Canslim

CAN SLIM is a growth stock investment strategy developed by William O’Neill, the co-founder of “Investor Business Dailly” / IBD. He described his strategy in the book How To Make Money In Stocks: A Winning System in Good Times or Bad, 3rd Edition.
The goal of the strategy is to discover leading stocks before they make major price advance. There are 7 components of CAN SLIM, which are:
-C = Current earning per share. Current earning per share (EPS) must be up no less than 18-20% from the same period last year.
-A = Annual earning. They should up 25% or more in each of the last three years.
-N = New. The company should either be under new management, have new product or service. It also must have new stock price high.
-S = Supply and demand. Find company with small outstanding stock.
-L = Leader. Find a company that is leading the way or market leader.
-I = Institutioal sponsorship. The company must have institutioanal sponsorship like mutual fund companies or investment company.
-M = Market trend. You must buy when the trend is up. Like increasing volume.