BAD TIMING
Hi, Ivestor2. I don't think CANSLIM is losing its effectiveness. I think now is not the right time to employ CANSLIM. One of the 7 principles of CANSLIM is buying when the general market direction is favorable. At this time, the general market direction is unclear.
As a side note, this thread was started on July 11, 1999 -- just 8 days before the general market sold off in a correction that bottomed on August 10. Since then, the general market has recovered somewhat. The INDU made a new high, but the other major indexes did not. Is this a pause before we go to higher highs, or will the market sell off again?
I looked at Cymer, Inc. (NADSAQ: CYMI). Technically, CYMI doesn't qualify as a CANSLIM candidate for several reasons including, but not limited to: (1) Poor current quarterly earnings growth, and (2) Poor annual earnings growth. On the positive side, however, Daily Graphs forcasts CYMI year 2000 earnings to increase by 700%. Also, I like CYMI's price chart. Take a look at the chart:
clearstation.com
CYMI is in a general up trend and there was a MACD buy signal just last week.
Hey, what is that I see? Is that a ... CUP-WITH-A-HANDLE formation*?
Good luck, Investor2!!!
PS - Keep a tight stop and watch out for the general market direction.
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* Left side of cup at high on Jan 29, 1999; right side of cup at high on Jul 14; handle from Jul 14 to Aug 24; and breakout on August 25. This is best seen on a semi-log chart. |
