Lutey Moderate Growth - Simplified CAN SLIM 

Core Philosophy

Buy companies with accelerating earnings whose stock prices are already confirming that strength by trading near new highs.

This aligns with the original CAN SLIM insight:

• Fundamentals lead

• Price confirms

• You enter before institutional ownership becomes crowded

Simplified CAN SLIM (ACS) Screening Rules

The ACS model uses only two objective filters:

1. Earnings Growth Filter (Fundamental Strength)

A stock must show both long-term consistency and short-term acceleration:

• ≥ 15% average annual EPS growth over the past 5 years

• ≥ 25% EPS growth in the most recent quarter
  (compared to the same quarter one year earlier)

This ensures you are buying:

• Proven growers (not one-off stories)

• Companies with recent earnings acceleration

2. Price Confirmation Filter (Momentum Validation)

• Current stock price is within 10% of its all-time high

This avoids:

• Value traps

• Turnaround speculation

• Stocks rising only on hope rather than demand

Price near highs confirms institutional accumulation and demand dominance.

Step-by-Step Implementation Guide

Step 1: Define Your Universe

• Use liquid, exchange-listed stocks (NYSE / NASDAQ)

• Avoid micro-caps and illiquid names

Step 2: Run the Earnings Screen

Filter stocks that meet both:

• 5-year average EPS growth ≥ 15%

• Most recent quarterly EPS growth ≥ 25% YoY

This can be done using:

• FactSet, Portfolio123, Bloomberg, or similar data sources

• A simple Python or spreadsheet screen if data is available

Step 3: Apply the Price Filter

From the earnings-qualified list, keep only stocks where:

• Current price ≥ 90% of the stock’s all-time high

This ensures trend confirmation, not prediction.

Step 4: Portfolio Construction

• Hold all passing stocks (no discretionary selection)

• Equal-weight positions

• Avoid over-concentration in one sector

Step 5: Rebalancing

• Rebalance monthly

• Remove stocks that no longer meet the criteria

• Add new stocks that pass the screen

This maintains exposure to current leadership, not legacy winners.