CAN SLIM Investment System

What is CAN SLIM

The CAN SLIM is a system for selecting stocks created by Investor’s Business Daily founder William J. O’Neil. Each letter in the acronym stands for a key factor to look for in a company.

The CAN SLIM investment system was the first investment strategy Mike Shell become interested in during the early 1990’s when William O’Neil published the first edition of “How to Make Money in Stocks“.Mike Shell studied and applied the CAN SLIM investment strategy for years and completed the first CAN SLIM® Masters Program class in 2005. Mike went on to use what he learned to develop his own system to fit him.

CAN SLIM refers to the acronym developed by the American stock research and education company Investor’s Business Daily (IBD). IBDclaims CANSLIM represents the seven characteristics that top-performing stocks often share before making their biggest price gains. It was developed in the 1950s by Investor’s Business Daily founder William O’Neil.^[1] The method was named the top-performing investment strategy from 1998-2009 by the American Association of Individual Investors.^[2]^[3]

The following is from the Investor’s Business Daily website:

CAN SLIM Investing System & History

Once you buy a stock, when should you sell? Many investors simply don’t have an exit strategy — and their returns suffer accordingly. But you can use time-proven sell rules to make a huge difference in your portfolio.

Current Quarterly Earnings

Earnings Growth is an important factor to look at when buying stocks. Look for stocks with increases in current quarterly earnings of at least 25%.

Annual Earnings Growth

In addition to quarterly earnings, you want to make sure companies are showing strong long-term growth. Look for stocks that have grown their earnings at least 25% or more for the past 3 years

New Product, Service, Management or Price High

Studies of the great stock market winners of the past all had something NEW. Always look for companies with new, game-changing products and services.

Supply and Demand

S is for Supply and Demand. As more investors demand a limited supply of shares, a stock’s price goes up. Look for heavy-volume accumulation by institutional investors, particularly at buy points.

Leader or Laggard

We are always looking to buy leading stocks in leading industry groups. Look for the best of the best – the leaders in strong industries that are showing superior earnings growth and sales.

Institutional Sponsorship

Professional investors, like mutual funds and pension funds, account for about 75% of all market activity. Using IBD and Investors.com, you’ll learn how to follow the big money.

Market Direction

Our study shows 3 out of 4 stocks follow the market’s trend, so you always want to trade in sync with the market. IBD makes it easy to keep up with the market’s general trend.

Source: Investor’s Business Daily

What is the CAN SLIM Investment Strategy

CAN SLIM Investment Strategy

CAN SLIM Investment Program