stock you are literally =
- willing to throw in the back of the closet and forget you own for five =
- years, and one that you are going to monitor quarterly, monthly or =
- daily. I don't believe there are that many true long term investors left =
- out there, especially now. It's hard to completely ignore a stock for =
- years or do more than take it out of the closet quarterly, dust it off, =
- check the engine, then put it back.
-
- The only real difference between a tax deferred account and a taxable =
- one is that in a tax deferred account you can sell for a loss, then =
- immediately buy it back if that's appropriate without worrying about the =
- tax consequences. You only pay taxes on the money you withdraw, not on =
- the net gains and losses in between. A taxable account does require some =
- additional thought as to the tax consequences of your decisions, but the =
- status of the stock and its chart should still be foremost.
-
- P.S. I am so old that my spelling checker could not even recognize the =
- word "punchcard"!! Wow!!!
-
- Tom Worley
- stkguru@netside.net
- ICQ # 5568838
-
-
- ----- Original Message -----=20
- From: Norman=20
- To: canslim@lists.xmission.com=20
- Sent: Tuesday, March 06, 2001 9:47 PM
- Subject: Re: [CANSLIM] averaging up/dn & tax free vs taxable acct
-
-
- Tom,
-
- Thanks for putting some thought into a response. I guess I'm pulled =
- between buying low/selling high and buying high and selling higher. I =
- think for my taxable account - can use it now money - I like CANSLIM. =
- For my Roth IRAs (most of which are in mutuals right now) I haven't =
- decided; I may buy some quality techs now while they are relatively low =
- and also play some CANSLIM with a portion of that money. I really can't =
- see AMAT, NOK, or the like, going completely belly-up ..... but there =
- was Xerox :-(
-
- Again, thanks for some thoughts.
-
- Norman
- ----- Original Message -----=20
- From: Tom Worley=20
- To: canslim@lists.xmission.com=20
- Sent: Tuesday, March 06, 2001 7:59 PM
- Subject: Re: [CANSLIM] averaging up/dn & tax free vs taxable acct
-
-
- WON's argument against averaging down is based on the belief that a =
- top performing stock does not give you that opportunity. Should you be =
- presented with that opportunity, then either you didn't pick a top =
- performing stock, or it is no longer a top performing stock. Either way, =
- you should be applying your stop loss rules.
-
- What your friend is doing is value shopping (or bottom fishing). =
- Nothing wrong in that, it is simply another strategy designed to =
- eventually make better profits than a savings account. I think the key =
- difference is that CANSLIM is designed around a set of rules intended to =
- protect you against a major loss of capital, and to force you into =
- taking profits at more or less the right time. Value shopping does not =
- have, in my opinion, any protection against even better opportunities to =
- average down in the future (e.g. no downside risk limitations) other =
- than pure value. And, bottom line, value is what all the investment =
- community collectively places on a stock, and that is usually based on =
- expectation. And expectations, being an emotional thing, is based on =
- what is seen for the future, which is usually earnings growth related.
-
- The issues of tax free (it's not really, only tax deferred) vs =
- taxable should not be a significant factor in either buy or sell =
- decisions. Granted, if it's December 28, and there are only two trading =
- days to go to force a profit into the new year, and delay paying taxes =
- on the gains for 15 or so months, then it might be a factor. Or if you =
- are only a week away from changing a gain from short term to long term, =
- then the difference in taxation might offset the loss in price you may =
- pay. But a deteriorating stock is a deteriorating stock, risking loss of =
- profits, or of capital.
-
- Before being introduced to CANSLIM, I got my master's degree in =
- Value Shopping, with a minor in Fundamentals. The sheepskin cost a hefty =
- price, one I did not soon forget. Took me many years to pay off that =
- student loan! I still get twinges sometimes, and hurriedly load Daily =
- Graphs and look at the chart, in particular the EPS and the chart trend. =
- That usually cures me. If that still doesn't work, I look at the support =
- bases, and ask myself "if it breaks that base, how much lower could it =
- still go?". That one always does the trick.
-
- Tom Worley
- stkguru@netside.net
- ICQ # 5568838
-
- =20
- ----- Original Message -----=20
- From: Norman=20
- To: canslim@lists.xmission.com=20
- Sent: Tuesday, March 06, 2001 1:10 PM
- Subject: [CANSLIM] averaging up/dn & tax free vs taxable acct
-
-
-
- Recently there was an article in IBD on averaging up as a stock =
- moves up and
- cautioning against averaging down.
-
- I have a friend who routinely averages down in what we both agree =
- are
- quality tech 'blue chip' companies with good revenue growth and =
- earnings.
- He is trading 9-10 stocks in an IRA account.
-
- I am still learning CANSLIM and how to apply the method, but as I =
- understand it WON's method is
- primarily short/intermediate term investing. If an investors time =
- horizon
- is long (say 5 years) how does a buy-at-52-week-lows method =
- compare with
- CANSLIM?
-
- My friend and I have 'compared' CANSLIM vs buy-n-hold tech blue =
- chips at
- length. My delimma is that I find both mehtods 'logical' when =
- used in the
- right type of account: CANSLIM in any type account, and b-n-h in =
- a long term account such as retirement money. I am not particularly =
- drawn to b-n-h, but the way
- he is doing it, it seems logical, especially in the current =
- market. Has any one else thought about this: CANSLIM vs buy-n-hold in a =
- long-term account? =20
-
- Norman Boyd
-
- - ------=_NextPart_000_017A_01C0A68B.9C27E8A0
- Content-Type: text/html;
- charset="Windows-1252"
- Content-Transfer-Encoding: quoted-printable
-
- <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
- <HTML><HEAD>
- <META content=3D"text/html; charset=3Dwindows-1252" =
- http-equiv=3DContent-Type>
- <META content=3D"MSHTML 5.00.2314.1000" name=3DGENERATOR>
- <STYLE></STYLE>
- </HEAD>
- <BODY bgColor=3D#ffffff>
- <DIV><FONT size=3D2>Norman, I have to agree, despite XRX (my best play =
- in a paper=20
- portfolio in high school, split several times that year, and that was so =
- long=20
- ago that a copy was not yet known as "making a xerox" - in fact, back =
- then we=20
- were actually still using manual typewriters, with colored carbon =
- manifolds for=20
- copies!! - yeah, I really am that old, and taught myself to program =
- using an=20
- acoustic coupler running at 300 baud, try that nowadays, you =
- youngsters!!) =20
- Oh, for the days of punchcards, especially when you tripped and dropped =
- the=20
- entire stack.</FONT></DIV>
- <DIV> </DIV>
- <DIV><FONT size=3D2>But if I had hit the state lottery recently, I admit =
- that I=20
- would be socking away quite a few multi-thousand share blocks of some of =
- the=20
- best names in tech stocks. They would be long term, true mattress =
- stuffers. Buy=20
- them and forget them, for the most part. But make sure they are =
- survivors (check=20
- cash flow, cash positions, earnings and revenues trends, debt, etc). Try =
- to=20
- understand their edge on their niche in the market, product or service =
- wise. You=20
- got to do a lot more homework when you value shop, than when you buy on =
- CANSLIM=20
- principles, IMO. I do think there is a different mentality in buying a =
- stock you=20
- are literally willing to throw in the back of the closet and forget you =
- own for=20
- five years, and one that you are going to monitor quarterly, monthly or =
- daily. I=20
- don't believe there are that many true long term investors left out =
- there,=20
- especially now. It's hard to completely ignore a stock for years or do =
- more than=20
- take it out of the closet quarterly, dust it off, check the engine, then =
- put it=20
- back.</FONT></DIV>
- <DIV> </DIV>
- <DIV><FONT size=3D2>The only real difference between a tax deferred =
- account and a=20
- taxable one is that in a tax deferred account you can sell for a loss, =
- then=20
- immediately buy it back if that's appropriate without worrying about the =
- tax=20
- consequences. You only pay taxes on the money you withdraw, not on the =
- net gains=20
- and losses in between. A taxable account does require some additional =
- thought as=20
- to the tax consequences of your decisions, but the status of the stock =
- and its=20
- chart should still be foremost.</FONT></DIV>
- <DIV> </DIV>
- <DIV><FONT size=3D2>P.S. I am so old that my spelling checker could not =
- even=20
- recognize the word "punchcard"!! Wow!!!</FONT></DIV>
- <DIV><BR>Tom Worley<BR><A=20
- href=3D"mailto:stkguru@netside.net">stkguru@netside.net</A><BR>ICQ # =
- 5568838</DIV>
- <DIV> </DIV>
- <DIV> </DIV>
- <BLOCKQUOTE dir=3Dltr=20
- style=3D"BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; MARGIN-RIGHT: =
- 0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
- <DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
- <DIV=20
- style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
- black"><B>From:</B>=20
- <A href=3D"mailto:theboyd@tisd.net" =
- title=3Dtheboyd@tisd.net>Norman</A> </DIV>
- <DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
- href=3D"mailto:canslim@lists.xmission.com"=20
- title=3Dcanslim@lists.xmission.com>canslim@lists.xmission.com</A> =
- </DIV>
- <DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Tuesday, March 06, 2001 =
- 9:47=20
- PM</DIV>
- <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] =
- averaging up/dn=20
- & tax free vs taxable acct</DIV>
- <DIV><BR></DIV>
- <DIV>Tom,</DIV>
- <DIV> </DIV>
- <DIV>Thanks for putting some thought into a response. I guess =
- I'm pulled=20
- between buying low/selling high and buying high and selling =
- higher. I=20
- think for my taxable account - can use it now money - I like =
- CANSLIM. =20
- For my Roth IRAs (most of which are in mutuals right now) I =
- haven't=20
- decided; I may buy some quality techs now while they are relatively =
- low and=20
- also play some CANSLIM with a portion of that money. I really =
- can't see=20
- AMAT, NOK, or the like, going completely belly-up ..... but there was =
- Xerox=20
- :-(</DIV>
- <DIV> </DIV>
- <DIV>Again, thanks for some thoughts.</DIV>
- <DIV> </DIV>
- <DIV>Norman</DIV>
- <BLOCKQUOTE dir=3Dltr=20
- style=3D"BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; =
- MARGIN-RIGHT: 0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
- <DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
- <DIV=20
- style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
- black"><B>From:</B>=20
- <A href=3D"mailto:stkguru@netside.net" =
- title=3Dstkguru@netside.net>Tom=20
- Worley</A> </DIV>
- <DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
- href=3D"mailto:canslim@lists.xmission.com"=20
- title=3Dcanslim@lists.xmission.com>canslim@lists.xmission.com</A> =
- </DIV>
- <DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Tuesday, March 06, 2001 =
- 7:59=20
- PM</DIV>
- <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] =
- averaging up/dn=20
- & tax free vs taxable acct</DIV>
- <DIV><BR></DIV>
- <DIV><FONT size=3D2>WON's argument against averaging down is based =
- on the=20
- belief that a top performing stock does not give you that =
- opportunity.=20
- Should you be presented with that opportunity, then either you =
- didn't pick a=20
- top performing stock, or it is no longer a top performing stock. =
- Either way,=20
- you should be applying your stop loss rules.</FONT></DIV>
- <DIV> </DIV>
- <DIV><FONT size=3D2>What your friend is doing is value shopping (or =
- bottom=20
- fishing). Nothing wrong in that, it is simply another strategy =
- designed to=20
- eventually make better profits than a savings account. I think the =
- key=20
- difference is that CANSLIM is designed around a set of rules =
- intended to=20
- protect you against a major loss of capital, and to force you into =
- taking=20
- profits at more or less the right time. Value shopping does not =
- have, in my=20
- opinion, any protection against even better opportunities to average =
- down in=20
- the future (e.g. no downside risk limitations) other than pure =
- value. And,=20
- bottom line, value is what all the investment community collectively =
- places=20
- on a stock, and that is usually based on expectation. And =
- expectations,=20
- being an emotional thing, is based on what is seen for the future, =
- which is=20
- usually earnings growth related.</FONT></DIV>
- <DIV> </DIV>
- <DIV><FONT size=3D2>The issues of tax free (it's not really, only =
- tax=20
- deferred) vs taxable should not be a significant factor in either =
- buy or=20
- sell decisions. Granted, if it's December 28, and there are =
- only two=20
- trading days to go to force a profit into the new year, and delay =
- paying=20
- taxes on the gains for 15 or so months, then it might be a =
- factor. Or=20
- if you are only a week away from changing a gain from short term to =
- long=20
- term, then the difference in taxation might offset the loss in price =
- you may=20
- pay. But a deteriorating stock is a deteriorating stock, risking =
- loss of=20
- profits, or of capital.</FONT></DIV>
- <DIV> </DIV>
- <DIV><FONT size=3D2>Before being introduced to CANSLIM, I got my =
- master's=20
- degree in Value Shopping, with a minor in Fundamentals. The =
- sheepskin cost a=20
- hefty price, one I did not soon forget. Took me many years to pay =
- off that=20
- student loan! I still get twinges sometimes, and hurriedly =
- load Daily=20
- Graphs and look at the chart, in particular the EPS and the chart =
- trend.=20
- That usually cures me. If that still doesn't work, I look at the =
- support=20
- bases, and ask myself "if it breaks that base, how much lower could =
- it still=20
- go?". That one always does the trick.</FONT></DIV>
- <DIV><FONT size=3D2><BR>Tom Worley<BR><A=20
- href=3D"mailto:stkguru@netside.net">stkguru@netside.net</A><BR>ICQ # =
-
- 5568838</FONT></DIV>
- <DIV> </DIV>
- <DIV><FONT size=3D2></FONT> </DIV>
- <BLOCKQUOTE=20
- style=3D"BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; =
- MARGIN-RIGHT: 0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
- <DIV style=3D"FONT: 10pt arial">----- Original Message ----- =
- </DIV>
- <DIV=20
- style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
- black"><B>From:</B>=20
- <A href=3D"mailto:theboyd@tisd.net" =
- title=3Dtheboyd@tisd.net>Norman</A> </DIV>
- <DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
- href=3D"mailto:canslim@lists.xmission.com"=20
- title=3Dcanslim@lists.xmission.com>canslim@lists.xmission.com</A> =
- </DIV>
- <DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Tuesday, March 06, =
- 2001 1:10=20
- PM</DIV>
- <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> [CANSLIM] =
- averaging up/dn=20
- & tax free vs taxable acct</DIV>
- <DIV><BR></DIV>
- <DIV>
- <DIV> </DIV>
- <DIV>Recently there was an article in IBD on averaging up as a =
- stock moves=20
- up and<BR>cautioning against averaging down.<BR><BR>I have a =
- friend who=20
- routinely averages down in what we both agree are<BR>quality tech =
- 'blue=20
- chip' companies with good revenue growth and earnings.<BR>He is =
- trading=20
- 9-10 stocks in an IRA account.<BR><BR>I am still learning =
- CANSLIM and=20
- how to apply the method, but as I understand it WON's method=20
- is<BR>primarily short/intermediate term investing. If an =
- investors=20
- time horizon<BR>is long (say 5 years) how does a =
- buy-at-52-week-lows=20
- method compare with<BR>CANSLIM?<BR><BR>My friend and I have =
- 'compared'=20
- CANSLIM vs buy-n-hold tech blue chips at<BR>length. My =
- delimma is=20
- that I find both mehtods 'logical' when used in the<BR>right type =
- of=20
- account: CANSLIM in any type account, and b-n-h in =
- a long term=20
- account such as retirement money. I am not particularly =
- drawn to=20
- b-n-h, but the way<BR>he is doing it, it seems logical, especially =
- in the=20
- current market. Has any one else thought about this: CANSLIM =
- vs=20
- buy-n-hold in a long-term account? </DIV>
- <DIV> </DIV>
- <DIV>Norman=20
- Boyd</DIV></DIV></BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>
-
- - ------=_NextPart_000_017A_01C0A68B.9C27E8A0--
-
-
- - -
-
- ------------------------------
-
- End of canslim-digest V2 #1184
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