Saturday, January 30, 2010

The "I" in CANSLIM

     The "I" in CANSLIM stands for Institutional sponsorship. You want to pick stocks that have an increasing amount of Institutions - such as mutual funds - buying the stock. You should pick stocks that have at least three Institutional purchasers. The more the better. You can run a stock checkup on ibd's site to find the latest percentage change in funds owning a stock, and consecutive quarters of increasing fund ownership. The stock checkup will give you either pass or fail grade for each. If a stock has no professional sponsorship, stock price increases will more than likely be small.

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