Pick Stock by the method of CANSLIM

Many experts consider CANSLIM is one of the most effective methods from a variety of analytical tools currently stock. "CAN SLIM reflecting the harmony between the basic methods of analysis with technical analysis method investment securities" - John Neff, one of Wall Street's trees, said ....Many experts consider CANSLIM is one of the most effective methods from a variety of analytical tools currently stock. "CAN SLIM reflecting the harmony between the basic methods of analysis with technical analysis method investment securities" - John Neff, one of Wall Street's trees, said.
 CAN SLIM is a collection of seven letters of the first seven factors which William is very effective when value stocks:C: Current Quaterly Earnings Per Share (net income per share of the latest quarter)William noted that most of the good stocks are increasing profits over the same quarter a year earlier and higher rate of increase of stocks proved more promising. According to him, before investors purchase the shares should consider the drastic increase of stock returns, namely the growth of net income per share in last 3 months.But to find out the increase in profit where and how? William said that investors can research the financial statement audit of the company are listed, along with the exploration of other information channels such as newspapers, acquaintances ... It is important for investors to appreciate the reliability and consistency of information, makes it possible something is not right, if the company's revenue increased 20%, while net profit increased by only 5 %.A: Annual Earnings Increases (increase in annual net profit)According ONeil, good stocks are stocks with a steady increase in profits over the previous 5 years. Investors should pay special attention to the stock increases annual earnings stability and achieve over 25%, but should be sensitive to business cycles of each sector and company. According ONeil, this criteria can help you eliminate about 80% of bad stock.To get the exact increase profits, investors should study all relevant information to companies that want to invest. This information includes the history and characteristics of companies, financial situation, the details of the issuance of shares and underwriting organizations share. Investors can find this information in a statement released in the financial statements of the company or from companies investment advisory services. The investment decision should only be given when you've got enough information about base stocks as well as growth in annual net profit.N: New Products, New Management, New Highs (new products, new management, new ceiling price)William's studies indicate that stock prices will be derived from a certain internal factors. These factors are usually the company's new products, new management, new management methods or new ceiling price of the shares on the stock market.Therefore, never redundant if investors interested in this internal factors. Considering that these factors are the stability, no expression of mutations for the worse, then that would be a lot of stocks with growth prospects in the stock market.S: Supply and Demand (supply and demand)In business, the law of supply and demand are influenced greatly to production costs, and investment securities is not an exception. Stock prices are also affected by supply and demand rules. William said that stocks of public companies, large scale, product quality is not always worth buying, because the demand of large stocks, while the supply and prices are usually less was pushed up artificially, does not reflect the actual value of the stock as well as difficult large profit.The number of stocks with low circulating new market has great potential and is likely to increase prices than other stocks with large circulation numbers. It follows that, the shares are held top management with a large percentage of common shares that are highly secure. William particular attention to the company shares and stock acquisition of companies with long-term debt over equity moderate, because he is by the higher rate how many companies will increasingly have to cope with stress much interest in the future much. Investors should compare this ratio in his company plans to invest with the average debt ratio in the company in the same industry, and further analysis is likely to pay more authentic assessment of the the company's debt.L: Leader and Laggard (stocks and shares top lag)According ONeil, market investors should only buy 2 or 3 best stocks in the top group of existing shares, the rest should spend money on stocks with profitability in the future. In particular, investors should avoid buying stocks with high growth but unsustainable, such as share prices follow the trend, according to highlights ... because this stock is considered stocks lag, not sooner or later lose value.I: Institutional Sponsorship (the support of the financial institutions and investment)Financial institutions often invest here is the competent authorities, the government agency specializing in financial investment. These agencies may hold a certain number of shares of certain companies, so that the company will have the support and strong support from these agencies, a very favorable conditions for businesses, causing stock prices soared. However, a large number of financial institutions, investors holding shares becomes unfavorable factors, because it means that supply will be limited by the agencies rarely ever want to sell the stock their votes, pushing the liquidity of the stock is low.M: Market Direction (market orientation)Whether you exactly when comments on the six criteria listed above, but to market-oriented criteria for the mistake you will have to 5 out of 7 stocks you buy will lose value and can make you lose hole. Market factors is important because it strongly influences the stock price. When a batch of the same industry share a depreciating market, the stock price of the company you choose will definitely drop by. Conversely, if the stock price of these companies increased by the development of the stock market, you are also buying into a "following" there are positive indications. Thus, William emphasized the importance of the study of graph stock prices fluctuate daily, weekly and monthly before each stock investment decisions.One of the biggest successes of William is to invest in shares of pharmaceutical company Syntex. This is bold action and daring, in the judgment of the professional investors at the time, by Syntex is a pill maker in the world first. But the results have demonstrated William's decision is correct. Only a short time later, Syntex announced quarterly revenue growth of over 300% and shares of Syntex from where also "anonymous" with $ 100 / share has become growth stocks with price 550 USD / share in less than six months. Thanks to enormous profits from Syntex that William had founded the company money to William J. ONeil & Company itself.George Soros, one of the largest investors on Wall Street, to conclude that: "There is no field which offers fast and large profits by investment securities." There are plenty of people see stock investing is a game hoping to improvise a lot of money quickly. However, the field of this exciting investment seems to be no room for the emotional decision. For William ONeil, like many "trees" others on Wall Street, the stock selection decision should be based on the analysis and coordination between the elements of quantitative and qualitative terms. The key analysis in stocks is to find stocks with the biggest growth potential in the moment you buy them. In other words, you must have the judgment skills, review and analyze problems with the formulation of an appropriate investment plan to determine time of purchase in the stock up and sell weak stocks.