The CAN SLIM® Methodology
John M. Wildern
Executive Vice President
248.470.3600
jwildern@northcoastam.com
Hugh L. Boyle
Vice President
203.532.7003
hboyle@northcoastam.com
6 Glenville St | Greenwich, CT 06831 | info@ncamadvisors.com | www.ncamadvisors.com | phone: 203.532.7003 | fax: 203.532.7014
NorthCoast Asset Management:
Our Heritage
NorthCoast is based in Greenwich, Connecticut and
was founded in 1988 by Paul Dean, Rick Semels,
Harry Suber, and Brent Elam. Our expertise lies in our
unique ability to research and construct systematic and
tactical investment strategies.
 Manage over $1 Billion in client assets.
 Exclusive agreement with Investor’s Business Daily to offer domestic and international
CAN SLIM® methodologies to institutional and retail communities.
 Current offerings include seven separate account portfolios and one public mutual
fund.
 Three separate account portfolios that allow full tactical shift between 100% equity
allocation and 100% cash allocation.
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2
The CAN SLIM® Methodology
System of stock analysis introduced by William O’Neil, founder of Investor’s Business
Daily newspaper, and author of the best-selling book: “How to Make Money in Stocks.”
O’Neil carefully analyzed the 500 top-performing stocks dating back to 1953 and identified
7 characteristics they all shared:
C
A
N
=
=
=
Current earnings per share: should be up 20% or more.
Annual earnings increasing: should be up 25% or more each year for 3 years.
New: new product, new service, and/or new management; also the stock price should be at a
new high.
S
=
Supply and demand of shares: look for optimal combination to take advantage of price
advances.
L
I
=
=
Leadership: buy stocks that are industry leaders, not laggards.
Institutional sponsorship: large institutions and mutual funds should own it and be
increasing stake.
M
=
Market direction: 3 of 4 stocks follow the market direction, so invest during bull market trends.
Sample Stocks Include: Wynn Resorts (WYNN), Apple (AAPL), Skyworks Solutions (SWKS)
6 Glenville St | Greenwich, CT 06831 | info@ncamadvisors.com | www.ncamadvisors.com | phone: 203.532.7003 | fax: 203.532.7014
3
CAN SLIM® by NorthCoast
Dual Approach: Macro (NorthCoast trend-following) and Micro (CAN SLIM® stock selection)

Macro Approach
 NorthCoast Trend-Following: proprietary modeling system analyzes Russell 3000 moving averages, market
volume, confirmation/distribution patterns, and relative strength to determine prudent allocation to stocks vs. cash.
 Portfolio Construction: 0 to 30 stocks with 3%-4% allocation to each position.
 Increase or decrease equity allocation as much as 1-2 stocks per trading session.
 No buys implemented if CAN SLIM® stocks are not available.

Micro Approach
 Analysis of CAN SLIM® factors such as Investor’s Business Daily Composite Ranking and SMR Ranking, Earnings
Growth, ROE, Volume, Institutional Ownership, and Relative Strength.
 Daily screening and analysis on over 6,000 stocks.
 Sell Discipline: maximum 8%-16% loss target per position, depending on expected volatility of individual stock.
 Profit Taking: for every 25% gain, sell 25% of position.
 New Account Special Handling: new accounts funded with cash can take up to 3 months to achieve desired
allocation target; each individual account treated separately.
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4
2008: A Case Study in the Benefit of Cash Scaling
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5
Cash Scaling and CAN SLIM®
Performance: 2001-2010
CAN SLIM®
Investment Program
S&P 500
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Total
Thru 12/31/10
11.5%
1.8%
54.2%
30.7%
12.8%
9.2%
11.6%
-13.2%
9.0%
17.4%
248.0%*
-11.9%
-22.1%
28.7%
10.9%
4.8%
15.5%
4.9%
-37.5%
23.5%
15.1%
10.8%
*See Appendix
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6
Capture Ratio Analysis
A Capture Ratio measures the performance of the CAN SLIM® Investment Program vs. the S&P 500
in both positive and negative market periods. The following results observe monthly data for the life of
the CAN SLIM® Investment Program and highlight the most important facet of our tactical asset
management approach. On average, the strategy has returned 110% of the market’s positive return in
favorable months while sacrificing less than half of the S&P loss in unfavorable months.
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Five-Year Drawdown Comparison
*Performance is net of
fees. See appendix.
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CAN SLIM®: 3 Portfolio Options
CAN SLIM® Investment Program
• Objective: Capital Appreciation
• Maximum 100% exposure to
stocks
• Designed for investors looking to
maximize return using
CAN SLIM® Methodology.
Lifestyle Portfolio: Growth & Income
• Objective: Growth & Income
• Maximum 75% exposure to
stocks
• Designed for growth-oriented
investors who prefer lower
volatility than an all-equity
portfolio.
• 25% laddered bond component
utilizes fixed-income ETFs.
Lifestyle Portfolio: Balanced
• Objective: Modest Growth &
Income
• Maximum 50% exposure to
stocks
• Designed for risk-averse or retired
investors who seek a low-volatility
equity and income portfolio.
• 50% laddered bond component
utilizes fixed-income ETFs.
6 Glenville St | Greenwich, CT 06831 | info@ncamadvisors.com | www.ncamadvisors.com | phone: 203.532.7003 | fax: 203.532.7014
9
CAN SLIM® Lifestyle Portfolios:
Growth & Income and Balanced
2003
2004
2005
2006
2007
2008
2009
2010
Total
Thru 12/31/10
-0.9%
54.2%
30.7%
12.8%
9.2%
11.6%
-13.2%
9.0%
17.4%
202.2%*
1.2%
39.5%
23.1%
10.3%
5.3%
10.1%
-6.9%
7.1%
12.5%
149.2%*
3.2%
25.7%
15.9%
7.6%
4.1%
9.3%
0.0%
5.0%
9.1%
110.9%*
2002
Jun30-Dec31
CAN SLIM®
Investment Program
CAN SLIM®
Growth & Income
CAN SLIM®
Balanced
*See Appendix
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CAN SLIM® International by NorthCoast

Traded and researched by the same management team behind the NorthCoast CAN SLIM® Investment Program

Available to the public January 2011
Dual Approach: Macro (NorthCoast trend-following) and Micro (CAN SLIM® stock selection)

Macro Approach

NorthCoast Trend-Following: proprietary modeling system analyzes MSCI EAFE moving averages, market volume,
confirmation/distribution patterns, and relative strength to determine prudent allocation to stocks vs. cash.


Portfolio Construction: 0 to 30 stocks with 3%-5% allocation to each position using ADRs.

Increase or decrease equity allocation as much as 1-2 stocks per trading session.

No buys implemented if CAN SLIM® stocks are not available.
Micro Approach

Analysis of CAN SLIM® factors such as Investor’s Business Daily Composite Ranking and SMR Ranking, Earnings Growth,
ROE, Volume, Institutional Ownership, and Relative Strength.

Daily screening and analysis on over 700 stocks with operations across the globe.

Sell Discipline: maximum 8%-16% loss target per position, depending on expected volatility of individual stock.

Profit Taking: for every 25% gain, sell 25% of position.

New Account Special Handling: new accounts funded with cash can take up to 3 months to achieve desired allocation target;
each individual account treated separately.
6 Glenville St | Greenwich, CT 06831 | info@ncamadvisors.com | www.ncamadvisors.com | phone: 203.532.7003 | fax: 203.532.7014
11
CAN SLIM® International Model
Performance: 2001-2010
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Total
Thru 12/31/10
-10.3%
-4.4%
30.0%
21.4%
23.6%
5.3%
34.9%
-14.2%
30.8%
8.4%
189.4%*
MSCI EAFE
-33.1%
-21.8%
38.1%
17.2%
11.3%
23.2%
12.9%
-46.5%
23.2%
5.3%
-9.0%
S&P 500
-11.9%
-22.1%
28.7%
10.9%
4.8%
15.5%
4.9%
-37.5%
23.5%
15.1%
10.8%
CAN SLIM®
International
*See Appendix
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Appendix
6 Glenville St | Greenwich, CT 06831 | info@ncamadvisors.com | www.ncamadvisors.com | phone: 203.532.7003 | fax: 203.532.7014
13
Benefits of a Separately
Managed Account
•
Tax Control – client owns stock at his/her basis & can tax manage at
year-end.
•
Efficient Buy Strategy – gradually ease into market to take advantage of
optimal buy points.
No “turnkey model” approach.
•
Performance – unlike mutual funds, no need to hold cash for
redemptions.
Ability to hold 100% cash if market dictates.
•
Transparency – client will see portfolio and transactions.
•
Customization – ability to eliminate “sin stocks” or duplicate holdings.
•
$100,000 minimum.
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14
NorthCoast Asset Management Officers
Paul E. Dean, Chairman
Mr. Dean graduated from Georgia Institute of Technology in 1966 with a B.S. degree in Industrial Engineering and
earned an MBA from Harvard University in 1968. While at Harvard he co-founded Berkley Dean and Company,
which today is a subsidiary of NYSE listed W.R.Berkley (ticker: BER). In 1972, Mr. Dean left Berkley and has
since been involved in researching, developing and implementing trading strategies based on a trend following
philosophy including partnering in 1976 with the late Richard D. Donchian, who was a major pioneer of the
diversified, trend following method of investing. Mr. Dean co-founded NorthCoast Asset Management in 1988.
Daniel J. Kraninger, President
Previously Mr. Kraninger was Senior Vice President of GE Private Asset Management (GEPAM) a $2.5 billion
money management subsidiary of GE Capital. His responsibility at GEPAM was directing their Private Client
Group - a team that advised and managed money for over 1,500 high-net worth clients. Prior to GE, he served as
Senior Vice President of O’Shaughnessy Capital Management (OCM), a $1 billion Greenwich investment adviser
and mutual fund manager that he helped establish in 1996 with founder, Jim O’Shaughnessy. Before OCM, Mr.
Kraninger worked at Merrill Lynch as a member of the 1994 JET Program and he is a graduate of Villanova
University in Philadelphia.
J. Richard Semels, Portfolio Manager
Mr. Semels graduated from the University of Connecticut in 1964 with a B.A. degree in English. Mr. Semels began
his securities career in 1974 when he joined Salomon Smith Barney. As Senior Vice President-Investments he
soon was involved in researching, developing and implementing trading and risk management systems. In 1980,
he founded Atlantic Associates -- a CTA that specialized in quantitative futures strategies that later evolved into
the creation of NorthCoast Asset Management in 1988.
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15
NorthCoast Asset Management Officers
Brentin C. Elam, Portfolio Manager
Mr. Elam graduated from the University of Cincinnati in 1969 with a B.S. degree in Science. Mr. Elam has traded
futures professionally since 1970, using and writing computer programs for trading portfolios. He was a founding
director of the National Association of Futures Trading Advisors and has served on the National Futures
Association’s CTA/CPO Advisory Committee and the NFA’s Business Conduct Committee, Eastern Region.
John M. Wildern, Executive Vice President
Mr. Wildern began his career in the securities industry in 1999 with UBS PaineWebber, where he primarily worked
with 401(k) plans for the small business segment. In 2001, Mr. Wildern joined Fidelity Investments as a Financial
Advisor, responsible for coordinating retirement and estate plans for individual investors. His last role at Fidelity
was that of Vice President within the high net worth Private Access group, where he managed a $700 million
portfolio of both individual and institutional client assets. Mr. Wildern holds a B.S. in Economics from Hillsdale
College, a M.A. in Financial Economics from the University of Detroit Mercy, and an MBA from the J.L. Kellogg
School of Management at Northwestern University.
Harry H. Suber, Ph.D., Portfolio Manager
From 1960 to 1969, Dr. Suber attended Clemson University in South Carolina earning a B.S. (cum laude) in
Physics, a MS in Mathematics and a Ph.D. in Mathematics. He was an Associate Professor with the Department
of Mathematics at Salisbury University in Maryland from 1969 to 1990. Dr. Suber is a co-founder of NorthCoast
AM and has been the Director of Research since May, 1988. He has primary responsibility for computer-assisted
research and programming for NorthCoast’s portfolio management models and systems.
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16
Disclosure Information
The CAN SLIM® Investment Program is a long-term growth portfolio that invests in CAN SLIM® stocks as markets are rising and scales to cash as
markets weaken. Its objective is capital appreciation. The chart above shows the total return, including reinvestment of all dividends, and net of
commissions and maximum investment advisory fees of 2.50%. The performance for the CAN SLIM® Investment Program is that of a hypothetical
portfolio managed in accordance with the dictates of the Program before June 30, 2005 and model performance from July 1, 2005. The model
performance shown is that of a model account managed according to the dictates of the Program. Other accounts are excluded to prevent additions,
withdrawals and client mandated customizations from biasing performance presentation. Since December 31, 2009, performance reported has been
prepared in compliance with the Global Investment Performance Standards (GIPS) and represents the net composite time-weighted return. For
comparison the return of the S&P 500 is shown for the same time period. The S&P 500 Index includes a representative sample of 500 leading companies
in leading industries of the U.S. economy. It is generally considered a proxy for the total market. Past performance does not guarantee future returns and
an investment in growth stocks does involve risk of loss.
The CAN SLIM® International Investment Program is a long-term growth portfolio that invests in international stocks (ADRs) as markets are rising and
scales to cash as markets weaken. Its objective is capital appreciation. The chart above shows the total return, including reinvestment of all dividends,
and net of commissions and maximum investment advisory fees of 2.50%. The performance for the CAN SLIM® International Investment Program is that
of a hypothetical portfolio managed in accordance with the dictates of the Program. For comparison the return of the S&P 500 and the MSCI EAFE index
is shown for the same time period. The S&P 500 Index includes a representative sample of 500 leading companies in leading industries of the U.S.
economy. It is generally considered a proxy for the total market. The MSCI EAFE index is designed to measure the equity market performance of
developed markets outside of the U.S. & Canada and is generally considered a proxy for the international market. Past performance does not guarantee
future returns and an investment in growth stocks does involve risk of loss.
CAN SLIM, Investor’s Business Daily, and IBD are registered trademarks owned by Investor’s Business Daily, Inc. and used here by NorthCoast Asset
Management with permission. CAN SLIM® Private Clients is not sponsored by Investor’s Business Daily, Inc. or William J. O’Neil and neither is
recommending, advising or otherwise endorsing an investment in the offering.
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17