march09,in the case of a merged asl/bdl, the fact that the...

march09,


in the case of a merged asl/bdl, the fact that the merged company value is near nta signals that it is undervalued, esp given growth potential.

i invest based on value, nta is just one thing that i look at. typically i screen for co's with

1. Share price of no more than two-thirds of intrinsic worth.
2. P/E ratios at the lowest 20% of equity securities.
3. PEG of less than one.
4. stock price less than tangible book value.
5. D/E ratio < 1
6. Current assets of two times current liabilities.
7. Earnings growth of at least 7% per annum compounded over the last 10 years.

then i consider other factors. of course, these are not hard and fast rules. a conservative approach yes, but it suits me personally and using this approach has provided good returns over time.

cheers