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.

LB Foster Co. Co. (FSTR +$2.05 or +4.22% to $50.61) gapped up and traded to a new all-time high on Wednesday on above average volume. This high ranked leader was first featured today, Wednesday, December 05, 2007 in the CANSLIM.net Mid Day Breakouts Report (read here) with a $51.55 pivot point and a $54.13 maximum buy price.  The report said, "Y - Gapped up and traded to new highs with volume running at an above average pace, but to trigger a proper technical buy signal it needs to rise above its pivot point with great volume conviction. Great earnings growth history satisfies the C and A criteria, however Return on Equity of 12% is under the 17% guideline. Small supply of shares could lead to great volatility in the event of institutional accumulation. Number of top-rated funds owning it improved from 22 in March '07 to 26 in Sept '07, helping satisfy the I criteria."

When solid gains on at least +50% above average volume lift a stock above its pivot point, then there is finally the critical proof that institutional investors (the I criteria) are accumulating shares.  That increases the chances of a sustained advance and meaningful profits for disciplined investors. FSTR has yet to trade above its pivot point with the necessary volume needed to trigger a technical buy signal. However, until then, it remains a strong candidate for investors' watch lists. FSTR sports a very strong Earnings Per Share (EPS) rating of 99, the highest possible reading. It is also encouraging to see the company earn a healthy Relative Strength (RS) rating of 98.  The company has managed to increase its earnings by triple digits over each of the past four quarterly comparisons versus the year earlier. Foster resides in the Metal Production Fabrication group which is currently ranked 59th out of the 197 Industry Groups covered in the paper, just outside the top quartile. However there are other high-ranked stocks providing leadership such as: Dynamic Materials Corp (BOOM -1.88%) and Schnitzer Steel (SCHN +4.76%) that help this stock satisfying the L criteria. The number of top-rated funds owning an interest rose from 22 in Mar '06 to 26 in Sept '07, which shows increasing institutional demand (the I criteria).

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