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Investors Business Daily
Canslim Investing Method
Stock Picks
Investor's Business Daily - Get The Complete Investing System
The Investor's Business Daily financial newspaper
or IBD for short and Investors.com provides investors
the famous stock investing method called CANSLIM by it's publisher
Bill O'neil. CANSLIM investing method has been one of the most
consistent and strongest performing stock selection
systems during both bull and bear markets. Canslim
has been generating a 704.9% gain over the past
6 years without a single down year.
• See Below for Investors Business Daily Stock Pick Updated Weekly Every Weekend
• What is CANSLIM?
CANSLIM is IBD's acronym for the seven common characteristics all great performing stocks have before they make their biggest gains. You can
significantly reduce your risk and increase returns by using the CAN SLIM Investment Research Tool as a fact-based performance checklist to evaluate a stock before you buy.
• C = Current Quarterly Earnings Per Share
Look for earnings increases of at least 18% to
20% above the same quarter one-year prior.
• A = Annual Earnings Per Share
Look for meaningful, consistent earnings growth over the last five years, with increases each year over the prior year.
• N = New Products, New Management, New Highs
The best stocks had new products, services, or new management driving their stock prices. Stocks making new highs tend to go higher.
• S = Supply and Demand
Look for a small or reasonable number of shares outstanding that create buying pressure, and watch for above-average volume increases as stock's price increases.
• L = Leaders
The best stocks were already leading stocks in leading industries, so avoid laggards and focus on strength and leadership.
• I = Institutional Sponsorship
Institutional investors are a major influence on stock prices, so buy stocks with at least some institutional ownership, particularly mutual funds with good performance records.
• M = Market
The
general market should be positive, since three out of four stocks follow its trend.
• How to Find CANSLIM Stocks
Use
Investor's Business Daily and Investors.com in tandem to identify, validate, and track potential winners with quick reviews of key IBD fact-based market assessments.
• Step 1: Identify Stocks with CAN SLIM Traits
Scan the List: Investor's Business Daily 100 is IBD's weekly ranking of leading companies. Companies are measured in terms of profit ans sales growth, stock performance, and other factors. Your Weekly Review ( exclusively in the print edition ) identifies industry leaders showing strong earnings growth and price performance.
Discover Promising Companies: The New America features groundbreaking companies that often fly under Wall Street's radar, yet are among the fastest growing enterprises.
Find Stocks with Winning Traits: Check Screen Of The Day ( exclusively on Investors.com ) for a daily look at some of the market's stongest stocks. Each day, this computer-generated list is compiled by Investors.com's editors to help you identify the best stocks.
See where the Market's Headed: Understand today's investment climate with the The Big Picture. This column reviews significant action in the major indexes and examines the condition of leading stocks.
• Step 2: Validate & Research CANSLIM Stocks
Check the Stocks Relative Health: IBD Stock Checkup:
IBD's "stock doctor" diagnoses the overall health
of a stock with fact-based examinations of its
techinical and fundamental performance.
Get the Story behind the Stock: IBD Archives let you assess the business history of prospective investments. Research IBD articles dating back to January 1998 by company name, ticker symbols or IBD's industry groups. Simply save or print articles that are of interest.
Watch Key Price and Volume Action: Daily and weekly IBD Charts are color coded to help you identify buying and selling trends. These charts include CAN SLIM-vital data such as moving average lines and Relative Strength lines. These tools are invaluable in gauging the right time to buy or sell.
Buy and Sell Like A Pro: Daily Graphs Online is an interactive, financial information service offering premium stock charts for equities traded on the NYSE, AMEX, and NASDAQ. The service provides technical, fundamental and unique proprietary data for over 10,000 companies that are tracked in the William O'Neil + Co. Database.
IBDŽ Home Study: Level I & II - Beginning Strategies for Successsful Investing
Requries a subscription with Investorss.com. With the current volatility of the market, it's never been more important to use a time-tested, successful strategy for investing. The IBDŽ Home Study Program makes it easier than ever to learn our proven method for selecting stocks that have the traits of a big winner! The Home Study Program is an interactive kit that provides investing education to fit your schedule!
IBDŽ Home Study: Level II - Intermediate Strategies for Successful Investing
Requries a subscription with Investorss.com. The Level I Course provided the foundation of the CAN SLIMŽ Investing System, but to make money consistently, you need to go deeper. In the Level II Course you'll learn advanced market-tracking and screening techniques from IBD national speakers. You'll see the specific fundamental and chart-reading methods they use to find stocks with the greatest potential. You'll also learn how to realistically spot market tops and bottoms and keys for active, successful portfolio management. The Home Study Level II Course is an interactive Program that provides investing education to fit your schedule!
• Investors Business Daily Stock Analysis
July 23, 2010 - Will Williams Partners' Upcoming Earnings Results Heat Up Its Stock?
Today we're going to look at Williams Partners (WPZ). The Oklahoma company gathers, processes and transports oil and natural gas.
As a July 6 IBD 100 profile noted, it owns stakes in three interstate natural gas pipelines that deliver about 12% of the natural gas used in the U.S.
* The company's earnings growth stumbled in late 2008 and early 2009, but it's turned around. And it's scored some nice gains in recent quarters.
* Sales growth also improved, hitting 52% last quarter.
* The company is scheduled to report second-quarter earnings July 29, so keep an eye out for those. Analysts are expecting a 63% increase to 78 cents a share.
* For the full year, analysts see that red-hot growth cooling. They predict earnings will rise just 5% in 2010 and 6% in 2011.
* On the weekly chart, the stock formed a six-week cup-shaped base (Point 1). History has shown bases often serve as the foundations for the big runs of leading stocks during market uptrends.
* For this base, the 42.85 buy point was calculated by adding 10 cents to the 42.75 peak on the left side of the base (Point 2).
* Williams climbed past that buy point and broke out of its base pattern in mid June (Point 3).
* As of Friday morning it was about 12% past its buy point (Point 4). So it's too far extended to be considered in a safe buying range. But it may be worth keeping an eye on to see if it offers other buying opportunities going forward.
* Its Composite Rating and EPS Rating are among the best in its industry group.
* Its Relative Strength Rating is the group's highest.
* The Stock Checklist gives it a number of green lights, showing it passes in those categories. But there are also some red lights, a sign it's underperforming in those categories.
• About Investors Business Daily
Ordinary Investors, Extraordinary Results
Since 1984, Investor's Business Daily (IBD) has been helping ordinary people achieve extraordinary results.
This is done with a unique step-by-step investing strategy anyone can use to systematically achieve financial freedom over time.
And it works. According to an independent, real-time study of more than 50 leading strategies by the American Association of Individual Investors from January 1998 through December 2009, our system - known as CAN SLIMŽ - gained 2,763.3%compared to a gain of just 14.9% for the S & P 500.
Over the last quarter-century, countless investors have paid off their homes, put their children through college and built the foundation for a worry-free retirement, by following IBD's CAN SLIM strategy for growing - and protecting - their money.
It's an approach based on historical fact, not opinion. And anyone can use it successfully. Find out how by learning more about our investing discipline, products & services, and company history.
The IBD Difference - History, Not Hunches
To get the most out of Investor's Business Daily and Investors.com, it's important to understand how IBD is fundamentally different from any other investment resource.
At IBD, we don't offer opinions or predictions. Instead, we study history.
The reason is simple: To find tomorrow's winning stocks, it helps to know what yesterday's top performers looked like before they surged.
In the late 1950s, future IBD founder William J. O'Neil launched a study that looked for common characteristics among stocks that went up 50%, 100% or more in a 12 month period. He found that:
Top-performing stocks display 7 common traits just BEFORE they make their biggest gains.
This was a landmark study that continues to this day. It is now the most comprehensive study of its kind, analyzing the best-performing stocks going all the way back to 1883. Whether it's Texas Instruments in 1958, Levitz Furniture in 1970 or Google in 2004, year after year, decade after decade, the big winners display these same tell-tale traits before they make their biggest price moves.
We've also documented how these top growth stocks behave after they've had a big run up and begin to decline. Here, too, we found similar patterns that repeat themselves again and again. These patterns are early indicators that it's time to sell and lock in your gains.
That's what we mean when we say IBD doesn't base investing decisions on opinions or personal beliefs. We think the most reliable way to invest is to know how the market actually works.
Over a Decade of Independently-Tested Results
IBD's stock selection system, known as CAN SLIM, is founded on market facts. It helps you get in early on tomorrow's winners by focusing on stocks that share common characteristics with top performers of the past. It's a simple, unbiased approach - and it works.
From January 1998 through December 2009, the American Association of Individual Investors has conducted an independent, real-time study of over 50 leading investing strategies, including CAN SLIM. The results show that IBD's CAN SLIM strategy outperformed all other strategies, gaining +2,763.3% while the S&P 500 rose just 14.9%.
Ratings, Research and Rules You Won't Find Anywhere Else
With IBD and Investors.com, we'll show you how to use history instead of hunches to find the right stocks, and how to rely on rules instead of rumors when it's time to sell. You'll find everything you need to invest intelligently and successfully, including:
Pass, Neutral, or Fail ratings for every stock on the NYSE, Nasdaq and AMEX
Regular alerts to top-rated stocks near a buy point
Market analysis that gives you specific rules for when to get into - and out of - stocks
A proven, step-by-step strategy to help you grow and protect your money
Anyone can use IBD's ratings, research and time-tested rules to become a more successful investor. But you won't find these rules or research anywhere else.
That...is the IBD Difference.
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