How to Make Money in Stocks-William.J O'-Neill

ddharmawardhane · 1 How to Make Money in Stocks-William.J O'-Neill Sat Oct 27, 2012 10:50 pm

ddharmawardhane

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http://research.srilankaequity.com/t546-how-to-make-money-in-stocks-william-j-o-neill#630

niru · 2 Re: How to Make Money in Stocks-William.J O'-Neill Sun Oct 28, 2012 7:12 am

niru

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ddharmawardhane wrote:http://research.srilankaequity.com/t546-how-to-make-money-in-stocks-william-j-o-neill#630

Thank you for the book.

I just put a summary in this book:

This book tells you that you need to remember a phrase : C-A-N S-L-I-M

Most people seem to have as much trouble controlling weight as they
do selecting winning stocks. So each letter in the C-A-N S-L-I-M slogan
stands for one of the seven basic fundamentals of selecting outstanding
stocks.

If most successful stocks exhibit these seven common characteristics
at early emerging growth stages, these basics are worth learning. Here
is the formula. Repeat it several times until you can recall and use it easily.

C = Current quarterly earnings per share. They must be up at least 20%.

A = Annual earnings per share. They should show meaningful growth for the last five years.

N = New. Buy companies with new products, new management, or significant
new changes in their industry conditions. And most important, buy stocks
as they initially make new highs in price. (Forget cheap stocks; they are
usually cheap for a very good reason.)

S = Supply and Demand. There should be a small or reasonable number of
shares outstanding, not large capitalization, older companies. And look
for volume increases when a stock begins to move up.

L = Leaders. Buy market leaders, avoid laggards.

I = Institutional sponsorship. Buy stocks with at least a few institutional sponsors
with better than average recent performance records.

M = The general market. It will determine whether you win or lose, so learn to
interpret the daily general market indexes (price and volume changes)
and action of the individual market leaders to determine the overall market's
current direction.

niru · 3 Re: How to Make Money in Stocks-William.J O'-Neill Sun Oct 28, 2012 7:27 am

niru

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Also the following text is worth to consider

Page 81:

Ask Questions....It's Your Money

When you meet the broker recommended to you, ask how he or she
gets stock ideas and research information. Don't be afraid to ask a lot of
questions. It's your money.

You could ask about the broker's investment philosophies, beliefs,
and methods. What are two or three of the best stock market books he
or she has read? If the broker can't easily name a few, then may be you
should be a little cautious.

If the broker relies solely on his or her own firm's research department
for ideas, information, and reports, you may be better off visiting with a
few other brokerage firms before you decide where to open your account.