Revisiting a Favorite Strategy

Coming into this new year, I plan to buy only the cheapest of the cheap stocks with a few domestic banks, some international banks, U.S. shopping centers and hotels on the sheets. Last week, I discussed some of the stocks I want to short as the market rises in order to capitalize on an opportunity to exploit the volatility I am anticipating this year.

The flip side of the volatility is that at some point we will see the type of selling that allows us to establish long positions in stocks that fit the profile of deep-value asset-based investing. With that in mind, I am running those screens that have been the most successful in the past in search of ideas and candidates to buy when this happens. The first screen is my core screen based on the investment style of legendary asset-based value investor Walter Schloss. The screen looks for stocks that trade below tangible book value, have low levels of debt and enough insider ownership to put us all on the same side of the table. This screen has been my single best source of profitable ideas for many years now....480 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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