CAN+SLIM

=__** CAN SLIM **__=

By: Joyce & Kyu Won Improved by: Kevin Yoo and Sean Han

**Can Slim** is a growth stock investment strategy that aims to discover leading __#|stocks__ before making any major price changes. Each letter in 'Can Slim' is a mnemonic where:
 * Introduction**
 * Can Slim is an investment strategy created by Investor's Business Daily founder William O Neil, each acronym is something you look for in a company you want to invest in: **
 * ** C ** stands for **Current Earnings**. One should examine current earnings of the company and choose stocks whose earning per share in the most recent quarter have grown on a yearly basis.
 * ** A ** stands for **Annual Earnings**. The company should have shown annual growth in between every 5 years.
 * ** N ** stands for **New Product or Service**, which refers to the idea that a company should have a new basic idea that fuels the earnings growth.
 * ** S ** stands for **Supply and Demand**. Analysis of supply and demand would result in better gains.
 * ** L ** stands for **Leadership**. Distinguishing market leaders are of key importance.
 * ** I ** stands for **Institutional Sponsorship**, which refers to the ownership of the stock by mutual funds, particularly in recent quarters.
 * ** M ** stands for **Market Direction**. One should recognize what market one's in and watch the movement of market to prevent loss.

Can Slim was developed by Investor's Business Daily editor William O'Neil who has made several hundreds of millions of dollars by consistently using its approach. It was formulated from the study of the 500 best performing __#|stock market__ winners dating back to 1953 in the book "How to Make Money in Stocks" by WIlliam O'Neil.

Criteria:
 * C = Current quarterly earnings per share - It is recommended that earnings must be up at least 18-20%.
 * A = Annual earnings per share – The Annual earnings should show a growth trend in the last five years.
 * N = New things - Focusing on companies with newer products, management or significant new changes in industry is important. More importantly, buy stocks when they start to hit new price highs and forget cheap stocks.
 * S = Shares outstanding - This should be a small and reasonable number. CAN SLIM investors are not looking for older companies with a large capitalization.
 * L = Leaders - Buy market leaders, avoid laggards (companies that fall behind).
 * I = Institutional sponsorship - Stocks who have institutional sponsors that have better than average performance records is beneficial.
 * M = General market - The market will determine whether you win or lose. It is important to analyze the market's overall condition and where it is heading towards. Also, interpret the general market indexes and the actions of individual market leaders.

media type="youtube" key="UN1gcafGJFc?list=PL3E89865FEC90DC1B" height="315" width="560" =__** Quiz on CAN SLIM **__=
 * Advantages & Disadvantages**
 * Advantage || Disadvantage ||
 * * Minimizes loss; Can Slim allows one to cut all losses at no more than 7% or 8% below the buy point.
 * Provides solid guidelines
 * Incorporates tactics from virtually all major investment strategies || * Critics criticize for the lack of stop-loss criterion. ||
 * Video on Can Slim**
 * 1) What is the goal of Can Slim strategy?
 * 2) What do the mnemonics in CAN SLIM stand for?
 * 3) Identify one advantage and disadvantage of Can Slim.

=__** All Citations **__= http://www.chrisperruna.com/2007/05/29/can-slim-breakdown/ http://www.canslim.net/ http://wiki.mbalib.com/wiki/CANSLIM%E6%B3%95%E5%88%99 http://www.investopedia.com/terms/c/canslim.asp#axzz2LJUvFQzS http://www.youtube.com/watch?v=UN1gcafGJFc&list=PL3E89865FEC90DC1B

Keynote