Book Review - How to Make Money in Stocks By William J.O'Neil

This is a wonderful book to start investing with and I am fortunate to read it. Below is a summary of the CANSLIM criteria.

CANSLIM

1. C = Current Quarterly Earnings Per Share
- Earnings must be at least 18-20%

2. A - Annual Earnings Per Share
- These figures should show meaningful growth for the last 5 years.

3.N = New Things
- Buy companies with new products, new management , or significant new changes in the industry conditions. Most importantly, buy stocks when they start to hit new highs prices. Forget chearp stocks they are there for a reason.

4. S = Shares Outstanding
- This should be a small and reasonable number. CANSLIM investors are not looking for older companies with large capitalization.

5.L = Leaders
- Buy market leaders, avoid laggards.

6. I = Institutional Sponsorship
- Buy stocks with at least a few institutional sponsors who have better than average recent performance record.

7.M = General Market
- The market will determine whether you win or lose so learn how to discern the market's overall direction, and interpret the general market indexes ( price and volume changes and action of the individual market leaders.