Five New CANSLIM Long Positions, Two New Speculative CANSLIM Long Positions, One New Speculative Long Position, And Three Stocks I Am Adding To My Existing Positions

November 7, 2007

Obviously I do not like going long this many stocks in one day but after reviewing the charts and the fundamentals of everything it would be foolish to pass up on any of these. You have to remember that I am not very good at picking out the best of the bunch most of the times when I have a lot of longs to choose from. Therefore, I just take all of them, cutting the losers fast and adding to the winners as they move higher. That is what I am doing, once again, to FNDT. FNDT is, once again, my favorite stock tonight. The chart is very pretty and well constructed and the fundamentals are very strong making it a great long. If you have daily graphs you can see its beauty for yourself as most numbers and letters are very high. Out of the new CANSLIM longs WFR, ATLS, and ABAX are the strongest with all of them breaking out of short consolidations on top of bigger consolidations or in ATLS’s case breaking out of a great saucer with handle pattern on a big ascending base pattern. These higher priced stocks are the best bets for steady consistent gains. TSCM is a strong stock in one of the best industry groups but the company is too well known on my end and I don’t know if it is worth loading up on. PRO is too new to be a big position but the chart is very pretty for an IPO with the green BOP and the fundamentals are very strong so it is still worth a poke for everyone. PRO is very thin so make sure a limit is used. PTT has a hot chart and was once a big winner for me. It’s fundamentals are starting to increase at a much more rapid pace and estimates are very strong so it is worth starting a position here especially with BOP max green. GSB has a strong chart but the fundamentals are growing at a very rapid rate making the chart look that much nicer subconsciously. SQNM is the prettiest and greenest chart tonight but sadly the EPS is horrible. Also the chart loses its perfect beauty as BOP fell from the max green level two days ago. After rebounding back to max green, it fell today on the very strong bounce. That shouldn’t have happened. As I said earlier, FNDT is my favorite of all the stocks. CYBS and TSL are both of excellent quality with CYBS with a beautiful max green BOP filled chart (second favorite chart after FNDT) during this base and an EPS rating of 92 and TSL with a very well formed chart and extremely powerful EPS and sales growth (over 100% growth in EPS and sales in all but one EPS quarter–15 for 16). So they are all great and all have excellent selling points. All I know is that FNDT is my personal favorite. Doesn’t mean it is going to be the fastest mover. But it is as close as I can get to feeling like it should be a “for-sure” play (yes!, I know nothing is for sure).

new CANSLIM long positions: ABAX TSCM ATLS WFR PRO

ABAX is breaking out of a cup with a very tight high handle, on strong volume. Cut your loss with a close below the 28.01 level, if the stock does not move higher immediately.

TSCM is bouncing off recent support near the 50 day moving average and nearing a breakout to a new 52-week high, on very strong volume. Cut your loss with a close below the 12.76 level, if the stock does not move higher immediately.

ATLS is breaking out of a saucer with handle base on an ascending base pattern, on strong volume. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

WFR is breaking out of a saucer with a high handle pattern, on above average volume. Cut your first loss with a close below the 69.37 level and your final loss with a close below the 50 day moving average, if the stock does not move higher immediately.

PRO is breaking out of a short tight continuation consolidation, on strong volume. Cut your first loss with a close below the 17.25 level and your final loss with a close below the 50 day moving average, if the stock does not move higher immediately.

new speculative CANSLIM long positions: PTT GSB

PTT is putting in a bullish bounce after a short retracement/pullback, on strong volume. Cut your first loss with a close below the 10.55 level and your final loss with a close below the 10.20 level, if the stock does not move higher immediately.

GSB is bouncing off strong support and coiling up for an attempted breakout past the October highs, on strong volume. Cut your loss with a close below the 6.30 level, if the stock does not move higher immediately.

new speculative long position: SQNM

SQNM is bouncing off solid support near the 50 day moving average, on above average volume. Cut your first loss with a close below the 9.07 level and your final loss with a close below the 50 day moving average, if the stock does not move higher immediately.

adding to existing CANSLIM long positions: FNDT CYBS TSL

FNDT is breaking out of a cup pattern and closing at its HOD, on above average volume. The most recent uptrend start in July 2006 and has been steadily moving higher ever since. The stock has done a great job of finding support at the 50 and 200 day moving average along the way as it rose. The uptrends came on heavy accumulation and, as you can see on your charts, a lot of green to max green BOP. There were only two pullbacks that led to BOP going red, helping make this long term daily look very nice. The recent bounce off the 50 day moving average is more powerful than the previous ones as volume expanded to a level not seen in a full year as the stock put in a very bullish intraday reversal with BOP going max green. Todayâ€™s bullish breakout on top of the two bullish intraday reversals before that and the BOP being max green the past four day helps increase the chances of this stock succeeding. But, as we all know, anything can happen. That is why at the end of this analysis, we have a cut loss strategy. The fundamentals are strong, with EPS growing between 13% and 40% the past eight quarters, sales growing between 12% and 24% the past eight quarters, a ROE of 10%, a cash flow of $1.03 a share, 0% debt, an EPS growth rate of 55%, a sponsorship rating of A, a timeliness rating of B, a composite rating of 95, an Acc/Dis rating of A, an SMR rating of B, an EPS rating of 89, and YOY earnings estimates for 2007 and 2008 for gains of 23% and 20% respectively. Something I see, that I like, is that the company spends 19.5% of its sales on research. No wonder this is one of the top stocks in its industry group of Computer Software-Financial. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

CYBS is bouncing off strong support nearing an assault on a new 52-week high, on average volume. Cut your first loss with a close below the 15.55 level and your final loss with a close below the 14.75 level, if the stock does not move higher immediately.

TSL is breaking out past the October highs after bouncing off the 50 day moving average, on strong volume. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.