CAN SLIM Select | stockbee



Yesterday I mentioned as part of the R&D effort, I have been investigating a list for many months. Now if you see the Investor's Business Daily web site, you will see one list under the heading Canslim Select. There are details about how those stocks are selected.
What is CAN SLIM Select?
The IBD CAN SLIM Select stock list tracks market-leading stocks that in general show strong earnings growth, positive institutional sponsorship, excellent industry strength, and solid sales growth, profit margins and return on equity. Stocks must also meet minimum price and volume levels. The list takes the market's direction into consideration and adds stocks only in healthy market environments. In healthy market conditions, the CAN SLIM Select list will include 100 stocks. In down-trending or poor markets, the list will shrink as stocks will not meet hurdles for inclusion in the list. For example, if the list contains 75 stocks, this indicates that the list is 75% active in the market.

Now this list has been a comparatively recent addition to the web site and it started after IBD tied up with Duncan-Hurst Capital Management to offer CANSLIM Select Growth Fund. The list has between 50 to 100 stocks depending on market circumstances. It is updated daily. It has slightly different set of stocks compared to IBD 100. Many of the stocks added are added prior to their breakout.

Having tested the list over many months, it offers good daily list of stocks for CANSLIM kind of investors. The advantage of the list is you can research and anticipate entries on some of these stocks.


65Trader said...

If the growth fund adds the stocks before they appear on the list, then they are basically pumping their own stocks, no? Might be a good fund to invest in...

Pradeep Bonde said...

The fund has managed to lose money so far , so be careful. It is underperforming the overall market. Always look below the hood.
Previous attempts of CANSLIM type mutual funds were also not successful. The holding period for CANSLIM is very critical variable. CANSLIM works best for high turover portfolio strategy.

walter said...

pradeep, did you see this post on big picture:

if yes, you have any thoughts on this idea:

was earnings driving the market rallying or buybacks and what is discussed in the post?

thanks and have a great weekend!

Pradeep Bonde said...

The chronic bears have been circulating this meme about earnings being driven by buy backs alone for sometime. It is twisted logic to help further their bearish case.Now as always truth is seldom the forte of such people.
Look at the best performing sectors on earnings in last 3-4 years. They were metals and mining, energy, Internet,material and construction, leisure, and financials. Now ask yourself this question was buybacks driving the earnings growth in them. Even a cursory data analysis will tell you that the earning growth was driven by demand and pricing power for their products. The global industrial revolution and build up of China, India, parts of Latin America, and Asia is the biggest driver of industrial growth. Probably one of the best growth phase in history. That is what drove commodity, energy and several sector earnings high. So those earnings are real.
Buybacks have always been positive for markets. There are several studies which show that.
As to IPO's being low, lot of it has to do with drying up of venture capital for few years post bubble crash and tighter regulations in USA. Look at the London markets, there is a IPO mania with all world companies going public in London as US regulation have killed the IPO market in US.

gosu said...

Keep an eye on MSFT.
If it closes below 27, I will be preparing myself for the worst.