A Contemporary Approach for Stock Screening Using Fundamental Methods:
1. Select those stocks with Value Line Timeliness ratings of 1 or 2 and Safety ratings of 1or 2.
2. Select companies with a franchise product or service.
3. Select companies with a long-term record and high prospects for
continued growth well into the future. Look for regional or
international expansion to maintain their growth.
4. Look for a company with relatively low risk. A beta of no more
than 1.05; a capital structure with less than 1/3 debt. Check the value line in relation to price fluctuations. Find a company with low capital expenditures, this eliminates the costly potential of retooling every 5 to 8 years.