What is CANSLIM?

What is CANSLIM?

Legendary US investor & author William J. O'Neil did a comprehensive study of the greatest winning stocks spanning the past 125 years. He then put together a set of common characteristics to these past market leaders and coined the term CAN SLIM. Each letter stands for one of the seven chief characteristics of these greatest winning stocks

C: Current Quarterly Earnings

Look for stocks with big earnings in their latest reported period. The bigger, the better.

A: Annual Earnings Growth

You want to see annual earnings growth of at least 25% for each of the last 3 years.

N: New Product, Service, Management or Price High

The biggest CAN SLIM winners had something NEW! New products,new services,new leadership, new price high or a new condition in the industry.

S: Supply and Demand

One of the most basic economic principles is the law of supply and demand which is most sharply demonstrated in the stock market.

L: Leader or Laggard

True leaders are those companies showing the best earnings growth, strongest sales, superior price performance and are in LEADING industry groups.

I: Institutional Sponsorship

Mutual funds, banks, and other professional investors are the big players that drive the market.

M: Market Direction

Study shows 3 out of 4 stocks follow the market's trend, so you always want to trade in sync with the market.


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