Hi everyone, I hope your investments are doing well. I'm going to write a bit about Boohoo.Com (LON:BOO) today... (I have a long position already in this share) I know a lot has been written about this share on this discussion boards. It attracts a lot of attention / has it / has it not over extended. Is it nothing more than "a jumped up market trader" etc, but, as usual I won't offer any insights into the financials - others on Stockopedia are far better qualified, but I can talk about it in relation to CAN-SLIM...
If you are not familiar with the CAN-SLIM method there is a great overview on the CAN-SLIM-esque screen page, and I really recommend buying Bill O'Neil's book and studying it. I'm still fairly new to this method, so any comments on my interpretations are welcome, in fact requested.
Boohoo.Com (LON:BOO) has been featured in the CANSLIM-Esque screen for as long as I have been doing this blog, with impressive EPS growth, ROE and Relative Strength, covering the C, A and L of the CAN-SLIM acronym. N stands for New - new companies / products or management. It certainly qualifies there. S is supply - compared to many stocks in my portfolio, Boohoo.Com (LON:BOO) is heavily traded, with around 6 million shares / day.
In summary, in my opinion, very suitable choice for the CAN-SLIM portfolio. One of the more important aspects of the method is choosing buy points correctly. Us CAN-SLIMers have to sit patiently, following shares for weeks, months, often watching significant upwards and downwards movements before we pounce! I think the moment for Boohoo.Com (LON:BOO) was today.
14 weeks ago, the price peaked around 270p, since then a cup with handle base has potentially formed. I say potentially, because we can only expected to be right 1 in 3 times. Hopefully more often, but 1 in 3 is sufficient. Today it closed over 6% up, pretty much in line with the top of the handle (dotted line). This combined with the huge increase in volume (preceded by a period of low volume and fairly tight closes) could be a positive sign. This will be an "Add" for the portfolio tomorrow, accompanied…
