Learning Can Slim 07 11 2012 (1)

Learning CAN SLIM

Education Resources

Petaluma, CA IBD MeetupJuly 11, 2012

Lee Tanner 1

The Only Purpose Is Education About CAN SLIM Investing

Making No RecommendationsTo Buy or Sell Any Stocks

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This Presentation Is Recorded on GoView.com

The Link to the Goview.com Recording

http://goview.com/?id=473dd3ad-bb5d-4318-8a6d-7e701a650f75

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The Power Point File Is Also On the Meetup Website

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Manage PortfolioSell Just RightReview Results 456

Study, Learn and Plan

Pick the Best Stocks Buy at Right Time and Right Way

1 2 3

What Is CAN SLIM Investing

Post Analysis

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Why Bother Learning CAN SLIM

• We can earn big money• We can learn to do this efficiently – part time• Once we learn it is much easier than most

other work• The hard part is managing our emotions

How Do We Manage Our Emotions?• Learn enough to trust the CAM SLIM system and

follow our rules. • Learn enough not to get sacred.• Learn enough not to get greedy. • Learn enough to have realistic expectations. • Learn enough to take full advantage of the best

opportunities when they come.• Learn enough to have a rule set to take actions

bases on specific situations, not because of how we feel.

Operating By Our Rules

Stock on WL in Up Market Reached the Pivot Point. Buy B1 # of SharesTrigger Action

Stock on WL advances to 2.5% above pivot point. Buy B2 # of SharesPrice goes down 7% from B2 buy point Immediately Sell B2 # of SharesStock recovers back to 2.5% over pivot on good vol.

Buy back B2 +10% # of SharesStock is up 4.5% above the pivot on good vol. Buy B3 # of Shares

In pulls back to the 50-day then bounces w/vol. Buy 20% more # of SharesStock is not up 20% in 3 weeks. Plan to sell all +25% over pivot

Stock price reached +25% above pivot point Immediately sell all shares

Looking for Triggers to Take Actions

Our goal in learning CAN SLIM is to be able to recognize all important Triggers, to have an Action for each that we understand and trust, and to recognize when there is no trigger

CAN SLIM Comes From Real History

• Study of > 130 years of Stock Market History• Thousands of Individual Stock Models Going Back

to 1880 - Stocks that Worked in the Past• “We analyzed the greatest winning stocks of the

past and discovered they all had seven common characteristics, which can be summarized in two easy-to-remember words CAN SLIM.” William J. O’Neil in How to Make Money In Stocks, pp 112

• The WON + Co Model Book of Greatest Stock Market Winners Was Published in 1971 (243 Pages)

CAN SLIM Investing is Old and Proven

Before Starting Big Up Moves

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Everybody Knows About CAN SLIM How Can It Still Work?

• Publicity has not hurt it yet. CAN SLIM worked through this last rally and Bill O’Neil has been publicizing it since the 1960’s with his Data Graphs and Daily Graphs, with the 1971 Model Book, with IBD since 1984, and with How to Make Money in Stocks first published in 1988.

• It Works Because Institutions Buy CAN SLIM Stocks.

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CAN SLIM Still

Works

Last Two-Year Rally

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Manage PortfolioSell Just RightReview Results 456

Study, Learn and Plan

Pick the Best Stocks Buy at Right Time and Right Way

1 2 3

What Is CAN SLIM Investing

Post Analysis

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The Primary CAN SLIM Sources

The Main Book The Daily News Paper Investors.com Web Site

A Truly Monumental Resource A Text Book I Save the eIBD pdf Files for Research and Study

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Another Excellent Initial Book

An Easier Read than How to Make Money in Stocks• Only ~ 160 Pages• Good Glossary• Recommended Reading List• Answers Lots of Questions

< $10 on Amazon.com

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Another Excellent Book

Supplemental to How to Make Money in Stocks• Only ~ 175 Pages• Good Index• Lost of Examples • Some Advanced Topics • Answers Lots of Questions

< $12 on Amazon.com

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INVESTORS.Com Tools

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IBD TV – Thousands of Short Videos Lessons

Daily Stock Analysis – 106 Pages of 3 Minute Videos, 10 Per Page

1060 Videos ~ 62 Hours

Ilumina (ILMN)

CAN SLIM Fundamentals

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Each DSA Analyzes the Base of a Good CAN SLIM Stock

These Help Us Learn how to Analyze Stocks Fundamentals, Read Bases, and Determine Buy Points

#1 Education and Planning

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Chipolte Mexican Grill, 8/31/2010

Daily Stock Analysis Video, CMG 8/31/10

The Video File Shown at the Meetup Will No Play In this File Follow this Link for the DSA on CMG 8/13/10http://ibdtv.investors.com/545535/201008311136/daily-stock-analysis-chipotle.aspx

CMG Gained 53% No A Clear Point in 14 Weeks, 385% Annualized Return

Breakout Day After DSAOn the FTD 9/1/2010Pivot Point 154.53

Sell Signal 12/3/10

Market Wrap Videos – Just 3 Minutes

Video Version of Big Picture and Market Pulse• Market Activity and Direction• Distribution Day Count• Distribution Day Lessons• Leading Stock Analysis

For Education there Are 1060 Market Wrap Videos Going Back > 3.5 Years ~70 Hours of Learning

Learn the M Factor

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Daily, 3-Minute Market Wrap Video

The Video File Shown at the Meetup Will No Play In this File Follow this Link for the Market Wrap for 7/10/2012

http://ibdtv.investors.com/617657/201207101827/ibd-market-wrap-071012.aspx

IBD TV – Education Resource

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IBD TV – Education Videos

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Educational Videos – Base Counting

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INVESTORS.com Education Section

22 Self-Paced Courses On: • CAN SLIM• Bases & Chart Reading• Base Counting & Watch Lists• IBD Tools• Portfolio Management• Sell Signals• Buying and Selling Checklists

Activity #1 Education and Planning 27

Investors.com Investor’s Quiz

Scroll Down

Scroll Down

Investor’s Quiz

Enlarge the Chart

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The Answer

Investor’s Quiz Answer Chart

Investor’s Quiz Answer DiscussionWe asked you if you would buy, sell or hold this stock. The answer is to unload the stock quickly. And the key will be in gauging the price action against volume.Netflix (NFLX) burst on the scene with an IPO in May 2002 at a split-adjusted 8 share. Its innovative approach at movie rentals — order online, receive your movies from and return them through the Post Office — attracted lots of customers and investors. The numbers shined: By Q4 of 2003, it had put up five straight quarters of triple-digit growth, except for one period which was compared to a small loss in its year ago. Sales growth had been steadily stellar for several years. When a stock builds an uptrend as steep as Netflix's, scary moments are inevitable. Perhaps the first clue that a top was somewhere near, came in the week ended Nov. 7, 2003. The stock plunged 19% on the biggest weekly volume since coming public. (1) Netflix failed, then regained its 10-week moving average. It started rising again. If you were long you were feeling better. There was no inkling of trouble as the stock drove to 39.60, a new high, in the Jan. 23, 2004 week. Volume soared, also to a record level. (2) But the following week, trouble appeared. Netflix rose to 39.77, sank as low as 34.35 and closed at 36.71 — off 5% for the week.Most importantly, it closed in the lower half of the week's trading range, albeit barely. (3) Two weeks later, another losing week on high volume. In fact, after the Jan. 23 week, almost all the volume surges were on price declines. Now look at the rally attempt that began in May at 25.29 3. Netflix rose higher to 36.57 in the July 2 week, but where was the volume? (4)What's more, an ascending head-and-shoulders pattern (5) was yet another ominous sign. At this point, you didn't have to wait for the neckline to break. The chart revealed two final sell signals. The first came in that July 2 week: a nasty downward reversal. (6) The second appeared in the July 16 week's breach of the 10-week moving average. (7) As is so often the case, Netflix broke its 10-week before the neckline gave way. — Donald H. Gold

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HOW’S THE MARKET? Page B2

Learn to Read the Market Charts

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Investor’s Corner – 250 Lessons/Year

• Detailed view of how shareholders are thinking and feeling, how they are spending their money.

• Identify the lowest risk entry point• Identify the best time to sell• Is only 20% of the buy decision• Is 90% to 100% of the sell decision

Wed, April 4, 2012

Chart Reading Is Key To CAN SLIM Success

eIBD

• Who subscribes to eIBD?• Who saves each issue? • A valuable resource for review and post

analysis.

Select eIBD from Home Page

Select the PDF for the Day You Want

The eIBD PDF Opens In a Browser Window, Then Save It

Save the PDF to the HDD

Then Open the PDF in the Reader to Validate the File

Questions?

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