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Winning Example to Study +73.13% Gain in Under 4 Months - Friday, June 09, 2006
Eagle Materials Inc. (EXP - NYSE) - The company was first highlighted as a buyable breakout under the guidelines in the January 24th, 2006 CANSLIM.net's Mid-Day Breakouts Report at $43.06 (split adjusted) with an annotated DailyGraph (read here). Just two short days later, the stock gapped up for considerable gains driven by huge volume as it rose out of a 5-month base - obviously helped by the company's report of stronger-than-expected fourth quarter financial results. The company, which manufactures construction materials, saw its profits surge +57% from the same period in the previous year and also raised its guidance through 2007.
From January 26th, 2006 to March 14th, 2006 the stock formed annother orderly base at least 6-weeks in duration and it held above its 50-day moving average (DMA) line as the stock experienced a normal consolidation. Then, on March 15th, 2006 its "Solid gains trading up 8.5% to an all-time high close with volume conviction" were noted in the Featured Stock Update section of the CANSLIM.net After Market Update, and it made an appearance at $59.01 the next day in the Mid-Day Breakouts Report (read here). It topped out on April 18th, 2006 at $74.55, capping a +73.13% rise in less than 4 months!
On May 3rd, 2006 our experts noted its gap down as a concern and cautioned that a violation of its 50 DMA would be another technical sell signal to watch out for. Six days later, the 50 DMA violation was noted in the remarks "Closed below its 50 DMA ($63.13). As previously noted -a serious break below there would be a sell signal" in the Featured Stock Update section of the May 9th, 2006 After-Market Update (read here). Those who ignored the sell signals have subsequently seen repeated declines on above average volume erase every bit of those big gains! This selection is another fine example of how CANSLIM.net reports helped make it clear to members, not only when it was smart to consider getting in, but also when it was smart to consider getting out of the stock with a big profit still intact.
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Great Winning Example Now Consolidating Quietly - Tuesday, April 11, 2006
Often, when a leading stock is setting up to breakout of a solid base it is highlighted in CANSLIM.net's Mid-Day Breakouts Report. The most relevant factors are noted in the report which allows prudent CANSLIM oriented investors to place the issue in their watch list. After doing any necessary backup research, the investor is prepared to act if and when the stock triggers a technical buy signal (breaks above its pivot point on more than +50% average turnover). In the event the stock fails to trigger a technical buy signal and its price declines then it will simply be removed from the watch list.
Eagle Materials Inc. (EXP -$1.69 or -2.42% to $68.04) was featured on January 24th, 2006 in the CANSLIM.net's Mid-Day Breakouts Report as it was moving above its pivot point (read here). It gapped up dramatically just two days later after reporting strong earnings results. It has traded up as much as +68.47% since it was first featured, making for a great winning CAN SLIM(TM) example. Of course, at the present time the stock is too extended from a proper buy point, and it has quietly consolidated for a few days with only minor declines on lighter than average volume. Support should be solid in the $57 range which coincides with prior chart resistance and its 50-day moving average (DMA) line.
Another Amazing Example - Thursday, January 26, 2006
Often, when a leading stock is setting up to breakout of a solid base it is highlighted in CANSLIM.net's Mid-Day Breakouts Report. The most relevant factors are noted in the report which allows prudent CANSLIM oriented investors to place the issue in their watch list. After doing any necessary backup research, the investor is prepared to act if and when the stock triggers a technical buy signal (breaks above its pivot point on more than +50% average turnover). In the event the stock fails to trigger a technical buy signal and its price declines then it will simply be removed from the watch list.
Eagle Materials Inc. (EXP +$34.4 or +26.67% to $163.37) gapped out of a 5-month base on last Thursday after the company reported stronger than expected fourth quarter results. The company, which manufactures construction materials, saw its profits surge +57% from the same period in the previous year. It also raised its guidance through 2007. This stock offers an excellent example of how prudent investors can utilize CANSLIM.net. This issue was featured on January 24th, 2006 in the CANSLIM.net's Mid-Day Breakouts Report as it was moving above its pivot point (read here). In less than a week, this issue has jumped an impressive +26%! Of course, it is too far extended beyond the pivot point to be considered an appropriate purchase candidate now.
