This is another CANSLIM stock that I’ve been monitoring since Dec, 2014. It just broke out of a “double-bottom” pattern, so I’ve gone long.
I’ve included the CANSLIM criteria below. Note that this stock meets the criteria on almost all counts.
| Criteria | Target | Actual |
| YoY Net Income Growth Rate | 20% | 22% |
| YoY Sales Growth Rate | 25% | 26% |
| EPS Growing past 3 years? | Yes | Yes |
| EPS Estimate Higher than last year? | Yes | Yes |
| 3yr EPS Growth Rate | 25% | 33% |
| Return on Equity (5-year average) | 17% | 19% |
| Within 10% of High | Yes | Yes |
| New Product, Management, etc? | Yes | Several acquisitions (Aug/Sept), and again in Feb, 2015 |
| 12-month relative strength percentile | 80% | 61% |
Let’s take a look at the chart, which shows a breakout of a decent double-bottom.
Note that price broke above point “b” on Friday, accompanied by high volume (80% higher than average). This indicates informed demand.
Strategy: Long @ $89.71 (just above point “b”) with a target of 20-25% gain (~$108). Stop loss is at –8% loss, or $82.60.
