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Strategies & Market Trends : The Rational Analyst -- Ignore unavailable to you. Want to Upgrade?

To: ftth who wrote (36)	12/16/1997 1:24:00 AM
From: HeyRainier	Read Replies (1) \| Respond to of 1720

[ Partial Report on Starting List ] Dave and others, I've only been able to take a partial look at the Starting List provided, and only from the technical side, unfortunately. I wish I had some more time to look at the fundamental side, but time and deadline constraints are preventing me from doing so tonight. Anyways, here's a brief look at the first seven stocks on your Starting List. Since the scan you provided is fundamentally based, let me provide the accompanying TA on it. Note how many are currently technically weak. 1. MCRL: All my indicators are bearish, except for that Bullish Doji/Harami at Monday's close. The intermediate term trend was broken as of 10/24/97. Firmer support exists around 20 1/2. Dojis/Haramis are not confirmed buy signals, you must wait for confirmation. Unattractive as a short term long candidate; may be subject to further tax loss selling as the year comes to a close; 2. ACTN: It managed to recover from a violation of the intermediate term trend; current indicators are Bullish but for the small Hanging Man on Monday's close. Trendline resistance is at 35; 3. ZOLT: undergoing a severe downtrend; indicators are bearish; unattractive short term long candidate; suggest that you do not attempt to pick bottoms or average down; firm support at 24; violated 200 dma; wait for chart stabilization. 4. RCII: indicators are bearish; unattractive short term long candidate; the intermediate term trend was broken on 12/1/97; firmer support exists at the low 17's. Interesting Bullish Hammer near 200 dma. 5. CDWC: This is the most interesting one out of the first seven I looked at. The issue declined after what looks like two Bull Traps, or a Double Top(not always the case). The intermediate term trendline support exists at 43.75, and Monday's action briefly touched upon that level before bungeeing back up. Note the Candle is a Spinning Top/Bullish Harami. In addition to the intermediate term considerations, if you look at the longer term weekly charts, you can see that the longer term trend is in jeopardy of being violated. In the weekly charts as well you will find a Bullish Harami near trendline support. The next few days--starting with tomorrow should prove interesting for this issue. A possible bounce may exist. 6. ACCS: indicators are bearish; the intermediate term trend was broken 11/24/97; approaching 200 dma support; still do not suggest opening a long position. 7. HP: Indicators are bearish; intermediate term trend was broken on 11/18/97; currently at 200 dma support; no short term buy signals exist. Strong support at 55. Whew. Let's call it a night. Regards, Rainier

To: ftth who wrote (36)	12/25/1997 11:48:00 PM
From: Scott H. Davis	Read Replies (1) \| Respond to of 1720

Comment on FA ratios. While a PS ratio of < 2.01 is a good indicator historically, I'm starting to adjust in conjunction with profit margin. An issue with a 2.5 PS but a margin of 16 may be preferable to one with a PS of 1.0 but with a margin of 4. Also, in "What Works om Wall Street" the data showed that Price/cash flow was a better single indicator than Price/book. FYI, Scott Also, (hope this does not push the envelope of this thread too much) anybody out there trying to factor in insider trading in with FA, TA & analyst recommendations?