What is the CANSLIM strategy?

CANSLIM is an investment strategy and methodology developed by William J. O'Neil, the founder of Investor's Business Daily.  The CANSLIM strategy combines fundamental and technical analysis to identify potential investment opportunities. It focuses on finding stocks with strong earnings growth, unique products or services, strong demand from investors, and overall market strength. It is a mnemonic acronym that stands for the following:

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C - Current Earnings: The company should have strong and consistent growth in earnings per share (EPS) over the past few quarters. A - Annual Earnings: Look for companies with significant annual earnings growth. Generally, a minimum annual growth rate of 25% or higher is sought. N - New Products or Services: Companies with innovative and new products or services often have an advantage in the market. Look for companies that are bringing something unique to the industry. S - Supply and Demand: Pay attention to the volume of trading in the stock. Increasing trading volume can indicate increased demand and interest from investors.

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L - Leader or Laggard: Focus on leading stocks in leading industries. These are the companies that are at the forefront of their respective sectors and are likely to outperform the market. I - Institutional Sponsorship: Look for stocks that are being accumulated by institutional investors, such as mutual funds and pension funds. Institutional buying can provide additional support and indicate confidence in the company's prospects. M - Market Direction: Finally, consider the overall market trend. CANSLIM suggests that it is easier to make money in a bull market, so it's important to assess the general direction of the stock market.

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By focusing on companies with strong earnings growth, innovative offerings, increasing trading volume, market leadership, institutional support, and a favorable market trend, the CANSLIM strategy aims to find stocks with high potential for price appreciation.  As with any investment strategy, it is recommended to complement the CANSLIM methodology with proper risk management techniques, diversification, and a long-term perspective. Luckily for you, we have windwill capital's CANSLIM-esque smallcase that is managed by SEBI-registered analysts.

CANSLIM-esque

A smallcase that is efficiently managed growing companies experiencing positive momentum, screened using CANSLIM methodology

Volatility MEDIUM

Min. Investment Amount ₹47,044

DISCLAIMER

Windmill Capital Private Limited SEBI Registration No: INH200007645 No 51, 3rd Floor, Le Parc Richmonde, Richmond Road, Shanthala Nagar, Bangalore – 560025 For detailed disclosures, please visit: https://www.smallcase.com/manager/smallcaseHQ#disclosures