[CANSLIM] New breakouts

From: Richard Mandel <rmandel@bu.edu>
Subject: [CANSLIM] New breakouts
Date: Wed, 10 Sep 1997 12:31:05 -0700

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Hi CANSLIMers:

I am back after a great vacation in Italy and am trying to catch up on
the market as well as in my life. 

I just last week jumped back into call options in a company in which I
was before I went away but had sold out, namely MDCO.  I have been
playing around with call options with some success.  While I realize
that they are not long term investments,options make me feel more
comfortable investing under the current market conditions and
extension.  Has anyone else been using options instead of buying the
underlying shares.  If so please share your experience either on CANSLIM
(I read the digest) or by e-mail.  MDCO had another breakout last week. 
I guess I have to say that it doesn't seem to have much follow through. 
In addition I did a scan yesterday with Interactive Quote looking for
new highs with 200% increases in volume (Free on Internet). Their new
system is not as useful as it had been previously.  The old system
allows you to find a universe of stocks that are within a set percentage
of their one year highs (I chose 5%) along with volume breakouts but the
new system allows only to choose stocks that are already making new
highs.  Does anyone use Interactive quote to screen for potential stocks
about to breakout?

In any case the ones I found are listed as follows:

Symbol	G/R,EPS/R,RS,A/D	Sh	F%	Sales Inc	Earn Inc 	Vol%
AORI	N/A,58,86,B		26.6	33	111,85,73,68	50,25,22,33	350 
AZZ	30,95,98,A		5.8	16	23,10,19,29	60,54,83,75	250
RESP	28,86,68,B		19.7	19	28,42,46,48	22,22,18,21	200
HYSW	19,93,90,A		17.4	30	26,29,37,26	-8.-7,250,53	150
SECX	-1,68,94,A		7.1	24	46,50,41,21	71,32,35,22	300
RCMT	21,91,80,A		7.1	3	125,116,99,61	183,7,100,36	200
MDCO	N/A,75,93,B		51.3	31	N/A,300,300,160	93,37,73,63	N/A

The approixamte B/O and current prices are:

AORI	17 3/8, 16 1/2
AZZ	19 7/8,22 1/4
RESP	26 1/2, 27
HYSW	30 3/8, 31 11/16
SECX	16 3/4, 17 5/8
RCMT	11 3/4,	14 5/8
MDCO	25 7/8, 26 1/2

I will study these companies a little more carefully before making
commitments and would appreciate feedback.  This advice is worth what
you paid for it and any advice I get in return will be scrutinized with
the same in mind.

Ciao,
Rich

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