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Annual Earning Increases (=A)
O’NEIL prescribes stocks of companies with annual growth of at least 25 per cent over the last five years. To discover these stocks that passed this criterion, use Yahoo! Finance Industry centre again (i.e http://biz.yahoo.com/ic).This will enable you find the leaders in the long-term growth. Click “Long-Term Growth Rate (5yr)” from the pull-down menu. Global Industries at 17 per cent growth rate did not meet the criterion. Another company, Empresas ICA records 21.8 per cent. Crosstex Energy, on the other hand, has a long-term growth rate of 27 per cent. So Crosstex remains on our watch list. Global Industries, though achieving 17 per cent, still ranks second overall within its industry. So it joins Crosstex Energy to remain in the watch list.

Technical Factor of Can Slim Approach
Analysis of stocks by CAN SLIM embraces both fundamental and technical factors. Let us now look at the Technical factors. The basis of the technical analysis of CAN SLIM stocks is premised on the fact that, by looking for “basing patterns” that may indicate that institutional accumulation is taking place in a chart analysis, investors could judge the best time to buy and sell (i.e trade). This is  another of William O’Neil’s philosophies. If you are interesting in learning more about Technical Analysis of Stock, please send me an email with subject “Technical Analysis School”.
Cup-With-Handle Pattern: Volume pattern indicates one of William O’Neil’s favourite chart patterns. It resembles the outline of a cup with a handle on the upper half of the cup. According to Wayne: “The optimal buy point for a stock is usually at the end of a sound basing area when the stock price “breaks out” into a new high ground. This is the point of least resistance, when the stock has its greatest chance of moving even higher based on its current and historical price and volume activity”. Neither Crosstex Energy nor Global Industries exhibited a cup-with-handle pattern. However, both were reaching new highs after surpassing levels of previous resistance. So based in the analyses by Wayne, neither stock represented a strong candidate based on O’Neil’s CAN SLIM Approach. But in such situation, he advises that you retain them on your watch list for future studies.
In concluding, wayne states that the CAN SLIM Approach is a volatile strategy that demands significant time to monitor your holdings on a daily, if not intraday basis, as well as the intestinal fortitude to handle the volatility many of the stocks exhibit. Ensure that you analyse the stock to the end. If you are speculating buying any stock and are having difficulties in analysing them using CAN SLIM, you may as well contact me. I will be glad to help you make an informed buy or sale decision.