CANSLIM


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CANSLIM

A mnemonic device for deciding which stocks to buy. It was developed by William O'Neil of Investor Business Daily. It breaks down as follows:

C: Current quarterly earnings per share. O'Neil advises buying stocks with recent, large increases in quarterly EPS.
A: Annual earnings. Companies with increases in annual earnings each year for five years are thought to be good stocks to buy.
N: New products, management, or events. Each of these is usually thought to be positive.
S: Supply and demand. Stocks with small supply and large demand usually increase significantly in price in a short period of time.
L: Leader or laggard. O'Neil argues that stocks that lead an industry are better than those that lag behind in price.
I: Institutional investors. A large number of institutional investors or a few institutional investors that own much of the stock are thought to be negative influences.
M: Market direction. It is thought to be a good sign when the major stock indices are increasing.
References in periodicals archive ?
In the contest, the 41-year-old Sylmar resident hopes to compare two investment strategies: The CANSLIM method by William O'Neil, the founder of Investor's Business Daily; and technical analysis as propounded by Thomas Dorsey's book, ``Point & Figure Charting.
0 is now more responsive to the CANSLIM investment system developed by William O'Neil, founder of Investor's Business Daily," says Scott Brown, Telescan's vice president of sales and marketing.
He is relying, in part, on his CANSLIM method that recommends buying stocks making new all-time highs.
Reese recently added a regional bank that satisfies his interpretation of Martin Zweig's growth strategy, William O'Neill's CANSLIM momentum strategy and Motley Fool's Value tract.
Reese's interpretation of the O'Neil CANSLIM strategy is based on the principal that investors have to pay premium prices for the best companies.
publisher of the Stock Letter Daily, will offer carefully selected stock recommendations using momentum and CANSLIM methods.
amp;uot;Through our CANSLIM research we've found several small-cap issues that have promising technology, accelerating earning potential, and attractive chart formations,&uot; said Chris Baker.