I am looking at the CANSLIM allstar screen. It has the rule
ShsOutMR < 25
I could not find a definition of ShsOutMR, but assume it the number of shares oustanding (millions).
My actual question is why would a person use this rule? It seems arbitrary. Any insight?
According to the book, small-cap companies move easier. Less demand is needed for the stock prices to go up.
Interested on what kind of results you see from that system… I tried to read the book on CANSLIM and the author seemed like such a used car salesman I had to put it down.
I think ShrsOutMR has been deprecated but not sure. I don’t use it.
ONeil specified smaller float companies as especially good growth prospects, hence the rule. His book is kind of salesy but it does have good ideas. I could never figure out how to implement a cup with handle in P123, however…