faqts : Business : Investing : Methods and Strategies : CANSLIM ("How to Make Money in Stocks..." by William J. O'Neil)

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What is CANSLIM?

Jul 12th, 2006 09:58
IBD Education Department, Randy Harmelink, www.investors.com

CAN SLIM is an investment research tool/methodology described in the 
book, “How to Make Money in Stocks” by William J. O’Neil.  It is a 
checklist for the seven common characteristics all great performing 
stocks have before they make their biggest gains.
C= Current EPS and quarterly sales should be up 25% or more over prior 
A= Annual earnings should be up 25% or more the last three years.  
Annual ROE should be up 17% or more.
N= New product or service.  Company should have a new product or 
service that’s fueling earnings growth.
S= Supply and demand.  Shares outstanding can be large or small, but 
trading volume should be big as the stock price increases.
L= Leader or laggard? Buy the leading stock in a leading industry.
I= Institutional sponsorship should be increasing. Invest in stocks 
showing increasing ownership by mutual funds in recent quarters.  
M= Market indexes.  The markets should be in a confirmed up trend 
since three out of four stocks follow the market's overall trend. 
Any additional questions about CAN SLIM can be obtained by contacting 
the only official source for CAN SLIM
Education Department