What is CanSlim
Want to learn the meaning of CanSlim ?
It`s what Willian Oneil the owner of one of america`s best financial newspaper created in order to find the best stocks ready for break-out.
I always wondered what it was too and i could never remember how to say it until i made a picture of it.
It should have said a " Slim Can " Let`s take a look! ------below------
CanSlim is what we look for in a bull market, stocks with super earnings, sales, good group , excellent products, leaders not laggards in the group and then look for the proper break-out from bases or formations.
Let`s examine it some more...
C = current earnings per share, 20% or better, the more the better
A = Annual earnings, 25% or better last 3 years
N = new management, new product or new service
S = shares of common stock should be a smaller amount
L = leader not a laggard in the group its in
I = institutional sponsorship, make sure the mutuals are
buying
M = make sure the market trend is going up
After all the CanSlim conditions are met we then wait for the proper place to make our trade.
The best time is when the market goes into a correction and stocks are basing or making bases and then we wait for the break-out with at least a 50% increase in volume, if you look below at the charts those are good break-outs but none of them had good volume so they all failed soon afterwards.
Let`s look at some super break-out stocks, They all had super Earnings, Sales etc... ---below-----
|