Canslim EZ

[ajaskey]

This thread will contain lists CANSLIMish stocks, methods of generating lists found through strickly mechanical means, and buy/sell strategies from these lists. Many, including me to some extent, use mechanical screens to find companies meeting most of the CANSLIM criteria that can be measured and screened from data sources. These stocks are then bought/sold based on the chart or some other mechanical method.

For example, the AAII study that showed the "CANSLIM" methodology to be among the best is not really CANSLIM. But it worked very well and should not be ignored. I'd post the actual link, but it requires a subscription. Anyone wanting more info can go to www.aaii.com and search for CANSLIM.

Another method used by many is to through the Reuters or MSNMoney search engines to find CANSLIMish stocks to buy. Specific criteria, such as earnings and sales growth, and ROE are enter and any of the stocks returned are candidates to buy.

Andy

 

[sulong]

Another method used by many is to through the Reuters or MSNMoney search engines to find CANSLIMish stocks to buy. Specific criteria, such as earnings and sales growth, and ROE are enter and any of the stocks returned are candidates to buy.

Andy

Andy,
I'm glad you started this thread, and I hope this is the correct place for my questions.
To start with, I know nothing about how to build a screen, and I'm hoping to get some guidance on how to build at least one. Then I can take the information and practice building others on my own.

the place is Reuters, where you only need to register.
http://www.investor.reuters.com/nscreen/builder.asp?target=/opinion/find/screener

If anybody is familiar with this site/screener, my question is how do I build on a existing screen?
For instance, there is a screen called "Accelerating growth", and you can add to it. But I don't know how to express what it is I'm looking for.
What are the steps I need to take, and symbols I need to enter to add a 10day ma which is equal to the 50day ma? Or perhaps within 10% of each other?

Anyway, I'm starting from the ground up. Any help in this area would be appreciated.

 

[dbphoenix]

AFAIK, Reuters doesn't provide for technical screens. However, the results of the canned screens provide so few stocks (usually 30-40) that there's no real benefit to doing a technical scan as well.

In the previous version of "Stalking the Wild Equity", I went into the technical scan thing, but that was before Reuters when a fundamental scan might yield hundreds of stocks. The Reuters scans do so much work for you that skimming through the charts on any reasonably fast site (e.g., BigCharts) should take no time at all. And I've come to appreciate the value of actually seeing the chart rather than allowing a computerized scan to sift through whatever technical phenomena I might be interested in.

OTOH, I do find it helpful to add a criterion or two regarding average daily volume and/or price (the first in particular often cuts down the list substantially). If you're interested in that, I'll go through the steps.

 

[sulong]

OTOH, I do find it helpful to add a criterion or two regarding average daily volume and/or price (the first in particular often cuts down the list substantially). If you're interested in that, I'll go through the steps.

Yes, please.
I looked at that but I don't know what symbols to add for example , greater than 500,000 average of the last 50 days.

And then I want to investigate if I can come up with a 10 day ma is below the 50 day ma.

When I clicked the caned screen, it came back with 3 rows of varying results, the lowest number being 141 stocks, the highest number being 536.

 

[dbphoenix]

Reuters > Ideas & Screening > Reuters Select > Accelerating EPS Growth > Daily results of this screen

At this point, scroll down to the bottom of the page and download the results. This is far simpler than copying and pasting each symbol individually. When the download is complete, copy the symbols in the first column (don't copy "Ticker").

Then click Power Screener to your left.

When the Screen Builder comes up, click the arrow next to US Companies, then Create/Edit Company List. When the dialog box opens, paste your symbols in, click Insert, select a name for your list, and Save.

When Screen Builder comes back, click Add Criterion.

Open Price and Volume.

Click Average Daily Trading Volume > Select

Click >

Click .

Click 5 (half a million)

Click Run

Click the numeral under Link To Companies Matching Criteria

Click File, Save As

FWIW, these are the screens available under Growth and Value:

Accelerating EPS Growth
Relative Growth
Relative Momentum
Rising Expectations
Sales Growth Leaders

Contrarian Opportunities
Favored Value Plays
Growth At A Reasonable Price
Income Stocks
Relative Value

Edit: Incidentally, when I ran this, the base scan provided 56 stocks. Adding the volume criterion reduced this number to 21.

 

[sulong]

Thank you db,
Now I got something to play with for a while.

If others are reading this you might note that that the 5 ought to be .5 to get the 1/2 mil. shares.

It'll take me awhile to get comfortable with this but I got a good start now.

 

[dbphoenix]

If others are reading this you might note that that the 5 ought to be .5 to get the 1/2 mil. shares.
.

Yes. I typed "Click ." and "Click 5" to emphasize that, but it doesn't hurt to emphasize it again

Then of course there's the sector/industry/group review at BigCharts to replace the IBD 197 flavors, free vs $35.

 

[erierambler]

Andy,
I'm glad you started this thread, and I hope this is the correct place for my questions.
To start with, I know nothing about how to build a screen, and I'm hoping to get some guidance on how to build at least one. Then I can take the information and practice building others on my own.

the place is Reuters, where you only need to register.
[If anybody is familiar with this site/screener, my question is how do I build on a existing screen?
.

Sulong,

One screen I have used for quite a while at Reuters is :

Price >= 10 .AND. Price <=40
EPS%ChgPYQ>=25.AND.EPS%ChgTTM>=25
ROE%TTM>=15
DbtLT2EqQ<=1
Price>=PriceH*.80
Vol10dAvg>.3

Of course one could modify it anyway they wanted.

erie

 

[sulong]

Erie,
Thank you.
Is this a scan you came up with top to bottom? In other words, it's not part of a canned scan?
Can you tell me what this means "DbtLT2EqQ<=1" ? and
"Price>=PriceH*.80" , I think this one is current price is within 20% of (some?) high price?

Sulong,

One screen I have used for quite a while at Reuters is :

Price >= 10 .AND. Price <=40
EPS%ChgPYQ>=25.AND.EPS%ChgTTM>=25
ROE%TTM>=15
DbtLT2EqQ<=1
Price>=PriceH*.80
Vol10dAvg>.3

Of course one could modify it anyway they wanted.

erie

 

[erierambler]

Erie,
Thank you.
Is this a scan you came up with top to bottom? In other words, it's not part of a canned scan?
Can you tell me what this means "DbtLT2EqQ<=1" ? and
"Price>=PriceH*.80" , I think this one is current price is within 20% of (some?) high price?

Yes, it's a personal scan .
Dbt.......... means long term debt to equity is greater than or equal to 1. It lets us know some kind of sound financial strength. You want quality companies.
Price ........ yes that means close to previous high...

Others may have better scans, but I like this one. You can set your own parameters . Even play around with them to see how many you get from each different scan.
Good luck , it becomes easy once you get the hang of it.

erie

 

[dbphoenix]

Something to watch if you have nothing else to do.

HEP followed by PIP (pipelines) and XLE (or ENE, if you prefer)

 

[dbphoenix]

Hi dbphoenix
I sure appreciate your posts. Can you explain how I can set up Canlim EZ? I have been using the msn screener that harry domash suggested. I'm up but the stocks i've ended up with have been flat and down for the last few months.

I'm pretty new at this and sure would appreciate any reply you might have time for.
thanks
Jay

I use Reuters for the setup. The criteria are shown in the image attached.

As for your stocks being flat or down, so's been the market since Dec/Jan, which is how it works.

 

[ajaskey]

Use Mutual Fund Holdings with EZ

Whatever screen you use, you can compare your stocks with the holdings from the best mutual funds for confirmation. Pay attention to when then bought to make sure that they have added or created a new positions close to the current price. I find www.nasdaq.com a great resource for determining who is holding and is they are selling or adding.

For example, ISRG comes up on my screen and the chart looks good. So I pull up and Info Quote at the Nasdaq site and see who is buying/selling/holding. Here is a link directly to that info. http://www.nasdaq.com/asp/Holdings.asp?symbol=ISRG&selected=ISRG&page=holdingssummary

I see Calamos started a new position within the Sept-Dec holding period - but that was a long way in price. I have not seen a lot of selling so they probably still have the position. Sometimes you can see a fund or two which bought right at the current price which is great if everything else is lined up.

Andy

 

[dbphoenix]

Whatever screen you use, you can compare your stocks with the holdings from the best mutual funds for confirmation.

Confirmation of what?

 

[ajaskey]

Confirmation of what?

Confirmation of the reading of CANSLIM fundamentals. It isn't necessary, but the best funds are the best for a reason. If I have two equal stocks (FA and TA), I'm going with the one that the best fund has recently bought vs. one that they sold.

Andy

 

[dbphoenix]

OTOH, I'd rather buy before the funds have overrun the shares, in keeping with the original criteria. If I'm wrong about the fundies, the chart will let me know.

 

[dbphoenix]

EXM is another stock that may be worth watching to the CANSLIM EZ trader. HEP did nicely, as has QSII. And EXM seems to be under accumulation.

FWIW

--Db

 

[MaudMan]

I'm new to the board and may have missed something, but what is "CANSLIM EZ"?? I'm very interested in the CANSLIM method of investing but am still debating about how to go about it (personally). I'm currently using my 2-week trial to IBD and have also been looking for other (free) ways to screen for the proper stocks.

I've been using an MSN screen based on the article (http://moneycentral.msn.com/content/Investing/Findhotstocks/P71529.asp) by Domash, but I also saw a reference here to a screen using Reuters. Both seem to get the job done, but neither produces the same stocks that the AAII screener produces for CANSLIM picks. :-(

I'm getting involved in my local IBD meetup.com group which hopefully will help by talking with other like-minded people. In the mean time, can someone tell me what CANSLIM EZ is?

Thanks!

Dave

 

[wwatson1]

Site for sore eye's

Hi ajaskey, I have just been visiting your homepage.

I have book market it as this style of trading appeals to me, When I went through your updated list I came across this nice sideways channel, could be a great trade in the coming few sessions if we see an intraday breakout.

 

[dbphoenix]

I'm new to the board and may have missed something, but what is "CANSLIM EZ"?? I'm very interested in the CANSLIM method of investing but am still debating about how to go about it (personally). I'm currently using my 2-week trial to IBD and have also been looking for other (free) ways to screen for the proper stocks.

I've been using an MSN screen based on the article (http://moneycentral.msn.com/content/Investing/Findhotstocks/P71529.asp) by Domash, but I also saw a reference here to a screen using Reuters. Both seem to get the job done, but neither produces the same stocks that the AAII screener produces for CANSLIM picks. :-(

I'm getting involved in my local IBD meetup.com group which hopefully will help by talking with other like-minded people. In the mean time, can someone tell me what CANSLIM EZ is?

Thanks!

Dave

CANSLIM EZ gets past the IBD swamp in favor of a simple fundamental screen and appraisal of the best-looking charts therein, though "best-looking" isn't necessarily that which is defined by O'Neil. Since everybody has his own version of the CANSLIM screen, including AAII, you can't expect all of them to yield the same stocks. So, use a canned screen, or create your own based on the book. Then take a macro view of the market and the sector. Then choose your stocks, if there are any to be chosen.

--Db