Re: [CANSLIM] How do you CANSLIM?

From: Davellil5@aol.com
Subject: Re: [CANSLIM] How do you CANSLIM?
Date: Sun, 15 Jun 2003 10:06:35 EDT

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Your hunting method sounds good.

I use IBD.  It takes me about 30-45 minutes to go thru the DJ and NASD 
listings of stocks over $10, seeking those with the characteristics I'm seeking.  On 
average, I find 150 stocks.  It takes me about 20 seconds per stock to flip 
thru their 9-month charts, watching for those stocks with possible base 
formations, etc. (using AOL's chart access).  That's about an hour.  Sometimes a 
little longer because I may pause to check the 3-month charts of interesting 
stocks (for a better view of recent action).  I do above once a week.  Why only 
that often?   Because the "possibles" don't change that much daily.  And, the 
probability of glomming on to a good CANSLIM candidate right at the breakout 
point is slim.  CANSLIM is a waiting game.

Chart screening usually leaves me with 25 to 35 stocks out of the 150 hunted 
up.  To  begin winnowing out the ones with good CANSLIM numbers, I flip thru 
their Comparison Ratio reports.  Those are the Multex Market Guide reports, 
which I get from AOL.  They can also be seen at other websites.  Flipping thru 
these reports takes about 2-3 minutes per stock, or about 1 1-2 hours.  That 
takes an hour or two and usually cuts the number of candidates down to 5-10.

I then check other data reports (Company Description, Earnings Estimate, 
Events Calendar, Insider Trading) on the 5-10 surviviors, writing down numbers and 
printing charts.  That may leave only 3 or 4  of them to be added to my 
Waiting List.  But, that's enough, since the Waiting List may have 20-30 other 
stocks from previous weeks for me to watch.  That takes an hour or so.

So, the once-a-week hunting-screening-analysis process takes about half a day 
or a little more.  It's not as comprehensive as the use of screening services 
for hunting --and depends much more on my own perceptions.  But it's free -- 
and I need IBD only once a week.  It may suffice for those who don't want to 
get into the more sophisticated methods.

Regards, Dave

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