Broker Check

Classic Criteria of the Value Investor

Never pay more than 60% of the Intrinsic Value

Sell when company trades at 90% of Intrinsic Value

Share repurchase plan in effect (or high insider buying)

Debt-to-equity....no more man 40%

Quick Ratio at least 1 : 1

Beta: .60 +/-

Cash on hand equal to 90% liabilities

Try to pay no more than 10 X Earnings per share

Earnings yield 50% greater than long term bond yield

Price 2/3 of Net Current Assets

Price/Earnings Ration must be 75% of the S & P or less

Price to Book Ratio . . . less then 2.0

Earnings yield 2 X AAA Bond yield

Low price-to-cash flow . . . lower than the stock’s P/E

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