C | Current Quarterly Earnings | A company should show increases in recent quarterly earnings per share of at least 25%. And as added later: and in many cases accelerating in recent quarters. Quarterly sales should also be up 25% or more or accelerating over prior quarters. |
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A | Annual Earnings | A company's three, four or five year annual earnings per share growth rate should exceed 25%. And as added later: Annual return on equity should be 17% or more. |
N | New Highs, New Product, New Management | Buy when a stock is hitting a new price high, and as it emerges from a period of price consolidation or base building. Look for newer companies with new products or services and improving sales. |
S | Shares Outstanding | Original: Look for companies with a total number of shares outstanding between 5 and 30 million. As later modified: Shares outstanding can be large or small, but trading volume should be big as the stock price increases. |
L | Leaders vs. Laggards | Buy top performing leading stocks in leading industry groups, and avoid laggard performers. |
I | Institutional Sponsorship | Buy stocks owned by at least one quality institution. Invest in stocks showing increasing ownership by mutual funds in recent quarters.. |
M | Market Direction | Analyze the condition of the general market daily to determine its overall trend and direction. |
http://www.investors.com/canslim/