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