1stmilliondollar.net

As you may know, we have a position on ASIA since early March. The stock had a pretty nice rally today, it jumped more than 7% with relatively high volume.

It is going to test resistance at $32, which is last’s highest price back in December last year. Should the stock broke this resistance, we are planning to add positions to ASIA. If it is not breakout, we may close some of our position and take a profit.

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Tags: asia breakout long stock Trading

CAN SLIM Stocks Filter

April 6th, 2010

Have you ever heard of CAN SLIM? It is a checklist for selecting stocks before their biggest gains. According to American Association of Individual Investors (AAIA), between 1998 to 2008, a portfolio traded according CAN SLIM principles have gained 1,315% versus a loss of 6% in the S&P 500.

You can learn more about CAN SLIM from William O’Neil book, How to Make Money in Stocks: A Winning System in Good Times and Bad, Fourth Edition.

Today, we would like to run stocks screener on the first two letters of CAN SLIM, i.e.:

C: Current Earnings. Current earnings should be up at least 25%.
A: Annual Earnings. Annual earnings should be at least 25% in each of the last three years. Annual return on equity should be at least 16%.

Due to limitation of Yahoo Finance’s stocks screener as well as to keep the number of stocks below 100, we have to modify the criteria a little bit, i.e.:

Instead of using the last 3 years annual earnings, we use the last 5 years.
Market capitalization should be $500 million or more because we don’t want to speculate on micro-cap stocks.
Profit margin should be at least 10%.
Average daily volume should be at least 100k because we don’t want any illiquid stocks.

We have created a Google Docs that contains the complete result of this stock filter. Click here to view the complete result.