CANSLIM is an acronym for an investment strategy based upon claimed common characteristics shared by best-performing stocks. The goal of the strategy is to discover leading stocks before they make major price advances. These pre-advance periods are "buy points" that are emerging from price consolidation areas (or "bases") of at least 7 weeks on weekly price charts. Each letter in CANSLIM stands for common characteristics which are claimed found in the greatest stock market leaders over the past 50 years: C = Current earnings per share; A = Annual earnings; N = New; S = Shares of common stock Outstanding; L = Leader or laggard?; I = Institutional sponsorship; M = Market trends and market indices. CANSLIM strategy is not "momentum investing", but that the system identifies companies with strong fundamentals--big sales and earnings increases which is a result of unique new products or services--and encourages buying their stock when they emerge from price consolidation periods (or "bases") and before they advance dramatically in price.

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