William O’Neill’s CAN SLIM formula:
- C stands for Current Earnings: Current profits must surge.
- A stands for Annual Earnings: Annual profits should be stable.
- N stands for New: The company must have something new that excites the market.
- S stands for Supply and Demand: Supply and demand must be reasonable.
- L stands for Leader: The company must be a leader in its industry.
- I stands for Institutional: There must be strong backing from large funds.
- M stands for Market Direction: Favorable market trends, like rowing downstream instead of upstream.