CANSLIM Components (sly_capt)

According to Mr. O'Neil, CANSLIM is as follows:

C = Current quarterly earnings
A = Annual earnings increases
N = New Products
S = Supply and demand
L = Leadership / laggard
I = Institutional Sponsorship
M = Market direction

CANSLIM update(papajoeb)

C - Current Quarterly earnings => 25% (5-7 qtrs)
A - Annual Earnings => 25% (last 3 yrs)
N - New Highs (new prod,new execs,new tech)
S - Supply/Demand ( used to be cap , but because of big cap lead ,BON now looks to shares outstanding,prefers 25-30M but any will do if other characteristics met
L - Leader (top 20% IBD's relative price strnght rating --- i don't know if this is same/similar ? to the wilder RSI or not)
I - institutional support -resume high volume, funds don't buy in 10s they buy in 100s (K)
M - Market , general mkt criteria, analyze DOW S&P NASdaq, i don't think can be a PCF factor.

IBD hilites high volume spikes, maybe we start there, add strong RSI , put a couple of earnings factors ???? and top it off with a new high criteria.

CANSLIM summary on the net(danu3)

Got this from Daily Graph product from IBD, that is why you see it keep on mentioning Daily Graph.

CANSLIM related sites(TAN JOSEPH98)

Infomation: stock ranking:

http://www.stocktables.com/

us crash index - interesting:

http://wwfn.com/crashupdate.html

O'Neil(Poppejans)

I wrote a simple pcf
NEW 52 WEEK HIGH pcf is: MAXC250 <= C

Almost everyday I run the easyscan

NEW 52 WEEK HIGH ( you guessed it ) Tonite there are 77 hits. I scan these charts using Tools | slide show. I flag those that look interesting. I have created a bulleted watchlist appropriately called: New 52 week high ( you guys are good) I add the flagged stocks to this list. You will notice that you dont have to do this everynight because stocks that make new highs seem to continue doing so, some for a long time, so you will catch them eventually. To name a few: SCH, GPS, PGTV, HRZ. Look at WCAP (4/5 there is even a worden comment just before the big move started. I have set up a daily chart zoom 5 with 13 day-EMA and 50day-EMA. These stocks will pull back to the 13 day-EMA, sometimes even the 50 day-EMA. You can scan this list using the SORT, making use of all your pcfs and easyscans. Look at ITVU 3/16 as a good example.

CANSLIM focus Stocks(ejr39)

PCFs
Dahl(89)

((AVGC89 - AVGC89.27) > 0)

PerCent Volume

((V - AVGV63) / (AVGV63 + .001)) * 100

Relative Strength Value

(((C / (.001 + C62)) * .04) + ((C63 / (.001 + C125)) * .02) + ((C126 / (.001 + C188)) * .02) + ((C189 / (.001 + C251)) *.02)) * 100


EasyScan

<Media General Fundamentals>

. . .( C ) = <EPS Percent change latest year> (Value) 18 to Max

. . .( A ) = <Earnings Growth Rate 5-Yr> (Value) 20 to Max

<Technicals>

. . .( N ) = <Price as Percent of 52 Week High H> (Value) 80 to Max

. . .<Price per Share - H (Value) 12 to Max

<Media General>

. . .( S ) <Capitalization> adjust to your style

<Personal Criteria>

. . .( S ) = PerCent Volume (Value) 1 to Max

. . .( L ) = Relative Strength Value (Rank) 80 to 99

. . .( M ) = Dahl(89)

WatchList to Scan: All Stocks

<Save> Name <Scan>

Add or change any criteria to fit your investing style.

( I ) is a look up in IBD

Compare the daily list with IBD; adjust the PCFs and EasyScan criteria until you are comfortable with the results. Keep in mind that this is a focus group you must perform the additional due diligence (DD).

CANSLIM(Sputnick55)

Now I dont use the volumepercent part.

What I am looking for is something I am still working on.. a lack of volume in a strong stock and strong uptrend

I use my lack of volume pcf

(1)Volume 5<30
AVGV5 < AVGV30 AND AVGV5.20 < AVGV30.20

or

(2)Volume 5<30
AVGV5 < AVGV30

Im going to post more on what Im working on as soon as im happy with the results. (so far so good) Ill post more as soon as I feel good about the results, I dont like putting anything out that I wouldnt use.

The volume is only the starting point, im tring to work out is a macd scan on a faster macd. (5/10/6), Im also working with a a lack of volume and a rising price over a few days.. (hoping to catch the 'pop' to the magical 52 week high)

This is a work in progress I hope im on the right track

Canslim - revisited(ejr39)

Revised / Updated CANSLIM PCFs

From the Clubs website: 26 Weeks to Success. ONeil expands on the CANSLIM selection process.

Week06 Relative Strength: A Key Technical Tool
Relative Strength PCF (Rate of Change)

(C / (C250 + .001))

Add the Relative Strength PCF to the weekly CANSLIM Easy Scan; remove the QP2 Relative Strength Value PCF (Its too restrictive).

Week08 The Importance of Volume, Sponsorship Volume % Change

((V - AVGV50) / 100)

Remove the PerCent Volume PCF (Incorrect results for CANSLIM strategy).

Accumulation/Distribution (Acc-Dis)

AVG(BOP,65)

The IBD "Acc.-Dis." rank tracks the last 13 weeks (65 days) of trading volume.

Use an EasyScan Range selector to DETERMINE the Accumulation/Distribution rate i.e.

An A or B rating means the stock is being bought;

. . .A rating = Range selector (Rank) > 80

. . .B rating = Range selector (Rank) > 60 AND < 80

A rating C indicates a neutral setting

. . .C rating = Range selector (Rank) > 40 AND < 60

A D or E rating means the stock is being sold

. . .D rating = Range selector (Rank) > 20 AND < 40

. . .E rating = Range selector (Rank) < 20

Screen Tab# Indicator settings

Middle

. . . Balance of Power check Visible

. . . . Moving Average 65 bars Simple

Bottom

. . Volume Bars

. . . Moving Average 50 bars Simple

CANSLIM and volume scans(Sputnick55)

Ejr39

Once again you have came to my aid. You are truly appreciated!

-----------

PCF for buying on low volume

(V < ( AVGV180.1 * .3))

(Stay away from thinly traded stocks when using this method).

Sputnick55, you might try a volume oscillator,

http://www.equis.com/free/taaz/volumeosc.html

-------------

This seems to do the trick very well..(from the link) volume oscillator 5-30

((AVGV5-AVGV30)/(.001+AVGV5))*100

(place at 50% and below) couple this with your canslim profile and you do appear to have some very good stocks to work with.. (looking for a "dryup of volume" with stock moving slowly on low volume) I think the low volume could work also on good stocks, over a 3-4week time frame.. (thats next) Im still testing it, the other day was good. Ill see how it works on down days etc. (I dont update the system on friday so I can test it over the weekend, this came back with very good results.. only one day though)

Today sunday I scanned it and it came back with 35 stocks. (The ones in group 'a' are : csco kron ossi kare krb roh ait sns bio-a) most are carryovers from thursday I just put the scan in on friday. Waiting in group 'b' are (csco, tlab ir trb vci nvh gcp (nvh should move to groupe a )

They seem to just roll in and you have to put up several "watch groups" and re-rank them daily. The idea is that these stocks are designed to beheld for a short time frame.

CANSLIM(ejr39)

The PCF for buying on low volume is the original formula for TC2000 version 3

(V < ( AVGV180.1 * .3))

The AVGV180 is 6 months; you might try using 6 trading months:

(V < ( AVGV126.1 * .3))

As before, YOU are on the right track. Building a strategy from the beginning keeps YOU in control; there's no second guessing as to what the author's indicators and oscillators are telling you - 'cause you are the author.

I'm delighted that you persisted in wanting to know more about CANSLIM EasyScans and PCFs.

 

CANSLIM(Sputnick55)

I have been using the avgbops scans among others

50+rank

AVG(BOP,21) &

AVG(BOP,65)

For dryup in volume today

Bop Value today (67-30 value)

(wait for the next rush of volume to tell me the trend and have the orders in place respectivly, the 1 day bop is a trigger" day for me. sometimmes you get a few days but the stocks are on your hotlist and you have a clue to get ready to watch the volume and press the shiney red button)

trend dahl

(AVGC34 - AVGC34.9) > 0

52week high

90-max

(skipping the eps etc)

I imported some data on stocks with low-mid floats run it through excell with avgerage volume of 100k etc. and at least 25% ownership by institutinial


 

Added: 05-06-01
C A N S L I M

C Current Quarterly Earning:

EASYSCAN:
EPS Percent change last year
18 to max (Value)

“Current quarterly earnings per share should be up a major percentage (at least 20% to 50% or more) over the same quarter last year. The best ones might show earnings up 100% to 500%.” >=25% for the last 5-7qtrs
-How To Make Money In Stocks


A Annual Earnings:

EASY SCAN:
Earnings Growth Rate 5-Yr
20 to max (value)

“The annual compounded growth rate of earnings in the superior firms you hand pick for purchasing stock in should be from 25% to 50%, or even 100% or more, per year over the last 4 or 5 years.”
>= 25% for the last 4 to 5 years
-How To Make Money In Stocks


N New Highs:

EASYSCAN:
Price as Percent of 52 Week High-H
80 to max (value)

EASYSCAN:
Price per share H
12 to max (value)

“Search for corporations that have a key new product or service, new management, or changes in conditions in their industry. And most importantly, companies whose stocks are emerging from price consolidation patterns and are close to, or actually touching, NEW HIGHS in price are usually your best buy candidates.”
-How To Make Money In Stocks


S Supply/Demand:

PCF:
CANSLIM Volume % Change
((V-AVGV50)/100)
85 to 99 (value)
EASYSCAN:
Capitalization
1 to 99 (value) or Adjust value to your style

“95% of the companies had fewer than 25 million shares in their capitalization when they had their greatest period of earnings improvements and stock market performance. The average capitalization of top performing listed stocks from 1970 through 1982 was 11.8 million shares. The median stock exhibited 4.6 million shares outstanding before advancing rapidly in price.”
-How To Make Money In Stocks


L Leadership:

PCF:
CANSLIM Relative Strength
(C/(C250+.001))
80 to 99 (value)

“The 500 best performing listed equities for each year from 1953 through 1993 averaged a relative price strength rating of 87 just before
their major increase in price actually began. So the determined winner’s rule is: Avoid laggard stocks and avoid sympathy movements. Look for the genuine leaders.” Relative Strength of 80 or higher.
-How To Make Money In Stocks


I Institutional Sponsorship

Look up in Investors Business Daily and/or
PCF:
CANSLIM Accumulation / Distribution (Acc-Dis)
AVG(BOP,65)
>80 = A
>60 and <80 = B
>40 and <60 = C
>20 and <40 = D
<20 = E

“This tells you if your stock is under accumulation (professional buying) or distribution
(professional selling). Pick only A or B ranked companies and avoid C, D and E ranked ones.”
The IBD acc-dis rank tracks the last 13 weeks (65days) of trading volume.
Use an easyscan rank selector to determine the acc/dis rate

“Buy stocks that have at least a few institutional sponsors with better than average recent performance records.”
-How To Make Money In Stocks


M Market Direction:

PCF:
CANSLIM Dahl (89)
((AVGC89-AVGC89.27)>0)

“Learn to interpret the daily general market indexes and action of the individual market leaders.”
-How To Make Money In Stocks



S U M M A R Y
First create these 4 PCF s and then update all.
1 Name: Canslim Volume % Change
Formula: ((V-AVGV50)/100)
2 Name: Canslim Relative Strength
Formula: (C/(C250+.001))
3 Name: Canslim Dahl (89)
Formula: ((AVGC89-AVGC89.27)>0)
4 Name: Canslim Acc/Dis
Formula: AVG(BOP,65)

Next create this easy scan: This scan does not produce many stocks, most of the time less than 7.


The next easy scan screen is what I normally use every day and it produces between 10 & 20 stocks.



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