WB Model Stock FT Collins IBD PDF

Fort Collins IBD Meetup
Wednesday, September 28, 2016
CAN SLIM Basics Review

Model Stock (WB)
Lee Tanner
Non-Professional Amateur Volunteer
1
This Presentation Is:
• For Educational Purposes Only
• Not recommending any stocks/securities to
buy or sell
All Investing has Substantial Risk of Big Losses
CAN SLIM® Is The Registered Trademark Of Investors Business Daily (IBD ®)
2
Everything is from the Basic
CAN SLIM® Educational Material
3
Learn From The Experts
4
Learn From The Experts
5 IBD Live Workshops
8 IBD Home Study Programs
5
CAN SLIM Basics
A Separate Presentation
6
A Recent Example
7
New Topic
Weibo (WB)
The CAN SLIM Business
1 2 3
Make a
Study &
Watch List
Buy Just
Write Rules Right
6 5 4
Sell Just Manage a
Review
Right Portfolio
9
Looking At WB On
Weekend 4/2/16 – 4/3/16
11
Three possible ideal buy points:
19.20 – Traditional C/H
18.85 – C/H Trend line
18.60 – Handle high trend line
12
Text book breakout
Alibaba May Boost Stake
+405% Volume
Weibo (WB)
Did We See It?

Was It On Our WL?
Did We Buy It?

How Might We Spot Weibo (WB)
• Not on IBD 50 or Sector Leaders or Leaderboard
• Abe’s 29%-29% MarketSmith Custom Screen
• High earnings growth MarketSmith Screen
• Stocks On The Move 2nd Week of March
• IBD IPO Leaders mini-chart during March 2016
• IBD IPO Analysis 3/15/2016
• IBD Stock Analysis 3/24/2016
• IBD STOCK LISTS – IPO LEADERS
• Stock Market Today Video 4/5/2016
Abe’s 29%-29% Screen
Just 6 Stocks
High EPS Growth Screen
Stocks On The Move
Stocks On The Move
Very High Earnings Growth

IBD IPO Analysis 3/14/16
IBD Stock Analysis 3/24/16
IPO Leaders 3/24/2016
Stock Market Today
4/5/2016
Weibo (WB) Described by Amy Smith

Stock Checkup = B+
Grading The Stock Checkup
Grade Stock Checkup: Convert Stock Check to a letter
grade based on the number of red and yellow dots
(negatives)
This allows up to be more objective and to save the results for review
28
Grading The Stock Checkup
• Sum the defects as described below and round up:
– “A” for 1-4 Negatives
– “B” for 5-6 Negatives
– “C” for 7-8 Negatives
– “D” for 9-10 Negatives
– “E” for > 10 Negatives
• Market: Don’t count these dots; market direction is
considered else ware
• Group: Red dots count as ½, yellow don’t count.
• Supply and Demand: Red dots count as ½ defect, yellow
don’t count.
• All Other: Red dots count as one defect, yellow as ½ a
defect.
Stock Checkup = B+
Zoom In On Earnings Growth
31
Trailing Twelve Months (TTM) Earnings Plot
How to Make Money in Stocks, by William J. O’Neil

TTM Earnings Plot
MarketSmith Change Date
36
TTM Earnings Plot
Weibo Corp (WB) April 2016
• C – Triple digit quarterly earnings growth
• A – Double Digit Annual Earnings Growth
• N – The Twitter of China, good articles
• S – High demand for the stock supply
• L – Not so much, but getting new attention
• I – Growing institutional ownership
• M – Confirmed Uptrend, Distribution Low 4 &
2, Market School Model Exposure the highest.
38
39
C/H May Breakout Any Time
40
Base Analysis
41
❶
❸ ❹?
❷
Earnings Report
Accumulation
Low volume – little selling
To here it is 32% Deep
2nd week on handle
Low Profile Stock
Below Average Vol.

At The Low
Market corrected 19%
Cup/Handle, 41%, 14
weeks; 7%, 2 weeks.
One Week Shakeout
Pick Stocks – A Guide To Start
• From IBD 50 – No, you might miss it; but IPO Leader and DSA.
• Annual Earnings Growth +25% - Yes > +50%, estimates recently increased
• Quarterly Earnings Growth +25% - Yes > +100% for several quarters
• Quarterly Sales Growth +20% - Yes +42%
• Stock Checkup Grade B – Yes, B+
• Full and Proper Base, describe the base – Yes, C/H, 1ST stage after IPO
• A/D Rating C or Better – Yes, A-
• EPS Rating ≥ 95 – No, 78, but EPS is surging.
• RS Rating ≥ 95 – No, 88, but will make new high if it breaks out
• Composite Rating ≥ 95 No, 92 (Very high considering EPS and RS)
• U/D Volume Ration ≥ 0.9 – Yes, 1.4
• Supply/Demand ≥ 85 – Yes, % Demand Is Very High 4.9.
• ROE ≥ 17% - No, 12%, but new company (two-year average)
• PTM ≥ 13% - No, 0% - This is a noteworthy detraction. (two-year average)
• Read IBD articles, particularly New America – Yes good New Factor
• Visit the company website – Yes – but no help.
• Concisely state the company business and what is “new” that is driving
growth – Yes very good.
60
CAN SLIM Review
• C – Yes, >100%, 3-quarter average > 300%
• A – Yes, FY 2016 estimate 56%, FY ‘17 68%
• N – Yes, Chinese Twitter
• S – Yes, very high % Demand 4.9
• L – No, group 60 of 197.
• I – Just Okay, Top Fidelity Funds own it, but it is
thin, trading just $11 million/day.
• M – Some risk, up for seven weeks since the low.
Institutional Sponsorship
• Increasing the last four quarters
• SINA spin-off which still owns a large, controlling
interest.
• Alibaba owns an 18% stake, news it may buy
more.
• Liquidity is ~ $11 million.
• A/D=A-
• U/D Volume 1.5
• Base shows recent accumulation.
62
Market Risk With WB on 4/1/16
Up For 8 Weeks
Not a huge risk, but worth noting
Eight weeks w/o any pull-back

1 2 3
Make a
Study &
Watch List
Buy Just
Write Rules Right
6 5 4
Sell Just Manage a
Review
Right Portfolio
65
Back To Weibo (WB)
1 2 3
Make a
Study &
Watch List
Buy Just
Write Rules Right
6 5 4
Sell Just Manage a
Review
Right Portfolio
67
18.85
18.60
Position Planning
• Cash Account Model – No Margin Used
• Plan $20,000 initial position
• Handle high Trend Line pivot point 18.60
• Scale in:
– 50% at 18.60, ~550 shares
– 30% at 19.07 (+2.5%), ~ 320 shares
– 20% at 19.44 (+4.5%), ~ 200 shares
69
Intra-day; First 30 minutes
We know that a little demand can increase

the price quickly after this long basing
70
> 55K Shares
> 55K Shares

B3 200 shares for 20.50 at 9:22 PT
B1 & B2 850 shares for 18.90 at 7:00 PT
Great breakout day
Highest volume since Sept

2014
End of 1st Week
1 2 3
Make a
Study &
Watch List
Buy Just
Write Rules Right
6 5 4
Sell Just Manage a
Review
Right Portfolio
75
Portfolio Management?
• Monitor for follow-up buy point triggers
• Monitor for sell rule triggers
76
Follow-On Buy Points
1. 1st and 2nd Bounce off the 10-week line
2. Pull back to the 10-week line.
3. Regains the 10-week line
4. Three or More Weeks Tight
5. New High After One, Two or Three Week Gentle Pull Back.
6. Short Stroke
7. After four week square box base breakout, 20% or 30%.
8. Breakout from a new, full base (Can add a full new IP)
9. Continuation Gap Up
10. 12 of 15 Days Up, or 11 of 13 Days Up, or 10 of 11 Days Up.
11. After a strong stocks pulls back 10% to 12% add 10% more shares. If
it is an exceptionally strong stock (up 12 of 15 days) add 20% more
shares.
12. At end of 3rd week when up ≥ 20% in ≤ 3 weeks and using the
Certain-teed exception.
13. At the end of a five consecutive weeks up on quiet accumulation.
77
Add-On Size Options
• 20% in dollars of the initial position – constant
each time.
• 20% in number of shares of the IP – constant
• 20% of the current position
78
Add-On Rules
• Add 20% - 30% if the stock is up 6% or more
from the last buy price.
• If up < 6% ratio the add-on smaller. So if up
3% add only 10%.
• Adding 20% - 30% of current position.
• Don’t make add-on buys if within 5% of profit
goal.
79
Sell Rule Summary
1. Sell -7% from buy price. (Cut Loss Sell Rule)
2. Take gains +20% to +25% above pivot point, unless within

the first 8 weeks. Also See rule #14. (Profit Goal Sell Rule.)
3. When profitable 6%-11% or so use 10%-14.5% cushion.
(Decline from the peak sell rule)
4. If -7% failure three times stop buying and study. (Three-Strikes Rule)
5. You may sell if it plunges below the 50-day on huge
volume. (Pierce 50 on huge volume.)
6. You probably should sell if it gaps down on huge volume.

Gap Down on Huge Volume)
(Big
7. If market corrects you may sell lagging positions to reduce

exposure.
8. If up ≥ 20% in ≤ 3 weeks hold 8 full weeks. (Certain-teed hold rule)
9. Sell only if written sell rule is triggered.
10. Stocks surging up past the sell goal may be held using the
10-day line as a selling guide. (Short tern gain extension)
Sell Rule Summary
11. If portfolio is down 4% for the week (no margin) to 8% (full margin), sell weak
stocks to reduce exposure. Generally sell at least one full position to cut risk.
12. May Sell/Probably sell if a breakout on good volume stalls and goes negative
within a day or two, especially if on high volume. (Failing Breakout sell rule.)
13. Sell all or part of stock if afraid or confused.
14. Don’t sell for profit taking for the first 8 weeks. During this time sell only if a
protective sell rule is triggered. This is like the 25% profit goal, #2. Hold until you
reach 8 weeks, and +25%. In a few cases you might hold a stock for 13 weeks
before concluding it is not going to perform. (Time Goal Sell Rule)
15. Keep a 3 to 1 profit to loss plan. (Profit-to-Loss Ratio Rule)
16. Assess risk and sell if needed before earnings, but hold if possible for the earnings
report. (Earnings Release Hold Rule)
17. If closes a week up 50% from IP then use big cushion sell rules. (Big cushion sell rules)
18. May sell if a breakout did not happen or stalled out, but mostly don’t use this rule
unless you are quite sure. (Failed Breakout Sell Rules)
19. Generally hold stocks that are going sideways for 13 weeks (one quarter) before
dumping it.
20. Usually sell all of a stock that has a takeover offer.
21. May sell if a stock is persistently weak after owning it for eight week.
22. Select a few stocks to hold for longer term, larger gains.
23. Plunged significantly (4%-5%) on huge volume (+100% or more).
24. Sell if a stock goes into a climax top. If not sure scale out.
Great breakout week
1st Week
Very decent weekly volume
82
Breakout Day
B3 19.07
B1 & B2 17.58
83
1st Week
21.28
B3 19.07
B1 & B2 18.18
21.78 – 14.5% = 18.18
Raised B1 & B2 sell point from Rule #1

17.58 to Rule #3 18.18; 2% higher.
84
First Week Accounting
Market was in
confirmed uptrend on
4/6/2016
85
Stalling Week
2nd Week
86
2nd Week 22.19
B1 & B2 B3 18.9819.07
22.19 – 14.5% = 18.97
Raised B1 & B2 sell point Rule #3 18.18

to Rule #3 18.97; 4.4% higher.
87
2nd Week Accounting
88
New Situation
3rd Week
89
90
Powerful Stock
• Apply Certain-teed exception (SR #8), or
• Widen The DFP (SR #3)
91
Up ≥ 20% In ≤ 3 Weeks
3rd Week
92
More Basic Sell Rules
8. Certain-teed Eight Week Hold – If a stock advances 20% or more in three
weeks or less then hold it for a eight full weeks and reevaluate. If it is
kept beyond that we need special sell rules for stocks with big profit
cushions. This is the Certain-teed rule. See HTMMIS page 258 the last
paragraph. See 8-Week Hold Rule Details Ahead.
9. Rules Only – Never sell a stock unless it triggers a specific sell rule and
always note it. 24 ELFSI, Lesson #3, Page 13-16
10. If a stock is surging up well above the 10-day line when it reaches +25%
profit goal, and SR #14 time goal, and if it has been generally above the
10-day line during its advance, and handily clears the +25% profit goal
price, then you may apply the rule to extend the 25% gain using the 10-
day violation guideline. (See Applying the Profit Extension Guidelines
below.)
11. Portfolio Management – If the portfolio is drawn down by 4% (No
Margin) to 8% (Full Margin) overall from the prior week, sell all of a stock
that is trading below the buy price, or has gone weak and changed
character, or sell the stock up the least; or pick at least one position. If
the drawdown continues after that, then trim the least performing
stocks first to reduce exposure. Also sell the least performing stock to
raise cash if needed to buy other stocks; or reduce margin use if you are
nervous and unsure, sell rule #13.
93
Certain-teed Eight-Week Hold Rule Details
SI Page 76 Last Paragraph
• If a stock is up ≥ 20% in ≤ 3 Weeks, then hold the stock for eight full weeks and then
reevaluate. This advance should be from a base or consolidation breakout, or in may
be from a bounce off the 10-week line near a base. The stock may have been bought
there, or before, or even after. The first week is the breakout week. Hold to near the
Friday close of the 8th week.
• The stock should be up 20% solidly, preferably closing a day up 20%. Signs of
significant institutional accumulation must be clear; big volume.
• The market should be strong bull, earlier in an advance rather than later, generally in
the first 18 months after the last bear market correction. The stock should have top
CAN SLIM fundamentals, top sponsorship, high ROE, leading a top group/sector.
• This is applied to 1st and 2nd stage bases. You have the option to apply it to later stage
bases, but this has more risk.
• Once a stock is up 20% and on the 8-week hold rule, set the minimum sell floor at just
break even. Never let it round turn into a loss. HTMMIS, Page 271
• As the stock advances so that it is 25% above cost begin moving the sell floor up a
percent at a time, to first 2% above cost then 3%. See the table in the next slide.
• During the eight weeks the other sell rules are suspended.
• Hold to nearly the Friday close of the eighth week and reevaluate looking at the
weekly chart. May even hold for the weekend to reevaluate
94
Decided To Continue With
Sell Rule #14 & #2
But Use A Wider Cushion In SR #3
95
Certain-teed Eight-Week Hold Rule Details
SI Page 76 Last Paragraph
• If a stock is up ≥ 20% in ≤ 3 Weeks, then hold the stock for eight full weeks and then
reevaluate. This advance should be from a base or consolidation breakout, or in may
be from a bounce off the 10-week line near a base. The stock may have been bought
there, or before, or even after. The first week is the breakout week. Hold to near the
Friday close of the 8th week.
• The stock should be up 20% solidly, preferably closing a day up 20%. Signs of
significant institutional accumulation must be clear; big volume.
• The market should be strong bull, earlier in an advance rather than later, generally in
the first 18 months after the last bear market correction. The stock should have top
CAN SLIM fundamentals, top sponsorship, high ROE, leading a top group/sector.
• This is applied to 1st and 2nd stage bases. You have the option to apply it to later stage
bases, but this has more risk.
• Once a stock is up 20% and on the 8-week hold rule, set the minimum sell floor at just
break even. Never let it round turn into a loss. HTMMIS, Page 271
• As the stock advances so that it is 25% above cost begin moving the sell floor up a
percent at a time, to first 2% above cost then 3%. See the table in the next slide.
• During the eight weeks the other sell rules are suspended.
• Hold to nearly the Friday close of the eighth week and reevaluate looking at the
weekly chart. May even hold for the weekend to reevaluate
96
Rule #3 Decline From Peak Cushion
Pick Your Desired Cushion
Basically A Trailing Percentage Stop
97
You May Use A Larger Intra-Day Limit
For Decline From The Peak
Cushion Size Closing Decline Optional Intra-Day
Trigger Trigger
HUGE -16.0% -19%
Very Big -14.5% -16%
Big -13% -14.5%
Large -12% -13.5%
Medium -11% -13%
Small -10% -12%
Tight -9% -11%
Pick the exact parameters for your own rules. This table is a guide
98
More Decline From Peak Details
If Stock Gained, You May Give It More Room
Stock Has Optional Intra-Day Optional Higher

Advanced Limit Closing Price Limit
Decline %
20% to 25% 1% over IP Average From the Cushion
Cost Table 15% to 16%
25% to 35% 2% over IP Average Up to 18%
Cost
Cost
≥ 50% 25% or more 20% or more
Transition to Big decline intra-day decline at the
Cushion Rules. close.
99
Willing to invest nearly all the unrealized 24.40
gain to stay in this stock. Almost like the
-16%
Certain-teed exception rule
End of 3rd Week B1-B3 20.50
24.40 – 16% = 20.50
Sell Rule #14, 40 market days

100
Again, The Choices
101
Apply Sell Rule #8
The Certain-teed Exception
HTMMIS page 258
OR
Use SR #3 and SR #14
102
The Certain-teed Exception
103
Stocks up this much, this fast have shown
exceptional strength. We want to hold on.
Suspend all sell rules – sell only if it

comes all the way back to the buy price
End of 3rd Week
Hold for eight weeks, then reevaluate
If it is still strong we’ll want to hold longer
104
B1 – B3 19.23
105
Manage The Position
Don’t Count The Money Yet!
Applicable Sell Rules:

#2 – Profit Goal +25%
#3 – Decline From The Peak -16% now
#14 – Don’t Take Profits For First Eight Weeks 6/2/16
#16 – Manage Earnings Report Risk, Due 5/11/16 AMC
106
How Do We Manage Portfolio
• Sell Rules – Look for rule triggers
• Follow-Up Buys – Look for rule triggers
• Plan Ahead
• Simple Price Triggers When Possible
107
Willing to invest nearly all the unrealized 24.40
gain to stay in this stock. Almost like the
-16%
Certain-teed exception rule
End of 3rd Week B1-B3 20.50
Sell Rule #14, 40 market days

108
Sell Rule #14
Don’t Take Profits In First Eight Weeks
109
3rd Week Accounting
110
6. Short Stroke
shares. Didn’t Add
111
End of 4th Week – Manage Sell Points
112
End of 5th Week – Manage Sell Points 24.40
-16%
B3 20.82
Sell Rule #14, EOD 6/2/16

113
What about a follow-up buy point?
End of 5th Week
When is the earnings report due?
114
5th Week Accounting
115
End of 5th Week – Manage Sell Points 24.40
-16%
B3 20.82
Not Even Close To A

Sell Rule Trigger
116
Into The 6th Week
117
End of 6th Week
118
6. Short Stroke
shares.
119
End of 6th Week
120
No follow-up buys yet.
End of 6th Week
Earnings Release
121
Follow-Up Buy Here 20% for ~23.00
Bounce off the 10-week line
5% under profit goal
Wednesday, 7th Week
122
End of 7th Week
24.79
23.88, Goal
A1B1-B3 21.02 20.98
Sell Rule #14, EOD 6/2/16

123
7th Week
124
How Do We Manage Portfolio
• Sell Rules – Look for rule triggers
• Follow-Up Buys – Look for rule triggers
• Plan Ahead
• Simple Price Triggers When Possible
125
Wednesday, 8th Week
23.88
Thursday, 6/2/16
126
Sell Rule Summary
1. Sell -7% from buy price. (Cut Loss Sell Rule)
2. Take gains +20% to +25% above pivot point, unless within

the first 8 weeks. Also See rule #14. (Profit Goal Sell Rule.)
3. When profitable 6%-11% or so use 10%-14.5% cushion.
(Decline from the peak sell rule)
4. If -7% failure three times stop buying and study. (Three-Strikes Rule)
5. You may sell if it plunges below the 50-day on huge
volume. (Pierce 50 on huge volume.)
6. You probably should sell if it gaps down on huge volume.

Gap Down on Huge Volume)
(Big
7. If market corrects you may sell lagging positions to reduce

exposure.
8. If up ≥ 20% in ≤ 3 weeks hold 8 full weeks. (Certain-teed hold rule)
9. Sell only if written sell rule is triggered.
10. Stocks surging up past the sell goal may be held using the
10-day line as a selling guide. (Short tern gain extension)
Sell Rule Summary
11. If portfolio is down 4% for the week (no margin) to 8% (full margin), sell weak
stocks to reduce exposure. Generally sell at least one full position to cut risk.
12. May Sell/Probably sell if a breakout on good volume stalls and goes negative
within a day or two, especially if on high volume. (Failing Breakout sell rule.)
13. Sell all or part of stock if afraid or confused.
14. Don’t sell for profit taking for the first 8 weeks. During this time sell only if a
protective sell rule is triggered. This is like the 25% profit goal, #2. Hold until you
reach 8 weeks, and +25%. In a few cases you might hold a stock for 13 weeks
before concluding it is not going to perform. (Time Goal Sell Rule)
15. Keep a 3 to 1 profit to loss plan. (Profit-to-Loss Ratio Rule)
16. Assess risk and sell if needed before earnings, but hold if possible for the earnings
report. (Earnings Release Hold Rule)
17. If closes a week up 50% from IP then use big cushion sell rules. (Big cushion sell rules)
18. May sell if a breakout did not happen or stalled out, but mostly don’t use this rule
unless you are quite sure. (Failed Breakout Sell Rules)
19. Generally hold stocks that are going sideways for 13 weeks (one quarter) before
dumping it.
20. Usually sell all of a stock that has a takeover offer.
21. May sell if a stock is persistently weak after owning it for eight week.
22. Select a few stocks to hold for longer term, larger gains.
23. Plunged significantly (4%-5%) on huge volume (+100% or more).
24. Sell if a stock goes into a climax top. If not sure scale out.
Sell Here, Rule #2 & #14?
Or Sell Rule #22 – Hold Longer

23.88
Wednesday, 8th Week
Thursday, 6/2/16
129
Maybe Take Profits Next Week?
• Must be ≥ $23.88 (+25% from pivot point),
and
• At or after the close on the 40th market day,
Thursday, June 2, 2016
130
OR?
131
Or, Hold Longer For Bigger Gains?
Sell Rule #22
132
How Do We Ever Have A 200% Or
More Gainer?
• At the end of sell rule #14 the stock is up 50%
or more so we apply the big cushion rules.
• We used the Certain-teed exception, SR #8,
and then after eight weeks the stock is up 50%
or more and we apply the big cushion rules.
• Certain-teed exception and at end of eight
weeks we reevaluate and keep holding
• We apply sell rule #22 and keep holding.
133
How Do We Ever Have A 200% Or
Easy Decision
More Gainer?
• At the end of sell rule #14 the stock is up 50%
or more so we apply the big cushion rules.
• We use the Certain-teed exception, SR #8, and
then after eight weeks the stock is up 50% or
more and we apply the big cushion rules.
• Certain-teed exception and at end of eight
weeks we reevaluate and keep holding
• We apply sell rule #22 and keep holding.
Harder Decision
134
Or, Hold Longer For Bigger Gains?
Sell Rule #22
Harder Decision – More Subjective
Investing/Risking Decent Unrealized

Gains
For Possible Much Bigger Gains
135
22. Select one in five to one in three stocks to hold for long
term gains. (Bill O’Neil, Model Stock Summit 2012, but these are Lee Tanners
guidelines below, not Bill O’Neil’s.)
• Market should be generally bullish and within 18 months of a
10% or greater correction on the Nasdaq or S&P 500 Index,
intra-day. The market condition is a key factor in the decision
to hold stocks longer than the standard profit goal.
• Stock should have many characteristics of a “Big Stock” or
“Model Stock.” (See Sell Rule #8, Certain-teed Exception.)
• Until the stock is up 50% (Big cushion trigger) , it can be
manage using normal sell rules, but widen decline from the
peak to 16% or more.
• Depending on the 10-week moving average it may be
transitioned to the “Big Cushion” sell rules sooner than waiting
for it to be up 50%.
136
Characteristics of a Big Stock
• Massive volume in prior uptrend Yes
• Up 5 or more weeks in a row, often times 7 or 9 or more. No
• Five or more weeks up in a row recently Yes
• Weekly closes in the upper half, or upper quartile. Yes
• Usually Higher Liquid, trades $50M to more than $1 Billion per day No
• Strong earnings, EPS growth greater than 50%, especially > 100% Yes
• Strong sales growth and a compelling something new. Yes
• Usually higher ROE and PTM with PTM improving No Yes
• Accelerating earnings growth at some point in recent past Yes
• Strong demand/supply: Average volume (much) greater than 1% of float and an
IBD Supply/Demand rating of 85 or more. Yes
• Very strong RS line in the 12 o’clock to 2 o’clock range. No
• Generally Trending Above the 20-day line. The chart looks strong. Yes
• Stocks out of IPO bases, or 1st stage after IPOs. Yes
• Trades tightly after big run up Yes
• Tight daily and weekly ranges and closes, the opposite of wide & loose. Yes
• Gap ups in the pattern No
• Extreme volume dry ups along lows of base and handle No
• Owned by good mutual funds Yes
• Higher management ownership Yes
137
The Key Factors
• Top fundamentals, and improving Yes
• Something New Yes, new ad revenue and mobile
• Institutional Accumulation Yes, look at chart
138
8th Week
139
8th Week
140
Hold It Per SR#22
141
142
6. Short Stroke
shares.
12. At end of 3rd week when up ≥ 20% in ≤ 3 weeks
143
8th Week
SBB, 5-weeks, 14%
HTMMIS, 4th, pp 128 - 130
144
OR
145
6. Short Stroke
shares.
12. At end of 3rd week when up ≥ 20% in ≤ 3 weeks
146
8th Week
New High
Gentle and Tight
147
8th Week
A2 30%, 380 shares, for 25.20
148
8th Week
149
More Decline From Peak Details
If Stock Gained, You May Give It More Room
Stock Has Optional Intra-Day Optional Higher

Advanced Limit Closing Price Limit
Decline %
20% to 25% 1% over IP Average From the Cushion
Cost Table 15% to 16%
Cost
Cost
≥ 50% 25% or more 20% or more
Transition to Big decline intra-day decline at the
Cushion Rules. close.
150
8th Week
151
8th Week
25.80
A2 23.44
-18%
All Other 21.16
152
9th Week SR #22 – Easy Decision on
Thursday, 6/2/16, closing +40%
153
10th Week
154
11th Week
29.49
-18%
All 24.18
155
12th Week
3WT
156
13th Week
3WT & 4-w SBB, 12%
157
Tuesday, the 14th Week
A3, 30%, SBB
158
Wednesday, the 14th Week
How Do We Feel?
159
How Do We Feel?
160
14th Week
Big Cushion SR #17
161
15. Maintain a profit to loss plan with a ratio of about 3
to 1. SI Page 17, Step 2 (3-to-1 ration rule)
16. If an earnings report is due, evaluate the gap down
risk and if there is insufficient profit cushion to avoid
a loss more than 7% from the cost basis, then sell
part of all of the position to keep the assessed loss
risk at 7% or less. (See Earnings Release Guidelines.)
(Earnings Release Rule)
17. When a stock closes a week up 50% from the base

pivot point and the last breakout was from a 1st or 2nd
stage base then hold the stock for long term gains
and apply the big cushion sell rules. If a stock is held
for long term gains (Rule 22) apply this BC rule when
it has a gain of 50% or more. (See BC Details)
162
Big Cushion Sell Rules
• Climax Top – the goal of the BC sell rules
• Change in Character from Strong to Weak
– Closes the first week below the 10-week on huge
volume.
– Persistently weak for some weeks.
163
Classic Climax Top
Sell when we recognize this huge,

unusual up surge
The classic climax top. We can

double our gain is a few weeks.
164
Huge 50% gain in a week, or two
165
14th Week
32.00
-18%
A3 27.16
A2 26.24
Big Cushion
166
14th Week Accounting
Market?
167
15th Week
Market?
168
16th Week
169
17th Week Add-On Buy Possible
170
Monday, A4, 20%, 430 shares for 33.96 at
18th Week 12:50 PT
171
How do you feel?
172
How do you feel?
Rules
173
End of
18th Week
Earnings Report Due

8/8/16 AMC
174
18th Week
175
• Plan Ahead
Earnings Reports Cause Gaps Down and Up
176
19th Week, Monday, Day of ER, AMC
177
A5, 20%, Gap Up, 39.00, 6:33 PT
178
End of
19th Week
179
19th Week
180
20th Week
181
21th Week
Watch for 12 of 15 days up
182
22th Week
183
23rd Week
184
24th Week
185
25th Week
186
187
Up ~80% in 8 weeks,
Not quite a HTF, but it is a
4-week, 13% SBB,
188
8
7
6
5
4
2 3
1
Up ~80% in < 8 weeks,
Not quite a HTF,
189
Up ~80% in 8 weeks,
Not quite a HTF, but it is a
4-week, 13% SBB,
On weekly chart it the pole

is 9 weeks
190
26th Week
191
192
This Concludes
Fort Collins IBD Meetup
September 28, 2016
Lee Tanner
Amateur Volunteer
~ Happy and Profitable Investing to You All ~
193
Questions
194

WB Model Stock FT Collins IBD PDF

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Fort Collins IBD Meetup

Wednesday, September 28, 2016

CAN SLIM Basics Review

CAN SLIM® Is The Registered Trademark Of Investors Business Daily (IBD ®)

5 IBD Live Workshops

8 IBD Home Study Programs

Alibaba May Boost Stake

Did We See It?

Did We Buy It?

Very High Earnings Growth

Weibo (WB) Described by Amy Smith

How to Make Money in Stocks, by William J. O’Neil

Below Average Vol.

Eight weeks w/o any pull-back

We know that a little demand can increase

> 55K Shares

Highest volume since Sept

2. Take gains +20% to +25% above pivot point, unless within

6. You probably should sell if it gaps down on huge volume.

7. If market corrects you may sell lagging positions to reduce

Very decent weekly volume

21.78 – 14.5% = 18.18

Raised B1 & B2 sell point from Rule #1

22.19 – 14.5% = 18.97

Raised B1 & B2 sell point Rule #3 18.18

But Use A Wider Cushion In SR #3

Stock Has Optional Intra-Day Optional Higher

24.40 – 16% = 20.50

Sell Rule #14, 40 market days

Use SR #3 and SR #14

Suspend all sell rules – sell only if it

End of 3rd Week

Hold for eight weeks, then reevaluate

If it is still strong we’ll want to hold longer

Don’t Count The Money Yet!

Applicable Sell Rules:

Sell Rule #14, 40 market days

Sell Rule #14, EOD 6/2/16

End of 5th Week

When is the earnings report due?

Not Even Close To A

End of 6th Week

End of 6th Week

End of 6th Week

Wednesday, 7th Week

A1B1-B3 21.02 20.98

Sell Rule #14, EOD 6/2/16

2. Take gains +20% to +25% above pivot point, unless within

6. You probably should sell if it gaps down on huge volume.

7. If market corrects you may sell lagging positions to reduce

Or Sell Rule #22 – Hold Longer

Investing/Risking Decent Unrealized

HTMMIS, 4th, pp 128 - 130

Gentle and Tight

Stock Has Optional Intra-Day Optional Higher

All Other 21.16

17. When a stock closes a week up 50% from the base

Sell when we recognize this huge,

The classic climax top. We can

Earnings Report Due

Earnings Reports Cause Gaps Down and Up

Watch for 12 of 15 days up

On weekly chart it the pole