Charting University » CAN SLIM » -About CAN SLIM
Let's start with a background on the man who created the system. William J. O’Neil is the founder and chairman of Investor’s Business Daily, one of the world’s leading financial newspapers, and is internationally regarded as a foremost source of investment research and advice. He is also founder of William O'Neil + Company, Inc., a leader in equity market information and data research for more than 400 major institutional money managers worldwide.
CAN SLIM is Mr. O'Neil's trading technique, based on an exhaustive study of the greatest stock market winners dating back to 1953 - over 50 years! It is a straightforward, seven-step process for minimizing risk, maximizing return, and finding stocks that are poised to perform. The process works to accurately select stocks at their early developing stages.
The reason this system is credited to work cycle after market cycle is because it is based solely on the reality of how the stock market actually works. Rather than one person's opinion, including that of Wall Street analysts and the media's talking heads. CAN SLIM has proven over many years that it is possible to pick big winners in the stock markets and become a part owner in the best companies in the world!
C = Current earnings per share should be up 25% or more and in many cases accelerating in recent quarters. Quarterly sales should also be up 25% or more or accelerating over prior quarters. (Complete Overview)
A = Annual earnings should be up 25% or more in each of the last three years. Annual return on equity should be 17% or more. (Complete Overview)
N = A company should have a new product or service that's fueling earnings growth. The stock should be emerging from a proper chart pattern and about to make a new high in price. (Complete Overview)
S = Supply and demand. Shares outstanding can be large or small, but trading volume should be big as the stock price increases. (Complete Overview)
L = Leader or laggard? Buy the leading stock in a leading industry. A stock's Relative Price Strength Rating should be 80 or higher. (Complete Overview)
I = Institutional sponsorship should be increasing. Invest in stocks showing increasing ownership by mutual funds in recent quarters. IBD's Accumulation/Distribution Rating gauges mutual fund activity in a stock. (Complete Overview)
M = The market indexes, the Dow, S&P 500 and NASDAQ, should be in a confirmed up trend since three out of four stocks follow the market's overall trend. (Complete Overview)
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The newly updated addition of Mr. O'Neil's complete explanation of his CAN SLIM system is available at the Trader's Bookstore.
(CLICK HERE to see the Reviews)
This fourth edition (2009 release) of "How to Make Money in Stocks" has been revised and updated with new chapters designed to help investors increase their performance in a turbulent economic climate. New discussions include:
- Greater clarification of the key CAN SLIM investment strategy
- New models of the greatest stock market winners that provide more basis for the ongoing effectiveness and superior performance of the CAN SLIM strategy
- Fresh stock charts featured in two colors for easier analysis of trends
- An invaluable guide on how to maximize both Investor’s Business Daily and www.investors.com to find winning stocks
- Real-world success stories from investors who have used this system
- New information on portfolio management and the impact of hedge funds
“The most useful stock market book in years.”
—Management Accounting
“In O’Neil’s opinion, a stock is not unlike a car or a set of golf clubs—you have to pay for quality. A winning system.”
—Personal Investor
“A superb book, spelling out his investment strategies in plain English and O’Neilisms.”
—San Francisco Business Times
“His very good advice comprises a mixture of three parts common sense and one part technical knowledge.”
—The American Spectator