31 July 2018

CANSLIM

System for Selecting Stocks


C - current Q earnings of a firm - last Q earnings have > 20% growth
A - annual earnings growth - annual EPS growth of 25- 50%
N - new product, service, management or new high in price level
S - supply and demand - smaller firms with smaller # shares < 25 mil
    - less #, more movement.
      Also, look out for re- purchasing which signals mgmt confidence
L - leader or laggard - relative px strength ~ 70% - Ξ”P stock/ Ξ”Index over the same period of time
I - institutional sponsorship - ideally between 3 and 10 sponsors - over-owned, be cautious
M - market direction - uptrend/ under pressure/ correction - invest in time of definite uptrend - see Indices




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