Question:

Do the stocks in the "Portfolio" always follow the CANSLIM
criteria.  It seems that some of the "Watch" stocks aren’t always above
$15,  earnings aren’t always in the excellent category, trading volume
is on the slim side, etc.  Are there some CANSLIM criteria that are more
important than others?  Are we mostly looking for breakouts and
interesting technical analysis?  Do I just need a little more experience
in CANSLIM?

My Response:

[the originial response has been edited to reflect changes in the Model Portfolio]

First off, I’ll say that I don’t follow a strict CANSLIM approach but rather elements
of it that are common to many successful investing strategies, such as focusing
on companies that are exhibiting strong earnings/sales growth and technically
superior.  Where I tend to differ is that I won’t hesitate to purchase stocks under
$10/share or that may not have a history of strong earnings but are expected to
increase earnings dramatically in the near future.  In addition I tend to hold more
positions than what would be recommended in a classic CANSLIM approach.

I would characterize the SelfInvestors Model Portfolio as one that ecompasses
a variety of strategies to achieve market beating returns.  Short plays are used
in a market downturn and recently (last half of 2006) I have added the use of ETF’s
and what I call Quick Strike Profit plays (technical swing plays with big short term
profit potential) to add some oomph to portfolio gains.  While the portfolio focuses
almost exclusively on high growth stocks, it’s fairly conservative and well diversifed.