C Current Quarterly Earnings A company should show increases in recent quarterly earnings per share of at least 25%.  And as added later: and in many cases accelerating in recent quarters. Quarterly sales should also be up 25% or more or accelerating over prior quarters.
A Annual Earnings A company's three, four or five year annual earnings per share growth rate should exceed 25%.  And as added later: Annual return on equity should be 17% or more.
N New Highs, New Product, New Management Buy when a stock is hitting a new price high, and as it emerges from a period of price consolidation or base building. Look for newer companies with new products or services and improving sales.
S Shares Outstanding Original: Look for companies with a total number of shares outstanding between 5 and 30 million. As later modified:  Shares outstanding can be large or small, but trading volume should be big as the stock price increases.
L Leaders vs. Laggards Buy top performing leading stocks in leading industry groups, and avoid laggard performers.
I Institutional Sponsorship Buy stocks owned by at least one quality institution. Invest in stocks showing increasing ownership by mutual funds in recent quarters..
M Market Direction Analyze the condition of the general market daily to determine its overall trend and direction.

 

 

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