Introducing and Creating the CAN SLIM No Float ScreenDownload printable PDF
The Stock Investor Pro program currently contains two screens based on William O’Neil’s CAN SLIM approach. The first screen, listed as *O’Neil (CANSLIM) in SI Pro, is based on William O’Neil’s investing methodology outlined in the second edition of his book, “How to Make Money in Stocks.” The second screen, called *O’Neil (CANSLIM Revised), was updated to reflect the third edition of the book. Though both screens have enjoyed strong price performance over our backtesting period, AAII’s original O’Neil CAN SLIM really took off and has been one of our top-performing screens from 1998 through 2012. Recently, however, the screen has produced very few passing companies, making it increasingly difficult to utilize this screen in a balanced investing strategy.
Modifying the CAN SLIM Screen
A method to adjust the O’Neil CAN SLIM screen to allow for more passing companies while keeping the approach true to its methodology was discussed by Wayne A. Thorp, CFA, in the Second Quarter 2013 issue of Computerized Investing. The newly created screen removes a float requirement of a maximum 20 million shares outstanding. (Float is the total number of shares publicly owned and available for trading; it is used in the original SI Pro screen based on O’Neil’s suggestion to invest in stocks with a limited number of outstanding shares. However, a specific limit was never quantified by O’Neil in his books.) When backtested for long-term performance, the new screen, called CAN SLIM No Float, pales in comparison to the original CAN SLIM screen. However, the CAN SLIM No Float screen performs better than the CAN SLIM Revised screen.
Computerized Investing subscribers can read more about the CAN SLIM No Float methodology by clicking here. In addition, a new stock screen page on AAII.com has been created where you can track the performance of the CAN SLIM No Float screen, which can be found here.
Using the Screen Editor to Create CAN SLIM No Float
The CAN SLIM No Float screen has yet to be added to Stock Investor Pro. However, you can create the modified screen very easily, since the only difference between the original CAN SLIM screen and the CAN SLIM No Float screen is that the float criterion has been removed. Therefore, we simply need to delete that criterion from the original CAN SLIM screen.
After you have loaded Stock Investor Pro, open the Screen Editor by going to Tools and selecting Screen Editor or by pressing on the funnel icon. Load the original CANSLIM screen, which is predefined in Stock Investor Pro. All of the criteria in the original CANSLIM screen will be shown. At the bottom right of the window, you can see that the original CANSLIM screen results in four passing companies with data as of March 15, 2013.
To delete a line of criteria in a screen, first click on the criterion line you would like to remove, in this case the float criterion. An arrow will appear to the left of the line selected. Then press Delete at the bottom of the Screen Editor. The criterion line selected will be removed from the screen. As shown at the bottom right of the modified screen, 14 companies passed all the criteria after taking out the float requirement. To save the screen, click Save As at the bottom of the Screen Editor. You are not able to save over a pre-loaded screen, so the screen must be given a different name. After the screen is saved, you can pull the new screen up at any time.