CANSLIM Investing Strategy: All 1000% Gain Stocks Have This in Common (N in CANSLIM)

Hey, everyone! This is Richard from TraderLion, and today we're diving deep into the "N" in CANSLIM, which stands for new products, new services, new management, and new price highs. If you're not familiar with CANSLIM, it's a strategy for identifying promising growth stocks that have tremendous price potential. Each letter in CANSLIM represents a key characteristic recognized by William O'Neil, the founder of Investor's Business Daily, that many successful stocks shared before and during their major advancements.

In previous videos, we covered current quarterly earnings and annual earnings, but today, let’s focus on the exciting “N” in CANSLIM.

William O'Neil's Insights on the "N" in CANSLIM

• **95% of winning stocks:** O’Neil found that most stocks studied from 1880 to 2008 had either a new product, new management, new industry conditions, or groundbreaking technology that fueled their growth.
• **New highs signal potential:** Stocks reaching new highs, especially on high volume during a bull market, can indicate strong future performance.
• **Look for innovation:** Focus on companies with significant new products or services and those that have benefited from fresh management or improved industry conditions.
• **Track all-time highs:** Keep an eye on stocks hitting new all-time highs to reinforce their potential for growth.

In essence, when considering the "N" in CANSLIM, we should ask ourselves: Is the company currently innovating, or does it have a history of disruption?

Examples of Innovation: Companies That Changed the Game

Countless companies showcase how innovation transforms industries. Here are just a few standout examples:

A Closer Look at Specific Examples

Let’s take a more detailed look at a few pivotal innovations that exemplify the "N" in CANSLIM:

Zoom

In 2020, Zoom soared to new heights due to its superior video conferencing capabilities, despite already existing competitors like Microsoft Teams and Skype. With improved video quality, seamless screen sharing, and minimal buffering, Zoom became essential during the pandemic. Its stock price skyrocketed from under $100 to over $500 in no time!

Apple

Apple continuously leads with innovations in consumer technology. From the iPod to the iPhone, iPad, and MacBook lines, Apple showcases how ongoing R&D can lead to products that shape our daily lives while generating massive sales and profits.

AMD

Another stellar example is AMD. Under the visionary leadership of Lisa Su, AMD has transformed from a company that had seen a 95% decline from its peak to a powerhouse, climbing over 3000% due to innovative product offerings in gaming and cloud computing. This highlights how strong management can redefine a company's trajectory.

Tesla's New Price Highs

When analyzing Tesla, we see a prime example of how breaking key resistance levels can indicate the start of a significant uptrend. Following a consolidation period, Tesla's stock dramatically increased from about $8 to nearly $900 split-adjusted—an incredible journey illustrating the canny principles of CANSLIM!

Summary

In summary, the "N" in CANSLIM is a critical component for identifying winning stocks. We look for:

• New products
• New services
• New management
• New price highs

These elements have consistently been present in the greatest stock market successes throughout history. I hope you enjoyed this exploration into the "N" in CANSLIM. If you found this video helpful, please give it a thumbs up and subscribe if you're new to the channel. Stay tuned for more insights in future videos!