2025

The CANSLIM Method for Stock Screening

The CANSLIM method, developed by William O'Neil, is a powerful stock screening and investing strategy designed to identify high-growth stocks before they make significant moves. It combines both fundamental and technical analysis, making it a favorite among traders and investors looking for high-performing stocks.

The CANSLIM acronym represents seven key criteria for selecting stocks with strong growth potential:

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C – Current Earnings Growth

"Rapid expansion of earnings in the most recent quarter"

One of the most important indicators in stock selection is recent quarterly earnings growth. The CANSLIM method suggests looking for companies with earnings per share (EPS) growth of at least 25% compared to the same quarter last year. A rapid increase in profitability signals strong business momentum.

✅ Example: If a company's EPS was $1.00 last year and $1.50 this year, that’s a 50% growth, which is a strong indicator of earnings acceleration.

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A – Annual Earnings Growth

"Consistently strong earnings trends over the past several years"

Consistent annual earnings growth is a key factor. Investors should look for companies that have maintained an EPS growth rate of 15–20% or more over the past 3–5 years. Sustainable growth indicates a strong and well-managed company.

✅ Example: A company with EPS of $2.00, $2.50, $3.25, and $4.00 over the past four years shows a steady upward trend, making it a promising candidate.

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N – New Products, New Management, or New Highs

"A company with products or services that will drive future growth, or a new management structure"

For a stock to experience significant appreciation, the company must introduce something new that will drive growth, such as: - New products or services that expand market share. - New management that improves efficiency and performance. - New acquisitions or market expansions that open new revenue streams.

✅ Example: A technology company launching an innovative AI-powered product or a retail company expanding into new global markets.

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S – Supply and Demand

"Small-cap stocks with rising demand"

Stock prices are influenced by supply and demand dynamics. O'Neil emphasized that investors should focus on stocks with limited supply but strong demand, particularly small- to mid-cap companies with relatively few outstanding shares.

✅ Example: A small-cap stock with only 50 million shares outstanding, gaining strong institutional interest, can see rapid price appreciation due to the scarcity of available shares.

📌 Tip: Stocks with low float (few shares available for trading) tend to experience higher volatility and stronger price moves when demand increases.

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L – Leader or Laggard?

"Stocks with strong price and earnings performance"

A successful investor should always focus on market leaders—stocks that are outperforming their industry peers in terms of both price and earnings growth. Avoid underperforming stocks (laggards) that are struggling to gain traction.

✅ How to identify a leader? - Check Relative Strength (RS) ratings: A stock with an RS score above 80 (meaning it outperforms 80% of all stocks) is a strong candidate. - Compare with industry peers: Is the stock consistently performing better than its competitors?

✅ Example: If two companies operate in the electric vehicle sector, choose the one with higher earnings growth, stronger price momentum, and better institutional backing.

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I – Institutional Sponsorship

"Institutional investors are buying in"

Institutional investors, such as hedge funds, mutual funds, and pension funds, play a major role in driving stock prices. A stock with increasing institutional ownership indicates that professional investors see growth potential.

✅ Example: A stock that has shown rising mutual fund ownership over multiple quarters suggests that large investors are accumulating shares.

📌 Tip: Avoid stocks with excessive institutional ownership (above 90%) because it reduces future buying pressure and could lead to sharp declines when institutions start selling.

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M – Market Direction

"The overall market trend should not be in a downward phase"

Even if a stock meets all the CANSLIM criteria, investing during a bear market increases the risk of losses. Therefore, always assess the broader market trend before making a move.

✅ How to assess market direction? - Monitor major indexes (S&P 500, NASDAQ, Dow Jones). - Check moving averages (50-day and 200-day moving averages). - Watch market breadth indicators (advance-decline ratios). - Follow Federal Reserve policies on interest rates and economic conditions.

✅ Example: If the S&P 500 and NASDAQ are in a confirmed uptrend, it’s generally a good time to invest. However, if markets are in a downtrend, it's best to stay cautious and wait for a reversal.

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Example of a CANSLIM Stock

Let's analyze a hypothetical high-growth tech stock that meets the CANSLIM criteria:

✔ Current Earnings Growth: EPS increased 50% in the most recent quarter. ✔ Annual Earnings Growth: The company has grown EPS by 25% per year over the last five years. ✔ New Products or New Management: It just launched an AI-powered software product that is gaining traction. ✔ Supply & Demand: It has limited outstanding shares, and demand is increasing. ✔ Leader or Laggard: It is outperforming other tech stocks in the same industry. ✔ Institutional Sponsorship: Mutual funds and hedge funds have been buying shares consistently. ✔ Market Trend: The NASDAQ and S&P 500 are in a bullish uptrend.

Such a stock is a prime CANSLIM candidate, with strong fundamentals and favorable market conditions.

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Final Thoughts on the CANSLIM Method

The CANSLIM strategy combines fundamental and technical analysis to help investors identify winning stocks. However, it is not a passive investment strategy—it requires active monitoring and adjustments based on market conditions.

Key Takeaways:

✔ Look for strong earnings growth (both quarterly and annually). ✔ Focus on companies with innovative products, new leadership, or strong momentum. ✔ Invest in market leaders, not laggards. ✔ Pay attention to institutional investor activity. ✔ Only invest when the overall market is in an uptrend.

By applying the CANSLIM method, investors can increase their chances of finding high-growth stocks before they become mainstream success stories.

📌 Do you use the CANSLIM strategy in your investing? Share your thoughts in the comments below!

ALX

Alexander's, Inc. (NYSE: ALX) is a real estate investment trust (REIT) specializing in leasing, managing, developing, and redeveloping properties in New York City. As of February 7, 2025, the stock closed at $198.07, reflecting a 0.998% increase from the previous close.

Financial Performance

In 2023, Alexander's reported revenue of $224.96 million, a 9.3% increase from $205.81 million in 2022. Net income rose by 77.7% to $102.41 million during the same period. The company's earnings per share (EPS) stood at $20.05, resulting in a price-to-earnings (P/E) ratio of 10.6.

Dividend and Yield

The company declared a regular quarterly dividend of $4.50 per share, payable on February 28, 2025, to shareholders of record on February 18, 2025. This equates to an annualized dividend of $18.00 per share, yielding approximately 9.07% at the current stock price.

Analyst Ratings and Price Targets

Analysts have assigned a "Sell" rating to ALX, with a 12-month price target of $125.00, suggesting a potential downside of about 37%.

Valuation Metrics

The stock's P/E ratio of 10.6 is below the finance sector average of approximately 30.58, indicating potential undervaluation. However, a price-to-book (P/B) ratio of 4.23 suggests it may be overvalued relative to its assets.

Conclusion

While Alexander's has demonstrated strong financial performance and offers an attractive dividend yield, the "Sell" rating and lower price target from analysts warrant caution. Investors should consider these factors alongside their individual investment objectives and risk tolerance.

AMT

American Tower Corporation (AMT) is a leading global real estate investment trust (REIT) specializing in owning, operating, and developing multitenant communications real estate. As of February 7, 2025, the stock is trading at $188.84, reflecting a slight decrease of 0.48% from the previous close.

Company Overview

AMT boasts a diverse portfolio exceeding 148,000 communications sites worldwide, including a significant presence in U.S. data center facilities. The company's extensive infrastructure supports a wide range of tenants, including wireless service providers and broadcasters.

Financial Performance

In 2023, AMT reported revenues of $11.14 billion, marking a 4.04% increase from the previous year. However, net income declined by 16% to $1.48 billion during the same period. The company's earnings per share (EPS) stand at $2.37, resulting in a price-to-earnings (P/E) ratio of 45.48. The forward P/E ratio is projected at 26.34, indicating expectations of improved earnings in the future.

Dividend Information

AMT offers an annual dividend of $6.48 per share, yielding approximately 3.43%. The most recent ex-dividend date was December 27, 2024.

Analyst Insights

Analysts maintain a favorable outlook on AMT, with an average 12-month price target of $226.79, suggesting a potential upside of about 20.10% from the current price. The consensus rating is "Buy," reflecting confidence in the company's growth prospects.

Investment Considerations

AMT's strategic position in the communications infrastructure sector positions it to benefit from ongoing global demand for data and the expansion of wireless networks. While the recent decline in net income warrants attention, the company's revenue growth and positive analyst sentiment indicate potential for future appreciation.

Investors should monitor AMT's financial performance, particularly in terms of profitability and cash flow, to assess the sustainability of its dividend and growth trajectory. Additionally, considering the stock's current valuation metrics, evaluating its alignment with individual investment objectives and risk tolerance is essential.

Please note that investing involves risks, and it's advisable to consult with a financial advisor before making investment decisions.

AVGO

Broadcom Inc. (ticker: AVGO) is a leading global technology company specializing in the design, development, and supply of a broad range of semiconductor and infrastructure software solutions. The company's products serve diverse markets, including data centers, networking, software, broadband, wireless, storage, and industrial sectors.

Recent Financial Performance

In the fiscal year 2024, Broadcom reported record revenues of $51.6 billion, marking a 44% increase from the previous year. This growth was significantly driven by the successful integration of VMware, which contributed to infrastructure software revenues reaching $21.5 billion. Net income for the year was $5.9 billion. 

In its fiscal fourth quarter ending November 3, 2024, Broadcom achieved revenues of $14.05 billion, a 51% year-over-year increase. Net income for the quarter rose to $4.32 billion, or $0.90 per share, up from $3.52 billion, or $0.83 per share, in the same period the previous year.

Artificial Intelligence (AI) Market Expansion

Broadcom has significantly expanded its presence in the AI sector. In fiscal 2024, the company generated $12.2 billion in AI-related revenue, surpassing its initial outlook. Looking ahead, Broadcom projects its AI chip market opportunity could grow to between $60 billion and $90 billion by fiscal 2027, driven by major customers such as Google, Meta Platforms, and ByteDance. The company has also secured new clients, reportedly including Apple and OpenAI.

Analyst Perspectives

Analysts maintain a bullish outlook on AVGO stock. Jefferies analyst Blayne Curtis has identified Broadcom as his top semiconductor pick for 2025, citing the company's unique position in the rapidly growing AI application-specific integrated circuits (ASICs) market. Curtis raised his price target to $300 from $225, indicating a potential 37% upside.

Additionally, Oppenheimer analyst Rick Schafer highlighted Broadcom's role in the AI megatrend, noting its production of custom AI server chips for leading tech companies. Schafer emphasized Broadcom's position as the largest custom ASIC design house and the second-largest producer of AI accelerators behind Nvidia.

Stock Performance

As of February 8, 2025, AVGO is trading at $224.87, reflecting a slight decrease of 0.028% from the previous close. The stock has demonstrated resilience, with a 67.8% increase over the past 52 weeks, outperforming the broader S&P 500 Index's 22.9% gain.

Conclusion

Broadcom's robust financial performance, strategic expansion into the AI market, and positive analyst evaluations underscore its strong position in the technology sector. The company's diversified product portfolio and strategic acquisitions, such as VMware, position it well for sustained growth. Investors should monitor Broadcom's developments in AI and its financial performance in upcoming quarters to assess its long-term investment potential.

BLK

BlackRock, Inc. (NYSE: BLK) is the world's largest asset manager, with $11.475 trillion in assets under management as of September 2024.

Recent Financial Performance

In 2024, BlackRock reported revenues of $20.41 billion, a 14.27% increase from the previous year, and net income of $6.37 billion, up 15.76%.

Analyst Ratings and Price Targets

Analysts maintain a "Strong Buy" consensus for BLK, with an average 12-month price target of $1,129.17, suggesting a potential upside of approximately 13.82%.

Valuation Metrics

BlackRock's trailing twelve months (TTM) price-to-earnings (P/E) ratio is 23.61, and its forward P/E is 20.91. The company offers an annual dividend of $20.84 per share, yielding 2.10%, with a payout ratio of 49.61%.

Recent Developments

In December 2024, BlackRock's iShares Bitcoin ETF surpassed $50 billion in assets, more than doubling its nearest competitor. Additionally, BlackRock agreed to acquire private-credit manager HPS Investment Partners for $12 billion, enhancing its presence in the private-credit market.

Conclusion

BlackRock's robust financial performance, strategic initiatives, and positive analyst outlook suggest potential for continued growth. However, investors should consider market volatility and conduct thorough due diligence before making investment decisions.

BND

Financial Analyst Report: Vanguard Total Bond Market ETF (BND)

Ticker: BND

Issuer: Vanguard

Exchange: NASDAQ

Expense Ratio: 0.03%

Assets Under Management (AUM): Approximately $90 billion

Dividend Yield: ~4.5% (as of recent data)

Average Duration: ~6.5 years

Credit Quality: Predominantly Investment Grade

1. Investment Overview

The Vanguard Total Bond Market ETF (BND) is a well-diversified fixed-income exchange-traded fund that seeks to track the performance of the Bloomberg U.S. Aggregate Float Adjusted Index. The ETF provides exposure to a wide range of U.S. investment-grade bonds, including government, corporate, and mortgage-backed securities, making it a core holding for conservative investors looking for stable income and capital preservation.

2. Performance Analysis

BND's performance is influenced by interest rate movements, credit spreads, and macroeconomic conditions. Over the past five years, the ETF has experienced moderate volatility, with total returns affected by Federal Reserve policy shifts, inflation expectations, and economic cycles.

Year	BND Total Return (%)
2019	+8.7%
2020	+7.7%
2021	-1.7%
2022	-13.2%
2023	+5.6%

The fund suffered significant losses in 2022 due to aggressive interest rate hikes by the Federal Reserve. However, with inflation stabilizing and potential rate cuts on the horizon, the bond market is showing signs of recovery.

3. Interest Rate Sensitivity

BND has an average duration of 6.5 years, making it moderately sensitive to interest rate changes. If interest rates decline, BND is expected to appreciate in value. Conversely, rising interest rates will put downward pressure on its price. Given the current market sentiment and potential Fed rate cuts in 2024-2025, BND may present a buying opportunity for investors seeking fixed-income exposure.

4. Portfolio Composition

BND's portfolio is diversified across different fixed-income securities:

• U.S. Treasury Bonds: ~40%
• Corporate Bonds: ~25%
• Mortgage-Backed Securities (MBS): ~25%
• Municipal and Other Bonds: ~10%

The fund's holdings are primarily investment-grade, ensuring a low risk of default. The credit profile includes a mix of AAA, AA, A, and BBB-rated securities.

5. Risks and Considerations

While BND is considered a relatively safe investment, there are risks: - Interest Rate Risk: A continued high-rate environment could lead to price declines. - Inflation Risk: If inflation remains elevated, real returns could be eroded. - Liquidity Risk: Although BND is a highly liquid ETF, sharp market movements can impact spreads.

6. Investment Suitability

BND is suitable for the following investors: - Conservative Investors: Seeking steady income with low volatility. - Retirement Portfolios: Those needing reliable fixed-income exposure. - Portfolio Diversification: Investors looking to balance equity risk.

7. Outlook and Recommendation

Given the current economic outlook, including potential Fed rate cuts and easing inflationary pressures, BND could be a good addition to an income-focused portfolio. While short-term volatility remains possible, long-term investors may benefit from stable yields and price appreciation if interest rates decline.

Recommendation: BUY (Long-Term Holding for Fixed Income Allocation)

Target Price (12 Months): $75–$78 Yield Expectation: 4.5%–5.0%

Conclusion

BND remains a strong choice for investors looking for broad bond market exposure with a low expense ratio. While interest rate risks persist, the ETF’s strong credit quality and consistent yield make it an attractive long-term investment for fixed-income portfolios.

BRK-B

Berkshire Hathaway Inc. (BRK-B) Stock Analysis Report

Ticker: BRK-B Exchange: NYSE Sector: Financial Services Industry: Conglomerate Market Capitalization: $775 billion (as of latest available data) 52-Week Range: $296.07 - $390.21 Dividend Yield: N/A P/E Ratio: 12.87 Beta: 0.89

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Company Overview

Berkshire Hathaway Inc. is a multinational conglomerate holding company headquartered in Omaha, Nebraska. Led by Chairman and CEO Warren Buffett, Berkshire owns a diverse portfolio of businesses, including insurance, utilities, manufacturing, retail, and transportation. It also holds significant equity positions in publicly traded companies such as Apple Inc. (AAPL), Coca-Cola (KO), and American Express (AXP).

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Recent Performance & Key Financials

Financial Metric	Value (Latest Quarter)	YoY Change
Revenue	$92.5 billion	+21%
Net Income	$12.6 billion	+18%
EPS	$8.94	+16%
Operating Income	$10.8 billion	+15%
Cash & Equivalents	$157.2 billion	+12%

Berkshire Hathaway has continued to exhibit strong revenue and earnings growth, primarily driven by its insurance operations (GEICO, Berkshire Hathaway Reinsurance) and strong performance in its equity investments, particularly Apple Inc. The company’s cash reserves remain significant, providing it with strategic flexibility for future acquisitions and buybacks.

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Stock Performance & Valuation

The stock has shown steady growth, benefiting from strong financials and Buffett’s disciplined investment strategy. Compared to the broader S&P 500 index, BRK-B has provided 14.2% annualized returns over the last five years.

Valuation Metrics:

• P/E Ratio: 12.87 (Compared to the industry average of 14.50)
• Price-to-Book (P/B) Ratio: 1.5
• EV/EBITDA: 10.2
• ROE (Return on Equity): 11.8%

The valuation remains attractive for long-term investors, given the company’s stability, growth prospects, and strong fundamentals.

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Investment Thesis

Bull Case:

1. Strong Leadership & Track Record – Warren Buffett and his management team have a consistent history of outperforming the market.
2. Diversified Business Model – Exposure to multiple industries reduces overall risk.
3. Significant Cash Reserves – Ability to make strategic acquisitions and weather economic downturns.
4. Growing Equity Portfolio – Investments in tech and consumer goods continue to drive returns.

Bear Case:

1. Succession Risk – Buffett (age 94) and Charlie Munger (age 100) are key figures, and their eventual departure raises concerns.
2. Lower Growth in Legacy Businesses – Some core segments, like railroads and energy, face growth challenges.
3. No Dividend Policy – Some investors prefer companies with regular dividend payouts.

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Analyst Recommendation

Berkshire Hathaway (BRK-B) remains a solid long-term investment, especially for investors seeking stable, diversified exposure across multiple industries. Given its current valuation and strong fundamentals, we recommend a BUY rating with a 12-month price target of $415, representing a potential 10% upside from current levels.

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Conclusion

Berkshire Hathaway is a resilient and well-managed conglomerate with a proven investment strategy. While there are some concerns regarding leadership succession and slowing growth in certain sectors, the company’s strong balance sheet, prudent capital allocation, and diverse revenue streams make it a compelling long-term investment.

Recommendation: BUY Price Target: $415 Time Horizon: 12-24 months

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Disclaimer: This report is for informational purposes only and should not be considered financial advice. Investors should conduct their own due diligence before making investment decisions.

CCJ

Cameco Corporation (NYSE: CCJ) is a leading uranium producer, supplying fuel for nuclear power plants globally. As of February 8, 2025, the stock is trading at $49.93, with a 52-week range between $35.43 and $62.55.

Financial Performance:

In 2023, Cameco reported revenues of $2.59 billion, a 38.53% increase from the previous year. Net income rose to $360.85 million, marking a 303.71% growth. The company maintains a gross margin of 31.76% and an operating margin of 11.00%. Its free cash flow stands at $269.98 million.

Analyst Ratings:

Analysts have a favorable outlook on CCJ, with an average 12-month price target of $66.56, suggesting a potential upside of approximately 33.3%. The consensus rating is "Strong Buy."

Recent Developments:

Cameco recently announced the resumption of production at Joint Venture Inkai, following a temporary suspension. Additionally, Westinghouse Electric Company, in which Cameco holds a stake, resolved a technology export dispute with Korean companies, potentially opening new market opportunities.

Investment Considerations:

Cameco's significant revenue and net income growth, coupled with a strong market position, make it an attractive investment. However, investors should be mindful of the high price-to-earnings ratio of 258.87, which may indicate overvaluation. The company's low dividend yield of 0.23% might not appeal to income-focused investors.

In summary, Cameco Corporation demonstrates robust financial health and holds a strong position in the uranium market. While the stock shows potential for appreciation, investors should carefully weigh the valuation metrics and dividend yield in their decision-making process.

DLR

Digital Realty Trust, Inc. (NYSE: DLR) is a real estate investment trust (REIT) specializing in data center, colocation, and interconnection solutions. The company serves various industries, including artificial intelligence (AI), cloud services, digital media, financial services, healthcare, and gaming.

Recent Financial Performance

In the third quarter of 2024, Digital Realty reported adjusted funds from operations (FFO) of $1.67 per share, up from $1.62 in the same period the previous year, surpassing analysts' expectations of $1.65. The company updated its annual core FFO forecast to a range of $6.65 to $6.75 per share and adjusted its fiscal 2024 revenue expectations to $5.55 to $5.60 billion, aligning with analysts' average estimate of $5.57 billion.

Market Dynamics and Growth Drivers

The surge in demand for AI computing capacity has significantly benefited Digital Realty. Constraints in data center space, particularly due to power limitations in key markets like Northern Virginia and Chicago, have allowed the company to increase rents and achieve substantial investment yields. Analysts anticipate continued growth, with forecasts suggesting an 8% annual increase in cash flows, driven by rising rents and high yields on new developments.

Analyst Ratings and Price Targets

As of early February 2025, the consensus among 23 Wall Street analysts is a "Moderate Buy" rating for DLR, with an average price target of $179.70, indicating potential upside from current levels. Notably, UBS upgraded Digital Realty from "Hold" to "Buy," citing the company's advantageous position amid the growing demand for AI infrastructure.

Recent Developments

In 2024, Digital Realty raised $8.5 billion through stock and debt offerings to fund its AI-driven growth, marking a 25% increase from 2023. The company also formed a venture with Blackstone to develop $7 billion in data centers, with Blackstone holding an 80% ownership stake and making an initial capital contribution of $700 million.

Conclusion

Digital Realty Trust is well-positioned to capitalize on the increasing demand for data center services, particularly driven by advancements in AI and cloud computing. The company's strategic initiatives and favorable market conditions suggest potential for continued growth. However, investors should remain mindful of factors such as interest rate fluctuations and competition within the data center sector.

DNN

Denison Mines Corp. (NYSE American: DNN) is a Canadian uranium exploration and development company primarily focused on projects in the Athabasca Basin region of northern Saskatchewan.

Financial Performance

In 2023, Denison Mines reported a significant decrease in revenue, totaling CAD 1.86 million, down from CAD 8.97 million in 2022. Despite this decline, the company achieved earnings of CAD 90.38 million, marking an increase of 529.62% compared to the previous year.

Analyst Ratings and Price Targets

Analysts maintain a favorable outlook on DNN, with an average rating of "Strong Buy." The 12-month consensus price target is USD 3.06, suggesting a potential upside of approximately 69% from the current price.

Stock Volatility and Beta

DNN exhibits a beta of 1.88, indicating higher volatility compared to the broader market. Over the past 52 weeks, the stock price has decreased by approximately 10.78%.

Investment Considerations

Denison Mines' focus on uranium positions it to benefit from potential increases in demand for nuclear energy. However, investors should be mindful of the company's revenue fluctuations and stock volatility. The positive earnings growth and strong analyst endorsements may indicate potential for future appreciation, but thorough due diligence is recommended.

Note: This report is for informational purposes only and should not be considered financial advice. Investors are encouraged to conduct their own research and consult with a financial advisor before making investment decisions.