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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
Errors-To: owner-canslim-digest@lists.xmission.com
Precedence: bulk
Content-Transfer-Encoding: quoted-printable
X-No-Archive: yes
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
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<HTML><HEAD>
<META content=3D"text/html; charset=3Dwindows-1252" =
http-equiv=3DContent-Type>
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<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>
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- -
------------------------------
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