Happily, for me at least, I’ve been away on holiday for the last 2 weeks in sunny Spain – we went to a lovely resort in the South West called Islantilla. Although I didn’t get to write anything other than reply to some comments, I did mention that I was in the process of adding NMC Health (LON:NMC) Healthcare to the portfolio. I thought it would be interesting to go through my thought process in making the purchase from a CAN-SLIM point of view so here goes. As always, please remember, that I’m seriously amateur, unlike many contributors my accounting skills are basic - do your own research. And definitely buy the O’Neil book..

NMC Health (LON:NMC)

In the last edition of “Can I Canslim?” I mentioned that I had had my eye on NMC for some time since it appeared in the CANSLIM-esque screen earlier this year. I said something along the lines of “Watch the cup with handle appear before our eyes” but wasn't sure how it would pan out.  I had been interested because it fulfilled all the requirements of the screen, it is a fairly large company @£4944 million and seemed to not feature so much often on the discussion boards.

After I highlighted it in the last post, I checked it each day (while sitting on the beach or drinking a red wine spritzer with lots of ice) focusing at the weekly trends and the daily trends. I used the weekly trends to get an overhead view of the base forming. When I saw the handle forming I used the daily trends to look at the daily volumes. Depending on where we are in the week, the weekly volume is not useful to pick up a significant change in volume. For example, if the volume is 500k/week, then on the following Monday the volume doubles to 200k, the increase for the week will not become obvious on the chart until the Thursday (800k) or Friday (1000k).

The volume picked up on the 11th to 14th of August from around 100k/day to over 200k/day. When the price reached the high of the handle on the 15th, that was the buy point

Moving on 8 days, they have announced positive half year results (I won't…

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