RE: LeoThread 2025-12-20 19-10

avatar

You are viewing a single comment's thread:

Bill O'Neil investing framework:

CAN SLIM — the 7 core criteria

C = Current quarterly earnings

  • Seek accelerating EPS: at least +25% YoY, preferably +50–100% or more
  • Sales growth should accelerate as well, ideally +25%+
leofinance
0
0
0.000
14 comments
avatar

A = Annual earnings growth

  • Consistent annual EPS growth ≈ 25%+ for the past 3–5 years
  • Return on equity ≥ 17%, ideally 25–50%

N = New catalyst / new highs

0
0
0.000
Reply
avatar
  • A clear new driver (new product, new management, industry tailwind, etc.)
  • Stock hitting new 52-week or all-time highs after forming a proper base

S = Supply and demand (volume + float)

0
0
0.000
Reply
avatar
  • Large volume spikes on breakout days (≥ 50% above average, often 100–500%+)

L = Leader vs laggard

  • Buy the strongest stock in the strongest industry group
  • Relative Strength (RS) rating ≥ 80 (top 20%)
0
0
0.000
Reply
avatar

I = Institutional sponsorship

  • Evidence of mutual funds/hedge funds accumulating shares
  • Fund sponsorship rising quarter-over-quarter

M = Market direction — the most important factor

0
0
0.000
Reply
avatar
  • Most big winners occur in confirmed bull markets
  • Follow-the-market rule: major indexes above their 200-day moving averages

Key technical patterns required

0
0
0.000
Reply
avatar
  • Cup-with-handle
  • Double bottom
  • Flat base
  • Base-on-base
  • High tight flag

Key trading rules

0
0
0.000
Reply
avatar
  • Buy point = pivot (exact high in the handle or top of the base) + $0.05–$0.10 on volume ≥ 40–50% above average
  • Strict selling rules provide most of the edge
  • 7–8% hard stop loss from purchase price (rarely override)
0
0
0.000
Reply
avatar
  • Take profits around +20–25% from a proper buy point on most stocks; lock gains quickly
  • Let big winners run only if they gain ~20% within 1–3 weeks after breakout
0
0
0.000
Reply
avatar
  • Sell if a stock closes below its 50-day moving average on heavy volume
  • Exit holdings if the general market breaks and distribution days accumulate

Position sizing & portfolio management

0
0
0.000
Reply
avatar
  • Full initial position on breakout (typically 10–12.5% of the portfolio per stock)
  • Pyramid (add to winners) only after a further 2–3% rise above pivot without triggering the 8% stop
0
0
0.000
Reply
avatar
  • Typical portfolio: 4–8 stocks max in a strong market

Notable quotes

0
0
0.000
Reply
avatar

What seems too high and risky to the majority generally goes higher, and what seems low and cheap generally goes lower

0
0
0.000
Reply
avatar

The whole secret to winning big in the stock market is not to be right all the time, but to lose the least amount of money when wrong
Never argue with the tape

0
0
0.000
Reply