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