CAN SLIM Stocks Analysis This presentation is available on our website: Please.

CAN SLIM Stocks Analysis

This presentation is available on our website: http://investorssupportnetwork.com/Please register to access this presentation. Registration is free, no credit card is required.

Speaker Profile: Greg Shtock, Investor's Business Daily Toronto Group Organizer.

Greg is an active personal investor who is managing his own portfolio and trading futures, options, stocks and exchange-traded funds (ETFs). He developed and follows a well-defined set of rules. These rules are based on the trend following principles, risk management and the necessity of having a detailed plan prior to initiating any investment position.

Greg didn’t begin his career in the financial industry. Over 20 years ago, while working full time as an engineer, he began to manage his own investments. He carefully studied the markets, tested different investment methods and discovered what methods work, what methods don’t work and, most importantly, why. Today, he shares his experience, insights, and passion with others by teaching courses and seminars such as the Practical Personal Investing course at Ryerson LIFE Institute.

Canadian Society of Technical Analysts, November 12, 2014, Monthly Meeting, Presented by Greg Shtock 1

Disclaimer & Terms of Use:

Investors Support Network Inc. and/or Greg Shtock are not registered investment advisors or brokers/dealers. Any information, commentary, recommendations, or statements of opinion provided here are for general information purposes only. It is not intended to be personalized investment advice or a solicitation for the purchase or sale of securities. The information is obtained from, or based upon, publicly available sources that we believe to be reliable, but Investors Support Network makes no warranty as to the accuracy or usefulness of the information provided. Please remember that investments can go up or down. Past performance is not indicative of future results. Don’t consider making any investment without conducting your own due diligence. Prior to making any investment decision, you should seek outside advice from a qualified and registered investment advisor.

The information and recommendations made available here are for informational purposes only and should not be used or construed as an offer to sell or a solicitation of an offer to buy any services or securities. You further agree that we will not be liable for any losses or liabilities that may be occasioned as a result of the information or commentary provided. By accessing the site, receiving email, and/or attending webinars and meetings, you accept and agree to be bound by and comply with the terms and conditions set out herein. If you do not accept and agree to the terms, you should not use this site, attend our meetings, or accept our email.


Disclaimer& Terms of Use :

In no event will we be responsible or liable to you or any other party for any damages of any kind arising out of or relating to the use of, misuse of, or inability to use this site and email. The information is directed only at persons resident in Canada. Nothing on this site shall constitute an offer or solicitation to anyone in the United States of America or any jurisdiction where such offer or solicitation is not authorized or to any person to whom it is unlawful to make such a solicitation. If you choose to access this site or email from outside Canada, you acknowledge that the information is intended only for use by persons resident in Canada.

This is not an investment advisory and should not be used to make investment decisions. Information in Investors Support Network is often opinionated and should be considered for informational purposes only. No stock exchange anywhere has approved or disapproved the information contained herein. There is no express or implied solicitation to buy or sell securities. The writers and editors of Investors Support Network may have positions in investments and the stocks discussed above and may trade in the stocks mentioned.



CAN SLIM principles and information included in this presentation are described in Investors Business Daily publications and on their website:http://www.investors.com/default.htm

As well as in William J. O'Neil’s books such as:How to Make Money in Stocks:A Winning System in Good Times and Bad, Fourth Edition Paperback – Jun 8 2009 by William O'Neil (Author)

24 Essential Lessons for Investment Success: Learn the Most Important Investment Techniquesby William O'Neil (Author)

An additional source of information used in this presentation is the Stock Screens based on CAN SLIM criteria developed and available at the American Association of Individual Investors website: http://www.aaii.com/



CAN SLIM methodology was developed by William O'Neil, founder of Investor's Business Daily and O'Neil & Co. Inc.

Mr. O'Neil began his career as a stockbroker in 1958 with Hayden, Stone & Company, where his passion for stock picking led him to develop his own computerized study of successful stocks based on historical precedent. He documented his findings as The Model Book of Greatest Stock Market Winners, a pioneering study that became the foundation of the method William O'Neil + Company uses today.

In 1963, he founded William O'Neil + Co. Incorporated, where he continued his work developing securities databases and providing independent research for institutional investment managers. The O'Neil Database™ currently encompasses over 70,000 stocks and funds covering over 70 countries.

In 1984, he launched Investor's Daily (later renamed Investor's Business Daily®) to fill an information gap for individual investors and the business community.



Mr. O'Neil approach to investing stems from an analysis covering 40 years of market data, which examined each year's stocks with the largest percentage price increase to find the common characteristics of the "most successful stocks." These common characteristics include both fundamental factors, inherent in the nature of the firm and industry, and technical factors from observing the price patterns of the stocks.

This investment approach are often classified as either "value-based" or "growth-based" strategies that focus on fundamental company characteristics. It also combines both fundamental and technical factors.



What is the CAN SLIM methodology?

Well… it’s not Canadian and it is not really “Slim.”

CAN SLIM is the acronym for William J. O'Neil's investment strategy based on the seven common characteristics found in his study of the greatest stock market winners.

C = Current Earnings Growth A = Annual Earnings Growth N = New Products, New Services, New Management, New Price Highs

S = Supply & Demand L = Leader or Laggard I = Institutional Sponsorship M = Market


C = Current Earnings Growth


O'Neil's study of winning stocks highlights the strong quarterly earnings increase per share of the securities prior to their significant price run-ups.

A minimum increase in quarterly earnings of 18% to 20% over the same quarterly period one year ago is recommended.

Many companies have seasonal earnings patterns. Therefore, comparing current quarter results relative to the previous quarter results does not represent the real growth.

Another item to look for when screening for percentage changes is a meaningless figure created by having a very small base number or change from negative to positive earnings.

The issue of how to handle extraordinary earnings comes into play. One-time events can distort the actual trend in earnings and make company performance look better or worse.

C = Current Earnings Growth


Buying shares back or issuing new shares can also distort the actual trend in earnings. It is recommended to excluding all non-recurring items from the analysis. The stock screener system based on CAN SLIM methodology, examine growth in earnings from continuing operations only.

O'Neil also likes to see an increasing rate of growth.

Growth rate from the quarter one year ago to latest quarter be higher than the previous quarter's increase from its counterpart one year prior. Basically, the current quarter's growth over the past 12-months must be better than the growth in previous 12-month period.

As a confirmation of the quarterly earnings screen, O'Neil recommends that you check the industry group and locate at least one other noteworthy stock. Strong industry fundamentals should show up for a number of companies.

A = Annual Earnings Growth


The primary screen for annual earning increases that O'Neil uses is increasing earnings per share in each of the last five years.

In applying this screen, we specify that earnings per share from continuing operations be higher for each year when compared against the previous year.

Earnings over the last 12 months be greater than or equal to earnings from the latest fiscal year.

The winning companies in O'Neil's study had a median growth rate of 21%. The O'Neil screen in Stock Investor specifies a minimum annual growth rate of 25% in earnings per share from continuing operations over the last five years.

N = New Products, New Services, New Management, New Price Highs


95% of the winning stocks had some sort of fundamental spark to push the company ahead of the pack. This catalyst can be a new product or service, a new management team after a period of lackluster performance or even a structural change in a company's industry, such as a new technology.

A second consideration that O'Neil emphasizes is that investors should pursue stocks showing strong upward price movements.

O'Neil says that stocks that seem too high-priced and risky most often go even higher, while stocks that seem cheap often go even lower. A stock making a new high after undergoing a period of price correction and consolidation is especially interesting.

Investor's Business Daily, highlights stocks within 10% of their 52-week high and this is the criterion established for stocks screen. Used independently the screen allows about one-third of the companies to pass the filter.


S = Supply and Demand: Small Capitalization Plus Volume Demand

Companies with a smaller number of shares outstanding should increase more quickly than those with a large number of outstanding shares.

O'Neil found that 95% of the winning stocks had fewer than 25 million shares outstanding, while the median for the group was 4.6 million.

O'Neil suggests that investors consider looking at the actual "float" of the stock. The float is the number of shares in the hands of the public—determined by subtracting the number of shares held by management from the number of shares outstanding. Thus we establish a screen requiring stock with fewer than 20 million shares available through the float.

Share buyback, which reduces the public float of company's stock, is positive because it reduces the supply of the company's stock while boosting per share earnings.


L = Leader or Laggard

Scan for rapidly growing companies that are market leaders in rapidly expanding industries. O'Neil advocates buying among the best two or three stocks in a group.

O'Neil suggests using relative strength to identify market leaders. Relative strength compares the performance of a stock relative to the market as a whole.

Investor's Business Daily presents the percentage ranking of stocks and O'Neil recommends only looking for stocks with a percentage rank of 70% or better.

When monitoring your portfolio, O'Neil recommends that you sell off your worst-performing stocks and keep your best-performing stocks a little longer. You should try to avoid letting your ego dictate your actions. It is best to recognize a mistake early, before it becomes a major problem.


I = Institutional Sponsorship

O'Neil warns against selecting low-priced stocks with small capitalization and no institutional ownership, because these stocks have poor liquidity and often carry a lower-grade rating.

A stock needs a few institutional sponsors for it to show above-market performance. Three to 10 institutional owners are suggested as a reasonable minimum number.

IBD as well as the Stock Investor Pro, which is American Association of Individual Investors Stocks Screening tool, reports the percentage of shares held by institutions and the number of institutions. They established a screen for stocks to have at least five institutional owners.


M = Market Direction

The trend of the overall market has a tremendous impact on the performance of your portfolio.

O'Neil finds it difficult to fight the trend, so it is important to determine if you are in a bull or bear market.

When the market peaks and begins a major reversal, O'Neil recommends that you try to put 25% of your portfolio into cash.

If the last four or five stocks you purchased after a careful analysis are not showing a profit, it may signal a negative shift in the general market.

Market top also include heavy volume without

significant price progress and the divergence of key averages. At market tops you often find stocks that were past market leaders faltering, while poor-quality stocks are showing up on the most active lists.


How to find CAN SLIM stocks, tools and stocks screens.



This chart is for illustration purposes only.











IBD SMART NYSE + NASDAQ Tables With 10 Vital Ratings.

1. IBD Composite Rating has 5 Smart- Select Ratings, 1 -99, with 99 the best. Ratings of 98 or more are boldfaced.

2. Earnings Per Share (EPS) rating compares your stock's last 2 quarters and 3 years EPS growth to all stocks. Ratings of 90 mean earns outperformed 90% of all stocks

3. Relative Strength (RS) Stock's relative price change in last 12 months vs. all stocks. Best rate 80 or more

4. Sales+Profit Margins+ROE Rating combines recent sales, profit margins and return on equity into an A to E rating. ROE over 17% is preferred

5. Accumulation/Distribution Our price and vol. formula shows if your stock is under accumulation (buying) or distribution (selling) last 3 months. A buying; E selling

6. Vol % Change is volume traded yesterday vs. average daily volume last 50 days. Vol % chg. + 50% & up bolded

7. 52-Week High is boldfaced if closing price within 10% of new high.

8. Boldfaced stocks are up 1 or more or new high. Underlined stocks are down 1 or more or at a new low.

9. Stocks have EPS & RS Ratings of 80 or more and were IPOs in the last 15 years

10. * after stock symbol means stock story at Investors.co







Upcoming Events:

Next Webinar: Practical Personal Investing Webinars Series.Today webinar: Tools I Use.This is a real time demonstration of TC2000 program and how I use it to:=> Search markets for potential investments opportunities based on a pre-defined set of rules=> Manage portfolios and watch lists=> Set price and trend line alerts as part of your risk management plan=> Charts, technical analysis, regression channels, etc.=> Q&A session will follow this short presentation.When: Tuesday, November 18, 2014, 7 p.m. to 8 p.m.Where: https://join.me/InvestorsSupportNetworkWatch a two minute video “How to log in to the Webinar”Please Note. There is a $10 fee._____________________________________________________________________________________Next MeetingSubject: Investment Ideas for a Challenging MarketWhen: Sunday, December 7, 2014, 2 p.m. to 4 p.m.Where: Meeting Room #1 in North York Central Library, 5120 Yonge Street, Toronto, M2N 5N9. It is next to Mel Lastman Square, at North York station on Yonge subway line.Please note. There is a $10 fee.

Thank you.To View this Presentation, Contact Us or Attend Seminars / Webinars, Please visit our Website:

http://investorssupportnetwork.com/

Date post:	15-Jan-2016
Category:	Documents
Upload:	jeremy-hall
View:	219 times
Download:	0 times

CAN SLIM Stocks Analysis This presentation is available on our website: Please.

Documents