Schwab Investors' RT
Category 26,  Topic 3
Message 2         Wed Apr 28, 1993
R.KLASKY1 [BobK]             at 22:02 EDT
 
Here's 2 more Canslim Classics from the Prodigy Canslim BB to the 
Genie Investors BB.  Enjoy!  BobK in PHilly 

TO:      ALL
 FROM:    WILLIAM SMITH   (GJXK48A)
 SUBJECT: CANS:CLASSICS

 The following is a note that was originally posted by Ian
 Woodward 2/4/92. I hope that it will prove helpful to other
 CANSLIM novices like myself.        THANKS IAN.

FROM: IAN WOODWARD (GBFN34A)
 When Buying, what to look for:
 1. Review the chart patterns
 2. Bases at least 6 to 8 weeks
 3. Volume dry up in the days before the price move. Then at least 50% 
   increase in volume, as the stock goes through the buy point 
 4) Relative Strength line leads or confirms the stocks move into new 
   high ground 
 5) Gaps in Price
 6) A U/D greater than 1.2, and an increasing Demand:Supply Ratio.  
   What's that you ask?  Demand is 50 Day Avg Vol. Supply is the 
   Float. 
 Now, what's the order of importance:
 1) The technical picture of the stock
   A. The Chart Pattern
   B. Volume coming into the stock
   C. Relative Strength line pointing up and leading into
      new high ground
   D. Accumulation of "A" or B" and U/D >1.2
 2. Quarterly earnings momentum & consistent 5Yr. growth rate 
 3. EPS Rk & Rel Str >85, and Grp Str >80
 4. Other stocks in the group confirming your stock's str'gth 
 5. Shares Outstanding between 5 & 30 Million Shares
 6. Institutional Sponsorship <15% (Funds).

That's half the Book in 3 pages <g>  Have Fun.

         MONEY TALK
 TOPIC:   STOCKS & BONDS
 TIME:    12/12  3:20 PM

TO:      ALL
 FROM:    LAWRENCE BONGIOVI   (MXCF59A)
 SUBJECT: CANS:CLASSICS

This note was written by Ian on 10/19/92.  It helped me and I am 
uploading it for others that missed it.  Thanks Ian. From:  IAN 
Woodward  (GBFN34A)      Let me help an "Upstater" in trouble with his 
pivot points. A picture is worth a thousand words, so let me try to 
give you some pictures which will cover the more basic types of chart 
patterns you will need to watch for breakouts (pivot points) I will 
start with the easiest which is the pivot point being at the Brim of 
the Cup and Handle formation: 
                       X
                       X
 x <<<Brim>>> xxx     xX <<<Note that the top of the handle
x x          x   x   x      is at the same level as the top
x   x  Cup   x     xxx       (Brim) of the cup. Breakout is
    x      x    Handle      when it goes thru the price at
     xxxxxx                 the top of the HANDLE, when
                            accompanied by Vol >50% ABOVE
                            Avg.(e.g.,150K if avg. is 100K)
This next one is a Flat Base and is also easy to recognize:
The Flat Base:                      X
                                   X
  x <<$20>> xxx        xx         xX <<<Breakout from a
 x x       x   x      x  x       xx     Flat Base as it
x  xx     x     x    x    x     x       goes thru $20 (say
x     x   x       x  x      x   x        $20&1/8 and 50%
$17>>>xxx         xx        xxx         above Avg. volume.
Ideally a Flat Base should be <15% from top to Bottom, e.g., Top @ $20 
& Bottom at $17 would be considered a tight base. Now, here is a 
tougher one with the handle being made LOWER than the BRIM of the Cup 
(old high): 
  xx <<<Brim of Cup       X
  xx                      X
 x  x  Handle>>>xx       xX <<<Breakout was formed BELOW
x    x         xx x     x      the Brim of the Cup (old
     x         x   xxxxx       high). The Pivot Point is
      x       x                at the High of the HANDLE.
       xxxxxxx
Now here is an UNACCEPTABLE pattern with a weak formation in that the 
Handle is formed below the UPPER HALF of the Cup. Do not make the 
mistake of going for these; they often fail: WEAK FORMATION: Handle 
formed too Low. 
 xx
x  x x                          X
     x                       X
      x           xxx       xX <<<Breakout is in the LOWER
       x          x  x     x      HALF of the cup. The move
        x        x    xxxxx       will usually fail to
         xxxxxxxx                 penetrate the old high
and fall back. I hope these pictures take some of the mystery out of 
the chart patterns. A VERY, VERY, important factor is that the entire 
BASE that is formed MUST be 6-8 weeks long at MINIMUM. Secondly, they 
should be "Tight", i.e., ideally no more than 15% drop in price from 
top to bottom. With a cup and Handle, the Cup should not be less than 
4-6 weeks and the Handle 2-3 weeks (say) at MINIMUM. The volume at the 
bottom of the HANDLE should be very low (quiet) for a few days, and 
then an upsurge in volume as the price comes up the right hand side of 
the handle. My advice: Try the 5 week DG's OTC first; then make your 
call from there. Also get tape & Book "How to Make Money in Stocks", 
IF you are prepared to Buy High To Go Higher. Regards, Ian. 
----------
Schwab Investors' RT
Category 26,  Topic 5
Message 1         Thu Apr 29, 1993
R.HARMELINK1 [Data Ogre]     at 01:16 EDT
 
  Just to start out the topic, here is a "breakout" stock being 
discussed on Prodigy.  Volume has been up the last few days, 
especially today (I'll have to add a volume ASCII chart). 

                ===========================

 CYE / AMEX / CHEYENNE SOFTWARE           EPS Rank:   94
                                          RS  Rank:   95
 Shares Outstanding (mil)    24.3         Grp Str:     B
 Average Weekly Volume        4.9%        Acc/Dis:     B
 Institutional Holdings      31.2%        5-Year:    403%
 Management & Closely Held    8.7%        Curr Qtr:  120%

                                  Daily chart for CYE
   28|    .    .    .    .    .    .    .    .    .    .
     |         .         .         .         .         |
   25|    .    .    .    .    .    .    .    .    .   ||
     |         .         .         .         .     |||||
   22|    .    .  | .    .    .    .    .  |||||| |||| .
     |       ||||||||||||||||    ||||||||||||||||||    .
   19|   ||||||||   || ||.|||||||||||||||||| .   |.    .
     ||||||||  .         .   ||||  .         .         .
   16+|||------+---------+---------+---------+---------+
   02/16     03/02     03/16     03/30     04/14     04/28

                                  Weekly chart for CYE
   29|    .    .    .    .    .    .    .    .    .    .
     |         .         .         .         .         |
   23|    .    .    .    .    .    . ||||||  .    .  |||
     |         .         .   ||||| ||||||||||||||||||||.
   17|    .    .    .    .  ||||||||| ||. ||||||||||| |.
     |         .       |||||||  |  .         |         .
   11|  | .    .   |||||||||  .    .    .    .    .    .
     ||||||||||||||||||  .         .         .         .
    5+||--|||||||||------+---------+---------+---------+
   05/15     07/24     10/02     12/11     02/19     04/28

 Key Ratios:      Curr  Yr Ago  Industry   Analyst ratings
 Price/Earn      31.75   21.08   17.70     As of:  4/10/93
 Price/Sales     13.87   10.76    1.29     ---------------
 Price/Book      13.63    7.21    2.84      0  Strong Buy
 Rel Strength     2.72    1.36    0.97      2  Buy
 Beta (Risk)      0.75    1.41    1.10      0  Neutral
                                            0  Sell
 Performance:     3/93  Yr Ago  Industry    0  Strong Sell
 Profit Margin   43.70%  50.70%   7.30%    ---------------
 ROE             42.90%  34.00%  16.10%    75% Composite
 ROA             41.30%  32.10%   8.40%     1% Est. 5-Year

 Other Ratios:    6/92  Yr Ago  Industry
 Debt/Equity      0.00    0.00    0.18
 LT Debt/Capital  0.00    0.00    0.15
 Quick Ratio     24.09   15.40    1.75
 Current Ratio   24.09   15.40    1.89

 Growth rates:  ---1 Year---   ---3 Year---   ---5 Year---
                 Co.    Ind.    Co.    Ind.    Co.    Ind.
 Sales        148.6%  25.8%  224.5%  20.6%  265.8%  18.3%
 Earnings     331.8%  52.9%    0.0%  25.3%    0.0%  14.5%
 Dividends      0.0%  -6.5%    0.0% -10.5%    0.0%  24.2%

 == Quarterly ==   6/93*  3/93  12/92   9/92   6/92   3/92
 Total Revenue            14.1   10.8    8.2    7.2    4.8
 Net Income                5.6    4.3    3.4    4.3    2.4
 Earnings/share    0.28   0.22   0.17   0.14   0.17   0.10
 Dividends/share          0.00   0.00   0.00   0.00   0.00

 === Annual ===    6/93* 06/92  06/91  06/90  06/89  06/88
 Total Revenue            17.9    7.2    1.7    0.6    0.1
 Net Income                9.1    2.1   -2.1   -2.1   -2.5
 Earnings/share    0.99   0.38   0.09  -0.09  -0.10  -0.13
 Dividends/share          0.00   0.00   0.00   0.00   0.00