The MAGNET approach has been termed “CAN SLIM at a reasonable price.” The CAN SLIM approach is based on William O’Neil’s analysis of the 500 companies with the biggest price increases between 1953 and 1993. O’Neil quantified the characteristics of these stocks to form the CAN SLIM approach, which focuses primarily on earnings and price momentum. MAGNET does hold some similarities with William O’Neil’s CAN SLIM approach. However, MAGNET adds a value emphasis as well as a focus on revenue growth instead of earnings growth.
Kimmel outlined the MAGNET Stock Selection Process in his book “Magnet Investing,” (Next Decade, Inc., 2000) which is currently in its second edition. This book served as the foundation for this article.
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