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From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #2797 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 Wednesday, August 14 2002 Volume 02 : Number 2797 In this issue: [CANSLIM] Cup formations RE: [CANSLIM] Re:Entry purchase Re: [CANSLIM] New Management - Doesn't it always follow a Top Exec's departure [CANSLIM] Re:Technicals vs Fundamentals (was: NVDA) [CANSLIM] Quote Plus 2 and CANSLIM style investing Re: [CANSLIM] Quote Plus 2 and CANSLIM style investing Re: [CANSLIM] Quote Plus 2 and CANSLIM style investing Re: [CANSLIM] Re:Technicals vs Fundamentals (was: NVDA) Re: [CANSLIM] Quote Plus 2 and CANSLIM style investing Re: [CANSLIM] Current Case Study - XRAY ---------------------------------------------------------------------- Date: Wed, 14 Aug 2002 09:29:24 EDT From: Chazmoore@aol.com Subject: [CANSLIM] Cup formations - --part1_57.fef00fb.2a8bb534_boundary Content-Type: text/plain; charset="US-ASCII" Content-Transfer-Encoding: 7bit That selloff in July has had the effect of setting "cup" bottoms for several stocks that were at new highs prior to that date. If you would like to test your chart reading skills you may want to follow along with the development of the right side of the cup, and then with a little luck, a handle or two. Watch for the movement of the price line as well as the daily volume. Here are three companies with fairly good fundamentals that appear to be forming cups. PDCO, HSIC, and PETM. There must be several more. I am not suggesting these are "buy" candidates. This is no time to be buying. Charley - --part1_57.fef00fb.2a8bb534_boundary Content-Type: text/html; charset="US-ASCII" Content-Transfer-Encoding: 7bit <HTML><FONT FACE=arial,helvetica><FONT SIZE=2>That selloff in July has had the effect of setting "cup" bottoms for several stocks that were at new highs prior to that date. If you would like to test your chart reading skills you may want to follow along with the development of the right side of the cup, and then with a little luck, a handle or two. Watch for the movement of the price line as well as the daily volume. Here are three companies with fairly good fundamentals that appear to be forming cups. PDCO, HSIC, and PETM. There must be several more. <BR> <BR>I am not suggesting these are "buy" candidates. This is no time to be buying. <BR> <BR>Charley</FONT></HTML> - --part1_57.fef00fb.2a8bb534_boundary-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 14 Aug 2002 09:49:53 -0400 From: "Duke Miller" <dukemill@tampabay.rr.com> Subject: RE: [CANSLIM] Re:Entry purchase This is a multi-part message in MIME format. - ------=_NextPart_000_0032_01C24377.F3D00260 Content-Type: text/plain; charset="US-ASCII" Content-Transfer-Encoding: 7bit Morris: See page 110, 24 Essential Lessons for Investment Success by WON. It's also thoroughly covered in all editions of HTMMIS. Duke - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com] On Behalf Of E2moskow@aol.com Sent: Tuesday, August 13, 2002 9:24 PM To: canslim@lists.xmission.com Subject: [CANSLIM] Re:Entry purchase Hi Canslim Pros: Assuming the M is going to turn, ( it didn't look that way today), what are good parameters to consider when making an entry purchase. How many shares is it wise to buy. This is a subject that hasn't been discussed, what is WON's idea as an entry? Morris - ------=_NextPart_000_0032_01C24377.F3D00260 Content-Type: text/html; charset="US-ASCII" Content-Transfer-Encoding: quoted-printable <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META HTTP-EQUIV=3D"Content-Type" CONTENT=3D"text/html; = charset=3Dus-ascii"> <TITLE>Message</TITLE> <META content=3D"MSHTML 6.00.2716.2200" name=3DGENERATOR></HEAD> <BODY> <DIV><SPAN class=3D000444813-14082002><FONT = face=3DArial>Morris:</FONT></SPAN></DIV> <DIV><SPAN class=3D000444813-14082002><FONT = face=3DArial></FONT></SPAN> </DIV> <DIV><SPAN class=3D000444813-14082002><FONT face=3DArial>See page 110, = <EM>24=20 Essential Lessons for Investment Success</EM> by WON. It's also = thoroughly=20 covered in all editions of HTMMIS.</FONT></SPAN></DIV> <DIV><SPAN class=3D000444813-14082002><FONT = face=3DArial></FONT></SPAN> </DIV> <DIV><SPAN class=3D000444813-14082002><FONT = face=3DArial>Duke</FONT></SPAN></DIV> <BLOCKQUOTE style=3D"MARGIN-RIGHT: 0px"> <DIV></DIV> <DIV class=3DOutlookMessageHeader lang=3Den-us dir=3Dltr = align=3Dleft><FONT=20 face=3DTahoma size=3D2>-----Original Message-----<BR><B>From:</B>=20 owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com]=20 <B>On Behalf Of </B>E2moskow@aol.com<BR><B>Sent:</B> Tuesday, August = 13, 2002=20 9:24 PM<BR><B>To:</B> canslim@lists.xmission.com<BR><B>Subject:</B> = [CANSLIM]=20 Re:Entry purchase<BR><BR></FONT></DIV><FONT = face=3Darial,helvetica><FONT=20 size=3D2>Hi Canslim Pros: <BR> Assuming the M = is going to=20 turn, ( it didn't look that way today), what are good parameters to = consider=20 when making an entry purchase. How many shares is it wise to = buy.=20 This is a subject that hasn't been discussed, what is WON's idea = as=20 <BR>an entry? <BR>Morris</FONT> </FONT></BLOCKQUOTE></BODY></HTML> - ------=_NextPart_000_0032_01C24377.F3D00260-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 14 Aug 2002 10:11:03 -0400 From: Spencer48@aol.com Subject: Re: [CANSLIM] New Management - Doesn't it always follow a Top Exec's departure Kelly: My take: DGO has a block in the data screen devoted to "New CEO". So I take this to mean that when a new CEO is hired (after the old one was let go) this is a good thing. It seems to me that it is good because a new CEO will only be hired if the old CEO is doing poorly. So the question becomes: Will the new CEO do better. Follow the chart formation to see how the institutions and Big Money view it. If a base forms during the new CEO's tenure and a BO appears on high volume, you've got your answer. jans In a message dated Tue, 13 Aug 2002 3:23:54 PM Eastern Standard Time, kelly.short@tx.us.neoris.com writes: > A question for the group- WON says to look for companies that have new management. However, many group members see the departure of a top exec as a red flag (i.e. CFO). But, wouldn't the addition of a new management member almost always follow the departure of a management member? Where do you draw the > line? - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 14 Aug 2002 10:55:11 -0500 From: "Katherine Malm" <kmalm@earthlink.net> Subject: [CANSLIM] Re:Technicals vs Fundamentals (was: NVDA) This is a multi-part message in MIME format. - ------=_NextPart_000_003B_01C24381.0FBDBBD0 Content-Type: text/plain; charset="Windows-1252" Content-Transfer-Encoding: quoted-printable Hi Mike, Thought I might first clear up Charley's reference to my comment about = technicals. As I see it, technicals have *always* been important, but = the Bear has taught me to favor technicals first in my analysis/mining = techniques. This is a subtle shift in my thinking, maybe due to the Bear = and maybe due to a new understanding of the CANSLIM discipline which = continues to evolve day by day.=20 Your comments brought some things to mind: (1) You can always make money using technicals as your only indicator, = but the entry/exit has to be in the short term, as that is the only = period in which fundamentals would have no influence on the stock = movement. Intermediate term and beyond, the fundamentals are what drive = the business and create value. In other words, the earnings and cash = stream, reinvested in the business for growth or distributed to = shareholders via dividends, create value in the underlying investment. = If trading in the short term, you would never wait for the entire period = of intermediate term consolidation to form, but instead would take = advantage of the current directional ride. For example, in a cup & = handle, you would essentially hitch a ride on the right side of a cup. = You would also trade, e.g., reversals from extremely oversold = conditions, regardless of the relative strength of the stock to the = market. In some cases, you'd be bottom fishing. That's fine in a short = term trade because you don't care what the next direction is going to be = once you exit. In intermediate term and beyond, the next direction is = what matters the most, because you are riding an underlying wave of = movement that covers a longer period of time. Essentially, the short = term trader gets *really* close to the chart and looks for ups/downs to = ride. The intermediate term trader steps back 3 feet and looks for the = underlying movement, up or down, with the close up price wiggles = smoothed out. The long term trader steps back 7 feet and looks for = underlying movement, with most all of the wiggles smoothed out. (2) If you have 200 stocks with identical technicals and you are trading = intermediate term and beyond, how would you choose between them? = Fundamentals and due diligence allow you to assess the potential return = on investment given (1) above. That, in turn, allows you to eliminate = some and rank the remainder. (3) WON's wording is "Buy on the fundamentals, sell on the technicals" = meaning buy based on the fundamental characteristics of the company = using technicals for entry, but on the flipside, consider only = technicals when selling because fundamental indicators don't tell you = that sales and profits are deteriorating until after the fact. Look at = any highflier from the last Bull. Take CSCO as example. At the time the = price peaked around 80-85 in 2000, the fundamentals looked peachy. ROE, = sales/earnings growth, etc. The technicals topped and began to slide, = but it wasn't until 3 or 4 quarters later that it be came apparent that = fundamentals were stinky.=20 (4) When you select and enter a stock well under intermediate term = rules, the longer the underlying upward movement in the market, the more = likely it is that you will have a "big winner." During the Bear, the = upward waves have been short-lived. The best you could hope for was an = excellent move while the market was in an intermediate term rally within = the longer term bear. That means the exits are designed to protect = capital. Despite a good company, the majority of stocks eventually get = caught in the downdraft. However, if you are in the habit of catching = things as they begin their ascent and the market as a whole moves from = Bear rally mode to sustainable Bull mode, you're on for the ride = already. That will allow you to stay with a winning position much = longer, despite the near term price wiggles. Katherine ----- Original Message -----=20 From: Mike Gibbons=20 To: canslim@lists.xmission.com=20 Sent: Sunday, August 11, 2002 4:47 AM Subject: RE: [CANSLIM] NVDA I didn't realize what a pandora's box I was opening , but I'm glad I = did raise the lid on NVDA. What I learned was: a.. an excellent "C" and "A" can be misleading=20 b.. The technicals such as RS, up/down volume, etc were indicators = that there's something rotten in the state of Denmark, despite the = fundamentals Which would appear to confirm that everything you need to know is = already in the tape. Question: is this only true in a bear market? (I'm referring to = Katherine's statement quoted by Charley), and if it's universally true = then can't the lazy one's among us (and I include myself in that = category) simply cheat by swing trading patterns, not CANSLIM = fundamentals? Aloha, Mike Gibbons Proactive Technologies, LLC http://www.proactech.com -----Original Message----- From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com]On Behalf Of Chazmoore@aol.com Sent: Saturday, August 10, 2002 5:49 PM To: canslim@lists.xmission.com Subject: [CANSLIM] NVDA A week or so ago, (time passes so fast), Katherine made a statement = to the effect that the technicals are more important than the = fundamentals in a bear market. I have now observed this to be true on = numerous recent occasions, but my first impulse is to look for = fundamental excuses for a falling stock price.=20 Quoting from a book I am reading, "The fundamental work answers the = question what, and the technical side of the equation answers the = question when." , points out how important it is to have all the facts.=20 Thanks for calling my attention to the SEC investigation. It is so = discouraging to learn of these repeated accounting problems. One of = these days I will stop believing in Santa Claus.=20 Charley=20 - ------=_NextPart_000_003B_01C24381.0FBDBBD0 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 6.00.2716.2200" name=3DGENERATOR> <STYLE></STYLE> </HEAD> <BODY bgColor=3D#ffffff> <DIV> <DIV>Hi Mike,</DIV> <DIV> </DIV> <DIV>Thought I might first clear up Charley's reference to my comment = about=20 technicals. As I see it, technicals have *always* been important, but = the Bear=20 has taught me to favor technicals first in my analysis/mining = techniques. This=20 is a subtle shift in my thinking, maybe due to the Bear and maybe due to = a new=20 understanding of the CANSLIM discipline which continues to evolve = day by=20 day. </DIV> <DIV> </DIV> <DIV>Your comments brought some things to mind:</DIV> <DIV> </DIV> <DIV>(1) You can always make money using technicals as your only = indicator, but=20 the entry/exit has to be in the short term, as that is the only period = in which=20 fundamentals would have no influence on the stock movement. Intermediate = term=20 and beyond, the fundamentals are what drive the business and create = value. In=20 other words, the earnings and cash stream, reinvested in the business = for growth=20 or distributed to shareholders via dividends, create value in the = underlying=20 investment. If trading in the short term, you would never wait for the = entire=20 period of intermediate term consolidation to form, but instead would = take=20 advantage of the current directional ride. For example, in a cup & = handle,=20 you would essentially hitch a ride on the right side of a cup. You would = also=20 trade, e.g., reversals from extremely oversold conditions, regardless of = the=20 relative strength of the stock to the market. In some cases, you'd be = bottom=20 fishing. That's fine in a short term trade because you don't care what = the next=20 direction is going to be once you exit. In intermediate term and beyond, = the=20 next direction is what matters the most, because you are riding an = underlying=20 wave of movement that covers a longer period of time. Essentially, the = short=20 term trader gets *really* close to the chart and looks for ups/downs to = ride.=20 The intermediate term trader steps back 3 feet and looks for the = underlying=20 movement, up or down, with the close up price wiggles smoothed out. The = long=20 term trader steps back 7 feet and looks for underlying movement, with = most all=20 of the wiggles smoothed out.</DIV> <DIV> </DIV> <DIV>(2) If you have 200 stocks with identical technicals and you are = trading=20 intermediate term and beyond, how would you choose between them? = Fundamentals=20 and due diligence allow you to assess the potential return on investment = given=20 (1) above. That, in turn, allows you to eliminate some and rank the=20 remainder.</DIV> <DIV> </DIV> <DIV>(3) WON's wording is "Buy on the fundamentals, sell on the = technicals"=20 meaning buy based on the fundamental characteristics of the company = using=20 technicals for entry, but on the flipside, consider only technicals when = selling=20 because fundamental indicators don't tell you that sales and profits are = deteriorating until after the fact. Look at any highflier from the last = Bull.=20 Take CSCO as example. At the time the price peaked around 80-85 in 2000, = the fundamentals looked peachy. ROE, sales/earnings growth, etc. = The=20 technicals topped and began to slide, but it wasn't until 3 or 4 = quarters later=20 that it be came apparent that fundamentals were stinky. </DIV> <DIV> </DIV> <DIV>(4) When you select and enter a stock well under intermediate term = rules,=20 the longer the underlying upward movement in the market, the more likely = it is=20 that you will have a "big winner." During the Bear, the upward waves = have been=20 short-lived. The best you could hope for was an excellent move while the = market=20 was in an intermediate term rally within the longer term bear. That = means the=20 exits are designed to protect capital. Despite a good company, the = majority of=20 stocks eventually get caught in the downdraft. However, if you are in = the habit=20 of catching things as they begin their ascent and the market as a whole = moves=20 from Bear rally mode to sustainable Bull mode, you're on for the ride = already.=20 That will allow you to stay with a winning position much longer, despite = the=20 near term price wiggles.</DIV> <DIV> </DIV> <DIV>Katherine</DIV></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=3Dmikegibbons@proactech.com=20 href=3D"mailto:mikegibbons@proactech.com">Mike Gibbons</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>= </DIV> <DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Sunday, August 11, 2002 = 4:47=20 AM</DIV> <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> RE: [CANSLIM] = NVDA</DIV> <DIV><BR></DIV> <DIV><SPAN class=3D500042409-11082002><FONT face=3DTahoma = color=3D#000080 size=3D2>I=20 didn't realize what a pandora's box I was opening , but I'm glad I did = raise=20 the lid on NVDA.</FONT></SPAN></DIV> <DIV><SPAN class=3D500042409-11082002><FONT face=3DTahoma = color=3D#000080=20 size=3D2></FONT></SPAN> </DIV> <DIV><SPAN class=3D500042409-11082002><FONT face=3DTahoma = color=3D#000080=20 size=3D2>What I learned was:</FONT></SPAN></DIV> <UL> <LI><SPAN class=3D500042409-11082002><FONT face=3DTahoma = color=3D#000080 size=3D2>an=20 excellent "C" and "A" can be misleading</FONT></SPAN>=20 <LI><SPAN class=3D500042409-11082002></SPAN><FONT face=3DTahoma = color=3D#000080=20 size=3D2><SPAN class=3D500042409-11082002>The technicals such as RS, = up/down=20 volume, etc were indicators that there's something rotten in the = state of=20 Denmark, despite the fundamentals</SPAN></FONT></LI></UL> <DIV><FONT face=3DTahoma color=3D#000080 size=3D2><SPAN=20 class=3D500042409-11082002>Which would appear to confirm that = everything you=20 need to know is already in the tape.</SPAN></FONT></DIV> <DIV><FONT face=3DTahoma color=3D#000080 size=3D2><SPAN=20 class=3D500042409-11082002></SPAN></FONT> </DIV> <DIV><FONT face=3DTahoma color=3D#000080 size=3D2><SPAN=20 class=3D500042409-11082002>Question: is this only true in a bear = market? (I'm=20 referring to Katherine's statement quoted by Charley), and if it's = universally=20 true then can't the lazy one's among us (and I include myself in that=20 category) simply cheat by swing trading patterns, not CANSLIM=20 fundamentals?</SPAN></FONT></DIV> <DIV><FONT face=3DTahoma color=3D#000080 size=3D2><SPAN=20 class=3D500042409-11082002></SPAN></FONT> </DIV> <DIV><FONT face=3DTahoma color=3D#000080 size=3D2>Aloha,</FONT></DIV> <DIV><FONT face=3DTahoma color=3D#000080 size=3D2></FONT> </DIV> <DIV><FONT face=3DTahoma color=3D#000080 size=3D2>Mike = Gibbons</FONT></DIV> <DIV><FONT face=3DTahoma color=3D#000080 size=3D2>Proactive = Technologies,=20 LLC</FONT></DIV> <DIV><FONT face=3DTahoma color=3D#000080=20 size=3D2>http://www.proactech.com</FONT></DIV> <BLOCKQUOTE> <DIV class=3DOutlookMessageHeader dir=3Dltr align=3Dleft><FONT = face=3DTahoma=20 size=3D2>-----Original Message-----<BR><B>From:</B>=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]<B>On Behalf Of=20 </B>Chazmoore@aol.com<BR><B>Sent:</B> Saturday, August 10, 2002 5:49 = PM<BR><B>To:</B> canslim@lists.xmission.com<BR><B>Subject:</B> = [CANSLIM]=20 NVDA<BR><BR></FONT></DIV><FONT face=3Darial,helvetica><FONT = size=3D2>A week or=20 so ago, (time passes so fast), Katherine made a statement to the = effect that=20 the technicals are more important than the fundamentals in a bear = market. I=20 have now observed this to be true on numerous recent occasions, but = my first=20 impulse is to look for fundamental excuses for a falling stock = price.=20 <BR>Quoting from a book I am reading, "The fundamental work answers = the=20 question <I>what,</I> and the technical side of the equation answers = the=20 question <I>when." </I>, points out how important it is to have all = the=20 facts. <BR>Thanks for calling my attention to the SEC investigation. = It is=20 so discouraging to learn of these repeated accounting problems. One = of these=20 days I will stop believing in Santa Claus. <BR><BR>Charley</FONT>=20 </FONT></BLOCKQUOTE></BLOCKQUOTE></BODY></HTML> - ------=_NextPart_000_003B_01C24381.0FBDBBD0-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 14 Aug 2002 16:09:01 +0100 From: <vchang@win-invest.com> Subject: [CANSLIM] Quote Plus 2 and CANSLIM style investing I am sure this is the sort of question that has come up before, but please bear with me, I tried the search function for the archived discussion at http://www.xmission.com/~mcjathan/canslim/search.html but the search form does not seem to work for me. Having read WON's book and followed this list for a while, I am very sold on the CANSLIM approach and to learn how to invest in this syle. I have been looking for a source of data to support using the CANSLIM approach in investing. I know from reading this list about the various web sites include investors.com and Daily Graphs which provide processed and analysed data in the form of rankings and charts. I am more interested in getting to a rawer form of data where I can apply my own models and tweek them. I am sure there are others on this list that share this interest. I am also located outside the USA which means that I have no access to IBD as a newspaper, although I do read what I can on their excellent web site. For years I have subscribed to Reuters Datalink for end of day stocks and commodities price and volume data and putting it into Metastock for technical analysis and to use AAII Investor Pro for fundamental company data and analysis. However, it is not easy to integrate the two into a combined approach such as that typified by CANSLIM. So I have been looking around for a better source. Just recently I found a data source called Quote Plus 2 at www. qp2.com and signed up for their free trial. What attracted me was the screening software which allows screening by both fundamental and technical criteria and the fact that the data covers both end of day price and volume as well as fundamentals. It struck me that this data source appears ideal for the CANSLIM approach. Cost wise a single subscription to QP2 is much less than a Datalink subscription PLUS a Investor Pro subscription. Before I switch over completely, I just wonder if anyone on this list has any experience with using Qutoe Plus for the CANSLIM approach and if this has come up as a discussion topic. Rgds Victor Chang - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 14 Aug 2002 13:06:59 -0400 From: "J. Lobatto" <jlobatto@nyc.rr.com> Subject: Re: [CANSLIM] Quote Plus 2 and CANSLIM style investing Victor, I'm a QP2 subscriber and have been quite happy with the service. If you dig around, you'll find that some people have written QP2 scans for locating CANSLIM compatible stocks. I have been a bit disappointed with the scans, but that's not a QP2 shortcoming only a reflection of the fact that a programmer has not yet refined a scan to my liking at least. In the end, I doubt any computerized scan will find only and all CANSLIM candidates and I still scan many charts by eye (although far less diligently in this lousy market). All in all, QP2 is reasonably priced and an excellent source for finding high RS and EPS stocks. Be aware however that both their RS and EPS rankings are different from IBD's so I use both sources.... Jon - ----- Original Message ----- From: <vchang@win-invest.com> To: <canslim@lists.xmission.com> Sent: Wednesday, August 14, 2002 11:09 AM Subject: [CANSLIM] Quote Plus 2 and CANSLIM style investing > I am sure this is the sort of question that has come up before, but please > bear with me, I tried the search function for the archived discussion at > http://www.xmission.com/~mcjathan/canslim/search.html but the search form > does not seem to work for me. > > Having read WON's book and followed this list for a while, I am very sold on > the CANSLIM approach and to learn how to invest in this syle. I have been > looking for a source of data to support using the CANSLIM approach in > investing. I know from reading this list about the various web sites > include investors.com and Daily Graphs which provide processed and analysed > data in the form of rankings and charts. I am more interested in getting to > a rawer form of data where I can apply my own models and tweek them. I am > sure there are others on this list that share this interest. I am also > located outside the USA which means that I have no access to IBD as a > newspaper, although I do read what I can on their excellent web site. > > For years I have subscribed to Reuters Datalink for end of day stocks and > commodities price and volume data and putting it into Metastock for > technical analysis and to use AAII Investor Pro for fundamental company data > and analysis. However, it is not easy to integrate the two into a combined > approach such as that typified by CANSLIM. So I have been looking around > for a better source. > > Just recently I found a data source called Quote Plus 2 at www. qp2.com and > signed up for their free trial. What attracted me was the screening > software which allows screening by both fundamental and technical criteria > and the fact that the data covers both end of day price and volume as well > as fundamentals. It struck me that this data source appears ideal for the > CANSLIM approach. Cost wise a single subscription to QP2 is much less than > a Datalink subscription PLUS a Investor Pro subscription. > > Before I switch over completely, I just wonder if anyone on this list has > any experience with using Qutoe Plus for the CANSLIM approach and if this > has come up as a discussion topic. > > Rgds > > Victor Chang > > > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 14 Aug 2002 11:42:22 -0600 From: Warren Keuffel <wkeuffel@xmission.com> Subject: Re: [CANSLIM] Quote Plus 2 and CANSLIM style investing I was never able to get QP2 and HGSI to work reliably on my Windows 98 machine. It crashed regularly and required a reinstall each time. Tech support tried to help but was unable to find my problem. I ended up going with Vector Vest and have never regretted it. In fairness, I should point out that I seem to be the only person who has reported this kind of problem with QP2. Warren vchang@win-invest.com wrote: > I am sure this is the sort of question that has come up before, but please > bear with me, I tried the search function for the archived discussion at > http://www.xmission.com/~mcjathan/canslim/search.html but the search form > does not seem to work for me. > > Having read WON's book and followed this list for a while, I am very sold on > the CANSLIM approach and to learn how to invest in this syle. I have been > looking for a source of data to support using the CANSLIM approach in > investing. I know from reading this list about the various web sites > include investors.com and Daily Graphs which provide processed and analysed > data in the form of rankings and charts. I am more interested in getting to > a rawer form of data where I can apply my own models and tweek them. I am > sure there are others on this list that share this interest. I am also > located outside the USA which means that I have no access to IBD as a > newspaper, although I do read what I can on their excellent web site. > > For years I have subscribed to Reuters Datalink for end of day stocks and > commodities price and volume data and putting it into Metastock for > technical analysis and to use AAII Investor Pro for fundamental company data > and analysis. However, it is not easy to integrate the two into a combined > approach such as that typified by CANSLIM. So I have been looking around > for a better source. > > Just recently I found a data source called Quote Plus 2 at www. qp2.com and > signed up for their free trial. What attracted me was the screening > software which allows screening by both fundamental and technical criteria > and the fact that the data covers both end of day price and volume as well > as fundamentals. It struck me that this data source appears ideal for the > CANSLIM approach. Cost wise a single subscription to QP2 is much less than > a Datalink subscription PLUS a Investor Pro subscription. > > Before I switch over completely, I just wonder if anyone on this list has > any experience with using Qutoe Plus for the CANSLIM approach and if this > has come up as a discussion topic. > > Rgds > > Victor Chang > > - > -To subscribe/unsubscribe, email "majordomo@xmission.com" > -In the email body, write "subscribe canslim" or > -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 14 Aug 2002 13:41:19 EDT From: Chazmoore@aol.com Subject: Re: [CANSLIM] Re:Technicals vs Fundamentals (was: NVDA) - --part1_f2.20169474.2a8bf03f_boundary Content-Type: text/plain; charset="US-ASCII" Content-Transfer-Encoding: 7bit Who needs the Oracle of Omaha, when you have Katherine the Market Mentor? Excellent essay on technical and fundamental investing Katherine. Charley - --part1_f2.20169474.2a8bf03f_boundary Content-Type: text/html; charset="US-ASCII" Content-Transfer-Encoding: 7bit <HTML><FONT FACE=arial,helvetica><FONT SIZE=2>Who needs the Oracle of Omaha, when you have Katherine the Market Mentor? <BR> <BR>Excellent essay on technical and fundamental investing Katherine. <BR>Charley</FONT></HTML> - --part1_f2.20169474.2a8bf03f_boundary-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 14 Aug 2002 12:00:21 -0600 From: "Patrick Wahl" <pjwahl@attbi.com> Subject: Re: [CANSLIM] Quote Plus 2 and CANSLIM style investing I've found that it pretty closely matches IBD and DGO numbers. The difference is minor, you can write scans that are going to catch most or all CANSLIM stocks. On 14 Aug 2002 at 16:09, vchang@win-invest.com wrote: > Before I switch over completely, I just wonder if anyone on this list has > any experience with using Qutoe Plus for the CANSLIM approach and if this > has come up as a discussion topic. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Wed, 14 Aug 2002 13:08:23 -0500 From: "Katherine Malm" <kmalm@earthlink.net> Subject: Re: [CANSLIM] Current Case Study - XRAY This is a multi-part message in MIME format. - ------=_NextPart_000_00CD_01C24393.ABA20210 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Hi Jeffrey, I've had your question set a side since you posted, because frankly, = XRAY's pattern did not fit the mold of the "Healthy Rising Stock" in = which you can easily count bases and I was clueless as to how to answer. Here's what I *did* know by looking at XRAY's chart: - -This is a stock on the rise, each time sporting a new, valid, base as = it progresses along the uptrending path. In that sense, it fits the = model of a "healthy rising stock" as I outlined in my notes the other = day on the CECO discussion. = http://WallStreet-LLC.com/canslim/HealthyRisingStock.JPG - -This is not an ascending base, but instead a series of bases one after = the other http://WallStreet-LLC.com/canslim/TypesOfBases.JPG - -The problem with your question is that the rise between each successive = base is not at least 25%, which would allow you to "count bases" in a = traditional sense. That means that it's unlikely that this would be = considered a first stage base. Intuitively, it doesn't make sense that = it would be, either. Now, I was stuck, because the advance doesn't fit the mold. So how in = the world to count bases? WON says that if it doesn't rise at least 25%, = you don't add to the count. But.... I'm still not sure how you would = treat something like this in that context. In my mind, if a stock is = rising/basing/rising/basing/etc., *especially* in a Bear Market, then = there's something going for it. So, to answer your question = specifically, I called in the big guns and asked Tim Truebenbach of = TradingMarkets.com. Here is his reply in answer to the specific question, "If the rise = between bases is <25%, how do you count it?" His answer: "If the rise is less than 25% and the stock forms a new = qualifying base (7 weeks or longer) then I would not count the previous = base in the base count." [KM Note: a flat base only needs to be = >=3D5wks] But, interestingly, he added this additional comment: "I don't put much = weight into base counts during a Bear Market, because a stock that would = normally push higher in an orderly fashion gets very choppy. At this = point, just look at the most recent base of a stock and assess it from = there." Well, there you go... a fresh point of view and something new learned as = a result! In our conversation, another very interesting point came up. That is, = though I am a fiend about reading market history, my own personal active = trading experience is entirely in the '90's. That means that I have = mental models of chart patterns formed accordingly. Tim suggested that = it would be a great exercise to go back and re-review chart models = *prior* to the '90's in HTMMIS and in the CANSLIM/IBD Advanced Seminar = notebook (for those who have attended). A great idea and something I'll = be adding to my to-do list. So...back to XRAY. Because XRAY hasn't formed a series of bases = separated by a rise of 25%, you don't reset the base count. See my = annotations at: http://WallStreet-LLC.com/canslim/XRAY081402.jpg. That leaves us with looking at the most current base, a V-shaped cup = with no valid handle yet in my mind. (Certainly open to interpretation, = so fire away!). See it at: = http://WallStreet-LLC.com/canslim/XRAY(2)081402.jpg Katherine PS...Thanks for your question Jeffrey.... a real gold mine of learning = for me personally. - ----- Original Message -----=20 From: Gasta, Jeffrey=20 To: 'canslim@lists.xmission.com'=20 Sent: Thursday, August 08, 2002 2:58 PM Subject: RE: [CANSLIM] Current Case Study - XRAY Hello, another neophyte here. If the most recent pattern for XRAY is = a valid CWH, then what stage base is it? I think I see a flat base = running from about Feb. 02 until late May. This most recent pattern = undercuts the previous pattern. So maybe this is a 1st stage base? = Thanks, jg -----Original Message----- From: Mike Gibbons [mailto:mike@proactech.com] Sent: Thursday, August 08, 2002 3:27 PM To: canslim@lists.xmission.com Subject: [CANSLIM] Current Case Study - XRAY In view of the interest in current cases rather than 20-20 = hindsight, and discussions to aid the learning process, I offer XRAY = as an example, which broke out today from a CwH pattern with short = handle Firstly, let me add the disclaimer that I'm a programmer who was = introduced to CANSLIM as a development project, and I'm 1 year into the = 3 yr learning curve, so further comment by the "experts" is welcomed to = improve my own understanding. Firstly the fundamentals which are very strong, with the exception = that Institutional Ownership is already quite high. There are differing = views on what the level should be, but somewhere less than 30% would be = better. Additional DD would be required to determine why pre-tax profit = margins are decreasing and if that is cause for concern. (This = information is drawn from yahoo/multex not IBD) =20 C Current Earnings Earnings per share growth of at least 25% = in the most recent quarter Most recent quarter year on year growth. = (Published financial data). 35.00 % =20 Latest three quarters of sales growth should be a minimum of = 25% Average year on year growth for last 3 quarters. (Published = financial data). 51.00 % =20 Sales growth should be accelerating. Difference in year on = year growth rates over last 3 quarters. (Published financial data). = 23.00 =20 A Strong Annual Earnings Growth Annual earnings growth for the = last three years of 25% or greater 3 year compound EPS growth rate. = (Published financial data). 53.00 % =20 Return on equity should be at least 17% Published financial = data. 21.00 %=20 Pretax profit margins should be increasing Profit Margin for = most recent quarter minus profit margin 1 year ago. (Published financial = data). -1.00 =20 N New Products, Services or Leadership If a company has a = dynamic new product or service, or is capitalizing on new conditions in = the economy, this can have a dramatic impact on the price of a stock. = Buy stocks just as they emerge from a sound "base" pattern and make new = price highs. Not Known =20 S Supply and Demand Watch the demand for shares by looking at = the percentage change in volume for each of your stocks. Analyze a = stock's daily and weekly price and volume changes. The up/down volume = ratio measures the ratio of accumulation days to distribution days over = the last 50 days. 0.90 =20 L Leading Stocks in Leading Industry Groups Nearly 50% of a = stock's price action is a result of its industry group's performance. = Focus on the top industry groups, and within those groups select stocks = with the best price performance. Multex Industry Rank ( 0 - 99 ) (26 week relative performance). 90 =20 Multex Rank within Industry ( 0 - 99 ). Provided for = informational purposes only. (4 week relative performance) 22 =20 The stock's Relative Price Strength Rating should be in the = 80s or 90s We calculate RS daily by ranking all NYSE, AMEX and NASDAQ = stocks. Our RS algorithm is described here. It correlates well with = IBD's. Value. Score pro-rated in range 60-79. 83 =20 I Institutional Sponsorship You want at least a few of the = better performing mutual funds owning the stock. They're the ones who = will drive the stock up on a sustained basis. Institutional Ownership. = Value in range 5 - 30% needed to score 1. 79.00 % =20 No. of Institutions. Provided for informational purposes only. = 568 =20 M Market Direction You can buy the best stocks, but if the = general market is weak, most likely your stocks will be weak also. = Because Market Direction is not specific to any one particular stock, we = do not evaluate it on a per stock basis. =20 Look at the chart below. Note that the handle is only 3 days long. = This is normally insufficient to have shaken out the potential sellers = and WON recommends that a handle should be at least 1-2 weeks long, = otherwise a breakout is prone to failure. Also the volume in the handle = has not dried up. This is often the case in the early days of handle = formation and we would like to see the volume decrease below the ADV and = the price wedge downwards as the handle progresses. Look at the volume coming up the right side of the cup - = consistently above the 50 ADV accompanied by big price positive price = movements, with only two days when the stock closed slightly down. It = would have been better if the volume had been below the ADV on those = days, in which case the stock would have earned a higher CQ (Chart = Quality) score. Note the RS line. This is quite high at 83, but has advanced only = slightly over the last few days despite significant price gains in this = stock. This indicates that other stocks are doing at least as well. The 50 day up/down volume is at 0.90. Values less than 1 mean that = the down volume days exceed the up volume days. However, the trend of = the line is upwards, which is a positive sign. I'll go out on a limb and say my guess is that todays breakout will = not be sustained (although its holding now - just) and it will continue = to form a handle.=20 I conclude that this is one to watch but not to buy right now. Aloha, Mike Gibbons Proactive Technologies, LLC http://www.proactech.com - ------=_NextPart_000_00CD_01C24393.ABA20210 Content-Type: text/html; charset="iso-8859-1" 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=3Diso-8859-1"> <META content=3D"MSHTML 6.00.2716.2200" name=3DGENERATOR> <STYLE></STYLE> </HEAD> <BODY bgColor=3D#ffffff> <DIV>Hi Jeffrey,</DIV> <DIV> </DIV> <DIV>I've had your question set a side since you posted, because = frankly, XRAY's=20 pattern did not fit the mold of the "Healthy Rising Stock" in which you = can=20 easily count bases and I was clueless as to how to answer.</DIV> <DIV> </DIV> <DIV>Here's what I *did* know by looking at XRAY's chart:</DIV> <DIV>-This is a stock on the rise, each time sporting a new, valid, base = as it=20 progresses along the uptrending path. In that sense, it fits the model = of a=20 "healthy rising stock" as I outlined in my notes the other day on the = CECO=20 discussion.</DIV> <DIV><SPAN style=3D"mso-fareast-font-family: 'MS Mincho'"><SPAN=20 style=3D"mso-fareast-font-family: 'MS = Mincho'"> &nbs= p; =20 <A=20 href=3D"http://WallStreet-LLC.com/canslim/HealthyRisingStock.JPG">http://= WallStreet-LLC.com/canslim/</SPAN>HealthyRisingStock.JPG</A></SPAN></DIV>= <DIV> <P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20 style=3D"mso-fareast-font-family: 'MS Mincho'">-This is not an ascending = base, but=20 instead a series of bases one after the other</SPAN></P> <P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20 style=3D"mso-fareast-font-family: 'MS Mincho'"><SPAN=20 style=3D"mso-fareast-font-family: 'MS = Mincho'"> &nbs= p; =20 <A=20 href=3D"http://WallStreet-LLC.com/canslim/TypesOfBases.JPG">http://WallSt= reet-LLC.com/canslim/</SPAN>TypesOfBases.JPG</A></SPAN></P> <P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20 style=3D"mso-fareast-font-family: 'MS Mincho'">-The problem with your = question is=20 that the rise between each successive base is not at least 25%, which = would=20 allow you to "count bases" in a traditional sense. That means that it's = unlikely=20 that this would be considered a first stage base. Intuitively, it = doesn't make=20 sense that it would be, either.</SPAN></P> <P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20 style=3D"mso-fareast-font-family: 'MS Mincho'"></SPAN> </P> <P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20 style=3D"mso-fareast-font-family: 'MS Mincho'">Now, I was stuck, because = the=20 advance doesn't fit the mold. So how in the world to count bases? WON = says that=20 if it doesn't rise at least 25%, you don't add to the count. But.... I'm = still=20 not sure how you would treat something like this in that context. In my = mind, if=20 a stock is rising/basing/rising/basing/etc., *especially* in a Bear = Market, then=20 there's something going for it. So, to answer your question = specifically, I=20 called in the big guns and asked Tim Truebenbach of=20 TradingMarkets.com.</SPAN></P> <P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20 style=3D"mso-fareast-font-family: 'MS Mincho'"></SPAN> </P> <P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20 style=3D"mso-fareast-font-family: 'MS Mincho'">Here is his reply in = answer to the=20 specific question, "If the rise between bases is <25%, how do you = count=20 it?"</SPAN></P> <P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20 style=3D"mso-fareast-font-family: 'MS Mincho'">His answer: "If the rise = is less=20 than 25% and the stock forms a new qualifying base (7 weeks or longer) = then I=20 would not count the previous base in the base count." [KM Note: a flat = base only=20 needs to be >=3D5wks]</SPAN></P> <P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20 style=3D"mso-fareast-font-family: 'MS Mincho'"></SPAN> </P> <P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20 style=3D"mso-fareast-font-family: 'MS Mincho'">But, interestingly, he = added this=20 additional comment: "I don't put much weight into base counts during a = Bear=20 Market, because a stock that would normally push higher in an orderly = fashion=20 gets very choppy. At this point, just look at the most recent base of a = stock=20 and assess it from there."</SPAN></P> <P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20 style=3D"mso-fareast-font-family: 'MS Mincho'"></SPAN> </P> <P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20 style=3D"mso-fareast-font-family: 'MS Mincho'">Well, there you go... a = fresh point=20 of view and something new learned as a result!</SPAN></P> <P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20 style=3D"mso-fareast-font-family: 'MS Mincho'"></SPAN> </P> <P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20 style=3D"mso-fareast-font-family: 'MS Mincho'">In our conversation, = another very=20 interesting point came up. That is, though I am a fiend about reading = market=20 history, my own personal active trading experience is entirely in the = '90's.=20 That means that I have mental models of chart patterns formed = accordingly. Tim=20 suggested that it would be a great exercise to go back and re-review = chart=20 models *prior* to the '90's in HTMMIS and in the CANSLIM/IBD Advanced = Seminar=20 notebook (for those who have attended). A great idea and something I'll = be=20 adding to my to-do list.</P></SPAN></DIV> <DIV> </DIV> <DIV>So...back to XRAY. Because XRAY hasn't formed a series of bases = separated=20 by a rise of 25%, you don't reset the base count. See my annotations at: = <A=20 href=3D"http://WallStreet-LLC.com/canslim/XRAY081402.jpg.">http://WallStr= eet-LLC.com/canslim/XRAY081402.jpg.</A></DIV> <DIV> </DIV> <DIV>That leaves us with looking at the most current base, a V-shaped = cup with=20 no valid handle yet in my mind. (Certainly open to interpretation, so = fire=20 away!). See it at: <A=20 href=3D"http://WallStreet-LLC.com/canslim/XRAY(2)081402.jpg">http://WallS= treet-LLC.com/canslim/XRAY(2)081402.jpg</A></DIV> <DIV> </DIV> <DIV>Katherine</DIV> <DIV> </DIV> <DIV>PS...Thanks for your question Jeffrey.... a real gold mine of = learning for=20 me personally.</DIV> <DIV> </DIV> <DIV> </DIV> <DIV>----- Original Message ----- </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=20 style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: = black"><B>From:</B>=20 <A title=3DJeff.Gasta@marriott.com = href=3D"mailto:Jeff.Gasta@marriott.com">Gasta,=20 Jeffrey</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> Thursday, August 08, 2002 = 2:58=20 PM</DIV> <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> RE: [CANSLIM] Current = Case Study=20 - XRAY</DIV> <DIV><BR></DIV> <DIV><SPAN class=3D317335419-08082002><FONT face=3DArial = color=3D#0000ff=20 size=3D2>Hello, another neophyte here. If the most recent = pattern for XRAY=20 is a valid CWH, then what stage base is it? I think I see a flat = base=20 running from about Feb. 02 until late May. This most recent = pattern=20 undercuts the previous pattern. So maybe this is a 1st stage = base? =20 Thanks, jg</FONT></SPAN></DIV> <BLOCKQUOTE dir=3Dltr style=3D"MARGIN-RIGHT: 0px"> <DIV class=3DOutlookMessageHeader dir=3Dltr align=3Dleft><FONT = face=3DTahoma=20 size=3D2>-----Original Message-----<BR><B>From:</B> Mike Gibbons=20 [mailto:mike@proactech.com]<BR><B>Sent:</B> Thursday, August 08, = 2002 3:27=20 PM<BR><B>To:</B> canslim@lists.xmission.com<BR><B>Subject:</B> = [CANSLIM]=20 Current Case Study - XRAY<BR><BR></FONT></DIV> <DIV><FONT face=3DTahoma color=3D#000080 size=3D2><SPAN=20 class=3D210001418-08082002>In view of the interest in current cases = rather=20 than 20-20 hindsight,<FONT color=3D#0000ff><SPAN=20 class=3D770040819-08082002> </SPAN><SPAN=20 class=3D770040819-08082002><FONT color=3D#000080>and discussions to = aid the=20 learning process,</FONT> </SPAN></FONT> I offer XRAY as an = example,=20 which broke out today from a CwH pattern with short=20 handle</SPAN></FONT></DIV> <DIV><FONT face=3DTahoma color=3D#000080 size=3D2><SPAN=20 class=3D210001418-08082002></SPAN></FONT> </DIV> <DIV><FONT face=3DTahoma color=3D#000080 size=3D2><SPAN=20 class=3D210001418-08082002>Firstly, let me add the disclaimer that = I'm a=20 programmer who was introduced to CANSLIM as a development project, = and I'm 1=20 year into the 3 yr learning curve, so further comment by the = "experts" is=20 welcomed to improve my own understanding.</SPAN></FONT></DIV> <DIV><FONT face=3DTahoma color=3D#000080 size=3D2><SPAN=20 class=3D210001418-08082002></SPAN></FONT> </DIV> <DIV><SPAN class=3D210001418-08082002><FONT face=3DTahoma><FONT = size=3D2><FONT=20 color=3D#000080>Firstly the fundamentals which are very strong, with = the=20 exception that Institutional Ownership is already quite high. There = are=20 differing views on what the level should be, but somewhere less than = 30%=20 would be better.<SPAN class=3D770040819-08082002> </SPAN><SPAN=20 class=3D770040819-08082002>Additional DD would be required to = determine why=20 pre-tax profit margins are decreasing and if that is cause = for=20 concern. (This information is drawn from yahoo/multex not=20 IBD) </SPAN><SPAN=20 = class=3D770040819-08082002> </SPAN></FONT></FONT></FONT></SPAN></DIV= > <DIV><FONT face=3DTahoma color=3D#000080 size=3D2><SPAN=20 class=3D210001418-08082002></SPAN></FONT> </DIV> <DIV><FONT face=3DTahoma color=3D#000080 size=3D2><SPAN = class=3D210001418-08082002> <TABLE cellSpacing=3D1 cellPadding=3D2 width=3D"100%" align=3Dcenter = bgColor=3D#5588bb=20 border=3D0> <TBODY> <TR vAlign=3Dtop> <TD align=3Dmiddle width=3D"5%" bgColor=3D#ffffff = rowSpan=3D3><B><FONT=20 size=3D2>C</FONT></B></TD> <TD align=3Dleft width=3D"15%" bgColor=3D#ffffff rowSpan=3D3> <DIV align=3Dleft><FONT size=3D2>Current = Earnings</FONT></DIV></TD> <TD width=3D"30%" bgColor=3D#ffffff> <DIV align=3Dleft><FONT size=3D2>Earnings per share growth of = at least 25%=20 in the most recent quarter</FONT></DIV></TD> <TD width=3D"30%" bgColor=3D#ffffff> <P align=3Dleft><FONT size=3D2>Most recent quarter year on = year growth.=20 (Published financial data).</FONT></P></TD> <TD align=3Dmiddle bgColor=3D#ffffff><FONT size=3D2>35.00 % = </FONT></TD></TR> <TR> <TD width=3D"30%" bgColor=3D#ffffff> <DIV align=3Dleft><FONT size=3D2>Latest three quarters of = sales growth=20 should be a minimum of 25%</FONT></DIV></TD> <TD vAlign=3Dtop width=3D"30%" bgColor=3D#ffffff> <DIV align=3Dleft><FONT size=3D2>Average year on year growth = for last 3=20 quarters. (Published financial data).</FONT></DIV></TD> <TD align=3Dmiddle bgColor=3D#ffffff><FONT size=3D2>51.00 % = </FONT></TD></TR> <TR> <TD vAlign=3Dtop width=3D"30%" bgColor=3D#ffffff> <DIV align=3Dleft><FONT size=3D2>Sales growth should be = accelerating.=20 </FONT></DIV></TD> <TD vAlign=3Dtop width=3D"30%" bgColor=3D#ffffff> <DIV align=3Dleft><FONT size=3D2>Difference in year on year = growth rates=20 over last 3 quarters. (Published financial data). = </FONT></DIV></TD> <TD align=3Dmiddle bgColor=3D#ffffff><FONT size=3D2>23.00 = </FONT></TD></TR> <TR vAlign=3Dtop> <TD align=3Dmiddle width=3D"5%" bgColor=3D#dddddd = rowSpan=3D3><B><FONT=20 size=3D2>A</FONT></B></TD> <TD align=3Dleft width=3D"15%" bgColor=3D#dddddd rowSpan=3D3> <DIV align=3Dleft><FONT size=3D2>Strong Annual Earnings=20 Growth</FONT></DIV></TD> <TD width=3D"30%" bgColor=3D#dddddd> <DIV align=3Dleft><FONT size=3D2>Annual earnings growth for = the last three=20 years of 25% or greater</FONT></DIV></TD> <TD width=3D"30%" bgColor=3D#dddddd> <DIV align=3Dleft><FONT size=3D2>3 year compound EPS growth = rate.=20 (Published financial data).</FONT></DIV></TD> <TD align=3Dmiddle bgColor=3D#dddddd><FONT size=3D2>53.00 % = </FONT></TD></TR> <TR vAlign=3Dtop> <TD width=3D"30%" bgColor=3D#dddddd> <DIV align=3Dleft><FONT size=3D2>Return on equity should be at = least=20 17%</FONT></DIV></TD> <TD width=3D"30%" bgColor=3D#dddddd> <DIV align=3Dleft><FONT size=3D2>Published financial = data.</FONT></DIV></TD> <TD align=3Dmiddle bgColor=3D#dddddd><FONT size=3D2>21.00 = %</FONT></TD></TR> <TR vAlign=3Dtop> <TD width=3D"30%" bgColor=3D#dddddd> <DIV align=3Dleft><FONT size=3D2>Pretax profit margins should = be=20 increasing</FONT></DIV></TD> <TD width=3D"30%" bgColor=3D#dddddd> <DIV align=3Dleft><FONT size=3D2>Profit Margin for most recent = quarter=20 minus profit margin 1 year ago. (Published financial=20 data).</FONT></DIV></TD> <TD align=3Dmiddle bgColor=3D#dddddd><FONT size=3D2>-1.00 = </FONT></TD></TR> <TR vAlign=3Dtop> <TD align=3Dmiddle width=3D"5%" bgColor=3D#ffffff><B><FONT=20 size=3D2>N</FONT></B></TD> <TD align=3Dleft width=3D"15%" bgColor=3D#ffffff> <DIV align=3Dleft><FONT size=3D2>New Products, Services or = Leadership<FONT=20 class=3Dfont5> </FONT></FONT></DIV></TD> <TD width=3D"30%" bgColor=3D#ffffff> <DIV align=3Dleft><FONT size=3D2>If a company has a dynamic = new product or=20 service, or is capitalizing on new conditions in the economy, = this can=20 have a dramatic impact on the price of a stock. Buy stocks = just as=20 they emerge from a sound "base" pattern and make new price = highs.=20 </FONT></DIV></TD> <TD width=3D"30%" bgColor=3D#ffffff><FONT size=3D2>Not = Known</FONT></TD> <TD align=3Dmiddle bgColor=3D#ffffff><FONT = size=3D2> </FONT></TD></TR> <TR vAlign=3Dtop> <TD align=3Dmiddle width=3D"5%" bgColor=3D#dddddd><B><FONT=20 size=3D2>S</FONT></B></TD> <TD align=3Dleft width=3D"15%" bgColor=3D#dddddd> <DIV align=3Dleft><FONT size=3D2>Supply and Demand = </FONT></DIV></TD> <TD width=3D"30%" bgColor=3D#dddddd> <DIV align=3Dleft><FONT size=3D2>Watch the demand for shares = by looking at=20 the percentage change in volume for each of your stocks. = Analyze a=20 stock's daily and weekly price and volume changes. = </FONT></DIV></TD> <TD width=3D"30%" bgColor=3D#dddddd> <DIV align=3Dleft><FONT size=3D2>The up/down volume ratio = measures the=20 ratio of accumulation days to distribution days over the last = 50=20 days.</FONT></DIV></TD> <TD align=3Dmiddle bgColor=3D#dddddd><FONT size=3D2>0.90 = </FONT></TD></TR> <TR vAlign=3Dtop> <TD align=3Dmiddle width=3D"5%" bgColor=3D#ffffff = rowSpan=3D3><FONT=20 size=3D2><B>L</B><B></B></FONT></TD> <TD align=3Dleft width=3D"15%" bgColor=3D#ffffff rowSpan=3D3> <DIV align=3Dleft><FONT size=3D2>Leading Stocks in Leading = Industry Groups=20 </FONT></DIV></TD> <TD width=3D"30%" bgColor=3D#ffffff rowSpan=3D2> <DIV align=3Dleft><FONT size=3D2>Nearly 50% of a stock's price = action is a=20 result of its industry group's performance. Focus on the top = industry=20 groups, and within those groups select stocks with the best = price=20 performance.</FONT></DIV></TD> <TD width=3D"30%" bgColor=3D#ffffff height=3D"50%"> <DIV align=3Dleft><FONT size=3D2>Multex Industry Rank ( 0 - 99 = )<BR>(26=20 week relative performance).</FONT></DIV></TD> <TD align=3Dmiddle bgColor=3D#ffffff><FONT size=3D2>90 = </FONT></TD></TR> <TR vAlign=3Dtop> <TD width=3D"30%" bgColor=3D#ffffff height=3D"50%"> <P align=3Dleft><FONT size=3D2>Multex Rank within Industry ( 0 = - - 99 ).=20 Provided for informational purposes only.<BR>(4 week relative=20 performance)</FONT></P></TD> <TD align=3Dmiddle bgColor=3D#ffffff><FONT size=3D2>22 = </FONT></TD></TR> <TR vAlign=3Dtop> <TD width=3D"30%" bgColor=3D#ffffff> <DIV align=3Dleft><FONT size=3D2>The stock's Relative Price = Strength=20 Rating should be in the 80s or 90s </FONT></DIV></TD> <TD width=3D"30%" bgColor=3D#ffffff> <DIV align=3Dleft><FONT size=3D2>We calculate RS daily by = ranking all=20 NYSE, AMEX and NASDAQ stocks. Our RS algorithm is </FONT><A=20 = onclick=3D"MM_openBrWindow('html/rs.html','','scrollbars=3Dyes,resizable=3D= yes,width=3D500,height=3D500')"=20 href=3D"file:///H:/cwhcharts/TMP1m5cljfr3.htm#"><FONT = size=3D2>described=20 here</FONT></A><FONT size=3D2>. It correlates well with IBD's. = Value.=20 Score pro-rated in range 60-79.</FONT></DIV></TD> <TD align=3Dmiddle bgColor=3D#ffffff><FONT size=3D2>83</FONT> = </TD></TR> <TR vAlign=3Dtop> <TD align=3Dmiddle width=3D"5%" bgColor=3D#dddddd = rowSpan=3D2><B>I</B></TD> <TD align=3Dleft width=3D"15%" bgColor=3D#dddddd rowSpan=3D2> <DIV align=3Dleft><FONT size=3D2>Institutional = Sponsorship</FONT></DIV></TD> <TD width=3D"30%" bgColor=3D#dddddd rowSpan=3D2> <DIV align=3Dleft><FONT size=3D2>You want at least a few of = the better=20 performing mutual funds owning the stock. They're the ones who = will=20 drive the stock up on a sustained basis.</FONT></DIV></TD> <TD width=3D"30%" bgColor=3D#dddddd> <DIV align=3Dleft><FONT size=3D2>Institutional Ownership. = Value in range 5=20 - 30% needed to score 1.</FONT></DIV></TD> <TD align=3Dmiddle bgColor=3D#dddddd><FONT size=3D2>79.00 % = </FONT></TD></TR> <TR vAlign=3Dtop> <TD width=3D"30%" bgColor=3D#dddddd> <DIV align=3Dleft><FONT size=3D2>No. of Institutions. Provided = for=20 informational purposes only.</FONT></DIV></TD> <TD align=3Dmiddle bgColor=3D#dddddd><FONT size=3D2>568 = </FONT></TD></TR> <TR vAlign=3Dtop> <TD align=3Dmiddle width=3D"5%" bgColor=3D#ffffff><B><FONT=20 size=3D2>M</FONT></B></TD> <TD align=3Dleft width=3D"15%" bgColor=3D#ffffff> <DIV align=3Dleft><FONT size=3D2>Market Direction = </FONT></DIV></TD> <TD width=3D"20%" bgColor=3D#ffffff> <DIV align=3Dleft><FONT size=3D2>You can buy the best stocks, = but if the=20 general market is weak, most likely your stocks will be weak=20 also.</FONT></DIV></TD> <TD bgColor=3D#ffffff> <DIV align=3Dleft><FONT size=3D2>Because Market Direction is = not specific=20 to any one particular stock, we do not evaluate it on a per = stock=20 basis.</FONT></DIV></TD> <TD align=3Dmiddle=20 = bgColor=3D#ffffff> </TD></TR></TBODY></TABLE></SPAN></FONT></DIV> <DIV><FONT face=3DTahoma color=3D#000080 size=3D2><SPAN=20 class=3D210001418-08082002></SPAN></FONT> </DIV> <DIV><FONT face=3DTahoma color=3D#000080 size=3D2><SPAN=20 class=3D210001418-08082002>Look at the chart below. Note that the = handle is=20 only 3 days long. This is normally insufficient to have shaken out = the=20 potential sellers and WON recommends that a handle should be at = least 1-2=20 weeks long, otherwise a breakout is prone to failure. Also the = volume in the=20 handle has not dried up. This is often the case in the early days of = handle=20 formation and we would like to see the volume decrease below the ADV = and the=20 price wedge downwards as the handle progresses.</SPAN></FONT></DIV> <DIV><FONT face=3DTahoma color=3D#000080 size=3D2><SPAN=20 class=3D210001418-08082002></SPAN></FONT> </DIV> <DIV><FONT color=3D#000080><SPAN class=3D210001418-08082002><FONT=20 face=3DTahoma><FONT size=3D2>Look at the volume coming up the right = side of the=20 cup - consistently above the 50 ADV accompanied by big price = positive price=20 movements, with only two days when the stock closed slightly down. = It would=20 have been better if the volume had been below the ADV on those days, = in=20 which case the stock would have earned a higher CQ (Chart Quality)=20 score.<BR></FONT></FONT></SPAN></FONT><FONT color=3D#000080><SPAN=20 class=3D210001418-08082002><FONT face=3DTahoma><FONT size=3D2><SPAN=20 class=3D260395018-08082002></SPAN></FONT></FONT></SPAN></FONT></DIV> <DIV><SPAN class=3D210001418-08082002><FONT color=3D#000080><SPAN=20 class=3D260395018-08082002><BR><FONT face=3DTahoma><FONT = size=3D2><SPAN=20 class=3D770040819-08082002><FONT = color=3D#0000ff> </FONT></SPAN>Note the RS=20 line. This is quite high at 83, but has advanced<SPAN=20 class=3D770040819-08082002><FONT color=3D#0000ff><FONT = color=3D#000080> only=20 slightly</FONT> </FONT></SPAN>over the last few days despite=20 significant price gains in this stock. This indicates that other=20 stocks are doing at least as=20 well.</FONT></FONT></SPAN></FONT></SPAN></DIV> <DIV><FONT size=3D+0><SPAN class=3D210001418-08082002><FONT = face=3DTahoma><FONT=20 color=3D#000080 size=3D2><SPAN=20 = class=3D260395018-08082002></SPAN></FONT></FONT></SPAN></FONT> </DIV= > <DIV><FONT size=3D+0><SPAN class=3D210001418-08082002><FONT = face=3DTahoma><FONT=20 color=3D#000080 size=3D2><SPAN class=3D260395018-08082002>The 50 day = up/down=20 volume is at 0.90. Values less than 1 mean that the down volume days = exceed=20 the up volume days. However, the trend of the line is upwards, which = is a=20 positive sign.</SPAN></FONT></FONT></SPAN></FONT></DIV> <DIV><FONT size=3D+0><SPAN class=3D210001418-08082002><FONT = face=3DTahoma><FONT=20 color=3D#000080 size=3D2><SPAN=20 = class=3D260395018-08082002></SPAN></FONT></FONT></SPAN></FONT> </DIV= > <DIV><SPAN class=3D210001418-08082002><FONT face=3DTahoma = color=3D#000080=20 size=3D2><SPAN class=3D260395018-08082002> <SPAN=20 class=3D770040819-08082002>I'll go out on a limb and = say m</SPAN>y guess=20 is that todays breakout will not be sustained<SPAN=20 class=3D770040819-08082002> (although its holding now -=20 just) </SPAN>and it will continue to form a handle.=20 </SPAN></FONT></SPAN></DIV> <DIV><FONT size=3D+0><SPAN class=3D210001418-08082002><FONT = face=3DTahoma><FONT=20 color=3D#000080 size=3D2><SPAN=20 = class=3D260395018-08082002></SPAN></FONT></FONT></SPAN></FONT> </DIV= > <DIV><FONT size=3D+0><SPAN class=3D210001418-08082002><FONT = face=3DTahoma><FONT=20 color=3D#000080 size=3D2><SPAN class=3D260395018-08082002><SPAN=20 class=3D210001418-08082002><FONT face=3DTahoma><FONT color=3D#000080 = size=3D2><SPAN=20 class=3D260395018-08082002>I conclude that this is one to watch but = not to buy=20 right=20 = now.</SPAN></FONT></FONT></SPAN></SPAN></FONT></FONT></SPAN></FONT></DIV>= <DIV><FONT size=3D+0><SPAN class=3D210001418-08082002><FONT = face=3DTahoma><FONT=20 color=3D#000080 size=3D2><SPAN class=3D260395018-08082002><SPAN=20 class=3D210001418-08082002><FONT face=3DTahoma><FONT color=3D#000080 = size=3D2><SPAN=20 = class=3D260395018-08082002></SPAN></FONT></FONT></SPAN></SPAN></FONT></FO= NT></SPAN></FONT> </DIV> <DIV><FONT face=3DTahoma color=3D#000080 size=3D2><SPAN=20 class=3D210001418-08082002><IMG alt=3D"" hspace=3D0=20 src=3D"cid:317335419@08082002-0a80" align=3Dbaseline=20 border=3D0></SPAN></FONT></DIV> <DIV><FONT face=3DTahoma color=3D#000080 size=3D2><SPAN=20 class=3D210001418-08082002></SPAN></FONT> </DIV> <DIV><FONT face=3DTahoma color=3D#000080 size=3D2><SPAN=20 class=3D210001418-08082002></SPAN></FONT> </DIV> <DIV><FONT face=3DTahoma color=3D#000080 size=3D2><SPAN=20 class=3D210001418-08082002></SPAN></FONT><FONT face=3DTahoma = color=3D#000080=20 size=3D2>Aloha,</FONT></DIV> <DIV><FONT face=3DTahoma color=3D#000080 = size=3D2></FONT> </DIV> <DIV><FONT face=3DTahoma color=3D#000080 size=3D2>Mike = Gibbons</FONT></DIV> <DIV><FONT face=3DTahoma color=3D#000080 size=3D2>Proactive = Technologies,=20 LLC</FONT></DIV> <DIV><FONT face=3DTahoma color=3D#000080=20 size=3D2>http://www.proactech.com</FONT></DIV> <DIV><FONT face=3DTahoma color=3D#0000ff=20 size=3D2></FONT> </DIV></BLOCKQUOTE></BLOCKQUOTE></BODY></HTML> - ------=_NextPart_000_00CD_01C24393.ABA20210-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". 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