Prof. Tyler yamazaki

 
CAN SLIM
CAN SLIM is an acronym that stands for Current quarterly earnings,
Annual earnings growth, new product, service, management, or high price,
supply and demand, Leader or Laggard, Institutional sponsorship, and

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Market direction. According to this strategy, by simply looking at these
factors, you can pinpoint the best stocks to invest in.
So, how do you apply this strategy? The first step is for you to identify
stocks that have a quarterly earnings increase rate of at least 25%. Since
you also need to be particular with the growth of the company for a long
term, you should also consider the annual earnings growth of the company.
This strategy recommends that you should look for a company that has 25%
annual earnings growth (minimum) for the past five years. You should also
keep watch of companies that offer something that is new to the market.
Studies show that one of the common characteristics of the best stocks
performers is that their companies have something new to offer to the
market. You should also pay attention to the rule of supply and demand. If a
limited product has a high demand, then the effect is that its price will
increase. In business, this rule of supply and demand is always present. The
next thing that you need to identify is where the stocks are coming from. Is
the company considered a leader in the industry or a laggard? Of course,
your aim is to get your stocks from a leader. Therefore, when you use this
strategy, only get your stocks from reliable and well-established companies.
This does not mean that you should completely ignore new companies.
After all, there are a good number of start-up companies that have a
potential to make it big in the market. Many activities in the stock market
also come from mutual funds and pensions, so also keep your eye on
institutional sponsorship. Lastly, keep your eye on the market trend. If you
can read the trend and take advantage of it just before it changes, then you
can turn it into a goldmine for profit.