All of us have to admit one thing that picking stocks with growing capacity are turning difficult. There is always a tug of war between fundamental and technical analysis. Many of the investors could not choose one route of analysis between the two. Therefore, they can’t utilize both of the analytical paths together. In today’s topic, we will guide you to use the two together, the system is called CAN SLIM Investing System. The model was developed by the founder and chairman of Investor’s Business Daily, Willian J. O’Neil. One of the main objectives of the strategy is to identify companies with strong fundamentals and positive market trends. The article will reflect Can Slim Investing System Review and Results in India.
Can Slim Investing System Review
The term CAN SLIM is mainly an acronym which represents seven characteristics which are as follows:
- Current Quarterly Earnings
- Annual Earnings Growth
- New Product or Service
- Supply and Demand
- Leader or Laggard
- Institutional Sponsorship
- Market DIrection
Current Quarterly Earnings
In CAN SLIM, C stands for Current Quarterly Earnings. When the current earning of a company is 25% up in the most recent financial quarter in comparison to the same quarter in the previous year, this refers to as Current Quarterly Earnings.
Annual Earnings Growth
Here, A stands for Annual Earnings Growth. This Annual Earnings Growth should be up to minimum 25% or more over the last three years and Annual returns on equity are 17% or more.
New Product, Service, Management or Price High
N refers New Product or Service. That means a company should continue development and innovations. Innovative companies always have a strong possibility of growth in the future.
Supply and Demand
S is for Supply and Demand. Most of the investors demand a limited supply of shares. Try to find out heavy-volume accumulation by institutional investors, basically at the buy points.
Leader or Laggard
Investors are generally looking to buying leading stocks in leading industry groups. If they want to look for the best of the best, they must choose the efficient leadership.
Variety of the Professional investors, such as pension fund, mutual fund, account for about 75% of all market activity.
Many of the famous stock analysts show 3 out of 4 stocks follow the market’s trend. Hence, it is advisable to trade in sync with the market.
The particular system can slim investing system review is accurate to identify a good stock.