Has anyone utilized the CAN SLIM approach?

CAN SLIM is a popular investment strategy developed by William J. O’Neil, founder of Investor’s Business Daily. It is designed to identify growth stocks with the potential for significant price appreciation. The acronym CAN SLIM stands for:
C – Current quarterly earnings per share: Look for substantial increases in earnings per share, usually at least 25%-50% higher than the same quarter the previous year.
A – Annual earnings growth: Seek companies with strong annual earnings growth over the last three to five years, ideally 25% or more, with a consistent upward trend.
N – New product, service, or management (or new highs): Focus on companies that have recently launched innovative products or services, experienced successful management changes, or hit new stock price highs.
S – Supply and demand: Evaluate the supply and demand dynamics of the stock. This includes the number of shares outstanding (a lower number is often better) and the trading volume. Strong demand can drive the stock price higher.
L – Leader or laggard: Determine if the stock is a leader in its industry, as leading stocks tend to outperform others. You can check this by using relative strength rankings.
I – Institutional ownership: Analyze the extent of institutional ownership in the stock. While significant institutional investment can signal confidence in the stock, too much ownership can also lead to volatility if large shareholders decide to sell.
M – Market direction: Consider the overall direction of the stock market. Even fundamentally strong stocks can struggle in a downward-trending market. Use market indexes and general economic indicators to assess the market mood.

The CAN SLIM strategy is primarily used by growth investors who are focused on identifying stocks with high potential. It involves fundamental analysis but also considers some technical factors, such as market direction and stock price trends. Investors following CAN SLIM should be prepared to act decisively, as the approach often requires timely buying and selling to capture potential gains effectively.