One New CANSLIM Long Position And One Long I Am Adding To My Existing Position

August 31, 2007

I REALLY LIKE CELG. IT IS NOT PERFECT, BUT IT IS A TOP QUALITY CANSLIM STOCK. ALL IT IS MISSING IS THE GREEN BOP.

new CANSLIM long position: CELG

CELG is bouncing off the 50 day moving average and breaking out above the July resistance, on strong volume. This chart has been non-stop impressive since 2002 and it just doesn’t seem to ever want to stop. After finding support, once again, at the 200 day moving average, CELG appears very near to breaking out from this cup pattern (May to now). Chances of success are much higher since this stock has a steady uptrend full of successful breakouts and with the RS line already hitting new all-time highs ahead of the stock price-that is very bullish and shows relative strength to the market. The only two things missing from this chart is green to max green BOP and a ton of volume on today’s move. However, since this is happening right after the follow-through, the volume might appear a little later on. The fundamentals are fantastic, with EPS growing between 38% and 500% the past six quarters, sales growing between 28% and 89% the past eight quarters, a ROE of 16%, cash flow of $0.67 a share, only 20% debt to shareholder equity, and YOY earnings estimates for 2007 and 2008 for gains of 100% and 58% respectively. Fund ownership has grown from 341 to 465 funds the past four quarters, clearly showing the smart money is interested in this story. This is a great long for everyone, as long as you cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

adding to my existing very speculative long: FLT

FLT is bouncing off the 50 day moving average and breaking out above the August resistance, on below average volume. This stock for me is really a combination of the past three days as the bounce and volume occurred two-days ago and the move higher occurred yesterday and today. This chart has only recently started to look nice after the uptrend in July came with green BOP. That has led to the current base that is filled with max green BOP and strong accumulation with a moneystream line hitting new highs. If this base continues to build the right side on max green BOP, this could turn out to be a great small low-priced stock. The fundamentals are horrible, with EPS bleeding red forever, sales slowing between 50% and 80% the past four quarters, and losses as far as the eye can see. Therefore, this stock is a horrible long for anybody that is looking for anything more than a small trade. The low average daily volume, the low price of the stock, and the horrible fundamentals are just too many negatives to be worth any significant portion of ANYONES portfolio. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately. LIMIT ORDERS ONLY.