CAN SLIM(7)

New Products, New Services, New Management, New Price Highs(1)

Explosive stock growth doesn't happen in a vacuum.

Usually, new products, new services, new management or new industry conditions propel stocks to new heights.

In its study of the greatest stock market winners, IBD discovered that more than 95% of the successes in American industry met at least one of the above criteria.

And, contrary to the beliefs of many investors, stocks that make the biggest price advances start their moves when they are already at or near new price highs.

By following the old adage, "buy low, sell high" investors would have missed out on most of the biggest stock successes in market history.