A message from my investment idol.

Thanks much for your email.. Appreciate it!

Criteria for choosing stock as a value investor..
For me, it will have to be companies, with good business which for whatever short-term reasons, were trading at significantly below book value.

Next, if it's a profitable company, it should be one trading at not more than 10 times PE, for small or mid cap stocks, and not more than 14 times for big cap. These have to be companies with little debts, with return on equity of above 15 per cent and return on assets of at least 10 per cent. Dividend yield at least 3 or 4 per cent. Book value not more than 1.5 times. Generating good operating cash flows.

These are some criteria off the top of my head :-)

Hooi Ling
Powered by Blogger.