CANSLIM | Can I CAN-SLIM? 6 - Getting Organised And Experiment Update...

10th Sep '17 by poughtibridge

12 comments 6384 reads

One of the things that appeals to me about both Stockopedia and CAN-SLIM is the potential for time saving in portfolio management. Don't get me wrong, I could spend all day doing this. I dream of waking up reading the RNS streams, the FT, analysing the state of the market, but for now, I have to squeeze it in between family life, work life, trying to stay reasonably fit and feeding the cat. I never spend as much time as I should do - this is one of the reasons why I appreciate all the comments / alternative views and tips. Thanks again.

Even so, I do feel if I get a bit more systematic in my approach, I can get a broader coverage of stocks. What happens with me at least, is I spend more time the shares I already hold, particularly the ones doing well, ignoring the less well performing ones (remember in CAN-SLIM we don't have poorly performing shares because they are sold and forgotten about ;-) )Does anyone else have this bias towards their favourites?

The most frustrating thing about this for me is that opportunities are being missed because I'm simply not looking. So here is my idea to solve this:-

The Poughtibridge Method!

Use the screen to carry out a basic filter of all the qualifying shares.
Each week I'll make a table in Excel of all the qualifying CAN-SLIMesque Screen shares recording new entries (like the Top 40 but for CAN-SLIM)
I'll also review the shares that have dropped out of the screen and use the Stockopedia checklist function to find out why they have dropped out - then make human judgment whether they still need to be considered or whether they really do not qualify for CAN-SLIM any more
As we are only interested in buying at the end of a base, I'll record what stage in the price development a share is i.e. growth stage, price correction / start of base and potential end of base. This will enable me to focus on the shares coming to the end of the base building stage and also understand what stage the portfolio is at.
Focus only the portfolio AND prospects that are at the end of the base building stage -

Does anyone else do anything similar? Here is an example below from this week. A bit rough around…

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Rusty2

11th Sep '17

How do you feel about £G4M? that has formed a cup and handle.

Treatt (LON:TET) some people mentioned a while ago but seems to have failed and I have sold mine.

poughtibridge

Hi Herbie, G4M is an interesting one. I found Paul Scott's coverage the other day worth a read. I see what you mean about the cup with handle, although I had to look a few times - I interpret the second correction to be the start of the potential base. See the chart below. Sorry I haven't annotated it, I'm on my phone... the volume is still low, so one to watch for me. I ran it through the check list for the screen and it passes on 7 out of 9 criteria failing on the forecast eps growth and previous 1 year eps growth. it has only had positive EPS for 1 year so doesn't have a history. Having said that, this is to be expected for a new tech company where building scale and marketing are important (I think Paul Scott wrote along these lines) I don't know, for now for me, it is lower on my watch list from a CAN-SLIM point of view, but my gut feeling is it will do. well (I am a musician and am very familiar with the business from that point of view, and I rate it)

As for Treatt (LON:TET) , im still fairly positive on this. Very tight closes, but the handle is a bit long. It is on my list of shares I check daily for volume increases... probably right to sell it if you held - I would have done the same. The money can be put to better use else where at the moment...

seismo101a

poughtibridge, I really enjoy reading your CAN-SLIM posts, many thanks for these.

I was doing something very similar . i.e.
(1) using various screens to find stocks of interest
(2) then eyeballing their charts to see if they retained my interest, if so put it into the spreadsheet
(3) If it was a stock that was already in stage 2 growth phase, I would record the base breakout date in the spreadsheet, and then the number of subsequent bases that had formed since that initial base breakout (the theory being the less the better - although I've tended to ignore this more recently).

If I spotted a breakout from a base to buy on, I would note what sort of breakout it was, I also had a column to record as to why it might break down (i.e. if there was overhead supply).

In my usual laziness, I didn't keep up the spreadsheet though.

What I tend to do at the moment is just put those stocks that I'm interested in, into a folio to "Watch for Breakouts", draw on the charts what I'm thinking, then just flick between those each day and see if there is a breakout from a base, or an upward channel that I want to risk trading. I think I need to re-instate the spreadsheet or a log book thouugh, as I often cant remember why I put the stock into the folio to "Watch for Breakouts", i.e. what screen they showed up on, or why I liked the growth story.

Similarly what with work clashing with trading hours, I'm probably missing more ideal entry points.

Amanda Heron

12th Sep '17

Poughtibridge - Just discovered your post and really enjoyed reading the recent ones.

CAN-slim and Mark Minervinni are books I've read which make a lot of sense and both have some strategies that I use for my Portfolios, both real ones and Fantasy.

Are you planning to start your Fantasy portfolio using the strategies you mention in your interesting articles like Paul does with Beam Me Up?

underscored

I am having good success buying the break outs. Not having such success knowing when to sell

13th Sep '17

I note that Microgen (LON:MCGN) are down about 8% today, this was due to fund managers selling it seems.

Hi Seismo - thanks the encouragement and sorry for the last reply. Work is pain clashing with trading hours. Maybe we need to specialise in Australian stock exchange :-)

Thanks for sharing your spreadsheet method. I like the extra detail, and will be stealing your ideas... I totally agree, it is hard to keep up on a regular basis.

Hi Amanda, thanks! I must buy the Minervinni book - in fact - I'm getting straight on Amazon now... I was / am planning on starting a fantasy portfolio - you have spurred me into action this lunch time! Unfortunately I currently am out of compliance so not sure if you can see it- my holding in Boohoo.Com (LON:BOO) is too big... BTW - I've just checked out your DB9 fund - nice work :-)

Not so easy - I find it hard when you have a significant rise then it slows - I've wasted a lot of time looking at my +20% in 3 weeks, the 6 months later it is still +20% - 5 wasted months... Tricky... I've hoping my spreadsheet will at least help me understand the where in the development is each share and then whether the behaviour is acceptable or not to me for that stage (if that makes sense?)

Wow that is a serious gap... just looking to see what I had them down as .... ah yes growth stage! Well, looks like I might need to change that to "correction / possible start of new base" It will be interesting to see how the price performs over the coming weeks.

And IQE I see...

14th Sep '17

Yes and Frontier Developments (LON:FDEV) are down 10% also.

Can I CAN-SLIM? 6 - Getting Organised and Experiment Update...

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Poughtibridge

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