CANSLIM 70 plus EPS- Bearish

Looking at which stocks in the CANSLIM 70 plus EPS universe are witnessing distribution or breakdown, gives you a good idea about sector trends. It also gives you a list of possible short ideas. Disappointment after being high performer on EPS often makes a good short. So paradoxically good EPS stocks offer both, long and short opportunities.

On the bearish side the market does a very god job of anticipating trouble and most of the time leading stocks start breaking down or witnessing distribution much earlier than it gets reflected in their earnings trends. This obviously due to the fact that high performing stocks are highly visible and are scrutinized more. That is why when it comes to playing short side going strictly by earnings trends does not work. You have to anticipate likely earnings deceleration. Which makes it tough job. That is one of the reason why short side is tougher to play.

Stocks with 70 plus EPS down 4% or more on higher volume:
AMSWA,American Software Inc A (Google  Yahoo  Earnings  Chart
ARGN,Amerigon Inc (Google  Yahoo  Earnings  Chart
DRIV,Digital River Inc (Google  Yahoo  Earnings  Chart
ESEA,Euroseas Ltd (Google  Yahoo  Earnings  Chart
EZPW,Ezcorp Inc Cl A (Google  Yahoo  Earnings  Chart
LXU,Lsb Industries Inc (Google  Yahoo  Earnings  Chart
MLHR,Herman Miller Inc (Google  Yahoo  Earnings  Chart
MTL,Mechel Steel Group OAO ADS (Google  Yahoo  Earnings  Chart
PKD,Parker Drilling Co (Google  Yahoo  Earnings  Chart
RHT,Red Hat Inc (Google  Yahoo  Earnings  Chart
SXE,Stanley Inc (Google  Yahoo  Earnings  Chart


QUIKTDR said...


I am fascinated by your approach. A question MDTL appeared on stocks to buy before 11:00 with an Episodic signal, would you be looking to buy this today?

Pradeep Bonde said...

Not that particular stock. But yes if a stock qualifies even in pre hours trading it is a buy.