Canslim

We have all heard about William O'Neil's trading system. He named his selection strategy CANSLIM, an acronym of the seven required factors. He first described CANSLIM in his best-selling book: �How to Make Money in Stocks,� now in its third edition.

Basically, CANSLIM is a break out system requiring increased daily volume on the purchase date and large earnings growth combined. There are also other requirements not usually identified with momentum investing.

O�Neil�s publishes Investor�s Business Daily newspaper which is used to be essential for discovering stocks meeting the CANSLIM strategy. The newspaper is probably essential if you want to advance as a stock trader.

But you don�t necessarily have to subscribe to the newspaper to find CANSLIM stocks. Although not an exact match, you can come close using MSN�s Deluxe Screener. Harry Domash at MSN developed this screen to find stocks meeting the CANSLIM requirements O�Neil described in his book.

For those using other screens, The selection criteria are:

EPS Growth Qtr vs Qtr� >=18
EPS Growth Year vs Year >=25
Last Price >= 0.9*52 Week High
Last Price >= 0.8*5-Year High Price
Shares Outstanding <= 25,000,000
12 Month Relative Strength .= 80
% Institutional Ownership >= 5
% Institutional Ownership <= 35
12 Month EPS: Cont Ops >= 1
Latest Fiscal EPS >= 0.5
EPS Growth Qtr vs Qtr <= 500
ROE 5-Year Avg >= 5

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