Help with CANSLIM stock selection

[Chorlton]

Hi All,

Firstly, I'd just like to say that I'm a complete newbie to CANSLIM having only recently purchased the book and so far, am impressed with what I've read and consequently would like to take this opportunity to say hello to everyone on here :cheesy:

I've been struggling for some time to find a trading strategy that suits my lifestyle. Due to work commitments I am unable to spend any time during the day nor too much time analysing charts during EACH night, so day & swing trading seemed to be inappropriate for me.

However as I feel that the CANSLIM method may suit my needs quite well. ie. Holding stocks for a number of weeks/months, I'd obviously like to investigate this approach further.

Anyway on to my question.....


My intention is to trade UK stocks and I was wondering how investors on here go about selecting their stocks? I read with interest on a different site that there are "screeners" ( I think this is what they're called :| ) that search for stocks which meet specific criteria such as:

EPS Growth Year vs Year > x
Latest Fiscal EPS > y
EPS Growth Qtr vs Qtr < z
etc, etc

Does anyone have any experience with using such a searching tool like the one above?

Obviously due to the number of UK stocks available, there must be "short-cuts" in initially identifying suitable stocks (which obviously would then require further research) rather than sitting down and checking the fundamentals of each one separantly

Any help in pointing me in the correct direction to start with would be gratefully received.

All the best ,

Chorlton

 

[ajaskey]

Chorlton,

I have no info on screeners for UK stocks but am interested in seeing some myself. I have a feeling CANSLIM will work better on UK stocks since there are not thousands of people watching the same CANSLIM stocks in that market as in the US markets.

The main concept of CANSLIM is to find the best fundamental stocks and buy them just as they are beginning a big move. The best micro/smallcap that have improving fundies as you hold them can be held for a longer period of time. A company with only 100 employees can easily double in size several times before it becomes difficult to grow at that rate. The stock price can move at a similar rate and you can make a lot of money in a relatively short period of time. Stock runs don't usually last over 2 years because everyone jumps on board at some point and moves the stock price well above the growth rate of the company. This is where you should sell - up maybe 1000% or more if you get lucky. This doesn't happen often and you should expect to make 15-30% per stock on average. Of course, some won't work out and you will sell these as fast as possible.