Stocks with a PB < 1.5, or a multiplication with the P/E ratio of less than 22.5.
A company’s current ratio, usually required to be at least 2:1, ensures that the company has sufficient liquid assets to cover its short-term obligations.
Companies that have had a record of continuous profitability for at least the last 7 to 10 years.
Companies that have paid dividends continuously for 20 years
Current market value must not be more than 120% above book value
Long-term debt is usually required to be no more than 110% of net current assets
Strategy of choosing to enter the market when the overall market P/E ratio is low
Sample group of 10-30 stocks
Industry size, in the top 1/3 or 1/4 of the peer group
