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C - A - N - S - L - I - M

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CANSLIM is a philosophy of screening, purchasing, and selling common stock as described and developed by William O'Neil in his book "How To Make Money In Stocks".

In a nutshell, here is is a summary of CANSLIM (taken directly from Mr. O'Neil's book without permission):

  • C = Current quarterly earnings per share. They must be up at least 18-20%.

  • A = Annual earnings per share. They should show meaningfull growth for the last five years.

  • N = New. Buy companies with new products, new management, or significant new changes in their industry conditions. And most important, buy stocks as they initially make new highs in price. Forget cheap stocks -- they are usually cheap for a good reason.

  • S = Shares outstanding. They should be small or of reasonable number, not large capitalization, older companies.

  • L = Leaders. Buy market leaders, avoid laggards.

  • I = Institutional sponsorship. Buy stocks with at least a few institutional sponsors with better than average recent performance records.

  • M = The general market. It will determine whether you win or lose, so learn to interpret the daily general market indexes (price and volume chages) and action of the individul market leaders to determine the overall market's current direction.


Last Modified: March 1997 
24135 since Thu Mar 27 11:38:52 1997