CANSLIM & Momentum Investing 02 (Aug 09 - Dec 24)

[cif5000]

Maybe there isn't any canslim stock. Current earnings are not strong enough. Out.

[Aspellian]

Hi there,

for me - i look for growth stocks - companies that will have explosive growth because of new products, new major contracts, new markets etc.

eg. ezion, ho bee, epure, ezra, rotary, ausgroup

i look to see whether there's improving quarterly numbers and past annual results. but note some of these stocks haven really reflect the better results yet.

if we search hard-enough, there will always be multi-baggers - esp. if you buy at the RIGHT time!

let me know if you come across any interesting stocks.

[kennynah]

let me share with you why this notion of quarter-to-quarter growth story is very difficult to materialize now... if you haven't noticed, we are in a depressed global economic times... unless, the company you identify is selling inelastic and NEEDED products or services, one can quite easily erase the hope of finding a company that can fundamentally grow and grow for the next 2-3 quarters....

also, anyone with some amount of accounting background will know that looking at quarterly reports are looking at snapshots of the company performance...not to mention the ease of throwing in misc revenues/expenses; ie cooking the books.... it is therefore, not to be totally trusted....

lastly... i like to believe that i am not the smartest man in town...what i can see, decifer from the open balance sheet/income statement/cash flow.... others with smarter brains will have sieved them out way before i can say "buy".....

the world of investment has evolved to a stage that archaic method of so-called proven investment methods, like CANSLIM, Graham Style, are no longer as effective as when warren buffet was a young man....stick to them, to those graham techniques if you like.... i know i wont..when thousands and perhaps millions have studied and mastered this approach way before i was born...and rendering it a non-advantageous approach to investment...

this is not to say that TA is any more superior... it is certainly not...

my final point being...whatever approach we use, we must have a semblance of advantage over the next guy...don't forget...you are not trading against a ghost...we are trading against the guy somewhere in the world...who just sold when we bought...

i strongly believe that the person who can make money in the next 5 years, shall be one who is grounded on fundamentals, both in FA and TA, and be able to utilize the tools not in a "dead old fashion" way but with creativity and flair...

good luck everyone...and may the force be with you...and me too

[cif5000]

eg. ezion, ho bee, epure, ezra, rotary, ausgroup

What's new for Ho Bee, Rotary and Ausgroup?

[Aspellian]

eg. ezion, ho bee, epure, ezra, rotary, ausgroup

What's new for Ho Bee, Rotary and Ausgroup?

Ho Bee - booking in revenue and profits from sentosa. Casino opening in sentosa. property boom all-around. double catalysts for me.

Rotary - project in middle east, a foothold, something new - taking it to next level of playing field. continue to win smaller contracts.

Ausgroup - depressed from initial loss of reindeer project (re-tender to another party). Its probably unknown but Ausgroup main subsid in subsidiary is supplying to Gorgon LNG project (largest LNG project in this region (world?? i not too sure)). Also aussie govt will want company to have "local content" before contracts are awarded for this O&G project. quite typical in O&G landscape. so despite "higher cost", Ausgroup could be a beneficiary.

(me vested only in ho bee now).

[winston]

Out of the the 7 alphabets of CANSLIM, I used "N" the most.

I try to buy or sell only when there is a "N" - a strong catalyst.

If there's no "N", it's dead money. And there's an opportunity cost as those money could be more efficiently deployed to stag in IPOs.

If there is a strong "N", it can go against "M" - Market Direction.

[kennynah]

i wonder why N stands for catalyst....

[millionairemind]

i wonder why N stands for catalyst....

N - New Products or Service, New Management, New Highs

In a nutshell, here is is a summary of CANSLIM :

C = Current quarterly earnings per share. They must be up at least 18-20%.


A = Annual earnings per share. They should show meaningfull growth for the last five years.


N = New. Buy companies with new products, new management, or significant new changes in their industry conditions. And most important, buy stocks as they initially make new highs in price. Forget cheap stocks -- they are usually cheap for a good reason.


S = Shares outstanding. They should be small or of reasonable number, not large capitalization, older companies.


L = Leaders. Buy market leaders, avoid laggards.


I = Institutional sponsorship. Buy stocks with at least a few institutional sponsors with better than average recent performance records.


M = The general market. It will determine whether you win or lose, so learn to interpret the daily general market indexes (price and volume chages) and action of the individul market leaders to determine the overall market's current direction.

[iam802]

i wonder why N stands for catalyst....

New Product, New Management, New something...

It probably means people like me has something NEW to speculate with.. (eg. PALM announced the new new PALM Pre that has not been released back in March)

[kennynah]

thanks MM.... have always wanted this list ... now i can just refer to your post....


noted 802...thanks for the explanation... you know lah...i'm absolutely lost when it comes to slimming services...