1. CANSLIM Characteristics

2. CANSLIM C - Current Quarterly Earnings A – Annual Earnings Growth
N – New Products, Services , Management
S – Supply and Demand
L – Leadership or Laggard
I – Institutional Sponsorship
M – Market Direction

3. C - Current Quarterly Earnings/Sales
25% or higher EPS & Sales growth in most recent quarters
Depends on Industry Normals
Preferably accelerating EPS growth (i.e., rising quarter over quarter)
Return on Equity (ROE) of at least 17%. Higher the better
ROE reveals how well a company manages its capital and helps you identify the best-run businesses

4. A – Annual Earning Growth
25% - 50% or higher annual earnings growth over the last three years
A company can cut costs or take other measures to boost earnings for a quarter or two.
Masking more serious underlying problems the company may be facing
demand for its products,
declining profit margins
negative industry trends.

5. N – New Products, Services, Mgmt.
New Products or Services that is leading or changing the industry
New Markets or Industry Trend
New CEO
New price high of stock. (???)
These lead to generating exceptional sales and earnings growth.

6. S – Supply And Demand.
Heavy-volume accumulation (buying) by institutional investors.
Particularly when the stock is forming and breaking out of a Basing pattern
Chart Reading of Volume and Price
As more investors demand a limited supply of shares, a stock’s price goes up

7. L – Leader or Laggard Relative Strength – 80 or higher
Relative Strength Line
Stock compared to market and other similar stocks
Rising RS Line and new Highs near Breakout (BO)
Top Stocks in Top industry Group
Top Industry Group
Industry Group moving up the Rankings

8. M – Market Direction The MOST IMPORTANT Characteristic
70% of stocks Follow the Market
Leading Stocks in Current Uptrend fall Faster and Harder as Market moves into Correction.
Determining Marekt Direction
Big Picture
Leading Stocks
Distribution and Stalling Count

9. CANSLIM C - Current Quarterly Earnings A – Annual Earnings Growth
N – New Products, Services , Management
S – Supply and Demand
L – Leadership or Laggard
I – Institutional Sponsorship
M – Market Direction