CAN SLIM system
Each letter in the CAN SLIM system stands for one of the seven basic fundamentals of selecting outstanding stocks. Most successful stocks have these seven common characteristics at emerging growth stages, so they are worth committing to memory.
Each letter in the CAN SLIM system stands for one of the seven basic fundamentals of selecting outstanding stocks. Most successful stocks have these seven common characteristics at emerging growth stages, so they are worth committing to memory.
C = Current Quarterly Earnings per Share:
The Higher, The better
A= Annual Earnings Increases: Look for
Significant Growth
N= New Products, New Management, New High:
Buying the Right Time. And most important, buy stock as they emerge from sound, properly formed chart bases and begin to make new highs in price.
S= Supply and Demand: Shares Outstanding
Plus Big Volume Demand. Look for big volume increases when a stock begins to move out of its basing area.
L= Leader or Laggard: Buy market leaders and avoid laggards. Buy the number one company in its field or space. Most leaders will have Relative Price Strength Ratings of 80 to 90 or higher.
I= Institutional Sponsorship: Buy stocks with increasing sponsorship and at least one or two mutual fund owners with top-notch recent performance records.
M= Market Direction: Learn to determine the overall market direction by accurately interpreting the daily market indexes' price and volume movement and the action of individual market leaders. You need to stay in gear with the market.
-------- How to Make Money in Stocks William J. O'Neil
