CANSLIM also acknowledges the importance of annual earnings growth. The system indicates that a company should have shown good annual growth (annual EPS) in each of the last five years.
How Much Annual Earnings Growth?
It's important that the CANSLIM investor, like the value investor, adopt the mindset that investing is the act of buying a piece of a business, becoming an owner of it. This mindset is the logic behind choosing companies with annual earnings growth within the 25-50% range. As O’Neil puts it, "who wants to own part of an establishment showing no growth"?
Sunday, November 4, 2007
A = Annual Earnings
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