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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: chowder who wrote (19905)	7/17/2003 12:21:15 PM
From: Gottfried	Read Replies (1) \| Respond to of 23153

dabum, I've been trying to buy low, sell high - except for a few covered call trades. It's time to shake things up and reading that book may do that. Or not. Gottfried

To: chowder who wrote (19905)	7/22/2003 9:06:44 PM
From: - with a K	Read Replies (1) \| Respond to of 23153

Dabum, I've owed you a response to our PM exchange about HOFF and was fascinated by your posts here and on Big Dog's thread, so here goes. (BTW, I also have had a career in sales and am glad to see you back contributing! Your posts are always enlightening.) I too have evolved my approach to rely less on the blind, long term buy and hold approach based on FA. I no longer believe in it, after learning about corrupt management, numbers that you can't trust, and the other transgressions we've been through. While my background in investing is based on FA, and I now know that a little TA can make a big difference in getting in or out at the right price. As president of two investment clubs, I was continually frustrated with the attitude of "buy and forget" and once watched a $500K portfolio of tech names get slowly cut in half because the group was stubbornly stuck in Buy and Hold. I ended up leaving the group in frustration. Jim Cramer talks a lot about "buy and homework" and has had William O'Neil on his radio show. He also preaches about taking some profits and not being a pig. I agree. Part of my approach is also based on the NAIC principles of consistent, growing earnings and quality of management (as opposed to beaten up value stocks with a history of up and down earnings). Yet, like you say, different approaches work for different people, and that's what makes a market. Having read O'Neil's earlier edition and being a former subscriber to IBD, I am well aware of his claims and methodologies. Also, as a former AAII member, I had seen earlier articles like the one Augie posted. But like you, I didn't give the CANSLIM approach much weight. I am learning to be willing to "pay up" for a stock and to avoid the "bargains." It is counter-intuitive at first, but the argument behind CANSLIM and O'Neill (and the results) are sound and repeatable, IMO. So if one can get over the chest thumping by O'Neil it seems like his approach has validity. Yet I haven't found a way to implement it easily and regularly. For example,I struggle with the enormity of data and the clunkiness of the paper. And I've yet to read HOW a successful trader uses the data in IBD on a regular basis. For example, the AAII article steps you through a screen using their database, but what about the IBD website and its ratings? What if you wanted to use the paper, and what about the "pivot points" he talks about? How does one screen for them in an efficient manner? Or is AAII just interpreting his guidelines and ignoring the IBD rankings? I guess my question for you and anyone else familiar with IBD is this: have you come across a practical and successful way to use the IBD approach? Is it as simple as buying stocks ranked 80,80,80,B,B,B or better? Are you trading out of a stock as soon as its ratings drop? Does one focus on the IBD 100? Where the Big Money's Flowing? The highlighted or bolded names? Yours for learning through sharing, - Kris

To: chowder who wrote (19905)	8/19/2003 10:10:17 PM
From: augieboo	Read Replies (2) \| Respond to of 23153

dabum, (and all), re POSSIBLE CANSLIM FIND I just bought O'Neil's book, and I'm starting to work with some CANSLIM-type parameters. I'm using the screener at Multex -- multexinvestor.com -- which is, IMDO, by far the best freebie screener out there. (Note: Multex requires one to register to use their screener, but no paid membership is required -- just the ability to tolerate some ads and a spare email address to soak up the spam. -ng- ) Here is my first screen effort, with explainations as necessary. # Name # of companies fitting 01 US Companies 8911 02 {EPS%ChgPYQ}>40% 1055 03 {EPS%ChgTTM}>=25% 548 04 {EPS%ChgA}>=25% 301 05 {EPS3YCGr%}>=25% 113 06 {EPS5YCGr%}>=20% 66 07 {Sales%ChgPYQ}>=25% 38 08 {Sales%ChgTTM}>=20% 37 09 {Sales%ChgA}>=18% 34 10 {Sales3YCGr%}>=15% 33 11 {Sales5YCGr%}>=10% 32 12 {Float}<=100 26 13 {#Institution}>=10 23 14 {InstNetPurch}>=.25 10 15 {Inst%Own}<=75 6 Explainations: 02 {EPS%ChgPYQ}>40% % Change this Q vs same Q last yr 03 {EPS%ChgTTM}>=25% % Ch recent 12 mo v prev 12 mo 04 {EPS%ChgA}>=25% % Ch most recent full yr vs prev 05 {EPS3YCGr%}>=25% Avg % ch last 3 yrs 06 {EPS5YCGr%}>=20% last 5 yrs 07, 08, 09, 10, 11 = same, except sales instead of earnings 12 {Float}<=100 in millions of shares 14 {InstNetPurch}>=.25 in millions of shares 15 {Inst%Own}<=75 % of outstanding stock owned by institutions My first effort yielded 6 stocks, of which one -- BDY (Bradley Pharma) -- looks pretty promising, but for one proviso. That proviso being that I'm good at reading charts but lousy at reading financials. I'm hoping somebody will take a look at tell me what they think. (: Here's a link to my iHub post giving my take on the financial picture, plus a couple charts which show that BDY may be painting a Cup n' Handle on the weekly. (I have to admit that this has me rather excited because of my understanding that the Cup n Handle is pretty much the meat and potatos of CANSLIM.) investorshub.com