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RE: LeoThread 2025-12-20 19-10

in LeoFinance • 13 days ago

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%+
13 days ago in LeoFinance by
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     13 days ago  

    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

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       13 days ago  
      • 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)

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         13 days ago  
        • 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%)
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           13 days ago  

          I = Institutional sponsorship

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

          M = Market direction — the most important factor

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             13 days ago  
            • Most big winners occur in confirmed bull markets
            • Follow-the-market rule: major indexes above their 200-day moving averages

            Key technical patterns required

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               13 days ago  
              • Cup-with-handle
              • Double bottom
              • Flat base
              • Base-on-base
              • High tight flag

              Key trading rules

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                 13 days ago  
                • 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)
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                   13 days ago  
                  • 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
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                     13 days ago  
                    • 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

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                       13 days ago  
                      • 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
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                         13 days ago  
                        • Typical portfolio: 4–8 stocks max in a strong market

                        Notable quotes

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                           13 days ago  

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

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                             13 days ago  

                            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

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                               12 days ago  

                              Oldie but a goodie!

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