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Strategies & Market Trends : CANSLIM - COAST TO COAST -- Ignore unavailable to you. Want to Upgrade?

To: Bruce A. Brotnov who wrote (6039)	10/30/2000 2:05:34 AM
From: ig	Respond to of 6445

"I guess O'Neil doesn't address stocks with a 250 PE as one of the CANSLIM criteria." O'Neil says the virtue of low-P/E stocks is just a "myth," that P/E should not figure into the decision to buy a stock. He cites plenty of examples of how investors who reject stocks on the basis of a too-high P/E have missed out on some of the great gainers of all time. For instance: - AMGN, with a P/E of 300 before it gained 650% in 22 months starting March 1990 - AOL, with a P/E of 205 before it shot up 557% in six months starting October 1998. "At this time there are probably no CANSLIM stocks as the M is probably still considered negative." But this is a very good time to start lining up on them. To get the best gains, O'Neil says it's critical to get in on the ground floor of a new bull market: "A period you absolutely never want to miss," says O'Neil. For all we know, it's right around the corner. "...of the 108 stocks in my database, probably 90% or more have a PE less than their sector...I can find enough growth stocks with PE's less than sector average to fill my bill." That puts you in company with the likes of Vinik, whose strategy boiled down to buying 20% growth at 15 P/E. Not knocking it, but is this thread also a place to find discussion of true CANSLIM candidates? If not, then is there someplace else? Thanks, ig