I don't really think so. At least not in a Bear market. I just found my IBD Canslim scans from the second week of June of 2001. Here are the results as of today:: Luckily I didn't believe or invest in these stocks. WGOV lost 45 points COCO gained 13 points RLRN lost 26.6 points Mton lost 25 points RCII about even EPIQ lost 6 points COLM lost 16.2 points PPDI lost 9 points Some of the "Front Page Fast Growers" from 6-14-01 RMD lost 21 points CAH lost 18 points WTM lost 60 points PLNR lost 13 points ACRT lost 34.5 points NVDA lost 40 points CHS gained 9 points So I believe, as I have stated before, by the time a stock gets on the IBD radar screen, in my opinion, it's already too late. Also I believe that the wayout here for IBD, is that their criteria only applies investing in stocks in a bull market.
i dont have ibd so i dont know, but dont they post stocks which are down and not doing too well, and if so -- have you tried shorting them ?? just wondering seems like they would have to get the crappy ones right , especially in this market.
Interesting that the "M" in CANSLIM stands for Market and in June 2001 we were in a clear downtrend (bear market). Anyone that would of taken these longs is not a CANSLIM trader. Also, a real CANSLIM follower never risks more than 7-8%. I don't see how you could of lost 45 points trading WGOV long unless it was over $500 a share. Please refrain from posting uneducationed responses because it just cheapens this message board. Many CANSLIM followers I communicate with made large somes of money shorting stocks after IBD's Big Picture clearly identified the downtrend.
Trend_Guy: Sir: With all due respects, I read the book over and over, made copious notes, made a screening criteria list and diligently attempted to understand this method. At the time I mentioned these stocks I can assure you sir, that there absolutely was no clear indication from IBD that the market was in a bear market, and that you should short the market.
If you go back and study the Nasdaq Comp chart you will see what I am talking about... I am not going to argue with you because it is evident to me that you don't understand the method.
I was timed out, here is my response Trend_Guy: Sir: With all due respects sir, I read the book over and over, made copious notes, made a screening criteria list and diligently attempted to understand this method for over a year. At the time I mentioned these stocks (June 2001) which was the last time I performed an IBD screening, I can assure you sir, that there was absolutely no clear indication from IBD that the market was in a bear market, and that you should short the market. My major point is that nothing is clear with the CANSLIM method in advance. In my opinion, the book shows you what happened with a few hand selected stocks that are used to illustrate the theory. Furthermore, I believe by the time a stock hits the IBD radar screen, it is already too late and the stock has already made the move beforehand. As for shorting stocks, although effective in practice, is contrary to Wm Oneill. David Ryan says that Wm Oneill recommends sitting it out in a bear market as shorting stocks is very difficult. (Market Wizards, by Schwager, page252) Please enlighten us some more on how to use the Canslim method effectively as I would be interested to know how to make it work. Like what do we do today? Are there any prospects? By the way, I don't believe I am "uneducationed" as you say I am, as I did get some edumacation and even gradiated.
Hey, isnt it just a 'watered down' version of Mr Market's superb system? Damn, I miss that guy. And his transvestite alter ego, Alice.... Pass the meats and cheeses please....
You quoted David Ryan from Market Wizards. If the CANSLIM method doesn't work then how did Mr. Ryan achieve triple digit percentage returns trading CANSLIM. I guess it was just fluke that he won those US investment challenges. I don't disclose my trade specifics over message boards. I also don't spend much time proof reading quick message board responses.
i dont have IBD yet but i do have the book, so i dont really know too much of how the system works using the paper but ........ like inandlong said earlier in the thread, it sounds like a great way to pick out which stocks have good fundamentals. but just because stock ABC has good fundamentals doesnt mean you go ahead and load up on it..... i think you still have to refer to your charts and see when its the right time to buy. but what do i know