going long in winmar

Just advising I'm going long in WFE. My philosophy is to seek out the sector worst impacted by the market, sentiment, cycle and then make a call as to a turning point, then go long. I did this with US banks in 2011 and am up 150% on Bank America (BAC).

In Australia, I think the sector worst impact is small resources, speculative end, and then iron ore more particularly. Within that sector I have been looking for:

1. The lowest market caps to get value;
2. The lowest share price to get leverage, i.e. a big line of stock very cheaply;
3. The stock with quality backers/management team with a big position in the stock;
4. The quality of the resource(s) and/or tenement(s) held.

This filtering process has thrown up WFE, based on:

1. Market cap is <$5m;
2. Share price range last month of 1c to 2c;
3. Backers include brand name guys who have set up good performers before and hold a lot of stock;
4. Substantial iron ore resource, open at strike, in the Pilbara and adjacent to (by this I mean within 40kms of) FMG's rail line.

Just my personal view that a rising tide of interest based on low interest rates and an emerging residential property boom will lead to these little resource stocks moving materially higher over the next 12 months.