One New CANSLIM Long Position, One New Very Speculative CANSLIM Long Position, And Four Stocks I Am Adding To My Existing Long Positions

December 4, 2007

Nothing here excites me so much as I am going to fall over myself in accumulating it but if I have to say which one is my personal favorite out of the bunch I would say FFH is. I definitely know that I want to accumulate more FFH here and only wish that it had better long-term fundamentals so I could add more. However, only the most recent quarter shows any strength and the average daily volume is small so despite the beautiful green BOP filled chart I simply can not “load up.” ININ’s pattern is a bit tricky for me to want to establish a large starter position. If the base was longer and a bit more flat I am sure I would like it more. But that is not what happened so I am not going to get too much. INOC is very pretty on the short term but has way too many things wrong with it to make a great long. The best bet is to keep these small and most should completely avoid CSIQ.

new CANSLIM long position: ININ

ININ is breaking out of a base on base pattern, on strong volume. There is no doubt this stock has a great chart with the strong base pattern, the RS line hitting new highs well ahead of price, and all the strong accumulation with green BOP the past month plus. But the chart isn’t perfect and it is a bit volatile making it less desirable as a long to load up on. Too bad because the fundamentals are very strong even though they are starting to slow in the most recent quarter. The EPS has grown from 140% to 30% the past quarter, sales grew between 22% and 46% the past eight quarters, the ROE is 33%, and the earnings estimates are for gains of 72% and 40% for this year and next respectively. That has helped fund ownership grow from 28 funds three quarters ago to 39 now. Management still owns 29%, indicating that they still want to have a vested interest in this stock as they believe it is going higher. The stock has A’s and 90’s across the board in IBD, which is always nice to have on your side. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

new very speculative CANSLIM long position: INOC

INOC is breaking out of a short cup pattern and putting in an extremely bullish intraday reversal, on extremely strong volume. This chart has recently become a beauty with all of its strong accumulation, great daily price action, surge in RS and moneystream, and max green BOP. If this stock would have had max green BOP from the August lows to now, even with the stock only $4 and the volume thin, I definitely would have considered as a large speculative position. However, there is not enough green on the chart long-term to make that decision–well being 20% away from the nearest support also enters the equation. The recent accumulation is a direct byproduct of the recent earnings as EPS has grown 114% and 300% the past two quarters and sales have grown between 52% and 69% the past five quarters. Fund ownership has stayed the same the past four quarters at 9 but more impressive is that the management is still holding half of the shares outstanding. So obviously they have conviction in their company. This stock is way too thin to be ANYTHING but a limit order–absolutely no market orders or you are asking for an EBIX 4/16 debacle one day. Cut your loss with a close below the 3.25 level, if the stock does not move higher immediately.

adding to existing CANSLIM/speculative CANSLIM long positions: SRCL FFH CCC

SRCL is bouncing off the 50 day moving average and putting in a bullish intraday reversal, on above average volume. This stock is following through on its bounce five days ago and is doing it with BOP moving up to a higher green level. That combined with the RS line hitting new highs ahead of price help make this a very nice chart. Too bad there wasn’t green to max green BOP most of the way, on the chart, from the July bounce/breakout to now. That would probably have me loading up on this one. The fundamentals are strong, with EPS growing between 8% and 29% the past eight quarters, sales growth between 17% and 33% the past eight quarters, a ROE of 19%, an SMR rating of A, and earnings estimates for 07 and 08 for gains of 19% and 18% respectively. Fund ownership has grown from 173 to 186 the past four quarters, with funds growing each quarter. That is an excellent confirmation to the chart and fundamentals. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

FFH is bouncing off recent support near the 50 day moving average and at the pivot point area of the mid-November breakout, on extremely strong volume. This is a very beautiful chart from the August lows in 2006 to now with the stock showing constant large accumulation the whole uptrend with almost absolutely no selling the whole nice steady way higher. The past month plus has been very pretty with the great daily price action and the strong accumulation with green BOP. If this chart had max green BOP from the move in September to now, there is no doubt I would loading up here. However, the low average daily volume and the fact the stock isn’t bouncing directly off the 50 dma, along with the BOP not being max green, is a good enough reason to not get carried away. The fundamentals are getting better, with EPS growing 373% this quarter and sales growing 24% this quarter. Hopefully this can continue. Fund ownership has grown from 45 funds to 57 funds the past four quarters so obviously there is something interesting these funds. Right now, I can not see it in the fundamentals but a stock trading almost at a 300 handle is doing something right. I recommend using limit orders only on this one. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

CCC is breaking out of a nice cup base, after bouncing off the 50 day moving average, on above average volume. This chart has been very pretty since the uptrend really got going in March. Since then the stock has steadily risen higher on good accumulation, with excellent support at the 50 dma, and green to max green BOP all over the place along the way up. The fact that the stock held above the 200 day moving average in November and the BOP went max green near the lows shows you how much underlying strength there is in this stock. The action the past month has been great with the strong accumulation with green to max green BOP the whole way and the RS line leading the stock well into new high ground. The fundamentals are getting much better, with EPS growing from 80% to 999% the past two quarters, sales growing between 4% and 16% the past seven quarters, and earnings estimates for a gain of 43% in 2008. Fund ownership has gone from 37 funds to 62 funds the past four quarters, showing that a lot of funds have become very interested in this company’s story. The beautiful stock chart confirms this. Cut your loss with a close below the 50 day moving average, if the stock does not move higher immediately.

adding to existing speculative long position: CSIQ

CSIQ is breaking out of a high tight ascending symmetrical flag pattern, on extremely strong volume. This stock is obviously very pretty with all the great daily price action, extremely strong accumulation, and max green BOP all over the place the past two plus months. If the darn stock wasn’t such a high risk, high beta, and highly volatile stock, I would love to take in more as the chart is very green. However, to go along with all the volatility, the fundamentals stink with IBD giving it an EPS rating of 21 which should indicate how great the fundamentals are. The best part and only great thing, currently, with the numbers is that sales has grown from 28% to 447% the past eight quarters. This is why this stock has such high speculative juice. Cut your first loss with a close below the 15.94 level and your final loss with a close below 14.45 level, if the stock does not move higher immediately.