Yield. Valuation. Fundamentals.

Buy Decision

Three Equally Balanced Factors

Yield

  • Identify a universe of stocks with appropriate yield requirement

Relative Valuation

  • Select undervalued stocks, reviewing relative valuation history of:
    • Yield
    • Price to Book
    • Price to Earnings
    • Price to Cash Flow

Fundamental Catalyst

  • Fundamental analysis to identify improving prospects

Decision

  • Establish relative price targets for stocks which meet all three criteria¬†
  • Buy stocks with expected upside two times the downside