[CANSLIM] How do you CANSLIM?

From: "Treb Courie" <list@courie.com>
Subject: [CANSLIM] How do you CANSLIM?
Date: Sun, 15 Jun 2003 12:19:11 -0000

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CANSLIMmers,

There are many discussions on this list about the CANSLIM characteristics of particular stocks, but not nearly as many about what I consider teh harder part of CANSLIMming--how to pick out those stocks out of the thousands of stocks out there. Some people here have said that they use "Where the Big Money is Flowing" or other IBD-sorted lists--and others have mentioned some problems with using those lists (if the big money is flowing there, it's already too late).

For discussion, here is how I do it. I am still refining this method and know that it has some limitations.

- -Every weekend I go to DGO and download the Daily Graphs Company Index (I'm pretty new to DGO and not familiar with all the powerful features on it.)

- -I put it into an Excel Spreadsheet and Filter the Data, usually >75 EPS, >75 RS, SMR B or better, A/C B or better, >70 Comp, >50 Group RS.

- -I then go through all of those stocks (this week about 140 stocks) and view the weekly graph, looking for a basic chart pattern. For those with a pattern, I check the daily (esp. if it has a short handle) to look more closely at the recent activity.

- -Any stocks that I feel comfortable with I will record the pivot point and watch that stock all week for a breakout. This week I am only watching four stocks.

- -The following week, I will repeat the entire process.

This process has some downsides. One is that it takes a long time to view that many charts, but I haven't figured out a good way to keep notes on the stocks weekly while downloading the new ratings into my spreadsheet. Another is that too many of the stocks that I view have already broken out--I need to change my criteria to spot them before breaking out without increasing my chart-analysis workload.

I'd love to hear how others select their stocks and any comments others may have about my system. For example, for those of you who use the IBD ratings, what do you use as your minimums?

Treb

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