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Buying Checklist 59

In every major uptrend, these game-changers emerge to lead the mar-
ket’s advance, driven by some product or service that’s revolutionizing how
we work or live.
You may have never even heard of these companies at that point. But as
you search for stocks with CAN SLIM traits, they’ll naturally start to appear
on your radar screen.
I had never heard of Alexion Pharmaceuticals, F5 Networks, Stratasys,
Lululemon Athletica, SolarWinds, Mellanox Technologies, Transdigm, or
Tractor Supply until they started showing up in IBD’s stock lists. But they all
had something new, and that was driving exceptional earnings and sales
growth. That’s why they showed up early on our screens—and that’s why
they all made impressive price gains during the bull market that began in
2009.

Don’t Ignore a Stock Just Because You’ve Never Heard of the Company
If it has the “N” and other CAN SLIM traits, get to know more about it: Go
to their website, and read articles and profiles in IBD and other sources.
You might be looking at a stock that could double or triple in price.
In 2009, not many Americans had heard of Baidu. I’m sure many still
haven’t.
Called the “Chinese Google,” Baidu emerged as the dominant search
engine in China as millions of new Internet users came online. It was a
strong new leader in a new and rapidly growing industry and rose 322%
from September 2009 to April 2011. (Using the Simple Weekend Routine,
you could have seen Baidu highlighted in the IBD 50, Your Weekly Review
and other IBD features multiple times as it made that big move.)

New Industry Trend
The “N” in CAN SLIM can also refer to a new industry trend, which can be
a boon for companies in that field, especially for the innovators driving that
change.
The emergence of cloud computing is a good example. There’s been a
major shift away from running applications and storing data on a local com-
puter, and instead pushing that functionality to the online “cloud.” That’s
meant big business—and nice share price gains—for leaders in that indus-
try, such as Rackspace Hosting, SolarWinds, and Amazon.
That’s just one example. The company names and industry trends are
always changing. So regardless of what the latest technology or innovations