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To: Chuzzlewit who wrote (24776)	12/11/1997 1:08:00 PM
From: Olu Emuleomo	Respond to of 176387

Paul, I agree with you that CANSLIM can perform quite poorly. In fact, CANSLIM performs well only in bull markets. In a choppy market, you will get killed on comissions and 'small' losses. However, I disagree with you that cutting losses is foolish! CUTTING YOUR LOSS is the #1 weapon you need when you trade individual stocks. Otherwise, you WILL get wiped out one day. Regard loss cutting as insurance! We insure our homes, despite that fact that it may never burn down! Take the (hopefully) small loss and live to fight another day! --Olu E.

To: Chuzzlewit who wrote (24776)	12/11/1997 1:13:00 PM
From: James H. Irwin	Respond to of 176387

I agree with you on most of your points. The M in CANSLIM addresses being in synch with the M-A-R-K-E-T. When stocks are falling, and with commissions being what they are today, you can always buy back. Personally I don't care about taxes, turnover, transaction costs, diversification, gold, international opportunities.... Preservation of capital while trafficking in solid growth companies--being a good company is not enough, just like ones trading greater than the out year's estimate as a fn of P/E. Unfortunately the market is getting toppy. I get calls everyday from friends of mine asking me if they should be buying AMAT, or ASND (ASND was at 50 telling me it was cheap). Cheap doesn't matter when you get a margin call and Mr. Fed is at the door. Anyway, as you know, running a mutual fund is slightly different. By charter most have a maximum amount of cash they can hold. They have to be long...as opposed to hedge funds. Mutual funds measure their performance against the appropriate index. Hedge funds are interested in only absolute performance...not relative. Furthermore, are you familiar with the concept that where a stock has traded in the past has less to do with where its going in the future than what the perceived prospects of the company do??? I'm probably rambling, so I'll sign off. bon chance. Jim